If you don't have too much knowledge or you're, not an expert in bitcoin or the way, cryptocurrency works. That'S completely okay, because i'm gon na be going over everything that you need to know in order to get started today in this video, we're gon na be going over how to invest into bitcoin for this year as a beginner. What i'm gon na do is actually invest five thousand dollars of my own money onto bitcoin and show you exactly real time how it works and towards the very end of the video i'm gon na, be going over exactly how you can score free bitcoin. Today, you don't have to pay me, you don't have to do anything. You literally just have to watch this video till the end and i'll share with you exactly what you need to do in order to score that free bitcoin. Just by watching this video. Now, if you are new to the channel, welcome normally we talk about credit cards and personal finance.
I don't think i've done a cryptocurrency video in a very long time, but lately the bitcoin market has been absolutely crazy, With the release of all these stimulus packages, The dollar getting inflated and a lot more corporations. Turning into the side of investments in cryptocurrency we're seeing the price go absolutely insane and i'm hearing some real personal success stories in my own life of people, i know who are making hundreds of thousands of dollars in Cryptocurrency, so i don't want any of you guys To miss out, because if you have this mentality that oh it is way too late, i will not be able to get in there as well. That'S far from the truth, i think we are still in the much early stages of the development of cryptocurrency, especially bitcoin, and one of the most important things that you can do is to invest now get started now. Okay, so let's start this off by talking about the background of bitcoin, what it is and how it all works to break things down the easiest way to explain the way cryptocurrency works is this is just a peer-to-peer transaction
So if i wanted to send you money, i would do it through venmo or cash app or paypal. If i'm trying to venmo you some money, what happens is i have my ten dollars and i want you to get it. It doesn't go straight from me to you, although that's what we see on our end, the back end of these transactions often entail a third-party company that handle the exchange. I really want you guys to pay attention to this next clip talking about the dangers of using some of the most popular apps like paypal and vemmo, and if you didn't know yes, paypal does own vemmo paul leach, a former venmo user said he had thousands of Dollars taken out of his big account by way of hackers.
According to leech, the hackers made a few micro tester transactions taking out as little as 18 cents at a time. Paypal who now owns venmo, set up a lawsuit with the federal trade commission last year over privacy violations for selling buyers purchasing habits to companies. What you have to realize now is that big fintech companies will prioritize other people's data and sell that for extraordinary amounts of money. This is not uncommon practice and it's actually pretty sad. This may be how i personally got my identity stolen. Who knows a lot of the sensitive information that you would never think getting revealed to? Other companies happens on a daily basis, and this is one of the things that cryptocurrency is here to to help alleviate and to solve.
Aside from those things, we're not even going to go into the topic of security and the liability that the banks have in trying to have all of our money and the instability of the fiat currency, all you need to know is that there are a lot of Downsides when you are using a primarily peer-to-peer system that relies heavily on different entities outside of our control with cryptocurrency or bitcoin, you get something called a wallet address.
This is pretty much a long series of numbers and alphabets and you pretty much just put that in and that's where you can send the money you don't ever have to worry about that transaction. Getting reversed. You don't have to worry about the transaction, getting hacked the way bitcoin works is secure and it's pretty awesome. Just in case i didn't do a good job of explaining, through my analogy on what bitcoin is. I'M gon na read to you the exact print that they have on bitcoin.org, so you can have an official, better understanding of how this all works. They state on their website. Bitcoin.Org bitcoin uses peer-to-peer technology to operate with no central authority or banks managing transactions, and the issuing of bitcoins is carried out collectively by the network. Bitcoin is open source, its design is public, nobody owns or controls bitcoin and everyone can take part through many of its unique properties. Bitcoin allows exciting uses that could not be covered by any previous payment system.
