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How To Buy Bitcoin (BTC)?

Buying Bitcoin is easy and safe from a trusted and regulated Bitcoin exchange. Buying Bitcoin demands caution and online banking management, but it is not difficult. Bitcoin is a demanding investment that offers great potential returns as a counterweight to the risks.

How to Buy Bitcoin (BTC): A Quick Guide

Buying Bitcoin is easy and safe from a trusted and regulated Bitcoin exchange. We recommend buying Bitcoin from Coinbase. Coinbase has operated for over ten years, serving over a hundred million users globally. Coinbase is also a publicly listed company and, therefore, heavily regulated.

Buying Bitcoin from Coinbase is no more difficult than using an online bank. Next, you will see a quick guide on the steps you need to take to purchase Bitcoin. You will also get detailed instructions for each stage of the process later in this article.

How To Buy Bitcoin:

  1. Choose a Bitcoin exchange: We recommend Coinbase for beginners.
  2. Open a user account: Click here to open a Coinbase account.
  3. Download the mobile app: The easiest way to buy bitcoins is with a mobile app.
  4. Verify your identity: You need a valid passport and proof of your address.
  5. Deposit fiat to your account: Coinbase supports SEPA bank transfers and credit card deposits.
  6. Buy bitcoins: Exchange fiat (EUR, USD, GBP, etc.) for bitcoins in a few clicks!
  7. Keep your bitcoins safe: Transfer bitcoins to your wallet if needed.

Below, you can see a picture of the home page of Coinbase for reference.

buy bitcoin from coinbase

Hundreds of millions of people around the world are buying Bitcoin. Hundreds, even thousands, of crypto exchanges have appeared online in recent years. It’s no wonder that the question “Where to buy bitcoins?” has many answers depending on who you ask.

No reason to worry! We have done the research work for you. Visit our best cryptocurrency exchanges page for the most popular and trustworthy crypto exchanges. You can find beginner’s guides on these exchanges by clicking the Reviews link in the main menu.

Nowadays, you buy Bitcoin from the same exchange where you buy other cryptocurrencies as well. This is why we talk about crypto exchanges and not so much Bitcoin exchanges. Around 2015-2016, many exchanges only offered the possibility of buying bitcoins, but the situation is very different today.

Next, you will get detailed instructions on how to buy bitcoins safely. Before that, read the best Bitcoin guide online to improve your Bitcoin knowledge!

How To Buy Bitcoins (BTC): A Detailed Guide

Buying Bitcoin demands caution and online banking management, but it is not difficult. The process starts with choosing an exchange and ends with a safe storage method. Next, we go through the entire buying process in detail.

Where to buy bitcoins?

Buying Bitcoin starts with choosing a Bitcoin exchange. In practice, we talk about crypto exchanges. There are only a handful of services on the market where you can only buy Bitcoin. Almost every exchange lists dozens, or even hundreds, of other cryptocurrencies.

Where to buy bitcoins? The answer to the question depends on e.g. of the following factors:

  • Is the English language a problem for you?
  • Do you want to buy other cryptocurrencies?
  • Do you need features like leverage and futures?

A lot of people only want to use their native language. Coinbase (or other exchanges) doesn’t support your language if you live in a small country. In this case, we recommend using a local crypto exchange with your language support. It is good to remember that a possible language problem comes up when using customer service. Ensure you know how to explain possible crypto-related issues in English before using an exchange where your mother tongue is unavailable.

Most investors want first to buy bitcoins and other cryptos a little later. Coinbase supports dozens of popular cryptocurrencies, but they don’t have every coin of the thousands of possible options. Before opening an account, check the exchange has the coins you want to buy.

Binance is a good option if you want to trade Bitcoin futures and possibly use leverage. Coinbase has also Coinbase Pro for professional traders. Small local exchanges don’t typically have these options. If you want to trade futures and need proper liquidity, use global crypto exchanges serving millions of users.

Register a user account and download the mobile app

Registering a new account on a crypto exchange is a straightforward process. Below is an example image of the Coinbase registration form.

coinbase registration

After entering your name and address, the exchange will ask for information about deposits and withdrawals. How often will you deposit money, how big amounts, where is the money coming from, etc. Similar questions are asked in all exchanges due to money laundering laws.

We recommend downloading the mobile app after registration. All exchanges offer a mobile app in both Android and iOS versions. Please exercise caution when downloading mobile apps from the app store to ensure you download an authentic app.

A mobile app is also necessary for using many global exchanges as the identity verification process is completed there.

Verify your identity

After opening an account, you must verify your identity. This step is commonly referred to as the KYC process. This may annoy some, but it is a standard process that must be followed in all exchanges due to the money transfer regulations.

The advantage of your local exchange is that identity verification can (possibly) be done with a local bank ID or similar, depending on the country.

If you open an account on a global exchange (e.g., Coinbase), your identity is verified with a valid passport picture. You also need a picture of an electricity bill, bank statement, or similar document for address verification.

In global exchanges, identity verification is often completed through a mobile app using the phone’s camera. This ensures that the account opener is a person.

Deposit fiat to your account

Before buying bitcoins, a fiat deposit must be made to the account of the trading place of your choice. Fiat currencies refer to all global currencies, such as USD, GBP, EUR, etc. Transferring fiat to a crypto exchange is fast, as all well-known exchanges support SEPA transfers. The SEPA transfer often appears in the recipient’s account within hours.

Your local crypto exchange might also have an instant bank transfer option, depending on the country you live in.

