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This seems like a decent place to ask: What is the most legit and safe method for creating a wallet and just buying a bit of Bitcoin? I wouldn't mind being abl

This seems like a decent place to ask: What is the most legit and safe method for creating a wallet and just buying a bit of Bitcoin? I wouldn't mind being able to drop a couple hundred on it and seeing where it goes, but it's hard to trust websites/subreddits that look like posts were written by nerdy 15 year olds.

relyio 9y ago
0. Purchase a hardware wallet Pro-tip: Go for a Ledger Nano S (https://www.ledgerwallet.com/products/12-ledger-nano-s https://www.ledgerwallet.com/products/12-ledger-nano-s), it is (IMO) the best hardware wallet available. Had a terrific experience using it, it is a genuinely great product. 1. Pick a high-profile exchange Pro-tip: I had an absolutely terrible experience with Coinbase. And a far better one with GEMINI (Although I have issues that are +30 days old still open with their customer support. I'm pretty disappointed). 2. Get your account verified (KYC) Pro-tip: If you are concerned about your privacy, you can always buy bitcoin for cash on localbitcoins. They have an escrow system. 3. Purchase cryptocurrency of your choosing. Pro-tip: look at historical charts (both Linear/Log scales) and do your best to "time" your order, of course it is hard. 4. Move back funds to your hardware wallet. Pro-tip: Whatever HW wallet you choose, do not leave your funds on the exchange. Just don't do it, accounts get hacked all the time (even with 2FA), exchanges get hacked all the time, remember MtGox and learn from others' mistakes.
- blhack 9y ago
  Absolutely do not do this unless you are buying a very small amount of coins as an exploratory thing into bitcoin, and won't worry about losing them if you mess up your opsec.
  - relyio 9y ago
    I think you would make a stronger case if you actually provided any arguments. There's literally nothing complicated about using a hardware wallet. It is a well documented, well thought out procedure that shields people from 99% of the reasons people lose their money (lost keys, theft, exchange bankruptcy, hack etc.). I'm really curious to hear what's the rationale behind your post. Please elaborate.
blhack 9y ago
Coinbase is the only answer here, and it makes me frustrated to still see the "buy a hardware wallet" recommendations. I recently had my hardware wallet (a trezor, which is the nicest one) fail during a firmware update. Now, obviously I have a backup of my seed, but for those few minutes that backup became a VERY expensive little widget. When I travel, I have to worry about where my backups are stored. Storing them in a bank vault means I have to worry about the bank vault. If I have a hardware wallet, I'm essentially betting that I am better at opsec than coinbase, a >$1billion company who devotes a non-trivial amount of resources to opsec. Keeping my own wallet means I am arrogant enough to believe that I can out-opsec the team of security people they have there. That's absurd. There ARE reasons for a hardware wallet (which is why I have one). The bCash split recently is why I have mine. Keeping your own wallet and "being your own bank" is a really fun cyberpunk fantasy, but there are plenty of practical reasons to use banks. If you are asking the question about how to buy bitcoins in 2017, then the answer is unquestionably that you should both buy and store you coins on coinbase.
- Talyen42 9y ago
  Yeah, it's ridiculous how many people push the "you don't own your coins unless..." philosophy. Do we really want users to have to understand DevOps six-nines infrastructure reliability, disaster recovery, and stay ahead of the infosec curve in order to hold cash? Not only is the unacceptable for mainstream consumers, i'd argue it's unacceptable for all but the 1% most savvy enthusiast power-users.
- gozur88 9y ago
  >If I have a hardware wallet, I'm essentially betting that I am better at opsec than coinbase, a >$1billion company who devotes a non-trivial amount of resources to opsec. I'm sure people who were using Mt Gox felt the same way. Part of the equation is you're betting you place your own interests at a higher priority than the people who run Coinbase. Which is almost certainly true.
  - chrisco255 9y ago
    Coinbase is U.S. based, insured and licensed. Very different from Mt. Gox, which started as a trading depot for Magic: The Gathering cards. https://support.coinbase.com/customer/en/portal/topics/794360-security/articles https://support.coinbase.com/customer/en/portal/topics/79436...
chrisco255 9y ago
Coinbase is solid. They have ACH setup for hooking up to your checking account and their security is solid.
- bayofpigs 9y ago
  Some only use exchanges like Coinbase to transfer money into and out of your wallet. Leaving your coins on Coinbase is considered risky since it could be hacked and your coins stolen. Using physical digital wallets is more secure, but they can be lost or damaged it so it's choice you have to make. Here's the best one that I've seen (no affiliation): https://www.buybitcoinworldwide.com/wallets/ledger-nano-s/ https://www.buybitcoinworldwide.com/wallets/ledger-nano-s/
- virtuexru 9y ago
  I second this; have been using Coinbase for a few years with no problems.
Klathmon 9y ago
I'll second coinbase. They are one of the few reputable companies in the space. They follow all the laws, have a great looking site, have an exchange called GDAX under the same system if you want to try trading at some point, and they are pretty secure. Not to mention that any USD in your account is FDIC insured, and any Bitcoin is insured privately in case of a breach of their systems. You will need to provide your id and it may take a week or more to get verified, and the fees are higher than alternatives, but honestly it's not that big of a deal, and it just reaffirms that they are trying to build a sustainable business and aren't going to close up shop tomorrow.
- Shelnutt2 9y ago
  Just want to point out, the fees are significantly less if you use GDAX to purchase bitcoins. You can move bitcoins from gdax to coinbase wallet or to your own personal wallet. In coinbase there is a flat fee, in GDAX you only pay fees if you put a bid in, and there is no existing sell order on the books that would fill you bid. The reverse is also in effect, if you put a sell order in, and no existing buy orders meet your order, there is no fee when the transaction takes place. GDAX is an exchange. Make sure you are comfortable with using an exchange. I'd recommend you always use a limit order if you are just starting out.
  - Klathmon 9y ago
    Yes, but it is much more intimidating working in GDAX. Not to mention that you need to find your account with USD before you can buy anything. In coinbase you can make a purchase instantly and lock in at a specific price that instant (even if the transfer takes a week to really go through). In my one case, I bought some at $2700, it took a week to post and actually give me my Bitcoin, but I got it at $2700 even when the price was at $3000 by then (the gains far outweighing the fee of a few percent). But in GDAX I need to fund my USD account which took a week before I can buy. Yes the fees are less, but if you are looking for simple, spending $5-10 in fees won't hurt for a much easier and more straightforward experience. But GDAX is also fantastic if you are comfortable with it.
- philh 9y ago
c0nducktr 9y ago
I'd recommend against Coinbase, and instead recommend Gemini. Coinbase has zero customer support. Edit: Apparently they have a call center now, but my previous experience with the company has left me with no desire to go back to them.
thinbeige 9y ago
I didn't expect people asking how to buy Bitcoins on HN. Just get an account on Kraken, Coinbase, Gemini or wherever and look that you don't keep your coins on the exchange for too long. Start with small amounts. And those nerdy forums and subs (I think you mean Bitcointalk and Ethtrader on Reddit) are actually good places to get started/informed.
- macintux 9y ago
  "I didn't expect people to ask how to get started in Haskell on HN." There's always something people haven't learned. I would have had the same question, were I even remotely interested in getting into the Bitcoin fun.

