Buying your first Bitcoin, step by step

Buying bitcoin for the first time takes about half an hour, most of it spent on identity checks. This lesson walks through the steps and the mistakes to avoid. It teaches the process. Whether to buy is your decision.

Before you start

• Decide the amount in advance. Use only money you can afford to lose completely.
• You do not need a whole bitcoin. One bitcoin divides into 100 million satoshis, and most exchanges let you start with a small sum.
• Choose your exchange using the checklist in Lesson 13.

Step 1: Go to the real site

Type the exchange's address yourself or use the official app store listing. Do not click an advert or a link in a message. Fake copies of exchange sites are a common trap. Bookmark the real one.

Step 2: Secure the account as you create it

• Use a password you have never used anywhere else. A password manager helps.
• Turn on two-factor login with an authenticator app or a security key.
• Secure the email account you registered with in the same way. Whoever controls your email can reset your password.

Lesson 36 covers all of this in detail.

Step 3: Verify your identity

Upload the documents the exchange asks for. Do this only inside the official site or app. No real exchange will ask for your password, a login code or remote access to your device.

Step 4: Deposit money

A bank transfer is usually the cheapest way to pay. Card payments are faster and often cost more. Check the deposit fee before you send.

Step 5: Place a small first order

1. Choose bitcoin and enter the amount you want to spend.
2. Read the confirmation screen: the price, the fee and how much bitcoin you will receive.
3. Confirm.

Your first purchase is practice. Keep it small and check that every number matches what you expected.

Step 6: Keep records

Save the confirmation. In most countries, selling or spending crypto at a profit is taxable, and you will need the date and price of each purchase.

Step 7: Decide where it stays

Your bitcoin is now held by the exchange. That is acceptable for small amounts while you learn. For larger amounts, many people prefer to hold their own keys. Level 2 of this course teaches you how, starting with Lesson 21.

Stop if any of this happens

• Someone you met online is guiding you through the purchase.
• A caller says your bank account is at risk and you must move money into crypto to protect it.
• Someone sends you a QR code and directs you to a Bitcoin ATM. The US Federal Trade Commission reported a median loss of $10,000 in such cases.
• You are asked to share your screen or install remote-access software.

Each of these is a known scam. Real companies and government agencies never ask you to buy crypto.