Welcome to Genesis Block’s Crypto Classroom! With Bitcoin refreshing all-time highs in 2021, many more new investors are entering the crypto market. Are you feeling behind?
Wondering how to buy crypto? Not sure which crypto to invest in? We are here to take you through your crypto investment journey!
This guide is here to introduce you to everything you need to kickstart your crypto journey, from the concepts of cryptocurrency, basic knowledge of crypto asset storage and security, to various ways to trade and generate income from crypto assets.
Let’s get rolling!
What is Bitcoin?
So you probably know Bitcoin has been surging, that it’s a cryptocurrency, and it suddenly becomes everybody’s favorite subject. But, what exactly is Bitcoin?
Bitcoin (BTC) is both a currency and a technology. BTC is a store of value and a peer-to-peer electronic cash system that allows users to send BTC freely to anywhere in the world, without having to rely on a third party.
Bitcoin is Permissionless
The current financial system relies almost exclusively on third parties you trust to process payments. So they hold your money for you. Then they transfer the money on behalf of you. Also, they can freeze your money or stop transactions from being made.
No one can stop you from using Bitcoin. You can download multiple apps onto your smart devices to begin sending and receiving Bitcoin within minutes. In addition, by connecting with each other directly – no middlemen required – you and thousands of others can act as your own banks!
Bitcoin is Similar to Gold
You can use Bitcoin to purchase goods and services. But unlike the traditional fiat currency, Bitcoin is not a physical coin. So with a digital format, you can buy and hold one Bitcoin, 10 Bitcoin, or a fraction of Bitcoin. According to its founding protocol, Bitcoin has a very finite supply, with a total of 21 million BTC that ever be in circulation. Furthermore, this is one of the many reasons why people refer to Bitcoin, the best-known cryptocurrencies with the largest trade volume, as “Digital Gold”.
We actually did an experiment last year to find out, between Bitcoin and gold, which asset can deliver a greater investment return. Read the article Is Bitcoin a Better Investment Than Gold?
Bitcoin is Decentralized
Bitcoin is operated by decentralized authorities having no bank or government control. Each Bitcoin transaction is validated and confirmed by the entire Bitcoin network. Instead of trusting a centralized bank to process transactions, we would trust a Protocol that is run by different individuals all over the world.
So, in order to maintain the system’s credibility, it requires the “miners” of Bitcoin to continuously mine for new Bitcoins by solving difficult computational problems.
With cryptography, advanced mathematical algorithms are used to secure users’ funds, making sure that nobody else can spend them.
If you are interested in how the Bitcoin technology works, we’ve got a few articles for you to dive in:
Who invented Bitcoin?
Bitcoin was created by a person, or a group of programmers, with a screen name “Satoshi Nakamoto” back in early 2009. In the wake of the 2008 financial crisis, Satoshi Nakamoto saw the need for a new kind of money, and published in 2008 a document about how a peer-to-peer electronic cash system worked.
On January 3, 2009, Satoshi Nakamoto activated code instructing miners to add the first set of transactions, known as “Genesis Block”, to the Bitcoin blockchain.
More on Bitcoin’s origin and history:
Since launching in 2009, Bitcoin provided the foundation for thousands of other cryptocurrencies with similar or different designs. Some emphasize faster transaction speed, some are more private, some are more convenient for exchanging with fiat currencies, and some are more programmable.
Want to know more about some of the major cryptocurrencies? Here are some introduction for you:
Is Bitcoin A Scam? Is It For Criminals?
The short answer is NO.
Bitcoin was first introduced to the world in 2009 by Satoshi Nakamoto; 12 years is a long time in technology. (To compare, the iPhone was introduced in 2007.) From being questioned as a scam in the early years, Bitcoin has now been officially recognized by Goldman Sachs, JP Morgan Chase, MassMutual, PayPal. Furthermore, some even adopt Bitcoin as a reserve asset. The “Bitcoin is a scam” narrative has long been debunked.
However, there is no denying that Bitcoin can be used as a tool for crimes and fraud, such as hacking and online dating scams. Before you start making trades in the crypto market, we recommend that you trade through reliable, compliant trading platforms with proper KYC and transaction procedures.
In normal life, you may need to be aware of fake banknotes when you handle cash. Similarly, in the crypto market, there are scammers making up non-existed coins, or crypto-related investment products, to scam people. We recommend you to do your own research before you trust them, and always invest in reputable cryptocurrencies.
Over the years, Genesis Block has been committed to promoting Bitcoin and cryptocurrencies to the general public. We understand that many people do not understand how cryptocurrencies work – Many concepts in cryptocurrencies can be daunting. No need to fear, we are here to help. Genesis Block continues to organize a variety of events. We welcome all kinds of people, whether you are brand new to cryptos or a veteran, to join our crypto community and share with us all your questions and thoughts around crypto. We are always happy to assist you in any way we can.
What Is A Bitcoin Wallet? How To Choose A Bitcoin Wallet?
You can’t buy Bitcoin until you have a Bitcoin wallet. Note that Bitcoins are not physical coins, but exist in digital form; thus a Bitcoin wallet, which is a “place” to store Bitcoins, is virtual, and you can access them on your phone or computer. The Bitcoin wallet will provide you with an “address” you will give for where the purchased Bitcoin is sent.
Setting up a crypto wallet is simple, and can be done in a few minutes. In the How to Setup Your First Bitcoin Wallet article, we will walk you through the entire process of setting up your first crypto wallet step-by-step.
One important thing to note is to make sure you don’t lose or compromise the Recovery Words of your crypto wallet. Even if you accidentally delete the wallet app, lose your smartphone, as long as you keep the recovery words safe, you can recover your wallet with the recovery words, and retrieve your crypto asset. By the same token, someone else who has access to your recovery words may also have access to your crypto assets.
