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Need to set up Bitcoin? Start here!

We understand the prospect of bitcoin can be confusing as it’s a fairly new, but increasingly relevant form of payment. We’ve put together this easy to follow step-by-step guide to ease you through the process so you can benefit from the versatility and ease of using bitcoin today!

What is it?

Bitcoin

In a nutshell, Bitcoin is a currency that isn’t backed by any government, and is therefore less influenced by world politics and financial markets. It can be transferred instantly and securely between any two people anywhere in the world with a few clicks. It’s fairly simple to set up, and very easy to use once it’s been set up.

How does it work?

For the average user, these are the basics steps to follow in order to get started with bitcoin. If you want detailed technical information on how bitcoin works, you can check out a detailed video here.

Step 1 - The Wallet

Your “Bitcoin Wallet” is where all your money is stored. Your wallet is basically a bank account, and has a bank account number. The only difference with a standard bank account is the bitcoin account number consists of a seemingly random string of numbers and letters, whereas a bank account number is structured based on bank, branch, transit number, etc. Bitcoin wallet “addresses” tend to look something like this: 3dkeWEKGJ8odj9gioa0ngdKLDG09gokdFiekDj.

The complexity of the wallet address makes it nearly impossible to send bitcoin to the wrong recipient. If the address is written incorrectly, it simply will not send!

Copy + Paste is your friend here :)

The easiest, and most common way to create a bitcoin wallet is as follows:

  1. Go to Blockchain.info and click 'Wallet' followed by 'Create A Free Bitcoin Wallet'.
  2. Fill in the relevant details and create a SECURE password.
  3. Click continue and your wallet is created. Make a note of your wallet ID, it will be emailed to you as well.
  4. You can now access your wallet by logging in.

Blockchain Create Wallet

(Start by creating a wallet on Blockchain.info)

Step 2 - Adding Bitcoin To Your Wallet

Before you can pay anyone with your wallet, you must first buy bitcoin and add it to your wallet. You can’t use money you don’t have, so make sure to keep your wallet stocked!

Two of the most popular bitcoin vendors (exchanges) in Canada are:

  • Quadriga CX - Features including same-day funding & withdrawal using Interac Online Instant Funding, deep security features, and a simplified verification process , Quadriga has become one of the most commonly used bitcoin exchanges in Canada, as it exploits the rich bitcoin features exclusive to Canadian residents! 
  • Kraken - As the largest bitcoin exchange in Euro volume, Kraken is consistenly rated the best and most secure Bitcoin exchange by independen news media. It is trusted by thousands of traders worldwide!

Another option for buying bitcoin in Canada is by going to your nearest BTM, or Bitcoin Teller Machines. These are run by Quadriga CX, for the most part. A simple search in google maps will show you where all the Bitcoin ATM's are in your area. 

Paying for bitcoin on these sites is very similar to buying products on any other online retailer, and it’s fairly straight forward. Make sure you’ve got your bitcoin address handy!

Once you’ve purchased the bitcoin, simply send the money over to your bitcoin wallet using the instructions provided by the exchange.

Step 3 - Paying Someone

Paying someone is simply a matter of:

  1. Logging into your wallet on Blockchain
  2. Clicking the send money button
  3. Entering the amount you’d like to send in either bitcoin or US dollars (specific to 0.0000000001 BTC or less than 1/10th of a cent!)
  4. Entering the recipient’s wallet address (remember to copy + paste!)
  5. Pressing send!

Note: You can easily reference Canadian dollars to Bitcoin values using Google's conversion tools here. Do not use it to convert specific amounts, but only use it as a reference for the current bitcoin value. Use a calculator!

The payment then needs to be confirmed, which usually takes up to a half hour. This step is similar to the Pending Authorized Transactions with your credit cards. More details on confirmations can be found here. 

A Few More Notes

Here at Kratomsource.ca, we also prefer that you send us an e-mail detailing the exact amount you’ve sent, as well as the Transaction ID, which is the link to the webpage once the payment has been sent.

Transaction ID, Fees, Amount Sent

(A screenshot of a transaction in both Bitcoin value and US dollar value, detailing the elements required when making a bitcoin purchase. Transaction ID, Amount Sent BTC)

There are transaction fees associated with a bitcoin payment, but they’re comparatively inexpensive relative to bank fees on standard transactions. Paying a higher transaction fee can expedite the confirmation process, and can be configured in the “Advance Send” option. This is not necessary for a regular transaction, but if you want the bitcoin to be confirmed (and received) faster, it’s worth knowing.

Since bitcoin can be volatile (the value can fluctuate rapidly), it’s best to buy a little bit more at a time in case the value suddenly drops while you’re making a payment. Thankfully, bitcoin is expected to gain in value throughout 2017, so putting a bit extra isn’t necessarily a bad investment!

There are more exchanges than the ones we’ve listed. We are not associated in any way with these companies, nor do we vouch for them. 

Make sure you have enough bitcoin in your wallet before sending! If you don’t, the transaction will not be confirmed, and there can be some complications!

If you require any assistance, send us an e-mail and we'll do our best to get you set up!