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How to Buy Bitcoin?

A short guide on how to buy Bitcoin, including finding a good exchange, creating a Bitcoin wallet, and understanding the buying process.

Buying Bitcoin can seem a bit complex for a newbie, but it doesn’t have to be. This guide will walk you through the process, step by step.

Step 1: Finding a good exchange and creating an account

The first step in buying Bitcoin is to find a reputable exchange. This is a platform where you can buy, sell, and trade cryptocurrencies. Some popular exchanges include Coinbase, Binance, and Kraken. When choosing an exchange, consider factors such as security, fees, and the user interface. You can compare exchanges and their fees at our main page. Once you’ve chosen an exchange, you’ll need to create an account. This usually involves providing some personal information and going through a verification process.

Step 2: Creating a bitcoin self-custodial wallet

Next, you’ll need a Bitcoin wallet. This is a digital wallet where you can transfer and store your Bitcoin. There are many types of wallets, but for the purposes of this guide, we’ll focus on a self-custodial wallet. There is a saying amongst bitcoiners: not your keys, not your money. This type of wallet gives you full control over your Bitcoin and private keys, but it also means you’re responsible for keeping your Bitcoin safe. There are many self-custodial software wallets available, such as Electrum and Wasabi. We recommend getting a hardware wallet, you can find various hardware wallets from our Secure your Bitcoin page.

Step 3: Buying bitcoin (spot vs order)

Once you have your exchange account and wallet set up, you’re ready to buy Bitcoin. There are two main ways to do this: spot buying and order buying. Spot buying is when you buy Bitcoin at the current market price. Order buying is when you set a specific price at which you want to buy Bitcoin, and the exchange will execute the order if the price reaches your set point. Most easisest and quickest way is to use the spot option. Also there are exchanges that do not allow anything else than buying on market/spot price.

Step 4: Transferring to the wallet

After you’ve bought Bitcoin, you’ll want to transfer it to your self-custodial wallet. This is done by generating a receiving address in your wallet and then sending the Bitcoin from your exchange account to this address. Remember, it’s important to double-check the address before sending to ensure you don’t send your Bitcoin to anyone else.

And that’s it! You’ve now bought your first Bitcoin or “stacked sats” as we like to say. Remember, investing in a volatile asset class like Bitcoin can be risky, so always do your own research and never invest more than you can afford to lose.

Find the best price to stack sats.

Cheapsats is a price comparison tool for Bitcoin. We compare the price across multiple exchanges and find the best price for you to stack sats.

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