How to Start Investing in Bitcoin for Beginners - ThinkMaverick (2024)

Bitcoin for beginners

Bitcoin not only continues to survive amidst the greatest pandemic of our generation, but also surged past $19,000 for the first time since January 2018.

Investors are getting more optimistic than ever about the next steps in the Bitcoin market.

Paul Jones Tudor, a billionaire hedge fund manager, says Bitcoin is the best hedge against inflation and compare investing in Bitcoin now to investing in early tech startup like Apple and Google.

If you are still wonderingif you should buy Bitcoin, the answer is a resounding “YES!”

But how do you start?

After all, entering the crypto space can be an overwhelming experience for first-timers. And even the most seasoned,technology–savvy investors may find it difficult to keep up with these rapidly evolving technologies.

Don’t worry, you don’t have to spend hours to learn about all the complicated blockchain or cryptography.

To make theexperience more comfortable, we’ve included some information that might help.

So you have landed on the best page ever to learn how to make your first Bitcoin investment. Let’s get started!

1. The best way to get started is to buy some Bitcoin

What better way to understand bitcoin and other cryptocurrencies than buying some and try them out.

When it comes to investing, Warren Buffett once said, “You’ve got to have skin in the game”.

The same principle applies to Bitcoin game.

Everything becomes much easier to understand and less terrifying once you actually invest in Bitcoin.

Start small. You can buy as little as $1 worth of Bitcoin as an interesting learning experience.

Fortunately, there are many different ways to buy Bitcoin, from anywhere in the world.

Check out our series on how to buy Bitcoin:

• How to Buy Bitcoin with Cash
• How to Buy Bitcoin with Debit/credit card
• How to Buy Bitcoin with Paypal
• How to Buy Bitcoin with Bank Account
• How to Buy Bitcoin from ATM
• How to Buy Bitcoin with Gift Cards
• How to Buy Bitcoin Automatically Every Day, Week or Month

2. You don’t have to buy a whole Bitcoin.

But Bitcoin is too “expensive” for me at the moment. I can’t afford that.

Here’s the thing: Many people don’t realize that they don’t have to buy a full Bitcoin.

You don’t have to buy an entire Bitcoin as your first crypto investment.

You don’t have to fork over tens of thousands of dollars to participate in Bitcoin if it’s not within your financial plan.

You can always buy a small fraction of bitcoin in the form of Satoshi.

Similar to many national fiat currencies, for instance, USD, we have a small monetary unit called “cent”, which is 1/100 of a dollar. And the pound is broken into pence.

In the world of Bitcoin, we have this small unit called Satoshi.

A Satoshi is the smallest unit of Bitcoin. It is one hundred millionth of a single Bitcoin.

1 Satoshi = 0.00000001 BTC

In other words, there are 100 million units inside each Bitcoin.

1 BTC = 100,000,000 Satoshi

But, there are only 21 million Bitcoin that will ever be in circulation.

Let’s not forget the million satoshi within each Bitcoin. So, there’s a possibility for anyone who wants to get involved to be able to own some pieces of the Bitcoin protocol.

Even if the value of 1 Bitcoin goes up to $1 million, 1 Satoshi would be worth just a cent.

Whether you buy a half of a bitcoin, a quarter of a bitcoin or even a fraction of a percent of a bitcoin, you will get the same gain rate as buying a full BTC.

So, start off small, buy just a fraction of Bitcoin (BTC) and add to your position overtime.

Go big on your crypto allocation once have confidencein yourinvestments.

3. How to Make Your First Bitcoin Investment

To start investing in crypto, there are two important things you need:

• An exchange or online platform- to buy Bitcoin
• A wallet – to keep your Bitcoin

Step 1: Get a Bitcoin wallet

No matter which way you choose to purchase your Bitcoin, you’ll need a wallet to store your digital assets.

There are many different types of wallets out there you can choose from -mobile wallet, desktop wallet, paper wallet, and hardware wallet. Here’s a quick wallet guidethat may help you decide.

Major cryptocurrency exchanges like Binance,Coinbase provide a free wallet for all registered users. You can use it to buy, sell and keep your coins. However, these exchange-hosted wallets are not safe, they are vulnerable to attack.

So if you’re investing a significant amount and looking to hold the coins for the long-term, I suggest you use a Bitcoin hardware wallet like TrezorandLedger.

A Bitcoin hardware wallet is basically a physical “thumb drive-like” electronic device that you can use it to store, send and receive cryptocurrencies. It’s by far the most secure option when it comes to storing your Bitcoin.

Can’t decide which hardware wallet you should get? Check out our Trezor vs. Ledger review and comparison.

Step 2: Find a cryptocurrency exchange

Next, you need to find a place where you can buy Bitcoin using your local currency.

There are several ways to purchase your first Bitcoin, you can

• Buy Bitcoin from a Bitcoin ATM machine (the offline way)
• Buy Bitcoin directly from another person on LocalCoinSwap (Peer-to-peer method)
• Exchange your unused gift cards for Bitcoin on Paxful
• Buy Bitcoin with debit card or credit card instantly on ChangeNOW
• Buy Bitcoin with bank account from an online exchange likeCoinbase,Luno, or Coinmama
• Or set up Bitcoin auto-buy with Swan Bitcoin or Relai (use invite code TMAVERICK to save 0.5% on fees)

Of all the methods, the easiest way for most people is to use a cryptocurrency exchange.

All you need to do is sign up for a free account, verify your identity and connect your bank account.

As banking is now regulated country by country, you’ll need to find an exchange that accepts your currency.

Here are few main options where you can buy Bitcoin based on your country:

• USA: Coinbase, Swan Bitcoin, Kraken,Bitstamp
• Canada:CoinSmart
• Malaysia:Luno
• Singapore: Luno,Coinhako,Coinbase, Crypto.com
• Australia:Independent Reserve
• China:Huobi,OKCoin, BTC China
• Taiwan:Maicoin
• India:Bitbns
• South Africa: Luno
• UK:Coinbase,CEX
• Europe: Relai,CEX
• Russia:Coinmama
• Japan: Coinmama, Kraken
• South Korea:Bithumb,Korbit,Coinplug

Most exchanges may ask you to complete the KYC (Know-Your-Customer) in order to remain compliant with Anti-Money Laundering laws (AML). Before you can start buying or selling, you’ll need to submit personal documents such as your national ID, passport, photo, or proof of address to verify your identity.

It can take days or even weeks to get your account approved depending on the capacity of the exchange.

Did you know? New users missed the 2017 bull run because they couldn’t sign up or get verified! Many exchanges were forced to halt onboarding new users due to overwhelming demand.

Tip: Complete your account set up as soon as possible to avoid missing opportunities, even if you’re not going to buy Bitcoin now. Afterall it’s free!

Step 3: Transfer Funds to the exchange

After getting your crypto account approved, you can start buying any fraction of a single bitcoin. Each online exchange has different deposit methods, maximum/minimum limit order and fees.

Here’s an overview of the top 10 cryptocurrency exchanges with all the details, fees structure that maybe helpful for you.

Now, let’s transfer funds from your bank account to the exchange account.

Login to your bank account and make a bank transfer. Enter the total amount you’d like to transfer, and the bank details provided by your exchange. The process is very straightforward -just like you’d normally do for transferring funds to your friends or families.

When you money is deposited in your exchange account (this can take minutes, hours or even days- all depends on your bank), you’re ready to buy Bitcoin.

Step 4: Trade local fiat for Bitcoin

Even if you’ve never traded ANYTHING before, you can easily use an online exchange to trade your fiat money for Bitcoin.

Think of a crypto exchange like a platform that matches people who want to buy with people who want to sell.

To start buying crypto on the exchange:

• Select the correct trading pair (eg. BTC/USD)
• Select BUY. In general, you have two main options here:
  • A limit order: Choose LIMIT ORDER, if you want to pay a lower fee for waiting. You set your own price at which you want to buy. And the order will only be executed if the market price reach the price you set.
  • A market order: Choose MARKET ORDER, if you want to buy/sell the amount you want immediately, at the best available price in the market.
• Enter the amount you want to buy. You’ll see the quantity of BTC you’re purchasing and your fee.
• Click “Place Buy Order” to buy Bitcoin (BTC).

Do note that different exchanges will support different cryptocurrencies. And most exchanges only offer trades for top crypto like Bitcoin (BTC) and sometimes Ethereum (ETH). For those new to cryptocurrencies, Bitcoin will be the first crypto that you’ll want to buy.

If you’re looking for altcoins or rare cryptocoins, you can sign up for different exchange likeBinance.

Binance is a popular crypto exchange that has a greater selection of crypto with highly competitive fees. Allowing you to easily trade your Bitcoin with ETH, XRP and 140+more coins all in one place.

If you dread of going through the lengthy sign-up process or dealing with complex trading charts, you can always purchase Bitcoin instantly with your credit card on ChangeNOW. It’s quick, safe and easy.Read more here…

Once you complete your trade, you will see the balance of your Bitcoin in your exchange account.

Rule #1 in cryptois…Never keep your coin on an exchange.

Step 6: Track and report your gains

Crypto tax laws and regulations may vary by country. The amount of taxes you have to pay depends on your profit and how often you trade.

Start tracking you trades right from the beginning and you’ll save yourself grief.

You can keep track of all your purchases and sales in Excel. While it’s free to use, it’s not the most effective way.

Thankfully, there are a multitude of crypto tax tools available to simplify your filing, no matter where you live. To avoid paying unnecessary taxes and penalties, it’s a good idea to use some of these crypto tax software to help you keep records of your crypto transactions and calculate your crypto taxes.

4. Grow Your Crypto Assets

One of the easiest ways to grow your crypto assets for the newbie is by lending it through crypto lending platforms in exchange for interest/yield.

Simply open one of these savings account inany of these platforms to earn the high yields on your crypto assets:

• Flynt Finance
• YouHodler
  
• CoinRabbit
  
• Binance

If you’d like to review how you canHODLyour bitcoins while earning some yields, check out our detailed comparison here6 best Bitcoin lending sites.

It’s similar to your savings account that you have with your local bank, except that you enjoy a much better interest rate!

This is easy for those who are committed to holding their Bitcoin and want to increase their crypto holdings with no extra effort.

5. Explore different ways of getting free Bitcoin without investment

Who doesn’t love free stuff?

Well, free Bitcoin is much better than any free things you can get in the world.

The $10 worth of BTC you earn today has unlimited upside potential. It can double, triple or even increase x1000 times in the long run.

Fun fact:Bitcoin was last decade’s best-performing currency. If you invested $1 in Bitcoin in 2010, it’d now be worth more than $90,000!

There are various ways to earn Bitcoin in your spare time:

• Taking surveys for Bitcoin atTimebucks
• Exchange crypto at ChangeNOW
• Earn through Bitcoin faucets atCointiply
• Earn free BTC when you shop online atLolli
• Get BTC tips
• Earn BTC for inviting people
• Earn BTC by mining
• and more!

If you’re interested in earning free bitcoin with no investment, check out this list of legitimate ways and earn Bitcoin right away.

Conclusion

It’s never too late to getting started in Bitcoin.

No matter where you are from, no matter what your background is, no matter what your socioeconomic status is, everyone can enter the cryptocurrency scene.

Bitcoin is the future of money, without a doubt.

Now you’re the proud owner of BTC. Enjoy the ride as you watch the price rise and fall, plummet and go to the moon.

As Benjamin Franklin once said, “An investment in knowledge pays the best interest.” So, educate yourself and stay safe.

As with any investment, do your research and make sure you’re educated before you plunk down your hard-earned money.

I’ve handpicked a few guides for you to read next:

• 10+ Easy Ways to Make Money with Bitcoin and Cryptocurrency
• 7 Best Ways to Earn Passive Income with Cryptocurrency
• 7 Best Bitcoin Lending Sites to Earn Bitcoin Interest
• 10+ Legit Ways to Earn Free Bitcoin (#3 is My Favorite)
• 6 Platforms That Will Get You The Best USDC Interest In 2022
• FAQ: Everything You Need to Know About Bitcoin Before You Buy
• 4 Best Ways to Convert Bitcoin to Cash
• How to Buy Bitcoin and Other Cryptocurrencies
• How to Sell Bitcoin
• How to Secure your Cryptocurrency? Cold Wallet vs Hot Wallet
• 10 Best Bitcoin Wallets You Should Use to Protect Your Crypto Investment
• Trading vs HODLing for Bitcoin Investors
• Top 7 Bitcoin Myths That Need To Be Busted Right Now!

I live and breathe making an income online.

I’ll be sharing more ideas and guides soon. Stay tuned.

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P.S:This Bitcoin resourceis One of – if not the most – comprehensive resources for learning about Bitcoin with over 20 categories ranging from history to buying BTC, setting up a wallet, technical information, mining, security, and trading. Enjoy!

I’m not a financial advisor, my recommendations shouldn’t be used as professional investment advice.