Before jumping into how to buy yourself some Bitcoin or Ethereum, it's probably best to understand a few basics. So I'll briefly discuss what a crypto currency exchange is and how they work, and then go on to divulging how easy it is to send and receive bitcoins. I will be referring to Bitcoin in this article, however it applies to both Bitcoin and Ethereum.

Exchanges

If you are familiar with the general forex exchange, well then there is no need for you to try understand a crypto currency exchange, as they are one and the same. If I am travelling to the US, I need to exchange my Rands to buy Dollars, likewise if I want to purchase Bitcoin, I simply go to an online exchange and exchange Rands for Bitcoins.

An exchange is simply a service provider who acts as a middleman to provide the currency. The exchange it`s self does not run, own or control Bitcoin it simply purchases, holds and sells Bitcoin or any other crypto currency to buyers and sellers, like you and me.

In South Africa there are several companies acting as exchanges. The most well-known exchanges are both Luno and ICE3X. I have made use of both Platforms and have found Luno to be the easier of the two to use and so for the purpose of this article I will be explaining how to use Luno.

Either visit Luno.com or download the app which is available on both IOS or the Android app store.

• Register your profile
• Add money (Rands) to your account, which can be as little as R10
• This generally is done through an EFT to the exchange
• Once your Rands reflect in your Luno account
• Click Buy, and purchase your bitcoin or fraction of a Bitcoin

Congratulations you have now just bought your first piece of a bitcoin.

Bitcoin Wallet

Once you have made your purchase, your Bitcoin or peace of a Bitcoin is now stored on your Luno wallet. Your Wallet has a unique bitcoin address that is 32 characters long. You can think of this address like your home address or cell phone number. If someone wants to send you something or call you, they use your home address or call your cell phone number. Your bitcoin wallet address is specific to you and specific to the Bitcoin blockchain, other crypto currencies makes use of different address`s.

Bitcoin Payment and usage

Now that you have your Bitcoin you can purchase things online both in South Africa and abroad, or you can simply keep your Bitcoin in your Luno Wallet, similar to leaving a R100 in your wallet and leaving your wallet in your cupboard at home. One can also purchase other crypto currencies such as Ethereum, by sending your bitcoin to another exchange, and then exchanging your Bitcoin for Ethereum. There will be a future post explaining how to purchase other crypto currencies and various other aspects.

Please be aware that this is based on my own research and you use the information above at your own discretion. Please also note that if you investing that it is extremely risky and that you should be prepared to lose any money you put in.

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