How To Buy Bitcoin In 2021 (& Store It Safely)

so in this video today we're going to be doing an in-depth tutorial on how to purchase Bitcoin in 2020 so what I'm going to do for you guys is I'm actually going to walk you through step by step how I purchased my Bitcoin how I store it safely and I'm going to be purchasing one thousand dollars worth of Bitcoin live in this video for you and then transferring it over to my Hardware wallet and I'm going to show you guys how to do this step by step as well as how you can get ten dollars of Bitcoin completely free with the link down in the description below so a lot of people are interested in purchasing Bitcoin right now and I think that's for a couple of different reasons first of all we had the Bitcoin having earlier in May which cut the new supply of Bitcoin by 50% second of all we have the Federal Reserve essentially becoming a money printing machine printing out stimulus checks and all this federal assistance and it's making people worried about inflation and so people are looking for a hard asset in which Bitcoin is a perfect solution because you can't simply create or print more of this cryptocurrency so everyone has their own reason for why they want to purchase Bitcoin and if you want to share it with us go ahead and drop it down in the comment section below but regardless of why you want to purchase it I'm gonna show you how I do it and why I recommend following this strategy now first of all I just want to address something real quick here because I've been making YouTube videos about investing for the last four years or so and back in 2017 I was actually quite outspoken about Bitcoin and I was against it as an investment I said it was something I would never personally put my money into well clearly I have changed that opinion largely and I have a good amount of money currently invested in Bitcoin and the main reason why I changed my mind about Bitcoin is because after that bubble burst in 2017 I honestly expected Bitcoin to become worthless but you know what it didn't it ended up stabilizing and then began appreciating in value again and in that time line I began learning more and more about Bitcoin and I read one book in particular called the Bitcoin standard which I highly recommend to anybody out there with large sums of money invested in cryptocurrency for those who are considering this as an investment I did the audio book but you can also read it in paper if you want I'll toss a link to that book down in the description as well but that book totally changed my mind and perspective on Bitcoin as an investment so how exactly do you go out there and buy Bitcoin well it's a little bit more complicated than going out there and buying stocks for example so what I want to share with you guys first of all is how not to purchase Bitcoin and unfortunately that is through the free trading app Robinhood now full transparency here guys I do like Robin Hood I have tens of thousands of dollars of my own money invested through that app and a couple of different ones out there and I think it's a phenomenal platform for stock trading ETF trading and options trading all commission-free however I do not personally use it for crypto currency trading and I don't recommend it even though it's Commission free and that is for this reason right here that is because you cannot send your crypto currency or receive crypto currency to or from your Robin Hood account so if you own a lot of Bitcoin within Robin Hood and let's say you want to send that to somebody else's wallet you are unable to do so within the Robin Hood app you would first have to sell it convert it to US dollar take that money out of your account and then send it to somebody else which essentially defeats the entire process of an anonymous cryptocurrency now why is it such a big deal about being able to transfer your Bitcoin or cryptocurrency out of your exchange well that is because holding Bitcoin or any cryptocurrency within the exchange is proven to be a very dangerous activity and that is because there is no type of federal insurance against your cryptocurrency being stolen or compromised and we have seen many cases in the past where there have been massive breaches of these cryptocurrency exchanges where millions of dollars were lost now with the stock market when you buy stocks and ETFs and things like that you are covered under a type of insurance called s IPC which covers you for a certain dollar amount in cash as well as in assets in case your brokerage goes insolvent or loses your stocks or anything like that so you are federally insured for hundreds of thousands of dollars that is why it is safe to have your stocks within a stock brokerage not to mention it is not anonymous and all of your personal information is associated with that account with cryptocurrency number one it's totally anonymous when you send money from one wallet to another it's not me sending that money to my friend it's this wallet address sending it to that wallet address and it's totally anonymous and not tied to that specific person so unfortunately since there is no type of federal insurance in place for cryptocurrency and due to the anonymity of the transactions there is a very high threat here for theft and crime associated with cryptocurrency so for example here guys back in 2018 coin check lost five hundred twenty three million dollars worth of cryptocurrency during an attack on the exchange and last year a popular crypto currency trading app called by Nance lost forty million dollars worth of Bitcoin involved in a breach and unfortunately if you held your cryptocurrency in that exchange and it was stolen during a breach unless that exchange had a private insurance policy you are out of the money