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.

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. 

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. 

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. 

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. 

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.

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. 

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. 

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.