Getting Started Banking with Bitcoin
The First Step in the journey to Financial Independence With Bitcoin
So by now, you’ve calculated your Net worth and started to think about asset allocation.
But in that time, Bitcoin’s value has grown and so, no more delays, let’s get you some Bitcoin.
Things you’ll Need
- Access to your Email
- Know Your Customer Verification
- Bank Account
Access to Your Email
You’ll get an email confirmation to set up your account and begin the verification process.
Drivers License or Passport
One of the misconceptions about Bitcoin is that it’s not regulated. Like the banking sector, when setting up a new account, you must provide identifying documents like a Driver’s License or a Passport.
Know-Your-Customer (KYC) Verification
Since there is no one there to verify that you’re the same person as on the identification, you will also record a short video automatically with your cellphone to make sure you’re not just a styrofoam head with a wig on. Some services have you write your name, the date, and the service on a piece of paper to show with your identification.
A Bank Account to Fund your new account
Most new users choose to fund their account with an Email Money Transfer. These are fast and easy from Canadian Banks and many account plans include free email money transfers as part of their offering. If not, these might cost you up to $1.50 each time, so plan ahead if you intend to dollar cost average.
Manage any risk by choosing your allocation size appropriately. Most Email Money Transfer providers cap it at $3,000 per day or $10,000 a week. If you’re unsure, start with $100 and move up from there once you’re over the initial excitement about the uncertainty of a new asset class.
There are at least 7 Canadian Bitcoin Exchanges you could consider using; Coinsquare, Coinberry, Bull Bitcoin, Newton, Shakepay, Coinmiles, and Bitbuy. There’s also a great number of international services like Coinbase, Binance, and BlockFi that will service Canadians. We’ll focus on two that I’ve had a great experience with over at least 12 months of continued use.
While the Bitcoin blockchain produces a new block of transactions every 10 minutes on average, there are a few reasons why it will likely take a little longer.
- The Exchange batches transactions every few minutes or hours or requires additional approval to send large sums
- There is a large volume of transactions or the network is congested.
- The block time variance is high or the difficulty adjustment has just taken place.
Give it thirty minutes before checking for a confirmation email and at least a couple of hours before panicking!
Your First Bitcoin
Now, click this link to get a signup bonus for Shakepay.
When you trade your first $100 for Bitcoin, you’ll get $10 free, but most importantly, you’ll unlock the ability to Shake your phone every day to get free Satoshis, or Sats.
These Sats are the smallest denomination of Bitcoin, like Pennies or Cents to the Dollar.
Next, click this link to get a sign up bonus for Newton. They have the lowest rates for buying and selling Bitcoin in Canada. That will get you a $25 bonus when you first trade $100.
So you’ve invested $200 in Bitcoin, and you have $255 already from the bonuses! But wait, there’s more.
Now, get ready for the fun part, use this link here to send your $255 to BlockFi to get an additional $10USD to your balance and earn 6% compounding monthly on your deposit.
Now, shake your phone every day with Shakepay running and you’ll start accumulating free Bitcoin every day in the form of Satoshis. The longer you keep your Shake streak alive, the more Sats you get!
On a $250,000 Net worth, your Bitcoin allocation of $250 would be 0.1%, or a tenth of a percent. Laughable, right? Who cares if it goes to zero!
On a $25,000 Net worth, your Bitcoin allocation of $250 would be 1%, or one percent. Hmm, interesting. Will it be your best performing asset in the next twelve months?
On a $2,500 Net worth, your Bitcoin allocation of $250 would be 10%, or ten percent. You’ll feel a bigger impact on your net worth with Bitcoin but you’re probably earlier on your journey and can ride the inevitable tides of change.
Now you’ve had experience signing up, completing Know Your Customer and Anti Money Laundering identity verification, doing two exchanges with different interfaces, sending two transactions, and depositing your Bitcoin with an Online Savings Account.
So, we’re at nearly $250 on the first day. At today’s USD to CAD exchange rate, that’s a 25% return in a single day! More on rates of returns coming up!