Buying Bitcoin Online : The 2023 Tutorial

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You've already heard it or even seen it on the news, this word "Bitcoin" is getting a lot of attention and you want to be part of it. In this article, I will guide you to buy your first Bitcoin.

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Why buy Bitcoin in 2023 ?

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Today, Bitcoin is spreading more and more and you want to buy some or simply understand what it represents. Good news, I'm going to reveal everything I know about it in this article.

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Bitcoin is a cryptocurrency, a so-called "digital" (not "digitized") currency, which therefore uses cryptography to circulate value, money. The technology on which the cryptocurrency Bitcoin is based is called blockchain, which you have probably already heard of.

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With Bitcoin you can:

- Exchange value (money) wherever, whenever, with whomever you want.
- Not undergo inflation since its quantity is limited to 21 million BTC and not one more.
- Exchange value with no amount limit. Whether it's 1 euro or 10 million euros.
- Make transactions in less than 10 minutes regardless of the amount.
- Access a universal currency, with no specific rules or social status to respect.
- Be transparent with immutable transactions that are completely verifiable by any human being with an internet connection.

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Bitcoin is above all values where you free yourself from the current completely centralized and inflationary financial system. It was also created after the Subprime crisis to offer a credible alternative to traditional finance.

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Of course, there is also the financial aspect associated with the latter and perhaps a very good diversification of your assets.

Do not forget that Bitcoin is a financial asset that has ONLY existed for 14 years and that presents risks, which we will revisit at the end of the article.

Besides the fact that this cryptocurrency offers many advantages, it is also the first cryptocurrency on its market.

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Today, there are more than 25,000 active cryptocurrencies on the market. Bitcoin is the oldest among them, having been created in 2009.

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This gives it other advantages:

- Credibility, the protocol and cryptocurrency Bitcoin have been operating flawlessly for over 14 years.
- Community, there are over 1,000 developers present on the Bitcoin protocol according to the Developer Report.
- Capitalization, it alone represents 50% of the total market capitalization of cryptocurrencies.

These 3 factors show a beautiful dominance of Bitcoin in its current market and make it the queen of cryptocurrencies.

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How to simply buy Bitcoin ?

Now that you understand what Bitcoin is used for, I'm going to get into what you've been waiting for since the beginning of this article : buying Bitcoin.

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I will use the term "BTC," which designates the abbreviation of the cryptocurrency Bitcoin, just as the euro can be represented by this symbol "€." At the time of writing these lines, Bitcoin is around 27,000 € per coin. You should know that it is not mandatory to have 27,000€ to buy Bitcoin. You can buy Bitcoin with just 10€ if you wish. This is called Satoshis. (in reference to the creator of Bitcoin)

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These Satoshis represent fractions of Bitcoin and allow you to invest in "reasonable" sums.

1 Satoshi = 0.00000001 Bitcoin

If you want to buy 10€ of Bitcoin, you will currently buy 0.00037 BTC or 37,000 Satoshi.

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To buy Bitcoin, you simply need to :

1 - Determine the sum, in euro, with which you want to buy Bitcoin.
2 - Choose your cryptocurrency exchange platform.
3 - Make a deposit in euros by transfer or credit card.
4 - Exchange on the platform between your euros and your bitcoins.
5 - Secure them in a wallet.
6 - (bonus) Decide when you want to sell your bitcoins.

Choose your exchange platform wisely.

Today, there are numerous user-friendly exchange platforms available for purchasing your bitcoins. Whether it's through a bank transfer or credit card, you can acquire BTC quickly.

Once you've determined the amount you're willing to invest in Bitcoin, you'll choose your exchange platform.

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First, there's Coinbase.

Coinbase is a platform that was established in 2012, and although it has slightly higher fees than other platforms, its user-friendliness is superior.

To purchase your BTC on Coinbase 👇

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1. Create an account on coinbase.com by visiting their website.
2. Verify your identity by providing the requested information.
3. Deposit euros via a bank transfer (Paypal/Bank) or credit card.
4. Access the "Buy/Sell" section on Coinbase.
5. Select "Bitcoin" and choose the amount you wish to buy.
6. Verify the transaction details and click "Buy Bitcoin."

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By following these steps, you've just exchanged your euros for your first Bitcoins - congratulations !

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You can also use the Kraken platform. Kraken is a cryptocurrency exchange that was founded in 2011 and is known for its high security and liquidity.

