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The Beginners Guide to Buying Bitcoin in 2024

Bitcoin is still making huge waves in the financial world as of last year. The adoption and growth rates of this cryptocurrency have skyrocketed, impacting global markets $330B in 2020 to $1T in 2023 in ways that no one had predicted. It is worth noting that the daily transaction volume has increased by over one million daily active addresses exponentially, indicating increased acceptance and use worldwide. 

I do think Bitcoin is the first encrypted money that has the potential to do something like change the world.
- Peter Thiel

Due to its extreme popularity, the number of Bitcoin wallets has grown to an estimated 100M in 2023. Currently, there are about 20K Bitcoin ATMs worldwide, a significant increase from just over 7K in 2020.

Where to Buy Bitcoin, A Newbie Guide

If you're interested in getting your hands on some Bitcoin, don't hesitate any longer. The process of getting started with Bitcoin is straightforward. Your first step is to get a Bitcoin wallet, which will serve as your secure storage and access point for Bitcoin. With a Bitcoin wallet, you can confidently store and manage your Bitcoin with ease. 

In 2017, Bitcoin commenced trading at a rate of $1000 per Bitcoin and eventually surged to around $19000 by the end of the year's final quarter.

What are the steps to buying Bitcoin?

Making your first Bitcoin purchase may seem overwhelming at first, but the process is relatively straightforward when you break it down. Here are the steps you need to follow: 

  1. Create a Bitcoin Wallet: First things first, you need a place to hold your Bitcoin. This is where a Bitcoin wallet comes in. Consider using software-based wallets like Coinbase, Mycelium, Exodus, or hardware wallets for added security. Do your homework and choose the one that best suits your needs.
  2. Choose a Bitcoin Exchange: After you've secured your wallet, you'll need to choose a Bitcoin exchange where you will buy your Bitcoin. Some top-rated platforms include Coinbase, CEX.IO, and Coinhouse. You must consider factors such as security, cost, ease of use, and customer support while making your decision.
  3. Buy Bitcoin: Once you have decided on an exchange, sign up for an account. You can then purchase Bitcoin using traditional currency. The method of payment depends on the exchange, but most platforms accept debit or credit cards and bank transfers.
  4. Transfer Bitcoin to Your Wallet: After purchasing the Bitcoin, make sure to transfer it to your wallet immediately. This is a crucial step as it reduces the risk of your Bitcoin being stolen from the exchange.
  5. Monitor Your Investment: Finally, keep track of your Bitcoin investment. As with any investment, it's important to monitor its performance over time and adjust your investment strategy as needed.

Remember, buying Bitcoin is just the first step in your cryptocurrency journey. Stay informed and be prepared for a volatile ride.

Bitcoin Wallet: Software vs. Hardware

Now, there are two types of Bitcoin wallets to choose from: software wallets and hardware wallets. Software wallets take the form of apps while hardware wallets are physical devices, similar to a USB flash drive.

If you're just starting, a software wallet will more than suffice your needs. Some renowned software wallets include Coinbase, Mycelium, and Exodus. These wallets provide a user-friendly interface and robust security measures to protect your digital assets.

Wallet Type

Accessibility

Security

Hardware Wallets

Requires physical device to store your encrypted bitcoins on

Highest security and cannot be hacked

Software Wallets

Accessible from any device with an internet connection

Considered less secure compared to hardware wallets

Top Bitcoin Wallets

If you are new to Bitcoin and want to start your journey, your first task is to find a place to store your digital asset. This is where Bitcoin wallets come in handy. Let's take a closer look at some of the most popular wallets that you can use.

Coinbase 

Coinbase is a leading cryptocurrency exchange in the United States. The Coinbase wallet not only offers you a convenient place to store your Bitcoins but also gives you a simple and intuitive platform if you're a beginner. Plus, they offer some level of insurance for Bitcoin storage which is a rare treat. 

Feature Description
Instant Buy Option A fast and straightforward process for buying Bitcoins.
Recurring Buy Option Allows users to automate their Bitcoin purchases at regular intervals.
Advanced Security Measures Includes two-factor authentication, biometric fingerprint login, and insurance in case of a breach or fraud.
Coinbase Earn A learning platform that allows users to earn free cryptocurrency while acquiring knowledge about them.
Mobile App Provides a seamless crypto trading experience on iOS and Android devices. Allows users to monitor the market and manage transactions anytime, anywhere.

Mycelium 

For those who prefer to manage their assets on the go, Mycelium makes a great choice. This wallet operates exclusively on mobile devices, offering speed, convenience, and compatibility with various devices. 

What makes Mycelium stand out is its "Hierarchical Deterministic" or HD design. This feature heightens security by generating a fresh wallet address every time you conduct a transaction. Therefore, your financial activities maintain a high level of confidentiality, deterring any malicious attempts to track your wallet. Additionally, with the built-in address book function, you can seamlessly handle frequent transactions. 

Features Description
Hierarchical Deterministic Design It increases security by creating a new wallet address for every transaction, keeping your financial activities private.
Address Book Function Helps in managing frequent transactions conveniently through a built-in function.
Mobile Device Exclusivity Designed specifically for mobile use, it ensures fast and easy accessibility.
Advanced Device Compatibility Compatible with more advanced devices, ensuring extended functionality and ease of use.
PIN Protection

It offers an invaluable peace of mind, ensuring only you can access your funds. Moreover, in case of accidental loss or change of device, you can recover your Bitcoins thanks to its 12-word recovery phrase feature. Just make sure to store your keywords safely. You will be thankful for this safety net. 

