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Are you interested in cryptocurrency but do not have it? Please try getting and using Bitcoin. No worries, it is very easy.
- What is the cryptocurrency?
- How to get it?
- How to use it?
1. What is the cryptocurrency?
You have heard the word Bitcoin maybe, it is one of the cryptocurrencies. The cryptocurrency is one of the currencies similar to the fiat currencies such as US-Dollar and HK-Dollar, and it is a digital money supported by distributed network and cryptography.
Like the fiat currency is independent, the cryptocurrency is also independent currency. The digital money is not the electronic point of loyalty program that digitized existing fiat currency.
The fiat currency is established as money by trusting the nation state and the central bank, but the cryptocurrency operates as money by trusting mathematics, algorithms, decentralized governance.
There are many types of cryptocurrencies, each with different roles. The most famous ones are Bitcoin and Ethereum. In this article for beginners, I will focus mainly on Bitcoin.
Bitcoin is the origin of the cryptocurrency, currently has the highest market capitalization, and has been in operation for a long time without collapse as money.
The following details will help you understand Bitcoin clearly.
First of all, Bitcoin is money. You must understand its nature and risk, and manage and operate it on your own responsibility. Don’t worry, you will soon get used to it.
Start with the mind of ‘experience is the best teacher’, you should gradually understand Bitcoin. I recommend that you first read the basic and simple documents, then try using a small amount of Bitcoin.
2. How to get it?
There are several ways to get Bitcoin. For example, trading with the fiat currency at exchanges, using Bitcoin-ATM or credit cards, selling goods in Bitcoin, and so on.
I will write about the ‘Exchange’ as a representative way here.
If you live in Hong Kong, let’s exchange Hong Kong dollars for Bitcoin using the exchanges in Hong Kong. I think the following site&community will be helpful. (I’m sorry, I do not know the circumstances of Hong Kong)
Hong Kong Exchanges
There are currently four exchanges with local Hong Kong bank accounts. Some of these exchanges also accept cash deposits and cheques.
ANX – Once you are signed up and verified, depositing your Hong Kong dollars with ANX is easy. You can hand it over in cash at their main office in Wan Chai and it will be credited quickly to your account, where you can exchange them to Bitcoin and withdraw to your wallet.
Gatecoin – Gatecoin is a well established Bitcoin exchange operating in a global market from Hong Kong. You can send them local wire transfers from your Hong Kong Dollar bank account and have them credited to your account after verification.
Tidebit – Tidebit is the newest of Hong Kong Bitcoin exchanges. You can deposit cash for free or via wire transfer for a 2% fee.
The exchanges above are gateways to cryptocurrency from fiat currency, and also the reverse.
This is a basic flow:
- Create an account on either exchange. (the exchange may require to verify your identity to create an account. it takes a few days to a week in Japan.)
- Deposit the fiat currency, HKD or USD.
- Start trading. Place an order with specify rate and you will receive Bitcoin.
- Withdraw the Bitcoin on the exchange to your personal bitcoin wallet.
3. How to use it?
After getting Bitcoin at the exchange, please send it to your wallet.
Basically, Bitcoin should be managed with your wallet, and never leave it on the exchange. The exchanges are being targeted by attacks and the assets are being stolen by being hacked/cracked many times so far.
There are several kinds of bitcoin wallet. This time, I will write about a wallet application on smartphone that can handle easily. Please download an app below.
Also, please make sure to read ‘Securing your wallet’.
We strongly recommend you consider using Hardware Wallet if you handle large amounts of Bitcoin. (Warning – please purchase it from “official shop”. There are frauds which replaced/hacked the contents.)
… in preparation