They also show three key points fast, peer-to-peer transactions, which is very important now, in the year of 2021, we don't like waiting two to three weeks for that money to come in. We don't like waiting two to three business days for that wire transfer to come in the next thing they say is worldwide payment. If i wanted to send my relatives in korea some money, i would either have to wait or pay a large fee and i would not be 100 sure if it went through either. The third thing we need to mention is that bitcoin has low processing fees. So you pay just a small fraction of this processing fee that goes towards the people that are actually mining the data for this transaction to go through now. In addition to that, i wanted to show you another resource that you guys could all check out. This is literally on the public website bitcoin.org, and this is the official white paper of how bitcoin works.
So what you're, seeing on your screen right here is the official white paper of what bitcoin is and how it was intended to work by satoshi nakamoto. So the first paragraph of the white paper. We can actually see that this is a summary of how bitcoin was supposed to work and why it exists. I'M not going to go over this if you do want to do a deeper dive, and you find all of this fascinating. I will have links down below in the description or you literally go on bitcoin.org, and you can search this up as well.
But this pretty much goes into the transaction details, how it works, the hashing, the nodes, it also talks about the timestamp server, the proof of work, anything related to the back end of why bitcoin right now is an actual successful thing. If you don't have a background in computer science or you're, just someone like me and literally as much as you read this some of it still doesn't make sense. I say: that's: okay, you don't necessarily need to know exactly how the splitting value or how each hash and nodes work. All you have to really know is what bitcoin is and how it performs. Now that we have a good idea of what bitcoin actually is and how it works, we need to talk about the transaction process and we also need to go over something called the blockchain. Blockchain itself could be a very confusing topic, but the easiest way to explain this is that it's just a database as you take a look onto your screen.
This is normally how a transaction occurs with bitcoin. First, a new transaction is entered, then the transaction is transmitted to a network of peer-to-peer computers scattered across the world. These are the people who are going to be mining, this type of data, so that bitcoin transaction can go through next. The network of computers then solves equations to confirm the validity of the transaction once confirmed to be legitimate transactions. They are clustered together into blocks. These blocks are then chained together, creating a long history of all transactions that are permanent and then the transaction is complete.
So, if you've ever wondered how the term blockchain came about, this is exactly why now, one of the most fascinating things about the blockchain is that it is a public ledger as well. So this means you can actually access all of the data and see some pretty interesting information, all the way up to the transactions that people are having on a day-to-day basis. Right here, someone bought 22.38 worth of bitcoin. Someone bought 27.26 worth of bitcoin you'll, see these monster transactions every now and then we, we are some pretty small shrimp in the game, but you got to realize that's how crazy something like this is. People are trading and transferring bitcoins in the hundreds of thousands of dollars every single day, if not every single hour, so hopefully right there
That gave you a better idea on how bitcoin itself works and how the blockchain operates now, to pretty much glue everything together. What i'm gon na do is actually transfer my own money, a five thousand dollars into bitcoin and show you exactly what the process of that is now, if you're still watching this video, because you're trying to figure out exactly how to get free bitcoin, let me share With you now what that is, so there are a ton of different companies out here that have created platforms in order to trade cryptocurrency. Many of these companies are gon na. Want you to start banking with them because odds are, if you deposit your first 10 20. With that specific platform, chances are you're going to be using them for the duration of your cryptocurrency investing time.
So many of these companies are going to offer you some type of incentive to sign up. Coinbase will give you 10. If you want to use the link down below in the description, crypto.com is going to give you 25 for signing up. What i recommend you to do is actually sign up, for both there are times when a platform will go down. This doesn't just happen in the cryptocurrency world, but it also has happened on the stock market with robin hood. You don't want to be in a situation where there are some crazy, crazy things happening in the market. You either want to enter it or take your money out, but you can't because the server or the app itself is down make sure you have at least two platforms that you can use just in case that happens and if you guys wanted to apply for it Through the app store, without using any special link, you're not gon na get that free, welcome bonus associated with it. So with coinbase you can get free crypto using the link down below in the description, literally just by signing up you're gon na get free 10 crypto.com you're
Also gon na be getting free, crypto, whatever crypto you get paid out in, you can transfer that automatically into bitcoin and they're right there. You have bitcoin pretty awesome so for this video i'm gon na be using coinbase in google chrome on my computer in order to show you how i put money into crypto and how this all works all right so right now, i'm in my coinbase account. We have 3969 dollars in here and i'm gon na load it up with five thousand dollars and i'm gon na buy bitcoin with that right now.