Advanced Hardware Wallet

For experienced users, Mycelium also offers advanced features like hardware wallet support allowing you to connect with leading hardware wallets like Trezor or Ledger. 

Lastly, it's worth mentioning that Mycelium won the 'Best Mobile App' award by Blockchain.info in 2014, testifying to its reputation in the Bitcoin community.

Exodus 

If an offline solution sparks your interest, Exodus could be the wallet for you. This free application supports numerous cryptocurrencies in addition to Bitcoin, providing a versatile option for those invested in multiple digital assets. 

Feature Description
Offline Access Exodus operates offline, providing added security against online threats and hackers.
Multi-currency Support It supports numerous cryptocurrencies, catering to interests in multiple digital assets.
User-friendly Interface This wallet boasts a simple, intuitive user interface that eases navigation even for beginners.
Free To Use Exodus is free to download and use, making it an affordable option for all users.
Built-in Exchange The wallet has a built-in exchange feature that allows seamless swapping of one cryptocurrency for another.
Secure Private Key Management Exodus encrypts private keys and transaction data on your device and for your eyes only, thus ensuring the safety of your digital assets.

Blockchain

Blockchain is a well-known name in the world of Bitcoin. It offers an intuitive interface that beginners can easily navigate. Much more than just being a wallet, Blockchain also provides a highly secure platform for buying, selling, and swapping digital currencies. It is available for use on both mobile and desktop platforms. 

Feature Description
User Interface Easy to use, intuitive interface suitable for beginners and pros alike.
Platform Compatibility Accessible on both mobile and desktop devices.
Security A three-tier security protocol for buying, selling, and swapping digital currencies.
Crypto Support Supports multiple digital currencies aside from Bitcoin for flexible trading.
Market Information Provides real-time market prices and trends for strategic trading.

Bread Wallet

Bread Wallet distinguishes itself with a user-friendly design and by not requiring an extra signup step. Instantly downloadable, Bread Wallet sets you up with a secure and private place to store your Bitcoin. It’s great for beginners dipping their toes into the world of cryptocurrency, and it is also highly respected among seasoned Bitcoin aficionados.

Feature Description
User-Friendly Design Bread Wallet is designed with simplicity and usability in mind, making it practical for beginners.
No Extra Signup Step Bread Wallet does not require an additional signup process. Once downloaded, you are good to go.
Private and Secure Bread Wallet values users' privacy and provides a secure environment for storing Bitcoin.
Instantly Downloadable Bread Wallet can be downloaded instantly, offering immediate access to a secure Bitcoin wallet.
Respected in the Bitcoin Community Bread Wallet is a highly respected Bitcoin wallet solution, popular with both beginners and seasoned users.

There are many other options available, each with its advantages. Ultimately, the decision depends on your personal needs and requirements. Next, you need to choose your Bitcoin Exchange, which is equally crucial in your Bitcoin acquisition journey.

Deciding on your Bitcoin Exchange 

Once you've got your wallet all set up, the next step is to choose a Bitcoin exchange. A Bitcoin exchange is where you'll be purchasing your Bitcoin. Lots of options exist, but Coinbase, CEX.IO, and Coinhouse are among the most popular for their security measures, user-friendly interfaces, and competitive transaction fees.

These platforms also offer versatile payment methods, including debit cards, credit cards, and bank transfers. 

Exchange Security User Interface Transaction Fees Payment Methods
Coinbase High User-friendly Competitive Debit and Credit Cards, Bank Transfers
CEX.IO High Simple and Convenient Low Debit and Credit Cards, Bank Transfers
Coinhouse High User-friendly and Efficient Competitive Debit and Credit Cards, Neosurf Prepaid cards

Direct Bitcoin Purchases 

If you'd like to avoid third-party exchanges, you can opt for peer-to-peer transaction platforms. Examples of these platforms include BitQuick, LocalBitcoin, and Wall of Coins. With these platforms, you can navigate Bitcoin transactions directly with sellers. They can offer you a greater level of autonomy and control over your transactions, but they may also require a deeper understanding of Bitcoin purchasing processes. 

Platform Features
BitQuick
  • Offers escrow services, helping to protect all parties involved in each transaction
  • Supports multiple payment methods, including cash deposit and SEPA transfer
  • Transactions are quick, often completed within a few hours
LocalBitcoins
  • Globally accessible, with users from over 248 countries
  • Offers a wide variety of payment methods, including bank transfers, PayPal, and cash-in-hand
  • Features a user-reputation system to help ensure the trustworthiness of traders
Wall of Coins
  • Allows for cash purchases of Bitcoin
  • Offers a webchat for customer support, assisting both buyers and sellers
  • Transactions are typically speedy, with coins often sent to buyers within 15 minutes of payment

Conclusion

The meteoric rise of Bitcoin continues to redefine the financial landscape. Its value and adoption have surged, impacting global markets significantly. With daily transaction volumes and active wallets multiplying rapidly, mainstream acceptance seems inevitable.

If you are considering entering the world of Bitcoin, this guide has aimed to demystify the process. From wallet selection to exchange options, the necessary steps are now more straightforward. However, due diligence remains essential. Carefully research and choose platforms and wallets that prioritize security and align with your financial goals.

Remember, Bitcoin's inherent volatility requires strategic investment planning. Stay informed, invest wisely, and be prepared for an exciting, albeit dynamic, journey in the world of cryptocurrency.

About the author

Angel Cabal

Ex-soccer player for Real Oviedo Football Club and long-time casino enthusiast with a profound understanding of the iGaming industry. I'm constantly on the lookout for the latest bonuses, leveraging my 10+ years of expertise to maximize your gambling returns.