Published on November 5, 2021 in Bitcoin Blockchain & Crypto.
How to buy bitcoin -- you know, there are a number of ways to buy bitcoin, but here what we'll do is get a run-down of the most common way to buy bitcoin. And towards the end, I'll tell you about an alternative, additional method for buying bitcoin which I really encourage you to try...even if it's just for the learning experience.
Here are links and resources mentioned in today's video. Enjoy!
Okay now just a quick note before we get started: This video is meant to be a broad overview to help you understand how to buy bitcoin and how it all works. There are plenty of really great step-by-step tutorials available that'll walk you through the process of how to buy bitcoin using the specific services and options you and I will cover here.
Alright, with that said, let's jump into it!
The first step in getting started on your bitcoin journey is to set up an account with a bitcoin exchange. Now, a bitcoin exchange or a crypto exchange is kinda like a brokerage account -- In your exchange account, you’d connect your traditional bank account or other method of payment.
From there, you'd buy bitcoin or whatever cryptocurrencies you want. Different exchanges support / allow you to buy different cryptos.
And there are a lot of exchanges out there. Binance and Coinbase are two examples of exchanges that you could use. You could use Coinbase, SoFi, or any other exchange you’d like. If you live outside the US, try to find an exchange that resides in your country. For example, if you’re in Canada like me, you could try Bitbuy, Shakepay, or NDAX.
There’s no shortage of local and global exchanges, and optionally you could even set up accounts with several exchanges if you want. So go with whichever one or two exchanges you’d like.
As for actually setting up your crypto exchange account, this can take just fifteen minutes, or it may even take a few days. That’s because you’ll need to submit and verify your identity. This has to do with financial regulations and exchanges must adhere to strict laws.
Truthfully, this is the biggest pain in the entire process. The good news is, your account set up is a one-time thing. So while it might be a bit of a lengthy process to set up your exchange account, you’ll never have to do it again.
Once you’ve set up an account on an exchange, the next thing you’ll need to do is, as mentioned just a second ago, link your bank account, credit card, or other payment method. Then, simply transfer some funds and purchase some bitcoin!
Each exchange handles this process a little differently. Just look for a “fund account” or “buy bitcoin” button.
Now if you’re uncomfortable or want to just dip a toe into bitcoin, do what I did: I found a YouTube tutorial that showed me how to add funds using the specific exchange I'd set my account up on.
And I kept it low-cost -— my first bitcoin purchase was just $10. Because it was my first time out, I just wanted to get a feel for the process and keep my costs low.
Now just fair warning, once your first bitcoin purchase is complete, I’m sure just like me and everyone else who does this, you’ll be instantly hooked!
Next, while you could simply keep your bitcoin stored in your exchange account, instead it’s highly encouraged to move your bitcoin from your exchange account to a more secure and private personal wallet.
Your bitcoin wallet is simply a place to more securely store your bitcoin. And there are a few different wallet types you can choose from.
Most commonly, you could use what’s called a software wallet. These are sometimes referred to as soft wallets or hot wallets. These are simple applications you’d install on your computer or smartphone to store your bitcoin. Exodus and Samurai are two examples of soft wallets you could use, although there are many others available.
Another option is to use a hardware wallet, which are sometimes called cold wallets. A hardware wallet is similar to a USB drive with special software installed on it to store your bitcoin and other cryptocurrencies. Both Trezor and Ledger are top choices if you’re interested in hardware wallets.
And that, my friend, is pretty much all there is to buying bitcoin!
Now I mentioned earlier that I'd show you a bonus way to purchase bitcoin. This approach doesn't involve exchange accounts or connecting up your payment method or anything like that. Instead, it's much, much simpler.
And that is, to use a bitcoin ATM. Yes, there are bitcoin ATMs in your local area! Head over to coinatmradar.com and see if you can find one near you. Typically, you’d deposit physical cash into the machine, scan your wallet’s public key QR code, and boom — ya got coin!
Now be careful. The transaction fees will be high when you buy bitcoin with a bitcoin ATM. But, I think it’s worth it just for the learning experience. When I did this, I thought of the transaction fee I paid to be like paying for more experience and my education about bitcoin.
Give me just 63 minutes, and I'll show you exactly what you need to do to launch your successful business!