and you lost your cryptocurrency and there's nothing that you can do now the solution to this is actually pretty simple you buy something called a hardware wallet which allows you to store your cryptocurrency out of the exchange and store it offline and I'm going to show you guys exactly where to purchase this and how it works later in the video but you basically buy your Bitcoin from an exchange send it to your Hardware wallet and then store it safely offline that way you are not storing Bitcoin in an exchange which has proven to be a risky activity in the past now Robinhood does have insurance against the theft of the Bitcoin in cryptocurrency held within their exchange and they also do store the majority of that cryptocurrency offline in hardware wallets however in my personal opinion I feel a lot safer knowing that my Bitcoin is in my Hardware wallet stored offline rather than relying on any exchange service out there but you can use your own discretion in making that decision so that being said here's how you do buy Bitcoin in my opinion as well as my experience first of all you need to find an exchange out there that charges reasonable fees and also allows you to send and receive Bitcoin from and to other wallets out there and in my opinion as well as my experience the best exchange out there for this is coin base and this is how I purchase my cryptocurrency and then like I said I send it over to my Hardware wallet to store offline now coin base is a very reputable exchange they have served over 30 million different customers and transacted over a hundred fifty billion dollars worth of cryptocurrency and the best part is they support over 30 different countries so if you're not from the United States you may still be able to purchase cryptocurrency with your local fiat currency now the minimum to purchase any cryptocurrency through coin base is just $2 but I'm going to tell you about a really great offer right now where you're going to be able to get $10 worth of free Bitcoin and here's how that works go ahead and click the link down in the description below and if you use that link when you sign up when you make the initial purchase of $100 or more of any cryptocurrency on the site you're going to get 10 bucks worth of Bitcoin for free and full transparency guides I will also get $10 of Bitcoin for free so if you feel like using that link and getting that free Bitcoin and supporting me from making this video that's gonna be down in the description below all right so now I'm gonna open up the coinbase app on my phone we're gonna go ahead and purchase $1,000 worth of Bitcoin live and then I'm going to send it over to my Hardware wallet and show you guys what the entire process looks like all right guys so here we are inside of my coin based app as you can see my portfolio balance is $1,100 but that is because I keep my Bitcoin in my Hardware wallet not within my exchange if we click on my portfolio here it's going to show that I have $1,000 sitting there in cash and I do have $100 in Bitcoin that I earned from my referral link by basically referring people to this app then we both get 10 bucks worth of free Bitcoin so what I'm going to do now I'm gonna hit the home button and then I'm going to click on Bitcoin and it shows right here that I have $100 in my wallet and you can also look at the price chart here to see what the performance of Bitcoin has been so it actually cooled off a little bit here after the Bitcoin having which was very exciting for a lot of investors so we're gonna go ahead and transact here and purchase $1,000 worth so what we do we hit the trade button and then we're going to hit bye and at that point I set the amount of money that I want to put into Bitcoin we are going to have to pay some small fees but I'll show you guys what that looks like so for now let's go ahead and put $1,000 and then click preview Buy and so this screen here shows us how much we are going to be able to purchase of the Bitcoin as well as the current price and what we're going to pay in fees now for a larger purchase like this the fee is around 1.5 percent but for smaller purchases the fees vary I'll go put that fee schedule up on the screen right now just so you guys can see but with the larger purchase it's a fee of about 1.5 percent for US dollar it may be different for your local currency outside of the US but what we're gonna do now is hit by now and we just purchased the Bitcoin it is literally that easy so now as you can see I have three dollars and eleven cents us and one thousand eighty dollars and seventy nine cents in my Bitcoin account after paying that small fee of around fifteen dollars so now we're gonna jump over to my computer and I'm going to transfer this money over to my hardware wallet alright guys so here we are at my desk I've got my ledger nan OS I'm going to go ahead and open it up for you and we're going to attach it to my computer and I bought this right on Amazon I will include a link down below if you want to purchase this hardware wallet yourself honestly I would recommend it for anybody who has $500 or more invested in cryptocurrency because as we said you do not want to keep your cryptocurrency in the exchange so we pop this off here and then we are going to attach this to my computer now it's very important to understand that when you use a hardware wallet you are the only person that has access to this cryptocurrency for good or for bad and what I mean by that is if you forget your password or your passcode to get into your Hardware wallet you do have this sheet right here which is your recovery phrase it's 24 words that you can use to recover your account so if you get locked out of your wallet or you lose your wallet you can use this sheet to get access