Bitcoin Basics - Resources

Hey folks! Chris here with Life on Bitcoin. As promised with the release of our first video blog yesterday and actually even earlier during an interview with John and Joe from Sky Dragon Slaying, here is the resources post for bitcoin basics.

Since I am doing a 4 part video series on bitcoin basics, I am going to map this post to the same format and update it as we release each part. Keep referencing back to this post as we release parts 2,3 and 4.

Also please don’t forget if you want personalized assistance as an individual or as a business to acquire, hold, secure bitcoin or discuss bitcoin as a savings or commerce strategy, you can book an intro call with me here:

https://koalendar.com/e/15-min-introduction-consult

As per E01 of Bitcoin Basics, this resource post will cover the three main paths to acquire bitcoin:

• Centralized exchange

• Decentralized exchange

• Bitcoin ATM

Centralized Exchanges - VLOG IS LIVE

E02 Buying Bitcoin Part 2: Centralized Exchange

A centralized exchange is a marketplace where bitcoin and cryptocurrencies can be exchanged (bought or sold) for fiat. It is centralized in the that it is operated by a central authority that manages and operates the platform. Examples would be Coinbase, Binance, Strike, OkCoin, Kraken, Relai etc. Most if not all centralized exchanges adhere to AML or similar financial restrictions and require identify verification as part of KYC (know your customer) regulations. Centralized exchanges hold your bitcoin on your behalf (custodial) via their account or wallet system in thew same way a bank holds your digital fiat in their accounts.

I will update this section next week after E02 is published with all the pros, cons, caveats, gotchas and tips for centralized exchanges so stay tuned!

Updates!

List of Exchanges

Researching this topic made me wonder how many CEX’s were out there, and the answer is - a metric shit ton! So, I made a partial list with some key details. As you will see some of the CEX’s are listed as bitcoin only and are grouped at the top of the list. I also include an affiliate link for the couple that I have links for - happy to have you use the link if you felt you got value from this. Affiliate or not - none of these are recommendations or testimonials - DO YOUR OWN RESEARCH and discover which is best for you.

You can see the list here:

https://airtable.com/appbbQeofSUOVqyTL/shr4hiEZa8VpDxajm

Decentralized Exchanges

As the name would suggest a decentralized exchange does not operate with a central authority. An entity operates the peer-to-peer platform used to connect sellers and buyers and typically plays some role to facilitate trades for or into fiat using the methods agreed upon by the seller and buyer. They also typically provide some limited form of dispute resolution in the case where a 3rd party is needed to help settle a dispute. Examples include Bisq, Hodl Hodl, RoboSats and Peach. The primary advantage of this type of exchange in increased privacy and self-custody.

I will update this section when E03 is published with all the pros, cons, caveats, gotchas and tips for Decentralized exchanges.

Bitcoin ATM

A bitcoin ATM operates much link any other ATM except that instead of accessing your account to withdraw or deposit cash, a bitcoin ATM enables you to exchange cash (or digital fiat in the form of a debit or credit card) for bitcoin. Some bitcoin ATMs also allow you to sell bitcoin in exchange for cash as well. Each provider has different requirements for use, some require an account to be created, some a phone number and others nothing. Typically they al tend to charge a significant premium for use - 10% above spot price is not uncommon. The primary advantage is anonymity, speed and convenience.

I will update this section when E04 is published with all the pros, cons, caveats, gotchas and tips for Bitcoin ATM’s including resources on how to track one down near you!

Thanks for reading LIFEonBTC! Subscribe for free to receive new posts and support my work.