relyio 9y ago

0. Purchase a hardware wallet Pro-tip: Go for a Ledger Nano S (https://www.ledgerwallet.com/products/12-ledger-nano-s https://www.ledgerwallet.com/products/12-ledger-nano-s), it is (IMO) the best hardware wallet available. Had a terrific experience using it, it is a genuinely great product. 1. Pick a high-profile exchange Pro-tip: I had an absolutely terrible experience with Coinbase. And a far better one with GEMINI (Although I have issues that are +30 days old still open with their customer support. I'm pretty disappointed). 2. Get your account verified (KYC) Pro-tip: If you are concerned about your privacy, you can always buy bitcoin for cash on localbitcoins. They have an escrow system. 3. Purchase cryptocurrency of your choosing. Pro-tip: look at historical charts (both Linear/Log scales) and do your best to "time" your order, of course it is hard. 4. Move back funds to your hardware wallet. Pro-tip: Whatever HW wallet you choose, do not leave your funds on the exchange. Just don't do it, accounts get hacked all the time (even with 2FA), exchanges get hacked all the time, remember MtGox and learn from others' mistakes.

blhack 9y ago
Absolutely do not do this unless you are buying a very small amount of coins as an exploratory thing into bitcoin, and won't worry about losing them if you mess up your opsec.
- relyio 9y ago
  I think you would make a stronger case if you actually provided any arguments. There's literally nothing complicated about using a hardware wallet. It is a well documented, well thought out procedure that shields people from 99% of the reasons people lose their money (lost keys, theft, exchange bankruptcy, hack etc.). I'm really curious to hear what's the rationale behind your post. Please elaborate.

blhack 9y ago

Coinbase is the only answer here, and it makes me frustrated to still see the "buy a hardware wallet" recommendations. I recently had my hardware wallet (a trezor, which is the nicest one) fail during a firmware update. Now, obviously I have a backup of my seed, but for those few minutes that backup became a VERY expensive little widget. When I travel, I have to worry about where my backups are stored. Storing them in a bank vault means I have to worry about the bank vault. If I have a hardware wallet, I'm essentially betting that I am better at opsec than coinbase, a >$1billion company who devotes a non-trivial amount of resources to opsec. Keeping my own wallet means I am arrogant enough to believe that I can out-opsec the team of security people they have there. That's absurd. There ARE reasons for a hardware wallet (which is why I have one). The bCash split recently is why I have mine. Keeping your own wallet and "being your own bank" is a really fun cyberpunk fantasy, but there are plenty of practical reasons to use banks. If you are asking the question about how to buy bitcoins in 2017, then the answer is unquestionably that you should both buy and store you coins on coinbase.

