In the first part of the training, you learned about the most important functions and features of cryptocurrencies and learned in what environment they operate. After a short introduction, it is time to get to action and start investing.
In Part II, we will help you understand how to buy your first Bitcoin safely. We will show you the places where it is best to do it and how to transfer to a previously created private wallet.
Creating the first cryptocurrency wallet
Nowadays, each of us carries a wallet in his pants pocket, purse or backpack. He holds payment cards, paper money or coins in the appropriate compartments. Usually when choosing a wallet, we focus only on its appearance and quality. Is this also the case with cryptocurrencies?
Unfortunately, here the matter is much more difficult, because the most important thing we should pay attention to is the level of security that the given wallet has and the convenience of using it.
We can divide cryptocurrency wallets (wallets) into several types:
- mobile - they allow the use of funds accumulated in cryptocurrencies using cell phones and other mobile devices. Their great advantage is mobility and the ability to pay directly with cryptocurrencies in public places. These wallets do not require large hardware resources, because the entire cryptocurrency blockchain system is stored on an external data server,
- computer - which can be divided into two types: - light wallets - which work in a very similar way to mobile wallets - so that they don't require significantly extended, but thanks to that they are equipped with a very high level of security,
- hardware - external USB devices. They are mobile and have a high level of security. Private keys are stored outside the network (offline) and can also be password protected so that even if it is lost by us, all funds will still be secure. Popular hardware wallets are, for example, Ledger Nano S and Trezor,
- browser - they operate via external websites providing portfolio creation services. To use them, all you need is any device with internet access. The biggest drawback we can mention here is very limited security, because it completely depends on the service that protects our wallet. That's why browser wallets are not recommended by us,
- paper - wallet private key saved on a piece of paper or remembered,
Each of these wallets definitely has its pros and cons, but no matter which difference you choose, the most important thing you should do is back up your entire wallet. This involves saving the private key or individual string of characters used to restore the wallet - seed. If we skip this step and decide not to back up, if we lose or lose access to the wallet, we will not be able to prevent the loss of our funds.
Now that we know what wallets are and how to distinguish them, we can start our first wallet.
We will create this wallet using the Jaxx Liberty application - a wallet where you can store not only Bitcoin, but also such currencies as Ethereum, Ethereum Classic, Litecoin, Bitcoin Cash, Dash or Zcash. This wallet exists in both the computer version and the mobile application, thanks to which we can dispose of our funds directly from the computer and use it as a mobile application. At this address you can download your wallet - www.jaxx.io.
Creating a portfolio
- We open the Jaxx Liberty application.
- Click "Create New Wallet". ![bitcoin] (https://cms.trqpro.pl/uploads/6d263b58a64f45d6907c9e7a30b63e8e.png)
- We read the regulations and approve reading them. ![bitcoin] (https://cms.trqpro.pl/uploads/4feb0e73784e48a38fbeef8272074e37.png)
- After a moment we will see a welcome screen with information about the creator of the portfolio - click "Continue". ![bitcoin] (https://cms.trqpro.pl/uploads/bdeb68b0853a43e69ac6fdc722e9e089.png)
- Our wallet is ready. ![bitcoin] (https://cms.trqpro.pl/uploads/38d06d537bb146278ef2c706c979008c.png)
**A complete description and instructions on this wallet can be found at:
Jaxx wallet description
In the Wallets section you will also find complete instructions describing other wallets;)**
Purchase of BTC in an exchange office
Now that we have our own private wallet, it's time to buy our first cryptocurrency - Bitcoin. The whole operation will be done using the 4coins.pl website offering quick purchase and sale of such currencies as Bitcoin or Bitcoin Cash.
This exchange office is extremely intuitive and easy to use, and the purchase of cryptocurrencies can be made by bank transfer or instant transfer, using the largest banks in the country. As a rule, after buying cryptocurrencies, they are available in our account after a while. We can also immediately execute a crypto withdrawal request for our private wallet. It is worth noting that currently the site 4coins charges 2% commission on each amount we pay.
