Get Bitcoin




HOW TO GET YOUR BITCOIN



Bitcoin Exchanges

A service typically in the form of a website where users buy, sell and trade bitcoin. Exchanges determine the market price of Bitcoin through buy and sell orders. An exchange allows you to deposit or withdraw fiat and bitcoin. Most exchanges require KYC meaning you need to submit ID documents.

*Warning: Exchanges are not wallets or banks. It is recommended that you withdraw all bitcoin to your wallet as soon as possible.



Apps

Cash App [USD]: Android, Apple
Gemini [USD]: Android, Apple
Shakepay [CAD]: Android, Apple

Popular International Centralized Custodial Exchanges

Bitstamp
Kraken
Gemini
Bitmex
Bitfinex
BullBitcoin [CAD]

Comprehensive Exchange Lists: From Bitcoin.org, From Bitcoinity.org

Popular Non-Custodial Exchanges

Bisq [decentralized exchange]
Hodl Hodl [multisig contract exchange]

OTC (Over-the-Counter)

LocalBitcoins [OTC exchange]
Kraken [OTC exchange]
itBit [OTC exchange]

Tips

1. You can buy a fraction of a bitcoin. The smallest unit you can purchase is 0.00000001 bitcoin. You can purchase $5 worth of bitcoin if you want.

2. Exchanges are NOT wallets – NEVER store bitcoin on an exchange for longer than you need to. Your bitcoin will be permanently gone if the exchange is hacked, seized or compromised in any way. This has happened in the past. I would avoid storing fiat on an exchange for longer than you need as well.

3. Do NOT FOMO (Fear of missing out) buy in.

4. Do not purchase more than you can afford to lose.

5. Stick with a well known and established exchange for short term deposits/trades you should be fine for short-term use of the exchange.

Pros

1. Buy and sell bitcoin anywhere in the world with an internet connection on your computer, phone or tablet.

Cons

1. Once you deposit your bitcoin onto the exchange, the bitcoin is no longer yours and you risk losing them in the event of a hack, seizure, inside job, etc.
2. Most exchanges require submission of some personal and banking information for regulation purposes.
3. Initial verification process can take days to complete or longer – especially during bull markets.
4. Susceptible to hacks, government seizures and inside jobs. 5. Exchange fees.
6. Transferring funds to your exchange account from a bank can take days and can be costly.
7. “Cashing out” means you need to pay capital gains on any profits according to your local laws.

Recommendations

1. Great for short-term buying and selling.
2. DO NOT use an exchange as a Bitcoin wallet. Withdraw your bitcoin IMMEDIATELY after purchase.
3. Activate any additional security features offered by the service such as two-factor authentication.

Become A Bitcoin Merchant

You can accept bitcoin for your services or goods either through your own setup (options range from super simple to more advanced) or through a company that provides a bitcoin payment processor.


Simple Methods Of Accepting Bitcoin

1. Provide a bitcoin address to receive payments. A user will copy and paste the address into their wallet to send payments to.
Example: 35JZ72myPm2HUNLHq2ozA6Z2dvbmSCFV3W

2. Provide a QR-code that a camera can scan to automatically fill in the bitcoin address into the customer’s “send” field of their wallet. QR-codes can also auto-fill a specified bitcoin amount.
Example:



More Advanced Methods Of Accepting Bitcoin

1. Be your own soverign bitcoin payment processor. Set up a free open-source bitcoin payment processor server called BTCPay for online websites and in-store payments.
1. BTCPay Video Guides 2. BTCPay Guides


Popular 3rd Party Bitcoin Payment Processors

OpenNode Coingate Shopify bitcoinpay GoCoin GoUrl


Bitcoin Payment Processors To Avoid

BitPay (Reasons: History of making poor decisions, company is led by bad actors and their payment system is confusing, inconvenient and not compatible with most wallets)

Things To Look Out For

1. Do your due diligence and research the payment processors you may want to use.
2. Almost all bitcoin payment processors enable acceptance of other useless tokens that most people do not know, understand or will ever use. In the off chance you receive one of the useless tokens, I recommend converting them to bitcoin or fiat immediately.
3. If you are not tech savvy and you want to setup BTCPay consider hiring a developer to set it up.