If you want to learn more about how a crypto wallet works under the hood, we’ve got a few technical stuff for you in the Encryption & Wallet Address article.
You need a wallet to transfer Bitcoin, but you don’t need to link your personal information, such as your name or phone number to the wallet — That’s why Bitcoin has a reputation for anonymity.
Additionally, many crypto wallets on the market today are free to use.
Besides app-based wallets, another common type of crypto wallet is the hardware wallet. A hardware wallet is a physical hardware device that has the advantage of enhanced security hacking. It will need to be plugged into your laptop or mobile in order to connect to the network. So this greatly reduces the risk of hacking. Currently, there are two dominant brands, Trezor and Ledger, in the hardware wallet sector. For more information on how to set up a hardware wallet, please find A Simple Guide to Set Up Your TREZOR One Wallet.
How to choose the right cryptocurrency wallet for your needs? We’ve got this covered: How do Digital Wallets & Cold Storage Work? Please take a look.
When you set up your crypto wallet, buy and sell crypto, always protect your email and devices from hackers. Here is a step-by-step practical guide on how to secure your personal emails and passwords.
How Do I Buy Bitcoin?
Buying, selling, and storing Bitcoins has never been easier! In Hong Kong, you can buy and trade Bitcoins through various ways such as online exchanges, over-the-counter (OTC) platforms, and Bitcoin ATMs.
The most likely destination for many is a Bitcoin exchange, which is usually the fastest and cheapest option in terms of fees. Some exchanges based overseas serve the Hong Kong market. We recommend you to register with reputable exchanges, where you can expect them to ask for your personal information such as email, credit card details, etc. You’ll need to prove your identity with your ID or address proof. Then after you’ve been verified, you can start buying Bitcoin with your chosen payment method. After the purchase, it’s better to transfer the crypto to a wallet you control.
Online Crypto Exchanges | |
PROS | CONS |
Lower Entry Level | Hacking Risk |
24/7 Self Service | Some Platforms Do Not Support Fiat |
Less Favoured to Large Trades | |
Examples: Coinbase, Binance | |
For larger trades, you can go to an over-the-counter (OTC) platform. As the leading digital OTC trading center for digital assets in Asia, Genesis Block enables clients to acquire or sell Bitcoin, Ether, and hundreds of other cryptocurrencies. Our Bitcoin and crypto experts are here to provide bespoke private trading service to investors. Furthermore, our execution and settlement services offer discretion, security, and are hyper-competitive with market prices. So if you are trading blocks of HK$200,000, or the equivalent in Bitcoin, Genesis Block’s OTC is ideal for you. To learn more about crypto OTC trading, please refer to Why Should I Trade Over The Counter (OTC)?
Crypto OTC Trading Platforms | |
PROS | CONS |
Enhanced Privacy and Security | AML/KYC Requirements |
Dedicated Customer Service | Higher Entry Level |
Favoured to Large Trades | |
Lower Hacking Risk | |
Examples: Genesis Block | |
So if you would like to register for an account with us, click on “Registration” below, and start trading!
How To Use Crypto ATMs?
With crypto ATMs, people are able to easily deal with Bitcoin alongside traditional money as a quick and easy way to buy and sell Bitcoin.
Using a crypto ATM to buy or sell Bitcoin is just as simple as using a regular ATM to deposit, withdraw, or transfer funds. Assuming you intend to buy Bitcoin, you can choose the digital asset you would like to purchase at the ATM, input your Bitcoin wallet address, and then deposit Hong Kong dollar cash. Transaction done — That’s it!
Bitcoin ATMs | |
PROS | CONS |
Self Service with Higher Privacy | Higher Trading Fee |
Convenient and Easier Access | Limited Selection of Cryptocurrencies |
Available 24/7 | |
Lower Entry Level | |
| |
How To Keep My Cryptocurrencies Safe?
Scams and traps emerge in different forms, beware of fraudsters! Before buying or investing in crypto, Do Your Own Research and watch out for frauds and scams. So the key is to keep your Bitcoin wallet recovery words safe and secure. Furthermore, to prevent loss or leakage, it’s better not to keepy any digital copy of your private key (or recovery words) online or on your devices. In addition, never reveal your private key (or recovery words) to anyone.
To avoid falling into crypto investment traps, you need to consider the following things before investing:
Price Volatility | Crypto Project Reputation | Legality |
Buying Limit | Wallet Security | Platform Reputation |
Personal Sensitive Info | Your Risk Tolerance | Trading Fee |
Do your own research before buying. Invest in reputable cryptocurrencies. You should be cautious when investing in cryptocurrencies that have no real-world application or have not yet been issued.
Whether it’s a crypto exchange, an OTC platform, or a crypto ATM, it is important for you to choose a trusted service provider. However, one thing to note: Multiple crypto exchanges had suffered hack attacks, customers’ funds were stolen, or even closed down.
At Genesis Block, we have decades of collective experience in the crypto space. And with our head office based in Hong Kong, Genesis Block is proudly serving our community as the first stop for all things Bitcoin, crypto, and blockchain.
Through a variety of events, seminars, and publications over the years, Genesis Block is growing a crypto community in Hong Kong and beyond. We have partnered with local Bitcoin communities such as The Bitcoin Association of Hong Kong, and have been actively providing free educational content and learning materials online and offline.
Follow Genesis Block
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Please join us!
Hopefully you can leave this guide with a better understanding of cryptocurrency and how it works. On Genesis Block’s Cryptocurrency Classroom, you’ll find a huge variety of content, covering everything from crypto technology, computer security to practical guides. And, they are in both Chinese and English. So feel free to explore!
Feel free to comment about your experiences, thoughts and additions.
Welcome to the Brave New Crypto World!
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