however if you lose your recovery sheet and you don't remember your password you will never be able to access your cryptocurrency because there's no what nobody who has access to it you are the only person with access because you're storing it offline so you want to be very careful about your recovery sheet and keep in mind what your passcode is that way you do not lose access to your cryptocurrency alright so once you plug your ledger into your computer you're going to enter the passcode that you set up and obviously guys you keep this private and you don't share this with anyone and then you're going to simply select the wallet you are looking to open so in this case I want to open my Bitcoin wallet over here on my desktop computer so now I'm opening up the ledger live app which is going to give me access to my cryptocurrency and this right here is my cryptocurrency portfolio so as you can see down to your the majority of my money is allocated into Bitcoin actually 96% I have a little tiny bit amount of money here in aetherium and a small amount of money in litecoin but my total Bitcoin portfolio is six thousand five hundred dollars and now we're going to transfer in another one thousand dollars that we just purchased now I actually have one point for Bitcoin in this portfolio which is obviously worth more than that six thousand dollars I believe what they're trying to do there is calculate your cost basis for you but I actually recommend keeping track of this yourself separately by logging every Bitcoin purchase that you make in a spreadsheet and I'll show you what mine looks like shortly but what we're gonna do now is transfer my new Bitcoin purchase into this portfolio alright so I set my wallet up here to receive and now it is showing me the QR code that I now have to scan using the coin base app so I'm gonna go ahead and open that up now and so what I'm gonna do here is click on my Bitcoin wallet and then I'm gonna click on the send button in the top right corner and then enter the amount that I want to send and right now I could only send up to three hundred thirty two dollars based on the fact that the amount of money I deposited from my bank account hasn't settled yet so I'm gonna click on the send all button and then I'm going to click on continue now at this point I click on this button and I simply scan my QR code which is going to allow me to send this money to my wallet and then I'm going to click preview and then I'm simply going to click send now and you are paying a very small Network fee which is not passed along to coinbase so I'm gonna click send now and that money should be over in my account very shortly alright guys so that transfer just completed it took about five minutes and as you can see up here you can see this little blip where my total Bitcoin went up that was the new Bitcoin that has been added to my wallet from coinbase I actually realized to why that number was lower because it hadn't synchronized my data based on the current value of Bitcoin so I just clicked the synchronized button up at the top right and it updated my portfolio which now shows that it is worth thirteen thousand seven hundred fifty-six dollars and twenty one cents now the last thing I want to talk about briefly here is keeping track of your Bitcoin and cryptocurrency transactions in order to keep track of your cost basis because the problem with Bitcoin is that since you can send and receive Bitcoin in and out of your account it's impossible for an exchange to keep track of your cost basis or the average price paid per Bitcoin and where this becomes a problem is when you eventually sell your Bitcoin down the road for a profit because you have to determine what you paid for the Bitcoin what you sold it for and in between is your profit what which is what you pay taxes on so what I recommend doing is every time you purchase Bitcoin in a spreadsheet you're going to want to log this information what you paid for Bitcoin how much that was total how much Bitcoin you purchased and this is going to be used to determine your cost basis and so that's exactly what I've done here with this spreadsheet is every time I've purchased Bitcoin I log it in my spreadsheet and this tells me exactly what my cost basis is so I currently own just over one point five Bitcoin and my cost basis is seven thousand one hundred ninety-six per coin so I've basically spent a total of ten thousand eight hundred $38.52 on Bitcoin so right now we know Bitcoin is worth around nine thousand my portfolio was worth around fourteen thousand so if I were to sell that right now I've made about three grand and that is what I would pay taxes on but you need to retain this data for the IRS to prove what you purchased your Bitcoin for all right guys so anyways that is how I purchase Bitcoin and how I recommend buying it in 2020 if you guys want to grab that $10 of free Bitcoin that's the top link in the description use that link and purchase $100 of any crypto currency on coin base and we both get $10 of free Bitcoin if you enjoyed this video please drop a like and comment down below why are you purchasing Bitcoin what is your reason for buying it right now I would love to hear what you guys think I've also included a link to that book called the Bitcoin standard highly recommended for anybody who is serious about learning about this currency as an investment or using it for general purposes for its given use case and lastly guys if you want to grab that hardware wallet I bought it right on Amazon and there's an affiliate link for that down below if you want to support the channel but thanks so much for watching guys I hope you enjoyed this video and I will see you in the next one

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