To purchase your BTC on Kraken 👇

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1. Create an account on kraken.com by visiting their website.
2. Verify your identity by providing the requested information and completing the verification process.
3. Deposit funds into your Kraken account using an accepted payment method, such as a bank transfer.
4. Access the "Buy/Sell" section on Kraken.
5. Select Bitcoin (BTC) from the available cryptocurrencies.
6. Choose the type of order you wish to place, such as a market order or a limit order. Market orders are executed instantly, while limit orders are executed at a chosen price.
7. Confirm your Bitcoin purchase order.

By following these actions, you've just exchanged your euros for your first Bitcoins - congratulations !

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Finally, there's Lama, a fully regulated exchange platform in Europe and the United Kingdom that emphasizes fund security and ease of use.

To purchase your BTC on Lama 👇

1. Download their application.
2. Create an account and verify your identity on the app in under 3 minutes.
3. Deposit funds into the app via a bank transfer using the "deposit" button and your associated IBAN.
4. Now, select the "Exchange" option and choose "BTC."
5. Confirm your Bitcoin purchase order.

There you go, you've just bought your first Bitcoins - congratulations !

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These three platforms share some similarities, but differences arise in the features they offer.

For example, Kraken allows for limit orders but presents a higher level of complexity. Lama, on the other hand, allows you to store NFTs, a feature not offered by Coinbase.

Of course, I've presented only three platforms that I know and trust for long-term reliability.

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Buying Bitcoin in an automated way 💡

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If you're not accustomed to investing but want to take advantage of the Bitcoin opportunity without any hassle, this section is tailored for you.

In a very straightforward manner, the best long-term investment solution is to employ Dollar Cost Averaging (DCA). This means investing the same amount of money at regular intervals (daily, weekly, monthly, or yearly).

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Let's take an example: You're a responsible family person, and you want to invest €100 in Bitcoin every month without spending more than 1 minute per month.

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Swissborg is an example with their “SwissBorg Auto-invest” functionality which allows for fully automated investing. Simply find the “Auto-Invest” button in the Portfolio screen next to “Exchange”.

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You will then need to choose :

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1. The amount.
2. The cryptocurrency (in this case, Bitcoin).
3. The time interval.

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As you can see in the picture, I've set up a monthly investment of €100 to invest in Bitcoin. Not only does this require no additional time or mental effort, but it also allows you to invest in the largest cryptocurrency on the market.

Other major players like Binance offer similar features.

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After you've purchased your BTC, how do you secure them ? 🔐

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Now that you've acquired your bitcoins on one of the cryptocurrency exchange platforms, it's essential to secure them. The cryptocurrency industry is digital, making it susceptible to potential theft or hacks of your assets. Since the majority of people are not computer professionals, it's crucial to grasp some straightforward concepts to avoid such problems.

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First and foremost, you should think in terms of wallets. The wallets you use to handle your cryptocurrencies are digital, and there are several types available. Today, when you have a portion of your money in a bank, it's represented as a kind of wallet. Tomorrow, when you've purchased your first Bitcoin on one of the cryptocurrency exchange platforms, you'll have a different wallet.

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What you need to understand is that there's not much difference between a bank and a cryptocurrency exchange platform. You rely on what's called a "trusted third party" to hold your money. Your euros are in a bank account, and you trust a bank. Your bitcoins are on a cryptocurrency exchange platform, and you trust it. It's quite simple, right ?

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However, if your bank or cryptocurrency exchange platform were to collapse, you'd be left with almost nothing. That's why, in the world of cryptocurrencies, you have other options to secure your money.

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I won't complicate things too much, but there are physical wallets in the form of "USB keys" where you can store your bitcoins. These are called Hardware Wallets.

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Ledger and Trezor, to name a few, are solutions that offer hardware wallets to secure your cryptocurrencies.

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Is Bitcoin only a speculative asset ? 📈

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Now that you know how to buy and store your first BTC or Satoshi if you have less than €27,000, let's discover what really lies behind Bitcoin.

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In most cases, you've heard of Bitcoin due to its meteoric rise to $70,000. This surge in value created a lot of buzz and prompted many people to take an interest in the subject. Naturally, everyone dreams of getting rich without doing much.

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However, Bitcoin is not merely a speculative asset; it's a comprehensive project that can revolutionize several sectors of our current world.

🧠 For your personal knowledge, Bitcoin with a capital "B" refers to the blockchain and the underlying technology. In contrast, bitcoin with a lowercase "b" refers to the cryptocurrency you purchased, as seen earlier.