Another option is to buy Bitcoin with a credit card. This is usually a significantly more expensive method. You should prefer a bank transfer and wait a couple of hours if the situation is not urgent. Keeping a small amount of cash available in exchange for taking advantage of price dips is not a bad idea.

Buy bitcoins

Buy the desired amount of bitcoins with fiat. Remember, you don’t have to buy one whole bitcoin. The minimum purchase varies depending on the exchange, but it is often around ten dollars (or ten euros). So you can get started with very small purchases.

Buying Bitcoin is easy via a mobile app. Below is a picture of the purchase form of Coinbase. It’s a very clean and simple form to use.

buy bitcoin coinbase

As you can see from the picture above, you can buy bitcoins with a certain amount of euros by default. In the example image, a 100 euro bitcoin purchase is made. You can also change the unit from euros to bitcoins and buy, for example, 0.001 or 1.5 bitcoins.

Bitcoins appear in your account immediately after purchase. By default, trades are made at the current market price.

Professionals can also buy bitcoins with a limit order or use leverage. Futures trading is also popular these days. This article will not cover these options because it is aimed at beginners.

Keep your bitcoins safe!

Taking care of the safe storage of bitcoins is extremely important. As a Bitcoin buyer, you have two options:

  1. You can keep your bitcoins in the exchange where you bought them.
  2. You can transfer bitcoins to your wallet.

The first option is suitable for beginners who have bought their first bitcoins. Exchanges like Coinbase are considered very reliable and safe. Hence, the risk of losing your funds is small.

However, it is good to remember that the ability to manage your funds yourself is one of the most important features of Bitcoin. For this reason, we recommend that every Bitcoin buyer familiarize themselves with using a Bitcoin wallet. Read more from our in-depth beginner’s guide: What is a Bitcoin wallet?

Follow the news and price developments

We recommend following Bitcoin-related news and price developments. Bitcoin is a new investment class with little history. The Bitcoin market regularly experiences extreme volatility, technological developments, and regulation changes.

There are EU-level crypto and local financial regulations if you live in the EU. The local regulation is usually related to taxation, which all Bitcoin investors should know. Each country has its own rules when it comes to crypto taxes. The same idea applies to other regions and jurisdictions. Make sure you are familiar with your local crypto regulations!

In Bitcoin, as much happens in a month as in the traditional market in a year. It is good to keep an eye on Bitcoin and know what has moved the price of Bitcoin at any given time. If you follow our news reviews, you will not miss any major events.

Bitcoin as an investment

Bitcoin is a demanding investment that offers great potential returns as a counterweight to the risks. Above all, this is a new investment category. Bitcoin has only been easy to invest in for ten years. There is also little historical data available.

Buy bitcoins and forget about your investment? We do not recommend such a strategy. Bitcoin purchase is only the first step. After that, “the HODLing” begins, which can be mentally demanding even for experienced investors.

Here are some things that are required from a Bitcoin investor:

  • Ability to tolerate volatility: The volatility of Bitcoin is significantly more severe than that of stocks.
  • Capacity to learn about new technology: Using and managing Bitcoin requires introducing new types of technology.
  • Basic accounting skills: Every Bitcoin buyer must keep records of purchases, sales, and transactions for tax purposes.
  • Vigilant online behavior: Unfortunately, the Internet (especially social media) is full of Bitcoin-related scams.

A Bitcoin investor also benefits from understanding the history of money and the value of precious metals.

There are also similarities between Bitcoin investing and traditional investing. The “buy low and sell high” mentality, technical analysis, learning about new information, and good nerve control are skills required from all investors.

However, it is important to understand that unique features are associated with buying Bitcoin. Bitcoin is a completely new technology that hasn’t been available to investors. Read this article for tips on becoming a good Bitcoin investor: Bitcoin investing explained.

FAQ: How to buy Bitcoin?

Below, you’ll find some frequently asked questions about buying Bitcoin.

How do beginners buy Bitcoin?

Beginners should buy Bitcoin from a beginner-friendly Bitcoin exchange. In our opinion, the best option is Coinbase. It is safe, regulated, and easy to use for beginners. Read more from our Coinbase review.

Can I invest $100 in Bitcoin?

Yes, you can. You don’t have to buy a whole bitcoin. The minimum purchase amount is typically around $10.

How much does it cost to buy 1 Bitcoin?

You can see the current price of Bitcoin from this page: Bitcoin real-time price. There is also a fee charged for each purchase. The purchase fees usually range from 0.1 % to 2 %.

How do I convert Bitcoin to cash?

You convert Bitcoin to cash the same way you convert cash to Bitcoin. Every Bitcoin exchange has a buy and sell option. You can sell your bitcoins to cash at any time.

How many times can I buy Bitcoin a day?

You can buy Bitcoin as many times a day as you want; there are no limits. The market is also open 24/7.

Should I buy Bitcoin or Ethereum?

This depends on the current market trends and your goal as an investor. Bitcoin and Ethereum have different value propositions and risks. It might also be a good idea to buy both, there is no need to choose one or the other.

Antti Hyppänen

Antti Hyppänen is the founder and editor-in-chief of AboutBitcoin.io. Antti has written articles about cryptos since 2017. He follows the crypto market every day of the year and is responsible for the daily operations of AboutBitcoin. Antti is not a maximalist regarding any cryptocurrency but looks at the industry objectively. Antti’s investment profile is “buy & hold,” i.e., he does not trade or use leverage. His crypto portfolio consists of mainly Bitcoin and Ethereum. Antti also follows macroeconomic events. In addition to cryptos, his interests include gold, silver, and the US stock market.