Buy Bitcoin: A Beginner's Guide to Legal and Simple Purchases

Since its inception in 2009, Bitcoin has made cryptocurrency a common word in the world’s vocabulary. The news often reports significant movements in the price of Bitcoin as the value has risen. And it’s so popular that many people who want to learn how to invest money are curious about getting into Bitcoin.

But even with frequent news mentions, few people understand how to buy cryptocurrency for the first time. The way these digital currencies are “mined” and sold can seem overwhelming. But there are some unexpectedly simple ways to get into crypto.

If you want to buy cryptocurrency or just want to know how it works, we’ll share both the easy way and the do-it-yourself way to buy Bitcoin.

In this article

• Why buy Bitcoin?
• How to buy Bitcoin
• 3 easier ways to buy Bitcoin
• FAQs
• Bottom line

Why buy Bitcoin?

Cryptocurrency for beginners can be a challenging topic to get a firm grasp on. However, once you understand the basics of how Bitcoin works, it’s more about understanding the market for cryptocurrencies.

Bitcoin (BTC) was first conceived in a white paper in late 2008 by a person using the pseudonym Satoshi Nakamoto. In January 2009, the blockchain was launched and Bitcoin came into existence.

Bitcoin isn’t a printed government-issued currency like U.S. dollars, also known as a fiat currency. Instead, people use computers to mine bitcoins by processing bitcoin transactions on the blockchain, a detailed listing of every bitcoin transaction ever.

Initially, Bitcoin wasn’t used to pay for transactions. Instead, it was just a digital item. In 2010, a person used bitcoins to make a purchase for the first time. At the time, each bitcoin was only worth about a quarter of a penny each.

People can make many arguments for why you should buy a cryptocurrency like Bitcoin. The idea behind Bitcoin is it gives its user complete control over their currency. They can spend it whenever they want, wherever it is accepted, and without limitations. It’s a secure method of payment that is irreversible, something that sellers like.

On the buyer side, using Bitcoin protects you from fraudulent transactions from vendors. Vendors can’t access your account to make additional charges as they could if you gave them your debit card or credit card number.

Today, Bitcoin is the most popular cryptocurrency which has resulted in speculation in its value and active trading. While you can use bitcoins to make transactions with certain vendors, many people view it as an investable asset. This is yet another reason people own cryptocurrency and purchase Bitcoin in particular.

How to buy Bitcoin

Buying Bitcoin the do-it-yourself way requires you to follow a few key steps:

1. Choose an exchange

The first thing you need to do is choose a Bitcoin exchange. Exchanges are trading platforms that allow you to buy or sell Bitcoin for money, such as United States dollars. You may have the option to store your Bitcoin at these exchanges, too. That said, other storage options provide better security, which is key to protecting your Bitcoin.

Popular crypto exchanges include Coinbase, Coinmama, Binance, and Gemini. Each exchange may offer different fee structures, cryptocurrency options, payment methods, and security options. Compare each exchange you’re considering to find the best choice for your situation. As long as an exchange meets your needs, choosing the lower fee option will help you keep more of your money.

Check out which services made our list of the best cryptocurrency exchanges.

Or learn more about some popular crypto exchanges by reading our individual reviews:

• Coinbase review
• Kraken review
• BlockFi review
• Gemini review