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This is where a lot of confusion arises, making things complicated. In reality, it's essential to understand that Bitcoin represents both the cryptocurrency and its blockchain (yes, it's an entire project).

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For context, the White Paper, the document of the Bitcoin project (cryptocurrency + blockchain), appeared on October 31, 2008, while the first block of the blockchain was mined on January 3, 2009. This document and project emerged during the subprime crisis to provide a credible alternative to the traditional banking system. This movement and project were initiated by an anonymous individual or group of individuals known as Satoshi Nakamoto. It is thanks to them that Bitcoin made its appearance and began its adoption in the following years.

It's this blockchain innovation that is poised to revolutionize not only traditional financial systems but also other sectors like fashion with traceability or logistics for verification.

You've probably realized that Bitcoin is not just a cryptocurrency in which you want to invest; it's an entire project that uses blockchain technology and has the power to revolutionize many industries.

Today, more than 40 million wallet addresses around the world are believed to hold Bitcoin.

Risks to Know Before Buying Bitcoin

As mentioned earlier, you know that Bitcoin attracted a lot of attention once it reached $70,000. This kind of volatility is not eternal and carries risks that you should be aware of before investing in cryptocurrencies.

Here are some risks to keep in mind before buying your first bitcoins :

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• Volatility: While Bitcoin and other cryptocurrencies have experienced exponential growth in recent years, it's essential to remember that these assets are highly volatile and can lead to real financial losses. Be cautious and invest only money you can afford to lose.

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• Regulation: Today, regulations surrounding cryptocurrencies and Bitcoin are still unclear. The sector is not yet regulated like traditional investments. Many regulatory frameworks and proposed laws are being discussed and will soon be implemented. This is an area where you need to remain vigilant.

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• Technical Risks: Today, Bitcoin has demonstrated its resilience on numerous occasions, despite many people predicting its demise within a year. This resilience is an unmatched mark of trust, making it a significant marketing point. However, be mindful of various technical issues that Bitcoin may encounter, which could pose a risk to your investment.

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Keep in mind that Bitcoin was the first asset to open the cryptocurrency market. On one hand, it has often been controversial and criticized for its energy consumption. But on the other hand, it has always managed to rebound and prove its usefulness for the current financial system.

As with any investment, don't put all your savings into a single asset and keep an eye on the various innovations happening in the sector.

While some people are exclusively interested in the volatility of this market, it's more important to understand the fundamentals of blockchain technology. Risks are undoubtedly present, and we will continue to remind you to do your own research before investing in cryptocurrency.

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Summary of Buying Bitcoin (TL;DR) ✅

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A simple recap to know how to buy your first Bitcoins :

1. First Step: Decide on an amount in euros to invest in your first Bitcoins.
2. Second Step: Choose your cryptocurrency exchange platform.
3. Third Step: Deposit euros on this cryptocurrency exchange platform, either via bank transfer (Paypal, traditional bank) or directly by credit card.
4. Fourth Step: Convert your deposit into BTC directly on the cryptocurrency exchange platform.
5. Fifth Step: Remember to store your BTC in secure solutions to prevent loss.
6. Sixth Step (bonus): Decide now on your exit strategy for selling your Bitcoins. This can involve different profit-taking levels or when you've made a significant profit.

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And there you have it, this 2023 tutorial on buying your first Bitcoins is now complete. If you found this content valuable, you can send me a message on LinkedIn to let me know. I specialize in Web 3 Marketing and support Web 3 startups with 5 to 50 employees in customer acquisition. To see my services, click here.

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FAQ 

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What are the fees associated with buying Bitcoin ?

It depends on the platform you choose! For example, more intuitive and user-friendly platforms may charge higher fees compared to more advanced trading platforms.

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Is it possible to buy a fraction of Bitcoin, or do I have to buy a whole Bitcoin ?

Certainly, there's no need to spend thousands of euros to invest in Bitcoin. You can absolutely buy €1 worth of Bitcoin if you wish. It's worth noting that fractions of Bitcoin are called Satoshis, but they are essentially identical to Bitcoin itself.

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How can I verify the legitimacy of an exchange platform before buying Bitcoin ?

Visit the platform's website and check if all its regulatory certifications are in compliance and up-to-date with the regulations in your country.

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What is the best payment method for buying Bitcoin online ?

You can buy Bitcoin in various ways, such as through PayPal, bank transfer, or credit card. Often, SEPA bank transfers tend to have the lowest fees.