Like many, you’ve probably heard all about cryptocurrency and you’re curious as to how you can get started buying Bitcoin. Dana Sitar at The Ascent has created a handy guide to help you get started with your investing project. While investing in bitcoin seems like it might be complicated, it’s actually easier than you think.
How to Get Started Buying Bitcoin
According to Sitar, there are five steps involved with purchasing Bitcoin and other cryptocurrencies. Here are the steps:
- Sign up to be part of a crypto exchange. A cryptocurrency exchange gives you a means for accessing the currency. While many exchanges can be complex and intimidating, there are a few easier platforms that are user friendly. Sitar notes that Coinmama, BlockFi, Bitcoin IRA, Cash App, Robinhood, and SoFi are the most user-friendly platforms to get started with. If you want to buy Bitcoin, you will need to be sure that the platform you sign up for offers Bitcoin.
- Get a wallet for your cryptocurrency. A crypto wallet is simply the software you use that will hold the information about your Bitcoin – it’s like your own Bitcoin bank account. Most of the exchange platforms will include a wallet that you can use with the platform. It’s up to you, but it may be beneficial to sign up for a third-party wallet. This gives you increased security.
- Next, you’ll need to connect your bank account to the exchange. If you’re buying Bitcoin for the first time, you’ll be using what’s called “fiat” currency. This is just a fancy name for the traditional money like dollars or euros that you’re used to. You have some options for purchasing – you can use your bank, you can use a credit card, or you can use a debit card. You’ll also want to be able to withdraw Bitcoin to your bank account via wire transfer or through your crypto wallet.
- Once you have all the setup completed, you’ll want to place your order for Bitcoin. This works like it would with any online broker. You choose what you want to purchase and how much you’d like to spend. While a single Bitcoin is around $34,000 at the time of this writing, you can purchase fractions of a coin. Check your crypto exchanges minimums.
- Now that you’ve made your purchase, it’s time to manage your investment. Most investors do so for the long-term. This is the simplest way to do things when you’re getting started. You won’t want to do a bunch of active trading when it comes to market shifts unless you know what you’re doing.
Buying (and selling) cryptocurrency doesn’t have to be difficult. It’s only as complicated as you want to make it. By following the above steps to get started buying Bitcoin, you can get a jump start with your crypto journey.