A__ Posted February 10, 2014 Share Posted February 10, 2014 I'm sorry if this isn't a good place to post this. I'd like to switch my donations from PayPal to Bitcoin. Mostly because I can't stand Bank of America or any other bank for that matter getting a "foreign transaction fee" every damn time I donate. I'm a Bitcoin newb. Can someone walk me through this process or post a link to a concise, trusted way to go about this? Link to comment Share on other sites More sharing options...
Magenta Posted February 10, 2014 Share Posted February 10, 2014 Welcome to the world of Bitcoin! The simplest and safest way for US residents is to sign up for an account at https://coinbase.com/ There, it is like PayPal, and every bit as easy to use. You link your bank account, which takes a few days to set up, and then you can purchase bitcoin, send bitcoin, and receive bitcoin. Because bitcoin payments are irreversible, Coinbase's default behavior is to not give you bitcoins until the ACH withdrawl transaction has cleared through your bank. This is to prevent you getting bitcoins (which can't be revoked) and then immediately cancelling your ACH withdrawl (which can be revoked) so that you get free bitcoins. Therefore, once you initiate a purchase of bitcoins, it takes a couple of days for your bank to clear the transaction, after which you receive the bitcoins. If you want bitcoins instantly, you can set that up, it just takes some extra effort. And finally, ENABLE 2-FACTOR AUTHENTICATION immediately after creating a Coinbase account - before you link your bank account or do anything. This feature makes your account much more safe from hackers. I suggest "Google Authenticator" for your smartphone. And in case you're nerdy enough to use Google Voice, don't give your google voice number to Coinbase because google voice numbers are internet-accessible and therefore more susceptible to hackers. Link to comment Share on other sites More sharing options...
dsayers Posted February 10, 2014 Share Posted February 10, 2014 For somebody who doesn't have a bank account, would it be realistic to set up a bank account and then immediately dump it into bitcoins and close the account? If so, does this work better via savings or checking? Any input appreciated. I've wanted in for a long time, but I don't have the documents Mt. Gox requires to validate my account, so I thought I was screwed for now. Link to comment Share on other sites More sharing options...
Magenta Posted February 10, 2014 Share Posted February 10, 2014 sdayers, if you went through Coinbase, a checking account works better than a savings account. If you wanted to save the hassle of setting up the account and want some better financial privacy, you could use LocalBitcoins.com. There, you can purchase Bitcoins from someone local or someone online though cash vehicles like USPS money orders, moneygrams, greenpacks, etc. I have not personally used LocalBitcoins, but I hear enough good things about them to trust using them. You will pay a premium when using LocalBitcoins, which is why I use Coinbase. EDIT: There are many more users on LocalBitcoins than when I last visited. Some sellers charge nearly zero price premium. Even more payments methods are accepted, like OKPay. Link to comment Share on other sites More sharing options...
Kevin Beal Posted February 10, 2014 Share Posted February 10, 2014 There might not be the same kind of tracking for bitcoin as there is for paypal donations, so in order to maintain your subscription status, you may need to work something out that might not be set up currently. Link to comment Share on other sites More sharing options...
dsayers Posted February 10, 2014 Share Posted February 10, 2014 Thanks. When I originally thought to get into bitcoins, I was considering dropping a grand into them when they were worth $33. Not that I was looking to do it to play the market, but wow would I have profited. I still am interested in doing it for the sake of diversity. Thank you for renewing hope in this regard for me. I have some research to do now. Link to comment Share on other sites More sharing options...
Wesley Posted February 10, 2014 Share Posted February 10, 2014 I have my Bitcoin: Getting Started thread in my signature for anyone who wants an overview of bitcoin and the fundamentals. Coinbase is great and easy to use, and definitely go for two-factor authentication. For anyone who wants to do this, please use the link www.fdrurl.com/coinbase which is the FDR referral link. Even if you do not donate to FDR, simply using that link and purchasing $100+ will lead to $5 worth of bitcoin being donated to FDR. If anyone has questions I am very much willing to answer bitcoin questions or give links, resources, or explain concepts related to cryptocurrencies. Now, @Adrienne, you have mentioned avoiding a foreign transaction fee. What country are you located in? There may be easier or different options depending on what country you are located in. Currently, Coinbase only works with a US-based bank account. They are working to expand, but you could imagine some of the regulatory hurdles they may need to go through. If you are in the US, then I would certainly recommend Coinbase, but I wanted to make sure there wasn't something more complicated. Link to comment Share on other sites More sharing options...
A__ Posted February 16, 2014 Author Share Posted February 16, 2014 Sorry for the late response. Thanks to all for the great information. Very helpful. Link to comment Share on other sites More sharing options...
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