Talyen42 9y ago
Yeah, it's ridiculous how many people push the "you don't own your coins unless..." philosophy. Do we really want users to have to understand DevOps six-nines infrastructure reliability, disaster recovery, and stay ahead of the infosec curve in order to hold cash? Not only is the unacceptable for mainstream consumers, i'd argue it's unacceptable for all but the 1% most savvy enthusiast power-users.
gozur88 9y ago
>If I have a hardware wallet, I'm essentially betting that I am better at opsec than coinbase, a >$1billion company who devotes a non-trivial amount of resources to opsec. I'm sure people who were using Mt Gox felt the same way. Part of the equation is you're betting you place your own interests at a higher priority than the people who run Coinbase. Which is almost certainly true.
- chrisco255 9y ago
  Coinbase is U.S. based, insured and licensed. Very different from Mt. Gox, which started as a trading depot for Magic: The Gathering cards. https://support.coinbase.com/customer/en/portal/topics/794360-security/articles https://support.coinbase.com/customer/en/portal/topics/79436...

chrisco255 9y ago

Coinbase is solid. They have ACH setup for hooking up to your checking account and their security is solid.

bayofpigs 9y ago
Some only use exchanges like Coinbase to transfer money into and out of your wallet. Leaving your coins on Coinbase is considered risky since it could be hacked and your coins stolen. Using physical digital wallets is more secure, but they can be lost or damaged it so it's choice you have to make. Here's the best one that I've seen (no affiliation): https://www.buybitcoinworldwide.com/wallets/ledger-nano-s/ https://www.buybitcoinworldwide.com/wallets/ledger-nano-s/
virtuexru 9y ago
I second this; have been using Coinbase for a few years with no problems.

Klathmon 9y ago

I'll second coinbase. They are one of the few reputable companies in the space. They follow all the laws, have a great looking site, have an exchange called GDAX under the same system if you want to try trading at some point, and they are pretty secure. Not to mention that any USD in your account is FDIC insured, and any Bitcoin is insured privately in case of a breach of their systems. You will need to provide your id and it may take a week or more to get verified, and the fees are higher than alternatives, but honestly it's not that big of a deal, and it just reaffirms that they are trying to build a sustainable business and aren't going to close up shop tomorrow.

Shelnutt2 9y ago
Just want to point out, the fees are significantly less if you use GDAX to purchase bitcoins. You can move bitcoins from gdax to coinbase wallet or to your own personal wallet. In coinbase there is a flat fee, in GDAX you only pay fees if you put a bid in, and there is no existing sell order on the books that would fill you bid. The reverse is also in effect, if you put a sell order in, and no existing buy orders meet your order, there is no fee when the transaction takes place. GDAX is an exchange. Make sure you are comfortable with using an exchange. I'd recommend you always use a limit order if you are just starting out.
- Klathmon 9y ago
  Yes, but it is much more intimidating working in GDAX. Not to mention that you need to find your account with USD before you can buy anything. In coinbase you can make a purchase instantly and lock in at a specific price that instant (even if the transfer takes a week to really go through). In my one case, I bought some at $2700, it took a week to post and actually give me my Bitcoin, but I got it at $2700 even when the price was at $3000 by then (the gains far outweighing the fee of a few percent). But in GDAX I need to fund my USD account which took a week before I can buy. Yes the fees are less, but if you are looking for simple, spending $5-10 in fees won't hurt for a much easier and more straightforward experience. But GDAX is also fantastic if you are comfortable with it.
philh 9y ago

c0nducktr 9y ago

I'd recommend against Coinbase, and instead recommend Gemini. Coinbase has zero customer support. Edit: Apparently they have a call center now, but my previous experience with the company has left me with no desire to go back to them.

thinbeige 9y ago

I didn't expect people asking how to buy Bitcoins on HN. Just get an account on Kraken, Coinbase, Gemini or wherever and look that you don't keep your coins on the exchange for too long. Start with small amounts. And those nerdy forums and subs (I think you mean Bitcointalk and Ethtrader on Reddit) are actually good places to get started/informed.

macintux 9y ago
"I didn't expect people to ask how to get started in Haskell on HN." There's always something people haven't learned. I would have had the same question, were I even remotely interested in getting into the Bitcoin fun.