Pros

1. Tap into a new and global market.
2. Save on credit card fees.
3. Zero risk if you choose to convert all bitcoin transactions directly into your local currency (payment processors allow you to choose a % to keep in bitcoin)

Cons

1. You may not get many bitcoin sales. The economy is still growing and in the infancy.

Recommendations

1. If you are a business – setup BTCPay yourself or use a Bitcoin payment processor.

Earn Bitcoin

The #1 Method. Shop online with Lolli.

Shop online with the Lolli browser extension and earn bitcoin. Check out the growing list of supported stores. Setup is quick and seamless:

1. Download the Lolli browser extension (Chrome, Firefox, Safari) from Lolli.
2. Sign in or create an account with just an e-mail and password.
3. Start shopping online – Simply click on the Lolli browser extension icon to see if Lolli has cashback available for the store and press “Activate” to enable it. Receive bitcoin! Voila!



2. Earn bitcoin by shopping in person with Pei.

3. Easily mine bitcoin with your existing computer(s) with honeyminer.

4. Earn Bitcoin via interest by borrowing your bitcoin with BlockFi.
Warning: Loaning your bitcoin is high risk – you can lose all your bitcoin

Things To Look Out For

1. Lolli & Pei: You can earn bitcoin by shopping on supported stores. Fortunately, the companies are continually listening to customers and adding new stores to get cashback on all the time!

2. BlockFi: Is the risk of losing all your bitcoin worth the reward?
Pros

1. Earn Bitcoin

Cons

1. Lolli & Pei: Not all stores are supported and US stores only.

2. BlockFi: Requires a minimum amount of 0.5 bitcoin to participate. Giving your bitcoin to a central 3rd party is risky, let alone loaning your Bitcoin. There is a chance you may lose ALL the bitcoin being loaned.

Recommendations

1. Lolli & Pei: Do you normal shopping and if you buy something online from a supported store you will earn some bitcoin!
2. BlockFi: Do not recommend but it is your money! High risk.

P2P

Completing a trade directly with another user. This can be done over the internet or in person. If a trade is done over the internet, typically an escrow or some sort of multi-signature contract is involved to reduce the chance of a scam.

https://bisq.network/
https://hodlhodl.com/
https://localbitcoins.com/

Things To Look Out For

1. Take caution when meeting someone in person – there are scammers and bad actors out there. Meet in a public and safe location. Do not meet at your house and travel with a friend or family member.
2. Try to find a seller that has credibility in the form of reviews, etc.
3. If you are receiving bitcoin, ensure that you have at least 1 confirmation before you let the seller leave. For higher values, wait for more confirmations.
Pros

1. Generally, a person to person transaction does not require any KYC, paperwork or submission of any personal information.
2. Risk of losing bitcoin via exchange hack, seizure or inside job is eliminated.

Cons

1. Trade process might be a bit less convenient compared to centralized exchanges.

Recommendations

1. Purchase small amounts if you are physically meeting a person to complete a trade.

BTM (Bitcoin ATM)

A device that resembles the look and functionality of a traditional ATM machine. You can use a BTM to purchase bitcoin using cash. Some BTMs allow you to sell bitcoin for cash too. The buy/sell price is set by the average of multiple exchange prices or it may perform the transaction from the order book of a Bitcoin exchange.
General steps: you feed your cash into the cash feeder, then it tells you how much bitcoin you are buying and at what market price. After that it will ask to scan your bitcoin address QR code (If scanning your QR code does not work – ensure your phone’s screen brightness is not too low or that you don’t have a dark mode enabled) so that it knows what bitcoin address to send the bitcoin to. Lastly, it will print a receipt for your records.

Two Types of BTMs

1. One-way, meaning you can only buy bitcoin by inserting cash. 2. Two-way, meaning you can both buy bitcoin with cash and sell bitcoin for cash.
Find a Bitcoin ATM

Things To Look Out For

1. Try to be discrete about how much you are buying, especially if it is a higher value. Travel with a friend or family member.
2. If a private key gets printed out, import it into your wallet immediately.
3. Ensure you have a bitcoin wallet pre-installed and create an encrypted back-up of your wallet beforehand and export it off the phone in case your phone breaks, gets lost or stolen after the purchase.

Pros

1. It can be convenient if there is one in your area and faster compared to transferring money on an online bitcoin exchange via a bank deposit method.
2. Relatively safe.

Cons

1. The BTM may have buy/sell limits.
2. You need to leave the comfort of your home.
2. There is not a BTM everywhere like traditional ATMS.
3. Some BTMs have an overly zealous verification processes for KYC regulations.
4. The transaction usually has a marked up price from an additional BTM fee.

