If you’re looking for some some down and dirty advice to get started buying Bitcoin, this is the place.

Here are two different sources that explain WTF Bitcoin is:

Bitcoin: How Cryptocurrency Works (video)

Explain Bitcoin like I’m Five (article)

In sum: It’s a currency and a store of value. It’s cool because is decentralized (no one person/company owns it) and because it utilizes blockchain technology (basically a ledger of transactions that can’t be faked or messed with).

Why it has value (according to me):

  • Popularity – It’s really only valuable because enough people believe in it.
  • Scarcity – Only 21 million will ever be in existence.
  • Trading – A lot of the other digital currencies cannot be bought with fiat (i.e. USD, AUD, etc.). You would need to first buy Bitcoin (or sometimes Ethereum or Litecoin) and then trade for the coin.

Obligatory warning: IT IS EXTREMELY VOLATILE. Some people say it’ll reach a million per bitcoin (these are the typical “to the moon!” type fans). Even more others say it’ll drop to $0. No one knows. It is going to depend on many, many factors (legality, taxes, new technology, etc.). Only invest as much as you are willing to lose.

You do not need to buy a full bitcoin. You can buy a fraction. My mom has almost 1% of 1 bitcoin and watches it like a hawk. Buying a little bit is a fun way to start and kind of keep your eye on the game.


Right now BTC fees are outrageous. For trading, it makes a lot more sense to buy Ethereum (ETH) than Bitcoin (BTC). This assumes the coin you want can be traded for with ETH. You would first need to go to an exchange and check what the trading pairs are for the coin. A lot more coins now trade in ETH, but you should always check.

Some people actually prefer ETH because they have integrated smart contract technology into the blockchain (a way to code in contracts – super cool).

SO. If you are buying to trade, I would generally recommend buying ETH not BTC. This assumes you can trade for the coin you want with ETH.

If you are buying to just have and hold in case it pops up, I think it would be fine to buy either. They are both dropping right now, but may go back up. ETH has been killing it lately and a lot of new companies are utilizing the technology, which means it has the potential to rise. BTC is the brand name of cryptocurrency, though, so as long as new buyers keep coming in they’ll probably start by buying BTC.


Sign up for Coinbase and Gemini as soon as you can. They are going to make you upload IDs as verification and connect a bank account and just be in genera all over your grill. Unfortunately, you just have to do it to buy. Annoying, I know.

If you sign up with Coinbase, also sign up for GDAX (it’s an exchange). There’s a way to use Coinbase and GDAX to minimize fees because they’re owned by the same company.


Coinbase and Gemini are websites where you can buy cryptocurrencies with fiat (USD / AUD / etc). After you buy you will either want to move the coin to an exchange (to trade for another coin) or to a wallet (to keep it safe).

Asia Larkin
Author: Asia Larkin

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DISCLAIMER: The articles and guides posted on Bitillionaire.com are not legal or investment advice. NEVER invest more than you are willing to lose.

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