What is Bitcoin?
To many people Bitcoin represents the future of paying for something, as a new digital global ‘cryptocurrency’. Rather than using a £1 coin or $1 bill, something could be 1 Bitcoin (1 BTC).
But Bitcoin is much more than a currency, and this is why people often get confused. It’s also the entire network (known as a Blockchain) that securely oversees the entire process of someone sending money to someone else.
How to buy Bitcoin tutorial
I’m going to walk you through the exact steps I took to buy Bitcoin. I bought some for the sole purpose of going through the motions.
There are plenty of other (potentially questionable) methods and websites you could use – which could be slightly cheaper – but this was all about minimising risk and complication for myself as a total newbie.
You need just 5 things before buying Bitcoin:
- Bitcoin address – A string of numbers unique to you, that allows you to receive Bitcoin (acts like a bank account number). Also known as a ‘public key’.
- Bitcoin wallet – A secure place to store your Bitcoin (acts like a bank account).
- Bitcoin exchange – A website to convert old-school cash into Bitcoin (acts like a bureau de change).
- Payment method – A debit or credit card to buy Bitcoin.
- Form of identity – You’ll need your passport or driver’s license to hand.
7 steps to buying Bitcoin
After some lengthy research, I decided on using Coinbase as a ‘one-stop shop’. They set me up with an address, a BTC digital wallet, and the conversion of pounds to Bitcoin itself.
- Create an account
- Verify your email
- Connect your phone
- Verify your identity
- Add a payment method
- Buy Bitcoin
- Check your Bitcoin digital wallet