Two years ago I was approached by a good friend of mine at Fairfax Media. His name was Paul Hadden and he was a true pioneer of cryptocurrency. Paul had the same job as me, but his interest was elsewhere.
To learn more about Paul, listen to the podcast he did with Wes Pettit from White Pony Network.
He heard about Bitcoin very early in its conception and was monitoring it when it was only a couple of years old. It was barely $50 AUD ($30 USD) a coin at that time.
In late 2014, when the coin had reached nearly $180 AUD, he invited me for a coffee at Media House in Melbourne CBD. He was full of excitement and spoke like I’d never heard him speak before – the enthusiasm was rubbing off on me. His proposal was in regards to something I had never heard of before – Bitcoin. An online currency that he believed would explode in value over time.
His plan: to mine Bitcoin from a warehouse in Moorabbin.
Mining is the process of transaction validation across the network. Cryptocurrencies work only because of this Blockchain technology, which relies on the miners. Watch this video to learn more.
At the time, I was a starry-eyed aspiring entrepreneur who was desperate to generate a passive income. His plan, if successful, promised to do just that in the years to come, if not right away.
The decision was made – it was a yes from me.
I handed over a few thousand dollars and we started a Bitcoin mining operation, which generated about 40 Bitcoin over a year or so.
The process of mining is a costly one, though. By this stage, Bitcoin had grown to $300 AUD a coin, but the power usage for the machines was massive, so the whole process wasn’t very profitable. We decided to end the operation and split the leftover profits. When all was said and done I had around 20 Bitcoin in my CoinJar wallet.
Fast forward to 2016 and after some tough financial times, I was forced to cash in my 20 Bitcoin. At the time, Bitcoin was worth $300 AUD or so – I was more than pleased with the $6,000 payout.
As of today, those 20 Bitcoins are worth $414,354.80 AUD. Ooops.
I tell this story a lot, mostly because I like encouraging people to get into Bitcoin. I really believe that the growth is yet to come – it’s not too late. You really don’t want to miss out on this wave – or jump off too early, like I did.
So, that’s the backstory, now let’s get into the how. The number 1 question I get is: “How can I buy Bitcoin?” – this article is the answer to that question.
How to Invest in Bitcoin
Step 1. Create an Account with an Exchange
The first step in the acquisition of Bitcoin is to set yourself up with something called a Bitcoin wallet or Exchange. This wallet or exchange is usually connected to your bank account in some way and after some initial steps, it simplifies the process of turning money into Bitcoin.
My preferred exchange is CoinJar (Australian users only) – they are an Australian company based in Melbourne with an impeccable support team and a great app.
Step 2. Go Through the Validation Process
Think of your new Bitcoin wallet as a bank account – as with any bank account, you need to prove your identity. Once you go through the validation process, the ability to transfer funds into your account will be unlocked.
Usually, a copy of your passport or license and a bank statement is enough to get you across the line.
Step 3. Transfer Funds from Your Bank Account and Buy Bitcoin
Now that you have an active wallet, you will be able to transfer funds into it from your bank account and purchase Bitcoin.
This is done in different ways for different wallets, but for the purpose of this article, I have included a video below that shows you how to do it with CoinJar. If you are using a different wallet, it’s as simple as a quick Youtube search to view the tutorial.
With CoinJar, it’s as easy as transferring money from your bank account to a BPay address that is connected to your CoinJar account.
The transfer process can sometimes take a couple of days, however, once it lands in your account as cash, you can transfer that into Bitcoin instantly.
Remember that as an exchange, the buy and sell price for Bitcoin are different. Keep an eye on that when you buy.
People are surprised to hear how simple it is after assuming purchasing Bitcoin is a difficult and convoluted process. I really hope this helps you get into the Bitcoin market.
I am extremely passionate about Bitcoin and what it can do. Some people are saying Bitcoin could reach $500,000 USD per coin by the end of the decade and I would agree with them. Not just anybody either, respected businessmen of our time.
Make it your personal goal, your new year’s resolution, your promise to yourself – whatever you call it. If you do ONE THING in 2018, it needs to be investing in Bitcoin.
For more ways to invest in Bitcoin and Bitcoin generating opportunities, contact me today.