Recommendations

1. Great for small transactions if there is one located near you.
2. Travel with a friend or family member if possible.

Mining

Running specialized hardware to process Bitcoin transactions and secure the blockchain – in return miners receive a block reward. A block reward contains brand new bitcoin and transaction fees.

Things To Look Out For

1. Do your research, factor in electricity costs and take difficulty changes into account.
2. Ensure mining hardware will be received within a reasonable time because long delays have a substantial impact on mining profits due to the way difficulty works. Alternatively, take this into consideration when doing your research and calculations.
3. Research the company selling the ASICs and their credibility.

Pros

1. Adds security to the Bitcoin blockchain.
2. Mining can make huge profits if you do your homework – along with some luck, good timing, deep pockets and cheap electricity.

Cons

1. Expensive and risky – you may only break even or lose money.
2. Sometimes you will not receive the mining hardware for a long duration. By the time you do receive the mining hardware, the mining difficulty will have gone up.
3. You need to find a credible company.
4. Buying bitcoin is more profitable and less risky for the average person.

Recommendations

1. Great if you just want to help secure the Bitcoin network.
2. Be prepared for complications such as shipment times, defective hardware, malfunctioning hardware, etc. Many people lose money mining. Be smart and do your homework.
3. Buying bitcoin is more profitable and less risky then mining for the average person.

3 Ways To Get Paid in Bitcoin

1. Your employer gives you an option to be paid out in bitcoin (in this case it is probably a bitcoin related company) 2. You do independent freelance work for bitcoin 3. You utilize a 3rd party company to automatically convert a % of your payroll to bitcoin – https://www.bitwage.com/.

Things To Look Out For

Bitcoin is volatile. If you intend to be paid in bitcoin and hold it – be prepared for large swings in the price. It is encouraged to value your holdings longer term.

Pros

1. You get bitcoin.

Cons

1. Bitcoin price can be volatile but over-time it only goes up and to the right.

Recommendations

1. Keep what you can afford to lose in Bitcoin – whether that is 90%, 60% or 15% of your pay.

Trading

Trading is only recommended for professionals and is a method of getting “more bitcoin” or “less” depending on how your trade goes! Inexperienced people believe they can game the market all the time but sadly, end up losing everything. A very small minority will profit from trading and that includes professional traders. Bitcoin can be very volatile in it’s early stages of adoption and price discovery. Additionally, traders have to keep funds on a centralized custodial exchange which is a risk in itself. Centralized custodial exchanges are not wallets or banks and are susceptible to hacks, seizures, incompetency and internal thefts.
Trading can be done on almost any Bitcoin exchange, however some exchanges have more advanced trading features than others.


Popular International Centralized Custodial Exchanges

Bitstamp
Kraken
Gemini
Bitmex
Bitfinex
Coinbase

Comprehensive Exchange Lists: From Bitcoin.org, From Bitcoinity.org


Futures

Bakkt (Bitcoin settled)
CME (Cash settled)
CBOE
TD Ameritrade
Kraken
BitMEX
Nasdaq (launching soon..?)



Exchange-Traded Funds (ETF)

Coming later…?


Things To Look Out For

1. Only participate in trading if you are a professional or risk losing all or most of your Bitcoin stash.
2. Avoid keeping funds on these services for extended periods of time.
3. Is the futures cash settled or Bitcoin settled?
4. Is the company reputable?
5. Remember to record all your trading for capital gains, taxes and losses, etc.

Pros

1. Some of these financial services that have entered the Bitcoin space (or will be) are reputable legacy financial companies. These include: TD Ameritrade, CBOE, Fidelity, CME, NASDAQ, ICE, etc.

Cons

1. Bitcoin can be extremely volatile.
2. Risk losing your precious bitcoin.
3. You must risk storing your funds on a centralized custodial exchange.
4. This market is difficult, even for professionals.
5. Need to track all trades for taxes.

Recommendations

1. Only trade if you are a professional.
2. Limit the amount of time you store funds on a centralized custodial exchange.
3. Track all your trades for tax purposes.


“We have elected to put our money and faith in a mathematical framework that is free of politics and human error.”
Tyler Winklevoss – Investor and of Facebook fame


35JZ72myPm2HUNLHq2ozA6Z2dvbmSCFV3W