Interested in buying Bitcoin? Here’s a quick beginner’s guide to buying Bitcoin for the first time.

 

 

Bitcoin is being talked about everywhere you turn these days. (What is Bitcoin?) Prices are shooting up AND down, creating great volatility in the markets. This type of price action is causing more people than ever before to become interested in learning how to buy and sell Bitcoin. While it’s great that Bitcoin is receiving an increase in attention, the real reason to get involved in Bitcoin is not to make a quick buck. Rather it’s to participate in a sound money system that cannot be controlled, inflated or seized by any bank or government. With Bitcoin, you and you alone are in control of your money.

 

As the most popular form of cryptocurrency, Bitcoin is now widely accepted around the world and growing everyday. But before you jump in and risk being scammed by the numerous shady operations on the internet, you’ve got to do your due diligence and learn the ropes.

 

There are a few steps you need to take in order to purchase Bitcoin safely and protect your investment.

 

STEP 1: Get a good Bitcoin wallet

 

 

There are a few different types of Bitcoin wallets available: Software, Paper, and Hardware.

 

Software Bitcoin Wallet

A software wallet is the most convenient, but also the least secure. You can have a software wallet installed on your smartphone or your computer just like any app. The Exodus wallet provides a clean and easy to understand interface and is great for beginners.

 

Paper Bitcoin Wallet

A paper wallet is basically a document that contains a public address and a private key. This information allows you to send and receive Bitcoin to and from this wallet. You can generate a paper wallet from bitaddress. After generating your paper wallet you can then print your document containing your public address and private key.

 

Hardware Bitcoin Wallet

Not all wallets are created equal and hardware wallets are by far the best and definitely worth the price. Hardware wallets are small USB devices that store your private key securely on the device itself and are needed to sign any transactions from your wallet. The software is open source, anyone can see what’s going on under the hood. They have a small screen for security and the contents cannot be transferred off of the device in plain text. The best hardware wallets are Cold Card and Trezor. 

Make sure you save your private key and test it out with any of these wallet options. Never share with anyone unless you want them to have access to your Bitcoin.

 

 

STEP 2: Find a good Bitcoin exchange

 

 

The easiest way to buy Bitcoin is through an exchange. There are a ton of exchanges out there and some are less trustworthy than others. It’s important to pick a good exchange because you will be giving them your bank account information as well as your personal information. It’s also import to compare fees when looking for a good exchange.

 

Gemini is an exchange ran by the Winklevoss twins and is regulated by the New York State Department of Financial Services (“NYSDFS”).

 

Coinbase is the most popular Bitcoin exchange and offers a sleek, simple to use interface, great for beginners.

 

If you don’t want to give up your bank account and personal information and would rather take a more direct approach to buying Bitcoin (the way it was initially designed), you can opt to use a peer to peer service. LocalBitcoins is the most reputable and can connect you with a person near you selling Bitcoin. Keep in mind you might pay a little more for your Bitcoin using this method, as you are paying for anonymity.

 

STEP 3: Send your Bitcoin to your wallet

 

 

Now that you have your wallet and you’ve purchased your Bitcoin, it’s time to send your Bitcoin to your wallet. NEVER keep your Bitcoin on ANY exchange. Move and store your Bitcoin to your wallet as soon as you can.

 

We are at the beginning of an amazing opportunity. I hope you found this informative, leave a comment below with any feedback or questions.