Buying bitcoin is a straight forward process. You need a wallet and an exchange. I am an affiliate with the Binance exchange and if you sign up using this link, you will receive a commission kickback rate of 10 %. There are many other exchanges you can choose from as well. Centralised exchanges like Binance requires Identity Verification. If you want to trade in crypto privately, you can choose from decentralized exchanges like Bisq.
Since it is not a good idea to leave your Bitcoin on any exchange, I recommend either a hardware wallet like Ledger S or a software wallet like Atomic or Exodus.
What is a Bitcoin wallet?
A Bitcoin wallet is a program that allows you to receive, store, and send bitcoin. You can also store other altcoins in these wallets.
A hardware ledger wallet will store your bitcoin in a small device outside of your computer.
Examples of a hardware wallets are Ledger S and Trezor.
A software wallet stores your bitcoin in the program on your computer or your mobile.
Examples of software wallets are Exodus and Atomic.
Setting up your Wallet is easy enough. You choose a password and then you need to write down your recovery phrases in case you need to restore the program.
Non-Custodial wallet vs Custodial wallet.
I recommend using a non-custodial wallet. A non-custodial wallet means you have full control over your private keys. A custodial wallet means your private keys are held by a third party. Many exchanges have wallets that hold your crypto for you in a custodial wallet. It is not recommended to keep your crypto on the exchange for longer than you have to.
The next step is to find your Bitcoin Address.
How to find your Bitcoin Address
Once you set up your wallet, click on receive. Make sure you choose BTC since the wallets are also used to store altcoins. Copy the address and then login or register at your chosen exchange.
Once your registration is completed, you are ready to go. Inside the exchange, it is easy to buy Bitcoin. Inside Binance, you can use your debit/credit card and direct deposit. Once you have your Bitcoin, click on withdraw, and send it to your Bitcoin address.
What is the smallest amount of Bitcoin you can buy?
Bitcoin is divided into 1 million Satoshi. 🙂 However, you can’t buy 1 Satoshi as the mining cost is higher than 1 Satoshi. Binance has a minimum limit of 15 USD when buying Bitcoin.