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How to Start Investing in Bitcoin for Beginners

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New to Bitcoin? This is How You Start ...thinkmaverick

New to Bitcoin? This is How You Start ...thinkmaverickBitcoin for beginners

 

Bitcoin not only continues to survive amidst the greatest pandemic of our generation, but also surged past $19,000 for the first time since January 2018.

 

Investors are getting more optimistic than ever about the next steps in the Bitcoin market.

 

Paul Jones Tudor, a billionaire hedge fund manager, says Bitcoin is the best hedge against inflation and compare investing in Bitcoin now to investing in early tech startup like Apple and Google.

 

If you are still wondering if you should buy Bitcoin, the answer is a resounding “YES!”

 

But how do you start?

 

After all, entering the crypto space can be an overwhelming experience for first-timers. And even the most seasoned, technology–savvy investors may find it difficult to keep up with these rapidly evolving technologies.

 

Don’t worry, you don’t have to spend hours to learn about all the complicated blockchain or cryptography.

 

To make the experience more comfortable, we’ve included some information that might help.

 

So you have landed on the best page ever to learn how to make your first Bitcoin investment. Let’s get started!

 

1. The best way to get started is to buy some Bitcoin

What better way to understand bitcoin and other cryptocurrencies than buying some and try them out.

 

When it comes to investing, Warren Buffett once said, “You’ve got to have skin in the game”.

 

The same principle applies to Bitcoin game.

 

Everything becomes much easier to understand and less terrifying once you actually invest in Bitcoin.

 

Start small. You can buy as little as $1 worth of Bitcoin as an interesting learning experience.

 

Fortunately, there are many different ways to buy Bitcoin, from anywhere in the world.

 

Check out our series on how to buy Bitcoin:

 

2. You don’t have to buy a whole Bitcoin.

But Bitcoin is too “expensive” for me at the moment. I can’t afford that.

 

Here’s the thing: Many people don’t realize that they don’t have to buy a full Bitcoin.

 

You don’t have to buy an entire Bitcoin as your first crypto investment.

 

You don’t have to fork over tens of thousands of dollars to participate in Bitcoin if it’s not within your financial plan.

 

You can always buy a small fraction of bitcoin in the form of Satoshi.

 

Similar to many national fiat currencies, for instance, USD, we have a small monetary unit called “cent”, which is 1/100 of a dollar. And the pound is broken into pence.

 

In the world of Bitcoin, we have this small unit called Satoshi.

 

A Satoshi is the smallest unit of Bitcoin. It is one hundred millionth of a single Bitcoin.

 

1 Satoshi = 0.00000001 BTC

 

In other words, there are 100 million units inside each Bitcoin.

 

1 BTC = 100,000,000 Satoshi

 

But, there are only 21 million Bitcoin that will ever be in circulation.

 

Let’s not forget the million satoshi within each Bitcoin. So, there’s a possibility for anyone who wants to get involved to be able to own some pieces of the Bitcoin protocol.

 

Even if the value of 1 Bitcoin goes up to $1 million, 1 Satoshi would be worth just a cent.

 

Whether you buy a half of a bitcoin, a quarter of a bitcoin or even a fraction of a percent of a bitcoin, you will get the same gain rate as buying a full BTC.

 

So, start off small, buy just a fraction of Bitcoin (BTC) and add to your position overtime.

Go big on your crypto allocation once have confidence in your investments.

 

 

3. How to Make Your First Bitcoin Investment

To start investing in crypto, there are two important things you need:

 

Step 1: Get a Bitcoin wallet

No matter which way you choose to purchase your Bitcoin, you’ll need a wallet to store your digital assets.

 

There are many different types of wallets out there you can choose from -mobile wallet, desktop wallet, paper wallet, and hardware wallet. Here’s a quick wallet guide that may help you decide.

 

Major cryptocurrency exchanges like Binance, Coinbase provide a free wallet for all registered users. You can use it to buy, sell and keep your coins. However, these exchange-hosted wallets are not safe, they are vulnerable to attack.

 

So if you’re investing a significant amount and looking to hold the coins for the long-term, I suggest you use a Bitcoin hardware wallet like Trezor and Ledger.

A Bitcoin hardware wallet is basically a physical “thumb drive-like” electronic device that you can use it to store, send and receive cryptocurrencies. It’s by far the most secure option when it comes to storing your Bitcoin.

 

Can’t decide which hardware wallet you should get? Check out our Trezor vs. Ledger review and comparison.

 

Step 2: Find a cryptocurrency exchange

Next, you need to find a place where you can buy Bitcoin using your local currency.

 

There are several ways to purchase your first Bitcoin, you can

 

Of all the methods, the easiest way for most people is to use a cryptocurrency exchange.

 

All you need to do is sign up for a free account, verify your identity and connect your bank account.

 

As banking is now regulated country by country, you’ll need to find an exchange that accepts your currency.

 

Here are few main options where you can buy Bitcoin based on your country:

 

Most exchanges may ask you to complete the KYC (Know-Your-Customer) in order to remain compliant with Anti-Money Laundering laws (AML). Before you can start buying or selling, you’ll need to submit personal documents such as your national ID, passport, photo, or proof of address to verify your identity.

 

It can take days or even weeks to get your account approved depending on the capacity of the exchange.

 

Did you know? New users missed the 2017 bull run because they couldn’t sign up or get verified! Many exchanges were forced to halt onboarding new users due to overwhelming demand.

