The first thing you know think about before you buy bitcoin is that it’s not the simplest thing in the world and the lingo is fairly complicated. We called this blog Crypto Syntax because our main goal is to explain as much if not all of it as simply as possible. The first thing you need to understand is that there is risk involved.
The easiest thing is to ask your friends and family if they have bitcoin and see if they will sell you some. A lot of people have made a ton of money and are happy to sell $100 if you give them cash. Then you get the added benefit of saving exchange and transfer fees and a helping hand from someone you trust.
You need a wallet to store your coin in. The most common in the US and easiest to us is Coinbase. The safest place to store coin is in a hardware wallet which is something you buy and keep the coins safe by not having them connected to the internet.
You need to put money in your wallet to make the exchange from US dollars to bitcoin. If you live in another country the same process applies but you might not be able to load your local currency into a Coinbase account. BitPanda is the most popular in Europe. Check out our wallet reviews for more information on picking the right wallet for you. Coinbase charges no fees to transfer money from a checking account to your wallet. The process takes some time to setup, it’s very similar to paypal.
Now that you have money in your wallet you need to exchange your local currency for bitcoins. CoinBase offers other crypto like Bitcoin Cash, LiteCoin and Ethereum which are also popular. Coinbase owns an exchange GDAX – Global Digital Asset Exchange and you can interface very easy using the Coinbase ap.
After you put in the exchange you now own Bitcoins. Keep in mind if the order didn’t go through that is common. Transfers are not always instantaneous.
Now that you own Bitcoin keep in mind it’s always safe to store your coins in what they call cold storage. This means it’s not online and connected to the internet. IT’s also probably a good idea to invest in more than one type of coin and keep your money spread out in different wallet accounts. A hardwallet is the most safe and easiest to use but you have to buy that because it’s actual hardware. If you only own a few hundred dollars of coins then you probably don’t need to worry about diversification. Once your account has a value over a thousand dollars for a few months then it’s something to start thinking about.
Another quick note if you are completely new to this. The value of one coin is not equal to one dollar. Prices change continuously with big swings up and down on a daily basis. You are buying virtual currency which is only worth as much as someone else is willing to pay you. That price could be zero or it could be twenty times what you bought your coin for.