Buying bitcoins can be both daunting and complex. We’ll show you the easiest ways to purchase your first bitcoins, quickly.
The desire to acquire Bitcoin needs no introduction. The original cryptocurrency barged its way onto the financial landscape over a decade ago and went on to inspire a mixture of bafflement, scepticism and excitement in the markets. Famously, its astronomic rise in value against fiat currencies made early adopters a lot of money. Over 10 years later, it remains an intriguing commodity to many people considering a bitcoin investment.
Here’s a list of the safest places to buy bitcoin for beginners
We have researched and rated the top websites, apps and brokers to help beginners purchase bitcoin. Click below to begin buying bitcoins, or read on if you’re a little new to the scene and still need to learn how to.
What is Bitcoin?
Created by a unknown group of developers going by the pseudonym Satoshi Nakamoto, Bitcoin emerged in 2009 as a radical electronic payment system designed to offer an open, decentralised alternative to traditional government-issued fiat currencies. A digital cash of the future, if you will.
How does Bitcoin work?
Bitcoin depends on a decentralised network of ‘miners’ who collectively grant the network its authority to verify online transactions. This means, the community both runs and approves transactions, rather than some high paid banker with an agenda.
BTC mining utilises high-powered computers to solve extremely complex mathematical problems and, in so doing, add blocks of transactions (in the form of digital information) to the ‘blockchain’, a distributed public ledger.
This ingenious peer-to-peer network creates a payment system that functions without the need for centralised, authoritative oversight. Learn more about how bitcoin works.
How to purchase Bitcoin online – step-by-step guide
Step 1. Get a suitable wallet
A wallet allows you to store your BTC securely. It’s a good idea to have one ready before you begin buying bitcoin, especially if you’re planning on sitting on the bitcoin investment for a while – it’s a far safer way to store cryptocurrency than leaving it on the exchange. There are plenty of good options, including:
- Ledger Nano X: Ledger Nano X is a hardware wallet, which means you can store your BTC (along with 30 other cryptocurrencies) offline on a super-secure wireless device.
- Exodus: Combining smart, feature-packed functionality with a stylish, intuitive interface, Exodus is a desktop wallet that should suit both newbies and experienced users.
- Coinomi Wallet: If you want an BTC compatible wallet that will work on your phone, look no further than the Coinomi Wallet. This multi-coin wallet supports iOS, Andriod phones and there’s also a Mac/Windows/Linux desktop client.
Step 2. Find an exchange or broker
There are plenty of exchanges on offer if you want to buy and sell it. Each has advantages and disadvantages, so it’s a good idea to do a bit of research. To get you started, here are two of our favourite exchanges for buying bitcoin:
- Etoro: The worlds largest retail trading platform. Etoro is where many of our readers originally bought bitcoin. They used to only offer CFDs, however today you can buy and own several cryptos too. This is a good option if you’re wanting to play with both investing and short-term trading.
- Binance: Widely considered to be the best, most dependable place to trade BTC, Binance is the world’s biggest crypto exchange. It offers a huge crypto marketplace and fees that compare favourably with its main competitors, plus a well-designed mobile app.
- Bittrex: Boasting a slick, easy to navigate interface and speedy transaction times, this US-based exchange supports over 200 currencies and direct BTC purchases using major fiat currencies. A Bittrex mobile app has recently been launched.
At this point, you’re signed up and should be ready to start buying bitcoin. Go ahead and make the purchase.
Step 3. Withdraw your BTC
In the interests of securing your BTC, it’s a good idea to move your currency out of the exchange and into your wallet as soon as possible. To withdraw your coins to your wallet you need to generate an address then paste it in the relevant field of your exchange account.
How to trade Bitcoin– step-by-step guide
If you’re only interested in trading bitcoins you needn’t worry about getting a suitable wallet because trading involves opening a trade against another currency, rather than acquiring it. This means you can potentially make a profit from BTC without the hassle and security risk of owning it. Read more about trading bitcoins in this guide.
Should I start investing in bitcoin?
- Bitcoin’s enormous popularity means it has far greater liquidity than most other cryptos
- It’s increasingly widely accepted as payment method
- Built in scarcity gives BTC intrinsic value
- Its original advantages when compared to fiat currencies – lower international transaction fees, decentralisation, privacy – are still compelling
- Extreme volatility might appeal to traders but can make buyers nervous
- Bitcoin has spawned lots of structurally similar successors, some of which improve on it in in significant ways. This could eventually have a lasting negative impact on it’s value
- Bitcoin has recently attracted significant criticism for the environmental impact of energy-intensive mining
- Buying & selling
- Bitcoin as an investment
- Using bitcoin