So, at the time of this recording bitcoin is currently at thirty six thousand seventy dollars I am buying at an all-time high price. It may not be the best time to enter the market, but if you're holding this for at least a couple years, it doesn't matter when you go in just at least have a position in case this rides up to a hundred thousand dollars and future brian. I'M gon na place a bet right now, this time next year, bitcoin future brian, a hundred thousand dollars all right. So here is how this all works.
In order for you to successfully buy bitcoin today, you don't have to put five g's into the market. You could buy ten dollars worth of bitcoin, you could buy a hundred dollars worth of bitcoin. Whatever you are most comfortable with. Coinbase is one of the most popular apps to trade on they are secure. They have funding by investors from silicon valley. I'Ve been using them for a very long time as well and many other high-performing. Cryptocurrency traders use this platform, but they use the pro version. If you're kind of like a noob and you're getting into this, you don't have to worry about it too much. So let me show you what coinbase pro looks like people who are trading crypto much more diligently will download something like coinbase pro. You do have to pay to use this, but with regular coinbase, it's free to use If you do sell something there is that transaction fee that we mentioned earlier in this video. So here we are, you can buy crypto for one time purchase.
You can also do things where you can repeat it through different times of either the day the week or the month or even every month. So if you want a dollar cost average, that's one of the features that you can use in order to continually purchase bitcoin in order to build your investment portfolio. If i want to sell bitcoin, i could do it right here. I currently have sold all the ones. I had in this account prior to making this video, so it says i have zero dollars right now, but if i had even like a hundred bucks in bitcoin, i could sell this and deposit it into my cash account.
Another thing you can do is convert bitcoin into another cryptocurrency, so bitcoin to ethereum, for whatever reason, maybe you think ethereum is going to pop off more percentage-wise and you want to make that jump. That is something that you can do as well. If i put 50 it'll convert it automatically, i can preview it and i would have to confirm it. I don't have enough right now, so it's going to give me that message. So let's buy bitcoin right now and let's do something else. On top of that, let's send the bitcoin to another account that i have in order for you guys to see exactly how this works.
Okay, so right here i'm going to press 5000, i got no bread in my chime account, so we're going to use my other account here, we're going to preview the buy. It is definitely a pricey point, as you can see, i'm trying to buy five thousand dollars worth of bitcoin. They did take a seventy three dollar and forty one cent fee uh. So that means i purchased four thousand nine hundred twenty six dollars worth of bitcoin
At thirty six 36 162, it hurts a little. I'M not gon na lie that the price is this high, but anything for my audience to get some value. So we'll just do this. We'Re gon na click buy now. So it's interesting with the way coinbase works. I did not use played in order to connect my bank account. I did the manual thing where they send you two different transactions for pennies, that they put into your account now an official holder of bitcoin of five thousand dollars for this coinbase account. We can now see that my portfolio has jumped up from what it was before all the way to eight thousand eight hundred and seventy four dollars. Although coinbase itself can be pretty secure, they have a feature where you can activate a new security key something
I'Ve talked about in my identity theft. Video do that for everything that you own, that allows you to. So what that means is you got to get a security key? I have an example of one right here. All you have to do is get this physical key and push the button after you decide to put your password in, and you try to log in this is an additional form of security. It'S pretty much like two-factor authentication on your phone, except you physically have to push this button. So if a hacker gets all your information, they know your wallet address and they get into your bitcoin. If they do not have this, they cannot officially log in so this is something i highly recommend everyone to get just to make sure that this is safe.
