Don’t let the options stop you
First and foremost, a disclaimer: I am not a financial advisor. You should not interpret anything I post here as financial advice. The purpose of this series is to facilitate your understanding of Bitcoin. Ultimately, you need to conduct your own research.
Please note that this post contains affiliate links that might result in my receiving some Bitcoin. I do not, in any way, expect you to use these. They are merely here to show you the possibilities, although, I won’t complain if you do use them.
This post is the third in my series, "Bitcoin Baby Steps," designed for those who have never purchased Bitcoin before. If you are here for the first time, I suggest you read the first two posts:
So, how do you buy Bitcoin? Although it’s possible to purchase Bitcoin directly from someone else, the typical method is through an exchange. Here, I’ll highlight a few places you can buy Bitcoin.
Keep in mind that it’s unnecessary to buy a whole Bitcoin. In fact, most people will never own a full Bitcoin since there will only ever be 21,000,000 Bitcoins in existence. Therefore, it’s impossible for everyone to own one entirely. The smallest increment is a Satoshi (Sat), which is one one-hundred-millionth of a Bitcoin. When purchasing Bitcoin, you typically do so in your local currency. For instance, here in the United States, we buy Bitcoin in dollars. If I were to buy some Bitcoin at an exchange, I might buy $500 worth. The actual amount of Bitcoin I receive depends on the current price, minus any fees.
Speaking of fees, they’re likely to vary and are typically quite low. I won’t delve into the specifics of fees in this post; instead, I’ll outline where you can purchase Bitcoin.
I strongly advise beginners to stick to Bitcoin (BTC) and avoid trading other cryptocurrencies. The latter are riskier, and the chances of losing your money are higher.
Easy, but limited
PayPal: If you have a PayPal account, you can purchase Bitcoin. They have made it possible to send Bitcoin to your personal wallet. To be honest, PayPal would not be my first choice for purchasing Bitcoin. https://www.paypal.com
Robinhood: Robinhood lets you buy Bitcoin and some other cryptocurrencies. Similar to PayPal, Robinhood is not my first choice for purchasing Bitcoin. https://robinhood.com
Venmo: Venmo, like PayPal and Robinhood, allows you to buy Bitcoin and some other cryptocurrencies. Still not my first choice for purchasing Bitcoin. https://venmo.com
Cash App: Cash App allows you to purchase Bitcoin and withdraw it to your private wallet. Prices might be slightly high, but it’s user-friendly. They do not currently offer any other cryptocurrencies, but that may change. Note: you can’t purchase Bitcoin through the Cash App website; you have to do it through their app. https://cash.app
Exchanges
Several exchanges exist, but I have only used a few. Here are my thoughts on those I have used and some information about others:
Coinbase: One of the biggest exchanges, Coinbase, offers a wide variety of cryptocurrencies, including Bitcoin. Their fees are not the most competitive, and they tend to promote a lot of alternative coins. They offer small amounts for free if you’re willing to learn about these altcoins. Many Bitcoin enthusiasts consider this a significant drawback. However, you can buy Bitcoin, store it there, or transfer it to your wallet.
If you decide to check out Coinbase, you can use my link: https://www.coinbase.com/join/string_9b. If you use that link, we will each receive $10 worth of Bitcoin after your first $100 purchase. Alternatively, you can simply visit the Coinbase website and sign up without the personal link: https://www.coinbase.com
. I don’t want you to feel pressured into using my link.
Swan Bitcoin: This is where I primarily buy my Bitcoin. It’s a very basic exchange that only offers Bitcoin. They encourage dollar cost averaging and regular Bitcoin custody. Their prices are quite competitive. You can learn more at https://www.swanbitcoin.com/RickS/.
Abra: Abra is an interesting platform to buy Bitcoin and other cryptocurrencies. They offer interest-earning accounts. A drawback is that to earn interest, you need to keep your Bitcoin on their exchange. More on this in future posts. https://www.abra.com
Kraken: Similar to Coinbase, Kraken is a major exchange, but I haven’t used it, so I can’t give much advice on it. https://www.kraken.com
Gemini: Another significant exchange, Gemini, is similar to Coinbase and Kraken. Again, I haven’t used them, so I don’t have much information to share. https://www.gemini.com
The Wild Card
Strike: Available on iOS and Android, Strike is a free app that allows you to send money globally almost instantly. It converts your money to Bitcoin and then converts it into the recipient’s local currency. You can learn more at https://strike.me
.
One really cool thing that you can do with Strike. Once you have an account with them, you can share link with others where they can send you a tip: https://strike.me/rickstringer/. This can be a great way to send money to someone else.
Through a Wallet
Some digital wallets allow you to purchase Bitcoin directly through them. This topic is quite extensive and will be covered in future posts.
Conclusion
The resources listed here should give you a basic starting point for purchasing Bitcoin. In my next post, I’ll discuss storing your Bitcoin—an essential topic not to miss.
I look forward to sharing more with you.
Here are the other volumes of Bitcoin Baby Steps:
Thank you for reading Bitcoin Baby Steps!