How to buy your first Bitcoin

Jan 17, 2025

Randa Moses

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Bitcoin (BTC) reached a new all time high of $108k. The phrase “Not your keys, not your Bitcoin.” means that if you don’t have the private keys to your Bitcoin, you don’t truly own it.

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There are many ways to purchase Bitcoin. This includes centralized exchanges (CEXs), decentralized exchanges (DEXs), traditional stockbrokers, Bitcoin ATMs, peer-to-peer (P2P) platforms, and Bitcoin ETFs.

Exploring ways to buy Bitcoin

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The first step in buying Bitcoin is to choose a platform. There are many options available, including cryptocurrency exchanges, traditional stockbrokers, and peer-to-peer platforms.

Buying Bitcoin: Step-by-step

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Once you’ve chosen a platform, you’ll need to connect it to a payment method. Most platforms allow you to link your bank account, credit card, or debit card.

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Linking a bank account offers lower fees compared to using a credit or debit card. However, using a credit or debit card is faster. Some platforms, like Coinbase and Paxful, allow you to buy Bitcoin using PayPal.

After setting up your account and linking a payment method, you can place an order to buy Bitcoin. Once you have bought Bitcoin, you can keep it on the exchange, but this is not recommended due to the risk of hacks. It's best to transfer your Bitcoin to a secure hot wallet or cold wallet.

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Hot wallets are connected to the internet and are more convenient for frequent transactions. Cold wallets are offline and offer a higher level of security. They are ideal for storing large amounts of Bitcoin that you intend to hold for the long term.

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Once you’ve bought and securely stored your Bitcoin, you can hold (hodl) it, trade it, spend it, use it to buy other cryptocurrencies, or donate it.

What to do with your Bitcoin?

Next Up

How to start Bitcoin mining

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