Bitcoin is a hot topic right now and people are scrambling to buy some in hopes of making a lot of money. Unfortunately, a lot of people stay away from Bitcoin because they are under the impression you must be tech savvy to buy some. While that may have been true in the past, it is easier than ever to buy Bitcoin now!
How much do I need to buy Bitcoin?
There is a big misconception that you must buy Bitcoins in whole number increments. The great thing about Bitcoin though, is that you can buy fractions of a Bitcoin. As of this writing, it is ~$7,000 for 1 Bitcoin (BTC). However, if you only wanted to buy $70, you could do it. Your wallet would then have 0.01 BTC. Bitcoin goes out to 8 decimal places, so you have a lot of options. Be sure to take fees into account when you are buying though!
Where can you buy Bitcoin?
There are a lot of places to purchase Bitcoin. For the purposes of keeping this post simple I will only mention exchanges. Exchanges are the easiest way because most will allow you to link your bank account. Once your bank account is linked you can transfer fiat money to the exchange and then purchase Bitcoin. This is the same process you would go through if you were purchasing stocks. As you can guess, my top recommendation is to use Coinbase, which can be found here.
Why is Coinbase the top pick?
Coinbase touts itself as the on-ramp to the world of Cryptocurrencies and this could not be more true. They only list 3 cryptocurrencies (Bitcoin, Ethereum, and Litecoin), which helps a lot because it can be overwhelming when you see hundreds to choose from. Since they are so frugal in listing a cryptocurrency, you can feel safe that you are not buying a “scam coin”.
The user interface is also very friendly and easy to understand. The app and website are both equally pleasant to use and offer everything you need to buy and sell Bitcoin, Ethereum, or Litecoin. Apps are available for both iPhone and Android phones.
Lastly, if you are a US citizen, any USD you deposit has FDIC insurance. This is the same insurance you will get at a bank, so that should help you sleep. However, they go one step further and even have insurance on all of their cryptocurrencies. This means you do not need to worry about breaches or theft taking all of your hard earned money.
Signing up and buying Bitcoin
As of this writing, this is all that is needed to sign up:
Once you sign up you will have options to link a bank account, debit card, or credit card. You can also submit more information to have higher limits on what you can purchase and sell each week. Once you have a linked account you can move onto buying some Bitcoin!
Steps for buying Bitcoin
1. Select the Buy/Sell option at the top of the screen.
2. It should default to Bitcoin, but go ahead and make sure it is selected (green check mark in the corner of the Bitcoin box)
3. Choose your payment method from the drop down. This will be a bank account or card that you have already added.
4. Enter the dollar amount or Bitcoin amount that you would like to purchase. They give an option to repeat the buy, so if you wanted to buy a set amount each month you would set that here. Also notice the right side is now populated and we can see the account we are using, when the BTC will be available to us, and where it is being deposited. We can also see the fee and final total of our purchase.
5. Click “Buy” and that is it. If you go back to your homepage you should see the transaction in the bottom right, and if you used a card the BTC should be there almost instantly. Congratulations, you just bought some Bitcoin!
It’s gotten a lot easier to buy Bitcoin and Coinbase is largely to thank for that. If you found this helpful and plan on buying some, please consider using my referral link and we could each get an extra $10 of Bitcoin!
Once you feel comfortable with this, you may want to expand into other cryptocurrencies. If you are interested in an exchange that offers more choices, check out my review of the KuCoin Exchange.