Let's see how it is done:
- Go to the website www.4coins.pl. ![4coins] (https://cms.trqpro.pl/uploads/219a627e903646e9aefb6896aed9a8ea.png)
- Enter the amount for which you want to buy BTC - in this example PLN 500, and our email address. ![4coins] (https://cms.trqpro.pl/uploads/134a24fb7fc14333bde24b5e6adfac50.png)
- We provide your name and tick all statements. ![4coins] (https://cms.trqpro.pl/uploads/3161c90a4d6f4b29a08df32efa291594.png)
- Our order has been accepted and further instructions have been sent to the e-mail address provided by us. ![4coins] (https://cms.trqpro.pl/uploads/bfab24073e7048de877555721fae6e20.png)
- Open the email from 4coins.pl and click on the link there. ![4coins] (https://cms.trqpro.pl/uploads/0f2118afcce64d279af27c31816e34a5.png)
- We get to the page where the wallet address should be provided, where the purchased cryptocurrencies are to be sent. Here, too, choose the payment method that suits you. ![4coins] (https://cms.trqpro.pl/uploads/1fe35b5351f046b7aeadd338153e61f8.png)
- In the next step, we must return to our wallet to get the address to which we will send the BTC purchased from the exchange office. We open our application and click on the BTC wallet. ![4coins] (https://cms.trqpro.pl/uploads/4cc31fbc4eb34c0cb30d690e618cb156.png)
- On the next screen click "Receive". ![4coins] (https://cms.trqpro.pl/uploads/9341edada7204bb4ae9a739eb91e86a2.png)
- We copy our wallet address - "Copy address". ![4coins] (https://cms.trqpro.pl/uploads/fc84508482d64a4987fbd583c95f011c.png)
- We paste the address of our wallet - of course, checking if the pasted address matches the address of the wallet!
- We choose the payment method. ![4coins] (https://cms.trqpro.pl/uploads/207ac688c5a745f4a6993b2f2c203437.png)
After all these steps, we have already become the owners of our first Bitcoin - usually after a few minutes it should be on our wallet, to which we decided to send it.
A complete description and instructions on this currency exchange can be found at: Description of the 4coins.pl exchange office In the section * Exchange offices * you will also find complete instructions describing other cryptocurrency exchanges;)
Creating an account on the stock exchange
After purchasing our first Bitcoin (or part of it), we must decide whether we invest only in this one cryptocurrency and store it until we achieve the profit we are interested in, or if we are interested in multiplying its amount by trading altcoins.
In the case of Bitcoin storage, the situation is quite simple - just buy it and wait for it to reach the price that satisfies us. However, if we want to multiply the amount of Bitcoin we have, we must decide to trade - entering our cryptocurrency on the stock exchange. We can multiply Bitcoins by trading altcoins, or playing on the stock exchange offering cryptocurrency derivatives - e.g. Bitmex or Deribit. In this chapter, however, we will deal with trading altcoins.
Let's check how to start trading on the most popular cryptocurrency exchange - Binance.
Creating a new account
- We start from entering www.binance.com
- Enter your e-mail address and enter the password we invented twice. Then select the statement that you have read the Terms and Conditions of Use.
- We will receive a message with a verification link to the address provided. Click it to activate our account.
- Our account is already active - now we must log in.
- When logging in for the first time, important security information that we will need to show up will appear
- In the next step, you'll be asked to turn on 2-step verification (2FA). We can choose the mobile application, SMS codes, or temporarily skip this step. For security or forced reasons, we'll activate two-step verification. In this example we will use the application for 2FA codes. Click "2FA code".
- If we do not yet have the appropriate application installed on our smartphone, we choose one of the available options and install. Once we have the application, we move on by clicking "Next step".
- Now we have to open the application generating 2FA codes and scan the QR code displayed on the Binance page or enter the code.
- In the next step, you should rewrite and secure the displayed code. This is a fairly important point, because only with this code will we be able to access 2FA codes on a new device (e.g. after losing the previous one).
- Then, to activate this security method, enter our password and the current code displayed by the application.
*Binance attaches great importance to security and pays attention to these aspects of its users while offering several additional solutions.
Learn more about Binance
You should also read security article in which we discuss security methods and good practices. This is an extremely important issue, especially in the context of cryptocurrencies.*
BTC transfer from the wallet to the stock exchange After creating your account on the Binance exchange we are ready to start your adventure with trading. Let's remember one thing - prices of altcoins on a daily basis may have very large fluctuations! Therefore, before we decide to exchange our Bitcoin for any smaller currency, let's think a few times whether it is a good time to invest.
To make any purchase on the stock exchange, we must deposit the cryptocurrency we own, e.g. BTC, into it. To do this, we need to get the address of our portfolio on the stock exchange.
Click Funds -> Payments in the menu.
Enter "BTC" and click "Enter". Our portfolio data will appear. We copy the payment address.
- Now we have to go back to Jaxx. We choose BTC wallet.
- Click "Send".
- In the first field, paste the address of our wallet on the Binance exchange, then enter the amount you want to send and confirm by clicking "send". ! [Transfer] (https://cms.trqpro.pl/uploads/fce12119991b4c319f49070658c689db.png)