 

Tip: Complete your account set up as soon as possible to avoid missing opportunities, even if you’re not going to buy Bitcoin now. Afterall it’s free!

 

Step 3: Transfer Funds to the exchange

After getting your crypto account approved, you can start buying any fraction of a single bitcoin. Each online exchange has different deposit methods, maximum/minimum limit order and fees.

 

Here’s an overview of the top 10 cryptocurrency exchanges with all the details, fees structure that maybe helpful for you.

 

Now, let’s transfer funds from your bank account to the exchange account.

 

Login to your bank account and make a bank transfer. Enter the total amount you’d like to transfer, and the bank details provided by your exchange. The process is very straightforward -just like you’d normally do for transferring funds to your friends or families.

 

When you money is deposited in your exchange account (this can take minutes, hours or even days- all depends on your bank), you’re ready to buy Bitcoin.

 

Step 4: Trade local fiat for Bitcoin

Even if you’ve never traded ANYTHING before, you can easily use an online exchange to trade your fiat money for Bitcoin.

 

Think of a crypto exchange like a platform that matches people who want to buy with people who want to sell.

To start buying crypto on the exchange:

 

Do note that different exchanges will support different cryptocurrencies. And most exchanges only offer trades for top crypto like Bitcoin (BTC) and sometimes Ethereum (ETH). For those new to cryptocurrencies, Bitcoin will be the first crypto that you’ll want to buy.

 

If you’re looking for altcoins or rare cryptocoins, you can sign up for different exchange like Binance.

 

Binance is a popular crypto exchange that has a greater selection of crypto with highly competitive fees. Allowing you to easily trade your Bitcoin with ETH, XRP and 140+more coins all in one place.

 

If you dread of going through the lengthy sign-up process or dealing with complex trading charts, you can always purchase Bitcoin instantly with your credit card on ChangeNOW. It’s quick, safe and easy. Read more here…

 

Once you complete your trade, you will see the balance of your Bitcoin in your exchange account.

 

Rule #1 in crypto is…Never keep your coin on an exchange.

Step 5: Transfer Bitcoin to your own Wallet

Remember, Not Your Keys, Not Your Bitcoin.

 

No matter whichever way you choose to buy Bitcoin, the process only ends when you move your coin from the exchange to a wallet that only you hold the keys to.

 

Leaving bitcoins on exchanges are extremely risky! Because they are the most attractive targets for hackers in the crypto world.

 

So, don’t keep your money on an online exchange any longer than you need to.

 

Once the transaction is completed, move your Bitcoin off the exchange to a hardware wallet like Ledger and Trezor.

 

If you have yet to own a bitcoin hardware wallet, choose a reliable wallet here.

 

Step 6: Track and report your gains

Crypto tax laws and regulations may vary by country. The amount of taxes you have to pay depends on your profit and how often you trade.

 

Start tracking you trades right from the beginning and you’ll save yourself grief.

 

You can keep track of all your purchases and sales in Excel. While it’s free to use, it’s not the most effective way.

 

Thankfully, there are a multitude of crypto tax tools available to simplify your filing, no matter where you live. To avoid paying unnecessary taxes and penalties, it’s a good idea to use some of these crypto tax software to help you keep records of your crypto transactions and calculate your crypto taxes.

 

4. Grow Your Crypto Assets

One of the easiest ways to grow your crypto assets for the newbie is by lending it through crypto lending platforms in exchange for interest/yield.

 

Simply open one of these savings account in any of these platforms to earn the high yields on your crypto assets:

 

If you’d like to review how you can HODL your bitcoins while earning some yields, check out our detailed comparison here 6 best Bitcoin lending sites.

 

It’s similar to your savings account that you have with your local bank, except that you enjoy a much better interest rate!

 

This is easy for those who are committed to holding their Bitcoin and want to increase their crypto holdings with no extra effort. 

 

5. Explore different ways of getting free Bitcoin without investment

Who doesn’t love free stuff?

 

Well, free Bitcoin is much better than any free things you can get in the world.

 

The $10 worth of BTC you earn today has unlimited upside potential. It can double, triple or even increase x1000 times in the long run.

 

Fun fact: Bitcoin was last decade’s best-performing currency. If you invested $1 in Bitcoin in 2010, it’d now be worth more than $90,000!

 

There are various ways to earn Bitcoin in your spare time:

 

If you’re interested in earning free bitcoin with no investment, check out this list of legitimate ways and earn Bitcoin right away.

 

Conclusion

It’s never too late to getting started in Bitcoin.

 

No matter where you are from, no matter what your background is, no matter what your socioeconomic status is, everyone can enter the cryptocurrency scene.

 

Bitcoin is the future of money, without a doubt.

 

Now you’re the proud owner of BTC. Enjoy the ride as you watch the price rise and fall, plummet and go to the moon.

 

As Benjamin Franklin once said, “An investment in knowledge pays the best interest.” So, educate yourself and stay safe.

 

As with any investment, do your research and make sure you’re educated before you plunk down your hard-earned money.

 

I’ve handpicked a few guides for you to read next:

 

I live and breathe making an income online. 

I’ll be sharing more ideas and guides soon. Stay tuned.

If you haven’t already, sign up here to receive my emails.

 

P.S: This Bitcoin resource is One of – if not the most – comprehensive resources for learning about Bitcoin with over 20 categories ranging from history to buying BTC, setting up a wallet, technical information, mining, security, and trading. Enjoy!

 

I’m not a financial advisor, my recommendations shouldn’t be used as professional investment advice.

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