Finally we got around to buying a Bitcoin.
Now it seems like the time lost was money lost too. When the idea was first floated the price of one coin was less than £600, two months later, it’s above £800. Hesitate and lose.
Saying that, I am not going to put the house on Bitcoin. I think of it as a speculative spend and also the best way to get into cryptocurrency.
BigSon did his research and Coinbase came out as the best choice as a place to buy Bitcoins. He registered an account about a week ago. We hit a snag on the ID verification step because neither from the browser application, which we accessed on a Mac and on a PC, nor the mobile app, were we able to upload an ID photo.
I wrote to Support but no reply to date. A search revealed that the ID Verification on Coinbase is an issue and lots of people have gone to other sites as a result. Count us in.
We went back to the drawing board and came up with BitPanda and set about registering an account. It went smoothly. I got Google Authenticator which worked easily on the secure login process. Bitpanda can sell you Bitcoins and also store the record of all your account transactions in what is called a wallet.
Before buying the coin I got advise that it is best to keep a hardware wallet which gives you, the owner, more security than the one kept online by BitPanda or whichever seller you choose. So there was a delay while I ordered a Ledger Nano S from France. It got here after four days and by that time we were ready to buy our first Bitcoin.
Although we had an account registered with BitPanda, we weren’t able to purchase a Bitcoin until the ID Verification was done. BitPanda uses IDnow who get in touch with you via Skype and take photos of you and your ID during the call. We set an appointment time and on the dot, they called us. That did not take long and soon we were able to make the purchase.
Google Authenticator is needed again to verify the Bitcoin buyer. When we tried to pay, the transaction kept failing and the notice on BitPanda is in German. These days that is not so much a problem as you can easily do a search and get a translation so it was more of a laugh than a full stop. We had no clue why it was failing and soon gave up for the evening. Turns out there was a SMS on my phone from my bank asking if I am aware of such a transaction to another country and all I needed to do was reply YES or NO.
Back on the trail that same night, we finally were able to get the Bitcoin. From the BitPanda account you can see the value of the purchase as a credit.
We immediately plugged in the Nano S and transferred that value to the stick which acts as an account in itself. It is plugged into a computer and you can see the details of the account on the screen while navigating the page through buttons on the side of the memory stick.
After a while you can see the value has been transferred to your hardware wallet and when you check back in Bitpanda, the balance is now zero. It acts exactly like a transfer from one account to another. You get to secure your accounts on a private memory stick which is not only in your possession but is also secured with access credentials set by you.
It has been a long winded process with a lot of what looks like a palaver especially for a newbie. Everything looks like a step to undo what you have previously done. Thankfully BigSon was involved and for him this is as easy as a TV remote control.