5 STEPS FOR THE BITCOIN BEGINNER

STEP 1: Get to understand the macroeconomic realities of the world you are living in. Decide whether you feel comfortable with where things are headed. Bitcoin may turn out to be a place where, in the event of a very severe world depression, hyper inflation and the hardcore depreciation of paper money worldwide, you could safeguard some purchasing power.  But remember: Bitcoin is new, uncertain, volatile, high risk.  I recommend you have this attitude:  "I'm going to put some cash that I can afford to lose in bitcoin as a backup plan that might work in the event of world economic collapse."  I am of the view that the global economy is going to get much, much worse before it gets better.

STEP 2:  Go online and do some proper research so that you have a good idea what Bitcoin is all about.

STEP 3:  Decide whether you think Bitcoin is the madness of crowds or the wisdom of crowds.  If you think it is wisdom…see STEP 4:

STEP 4:  Set aside an amount of cash that you are willing to put at risk because Bitcoin is relatively new technology. Much volatility lies ahead I believe.  Remember:  you don't have to buy a whole bitcoin every time.  You can buy fractions of a bitcoin.  So you could buy R100 worth of bitcoin if you so wish.

STEP 5:  The South African bitcoin exchange is at https://www.bitx.co/   Sign up and follow instructions.

Done.

PS: Apart from the bitcoin wallet that you automatically get on BitX, you can also download other wallets from other providers.  I believe it is prudent to spread your bitcoins between wallets, so that all your eggs are not in one basket. I have three wallets - one on the BitX exchange, and two wallets with  Blockchain Wallet 

PPS:  I personally do not attempt to day-trade on bitcoin.  I am a buy and hold bitcoiner, given the view I have taken that the bitcoin price will be much much higher five years from now.

PPPS: high volatility = high risk/reward. Bitcoin crashes and bubbles WILL happen from time to time.  When the bitcoin price takes a dive, I buy.  But that's just me.  Cum est sanguis in plateis, emite!