If you want to take an extra layer of precaution, this right here is something called cold storage. The ledger nano x is one of the most popular ways to secure your crypto. So imagine the security key on steroids. This pretty much allows you to secure your cryptocurrency off a platform. The reason why you want to do that is because there are a lot of hackers that know the value of what bitcoin is worth, and they also know how anonymous a lot of this transaction is. So if someone hacks you and steals your bitcoin you're, not gon na get help from the ftc you're, not gon na get help from your insurance company or any of these banks. Oftentimes
If you lose your bitcoin and it gets hacked, it's gone for good, It'S both The disadvantage and the advantage of using an anonymous peer-to-peer networking system like this. So here we are. I have the ledger in my hand, right here: i'm gon na have everything listed down below in the description for you guys to check out, but for this all i have to do is plug it into my computer and make sure that i put in my passcode That it's set up - I get my wallet address with this, which will also be provided via a qr code that you can scan too or you just copied and paste into your address. So i just plugged in my ledger:
I have an eight-digit code that i need to put in so on my ledger right here. I have oh, let me uh zoom this in a little, it says, bitcoin right here, i'm gon na click both of these buttons, okay and then it's gon na say application is ready, i'm going to click both of that. So i open up my ledger app here. I'M going to receive some crypto. My ledger is connected to my computer right now. Here'S my ledger - and here is the address for bitcoin. So what i'm gon na do next is to withdraw a thousand dollars of that crypto and send it into my cold storage. So i'm gon na press a thousand right here, i'm gon na put in the address i got on my ledger: i'm gon na press continue right here and we're gon na send now. So we can see that the payment receive can take about 30 minutes.
The network fee is taking three dollars. That is not too bad at all for a thousand dollars that i'm paying uh the people who are mining this, meaning the ones that are getting the reward. In order for this exchange to happen now, this right here is the scariest moment of cryptocurrency. It'S not actually putting your money into coinbase and buying bitcoin at an all-time high. It'S waiting for this money to show up in your actual cold storage or transfer to where you intended, because now no one is middle manning, this transaction and if you put one typo and you somehow accidentally, send it to a guy in russia that money's gone you're. Not gon na do anything about it, so it says it takes usually less than 10 minutes. The past transfers.
I'Ve done have happened almost instantly, So i'm back on my ledger right now and we're gon na see if this pops in and there we go, we instantly got our money into our storage and you can see it went from 23 000 up to 24 000 dollars On here and from here, i Can also navigate my crypto. I can do what i want with it, but the best benefit of it is that it's off the platform, it's off the network, and it's something that is in my control. This ledger right here is absolutely dope um, it's something that i highly recommend anyone who's trying to invest into crypto, to set up and plus it's just cool like i feel like i was tom cruise in mission, impossible, seven or something man like putting this in and And doing the pass codes and writing things down and setting it up. It just felt cool all right.
So that is how you buy bitcoin, you send it, you receive it, you keep it off the platform and you do it in a safe manner. This is the full guide on what you need to know in order to invest into bitcoin as a beginner for this year. Everything i said in this video is going to be evergreen, meaning what happened in 2021 is going to be applicable in 2022, 23, 24 and 25. So, no matter what time of year you're watching this video, this is still going to be the principle that you need to know.
That'S not going to change anytime soon! Don'T forget if you do want to pick up ten dollars worth of free crypto with coinbase link, for that will be down below if you want to use crypto.com, which i'll also make a future video on on how to use 25 for free down below. In the description crypto.com used to be 50, it was awesome when that promotion was around. I know a ton of my subscribers had signed up for that, but i think because crypto is getting even more popular, these companies don't need to incentivize people with that much money. So i can only see these welcome bonus offers going down over time. So make sure you sign up for this as soon as possible to get that free, crypto and to start investing today, you don't need to put a thousand dollars into the market. I don't recommend you to put your entire life savings into cryptocurrency, it's very risky, if you do that, but i do believe that you should put a small portion of your net worth into cryptocurrency, because it is one of the most valuable investments you can make for This year now keep in mind guys, i'm no financial expert,