Getting started with BitCoin

Getting started with BitCoin

BitCoin is awesome, however, it is kinda complicated to get started with (at least for us living within the United States). So to help people out, I figured I'd write a quick tutorial about the two ways of buying BitCoins, the quickest and most expensive, and the cheapest but slowest.

Fast and Expensive Method

The fastest way to buy BitCoins is to use BitInstant which takes 3.99% of your transaction. So if you are to transfer $500 to an exchange for BitCoins using BitInstant, go ahead and kiss $19.95 goodbye.

To start off with this method, you will want to create an account at Mt. Gox. Once your account is created, all exchanges will provide you with an address you can send bitcoins, or in this case the cash, to in order to fund your account. You will simply need to locate it. It will look something like: 18XF8qxq8TN8VrjQDPfVJjBPnRWR7dFGTH.

After your wallet or exchange account has been created, go to BitInstant.com to send your funds. Be sure to select "BitCoin Wallet Address" as the destination of where you will send your cash.

BitInstant will generate a bill for you. This will need to be paid at one of the many locations accepting the MoneyGram.  How you pay this depends on the store. With Wal-Mart for example, you would pay this at the customer service desk.

After you pay you're bill, you will see funds show up in your Mt. Gox account generally within 24 hours.

With the funds now in your Mt. Gox account, you can purchase BitCoins via the exchange.

 

Slow but Cheap

The cheapest but slower way to buy bitcoins is to create a Dwolla account and CampBx account. Using this method your only fee will be a fixed one at $0.25.

First, create an account at Dwolla.com.

After your account is created, click the "Funding Sources" menu option.

Add and verify your bank account. This will take a day or two.

Once your account has been verified, you may now add funds to it. Click the "+" button to add funds. This will take a few business days.

Now that you have funds in your Dwolla account, you may transfer those funds to CampBx to buy bitcoins. So your next step is to create a CampBx account. Go to campbx.com and create an account.

When logged into CampBx, click the "Move USD" button.

Now select under "Deposit money through" the "Dwolla" option.

Follow the simple onscreen instructions and volla! You now will instantly have USD in your CampBx account of which, you may buy BitCoins with!

Because you created a new account with CampBx, you will need to wait 31 days to transfer funds out.

 

You can't blame me for this next part ;)

If you found this helpful and would like to donate, my address is: 18XF8qxq8TN8VrjQDPfVJjBPnRWR7dFGTH

If you have questions about anything on this site, you can find me on Google+: