Learn the basic principles of buying and holding Bitcoin with this step-by-step guide.
Key Takeaways:
- Purchases of Bitcoin can be made through brokers, stock exchanges, and peer-to-peer markets.
- Common payment methods for buying Bitcoin include bank transfers, credit/debit cards, and other cryptocurrencies.
- When trading Bitcoin, buyers should determine the correct strategy for their goals.
- The storage location of acquired Bitcoins should also be considered—cold and hot wallets have their pros and cons.
- Staying updated on industry developments and trends helps in making informed and secure decisions when participating in the cryptocurrency market.
Introduction
Cryptocurrency adoption has accelerated year after year since Bitcoin’s creation in 2009. Of the 425+ million cryptocurrency holders worldwide (as of the time of writing), 219 million hold the currency that started it all.
Bitcoin is a decentralized digital currency that can be sent directly from one person to another without needing a third-party intermediary. It is powered by a network of miners validating and securing transactions, and its transaction history is recorded on an immutable public ledger.
Learn more about how Bitcoin works in this University article.
Those interested in joining the Bitcoin community have several options when making their first purchase:
- Brokers act as intermediaries between buyers and sellers, providing an efficient platform for building a cryptocurrency portfolio. They often offer additional financial services, such as interest-earning accounts.
- Centralized exchanges allow users to trade digital currencies among themselves. They typically offer advanced features like leveraged or automated trading for experienced cryptocurrency users or institutions.
- Decentralized exchanges enable users to buy and sell cryptocurrencies without a third-party service provider, meaning users are responsible for managing their private keys.
How to Buy Bitcoin
The Crypto.com app supports over 250 popular cryptocurrencies, including Bitcoin. Users can start purchasing once the quick onboarding process is complete. After downloading the app, the first step is account creation, which requires providing an email address and phone number, as well as identity verification.
Once identity documents are verified, choose a payment method. The Crypto.com app supports fiat currencies, credit/debit cards, Apple Pay, Google Pay, and other cryptocurrencies, depending on the user's region.
Buying Bitcoin via Bank Transfer
One of the most popular ways to buy Bitcoin on Crypto.com is using fiat currency, as it allows users to enjoy the lowest fees. Users simply initiate a transfer from their bank account, and funds will be received in their Fiat Wallet.
Once the Fiat Wallet is funded, users can purchase Bitcoin by following these steps:
- Tap Buy on the Crypto.com app home screen.
- Select a cryptocurrency.
- Under Cash, select the relevant Fiat Wallet and tap Buy again.
- Review transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
Payment Methods: Buying Bitcoin with a Card
Purchasing Bitcoin with a credit/debit card is a convenient and quick way to build a portfolio. In the Crypto.com app, it takes just a few taps to add a card and complete the purchase.
The advantage of card purchases on Crypto.com is that new users pay 0% credit/debit card fees for the first seven days after completing account registration.
Other Payment Methods
Beyond using a Fiat Wallet or credit/debit card, users can buy Bitcoin with Apple Pay, Google Pay, and other cryptocurrencies on Crypto.com.
Adding Apple Pay or Google Pay as a payment method is similar to adding a credit/debit card:
- Tap Buy on the Crypto.com app home screen.
- Select a cryptocurrency.
- Under Cash, select Apple Pay or Google Pay and tap Buy again.
- Review transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
As a medium of exchange, cryptocurrencies can always be traded among themselves. Users can deposit Bitcoin from an external wallet and use it to buy Bitcoin or other supported cryptocurrencies.
Purchase Strategies
People buy Bitcoin for various reasons—some are drawn to its decentralized nature, while others use it to hedge against inflation or as a means of sending money. One prominent reason is profit potential.
When trading Bitcoin, buyers must carefully consider their goals to determine the correct strategy for their purchases.
Buying at the Lowest Price
The Target Price feature in the Crypto.com app lets users place buy/sell orders for Bitcoin when it reaches a set price. They can purchase Bitcoin at their preferred low price and later sell it automatically at a higher price without tracking price movements.
Dollar-Cost Averaging (DCA)
If the buyer aims to HODL, the entry price isn’t as critical. However, buying a fixed amount of an asset can be risky. To minimize price fluctuation risks, buyers can adopt the Dollar-Cost Averaging (DCA) strategy—buying small amounts of Bitcoin at regular intervals over time.
The Recurring Buy feature in the Crypto.com app allows users to do just that. They can buy as little as $15 worth of Bitcoin and other supported cryptocurrencies at a time.
How to Store Cryptocurrency
Another decision when buying Bitcoin is storage. Cold wallets are offline physical devices that store private keys—they aren’t vulnerable to software attacks but may not suit beginners.
Hot wallets are internet-connected, making cryptocurrency more accessible for daily spending or trading. Security, regulatory compliance, and privacy should be top priorities when choosing a hot wallet.
Keeping Bitcoin Secure
Users can take additional steps to enhance account security. Some best practices:
- Enable two-factor authentication (2FA) and set an anti-phishing code.
- Never share passwords or authentication codes—Crypto.com will never ask for this information.
- Always verify official Crypto.com websites and social media accounts.
- Be vigilant against phishing via email, SMS, or voice calls.
How to Sell Bitcoin
After acquiring Bitcoin, Crypto.com app users always have the option to sell it for other cryptocurrencies or fiat. Here’s how to sell one cryptocurrency to buy another:
- Tap Sell on the Crypto.com app home screen.
- Select a cryptocurrency to sell.
- Under Crypto, select a cryptocurrency to buy and tap Sell again.
- Review transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
To sell cryptocurrency for fiat, follow these steps:
- Tap Sell on the Crypto.com app home screen.
- Select a cryptocurrency to convert to fiat.
- Under Cash, enter the amount to convert.
- Review transaction details and tap Continue.
- Confirm the transaction with a passcode or biometric verification.
For detailed guides on selling Bitcoin and other cryptocurrencies, visit the Help Center.
The Crypto.com Visa Card offers a rewarding way to spend cryptocurrencies without selling them. Cardholders enjoy up to 5% cashback and other perks, including discounts on Spotify and Netflix subscriptions, airport lounge access, and zero annual fees, depending on the card tier.
Final Words – Buying Bitcoin for the First Time
Cryptocurrency transactions will only become more common if the 39% increase in crypto adoption in 2022 is any indicator.
Buying Bitcoin for the first time is exciting. Before proceeding, consider risks and conduct thorough research. Staying updated on industry trends helps in making informed decisions. Follow news and regulatory changes to gauge potential price impacts.
Due Diligence & Doing Your Own Research
All examples in this article are for informational purposes only. Do not interpret this content as legal, tax, investment, financial, cybersecurity, or other advice. Performance is not indicative of future results—cryptocurrency values may fluctuate, and you could lose your investment. Always conduct your research and due diligence before making any purchase.
FAQ Section
1. What is the safest way to store Bitcoin?
Cold wallets (offline hardware) are the safest, while hot wallets (internet-connected) offer convenience for frequent trading.
2. Can I buy Bitcoin without ID verification?
Most platforms require KYC (Know Your Customer) verification for regulatory compliance.
3. What’s the minimum amount of Bitcoin I can buy?
Some platforms allow purchases as low as $15 worth of Bitcoin.
4. How do I track Bitcoin price movements?
Use cryptocurrency tracking apps or exchanges with price alert features.
5. Is Bitcoin a good long-term investment?
Bitcoin has shown historical growth but remains volatile—invest based on your risk tolerance and research.
6. How do I recover lost Bitcoin?
If stored in a custodial wallet, contact support. If self-custodied, recovery depends on private key backup.