How To Buy Bitcoin: A Guide For Newbies

By Author: Independent Crypto Coaching
Total Articles: 6
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1. Important Considerations

Before diving into the methods to buy Bitcoin, it’s crucial to understand your own needs and preferences.

This includes:

- Investment Amount: How much are you planning to invest in Bitcoin

- Holding Period: Are you looking to hold Bitcoin for the long term or are you interested in short-term trading?

- Technical Skill Level: Are you comfortable using complex platforms, or do you prefer a simpler interface?

- Wallet Preferences: Do you have a preference for a mobile, desktop, or hardware wallet?

- Privacy Concerns: How much personal information are you willing to disclose during the purchase process?

2. Methods to Buy Bitcoin

Professional Wallets with Buying Options

Professional wallets often come with integrated buying options, making the process more convenient but often with higher fees. Wallets like Exodus and Edge are non-custodial and allow you to buy Bitcoin using bank transfer or bank card with a “soft” KYC process, eliminating the need to transfer coins from another service.

Bitcoin Purchasing Apps

Many ...
... apps specialize in selling Bitcoin, providing a basic wallet or allowing you to send Bitcoin to another address. Prices and availability vary, and most require full KYC. These apps are user-friendly and offer quick transactions but often come with higher and less transparent fees. Calculate the real Bitcoin price by dividing the payment amount in fiat by the estimated amount received in BTC and compare this with a public reference like Coingecko.

Large Exchanges

For larger purchases and low fees, using major exchanges is popular. These platforms require full KYC, meaning your personal data might be shared with tax authorities. Exchanges provide the lowest fees and high liquidity, but navigating the complex interfaces and ensuring personal data security can be challenging for beginners.

Peer-to-Peer Marketplaces

Peer-to-Peer marketplaces allow you to buy Bitcoin directly from other individuals, often without full KYC. These transactions can be more private but come with higher prices and the risk of fraudulent activities. P2P marketplaces require vigilance to avoid pitfalls and typically involve higher premiums, often 10–20% above market price.

In-Person Transactions

Some apps match buyers and sellers for face-to-face transactions, but this method can involve potential fraudulent activities and security issues. For example, someone might try to give you fake money or follow you afterward. It’s generally advised to avoid this method unless dealing with trusted individuals in secure, public locations.

Mining Bitcoin

For those with technical expertise, mining Bitcoin is the most private way to acquire it. This involves purchasing mining hardware and paying for electricity to earn Bitcoin over time. Mining requires significant technical knowledge and investment but offers the highest level of privacy. There are also mining services where you virtually purchase hardware, which the service operates and maintains for a percentage of the profits, providing a hassle-free mining experience.

3. Conclusion

When buying Bitcoin from apps, be aware of fees and avoid apps that do not transparently show them. Wallets like Edge and Exodus are great for beginners due to their reasonable privacy and moderate fees. If you want to save on fees and are willing to adapt to a more complex dashboard with full KYC, a large exchange might be a good choice. Peer-to-peer marketplaces offer excellent privacy but come with high premiums, and you need to be cautious of potential fraud.
If you have specific questions about Bitcoin or crypto investing, I can recommend the ASK CRYPTO forum, where all answers are vetted by experienced crypto coaches.

Happy Bitcoin buying!

P.S. Always use a hardware wallet for storing larger amounts for added security.

Passionate about onboarding new people to Bitcoin and cryptocurrency with a focus on privacy and self-custody. You can contact me at Yawaia - Independent Crypto Coaching