The most important thing to remind ourselves is that anything to do with bitcoin or ethereum right now is pure speculation. Prices are rising because there is a finite supply and people are betting that other people are going to buy at higher prices later. There are zero fundamentals involved because these digital assets produce no cash flows, like a stock or a bond.
Whether or not cryptocurrencies represent the future of commerce or are just in a giant bubble, people are curious about how they can experiment.
I do not recommend that people risk their money in cryptocurrencies, but I have been experimenting personally, just to learn and see for myself what it’s all about. This video is for people who are curious and it’s not an endorsement of any particular coin or service.
Okay, with that disclaimer, I’ll tell you a little bit about how I’ve been doing my research.
I chose to use Coinbase.com to buy my first bitcoin this July. It’s a brokerage and handles storage for people who want to buy and sell digital assets.
To get started, I created a login and an account. I was then prompted to link a bank account, which took 48 hours to establish. I was able to execute my first purchase, locking in my price immediately, although it took almost a week before the money was transferred in from my bank and the coin purchase showed up on the screen.
The first thing you’ll see when you log in is a dashboard. It defaults to showing you Bitcoin’s recent price activity, although you can toggle over to see prices of Ethereum and Litecoin, the other two digital assets Coinbase currently allows you to buy and sell.
Below, you’ll see the holdings in your account…