The Beginner’s Guide to Buying Bitcoin

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The world of Bitcoin and cryptocurrency is still a mystery to many people which is why we’ve created this beginner’s guide to buying bitcoin.

You can’t touch it or see it, and it only exists as zeros and ones inside a vast global array of computers.

However, the reality is that anyone can buy and sell Bitcoin and other cryptocurrencies easily and cheaply once they have the know-how to do so. And what’s more, it’s actually not that more complicated that using online banking.

So, if you fancy dipping your toes into crypto and need help getting in on the action then read on. I’ve written this guide to show you the easiest way to get started buying and selling your first cryptocurrencies.

1. Buying crypto from an exchange

This is the route that most people will take, and it really isn’t that daunting.

If you’ve ever opened an account online with a financial institution such as a bank or pension provider, the process will be familiar.

You need to provide some personal details and ID (such as a driving licence) and set up 2FA to secure your account. This is to satisfy Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations.

Once accepted you’ll be able to buy crypto almost instantly depending on how you choose to pay.

You don’t have to worry about large minimum buys either. Most exchanges that I’ve used will happily sell you a small amount of crypto so you can dip your toes in the water first.

There are dozens of exchanges out there, but you should do your own research to establish which is best for you and which is compatible with the banks in your country. Coinbase and Crypto.com are two widely used exchanges which are great for beginners.

For the absolute beginner I’d recommend Coinbase. Even though the fees are higher than some other exchanges, it has a very simple interface which is intuitive to use.

Another option to consider is eToro, the popular stock platform. It offers access to a limited number of cryptocurrencies while giving you access to traditional financial investments as well.

2. Secure your crypto with a hardware or software wallet

Another thing you need to consider is whether to leave your Bitcoin on the exchange you bought it, or whether to move to an external wallet for added security.

There’s pros and cons to both and much depends on how familiar you are with the technology surrounding cryptocurrency.

If you’re tech savvy you might want to move your coins to a hardware wallet, such as Trezor, or even a paper wallet.

But this can be complicated for those who are wary of the processes involved. Also, you’re then solely responsible for keeping your password and recovery phrase safe – if you lose these you’re coins are probably gone forever.

Keeping you’re coins on an exchange means they’re more exposed to hackers. But these days the major exchanges are incredibly secure.

Coinbase, for example, even offers a £150,000 crypto guarantee scheme for it’s customers.

For most people, an exchange is the simplest option when they’re starting out. It will also keep your coins liquid in case you want to sell quickly, rather than having to first transfer them from an offline wallet (and pay a fee to do so).

3. Get paid in Bitcoin

There is a way of dipping your toes into crypto without having to open a trading account.

If a customer is happy to pay you in Bitcoin then all you need to do is set up a digital wallet and get them to send the coins to your address.

There are dozens of free wallets available, but a good starting point for beginners is the one offered by Blockchain.com.

However, if you want to sell your crypto for fiat money you’ll need to set up an exchange account or delve into the world of P2P trading which adds and extra level of complexity to the process.

Conclusion

Many have likened Bitcoin to digital gold. They view it as a store of value rather than a currency, while other crypto coins have different use cases.

But whether you believe in cryptocurrency in its present form or not, the underlying blockchain technology is being widely adopted and utilized across the globe and is very much here to stay.

While you may be put off by how complicated buying and selling cryptocurrency may seem, don’t be! Once you’ve got over the initial hurdle of opening an exchange account and making your first purchase you’ll find it super easy to continue your journey.

And if you’re still struggling we can help!

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