How to buy Bitcoin: Step-by-step guide on buying cryptocurrency

Bitcoin is often dubbed as "digital gold" and touted as an inflation hedge due to its limited supply
The illustration shows a bitcoin. — Unsplash
The illustration shows a bitcoin. — Unsplash

Bitcoin's price volatility has been a wild ride, with ups and downs that leave investors uncertain. While some countries embrace Bitcoin as legal tender, others have concerns. In the past few years, Bitcoin's value soared from $1,000 to almost $70,000 before experiencing significant fluctuations. 

Many see it as part of a broader investment strategy, especially for younger investors with a long-term outlook. However, caution is advised, and emergency savings should not be risked. 

Coinbase, the largest digital currency exchange in the US, has become a mainstream option for individual investors to buy Bitcoin. It went public in April 2021, signifying the integration of crypto into mainstream investing. Other major exchanges like Kraken and Binance also play significant roles. 

Bitcoin is often dubbed as "digital gold" and touted as an inflation hedge due to its limited supply. However, doubts have emerged regarding its effectiveness in this regard. 

When buying Bitcoin, you're not getting a physical coin; it's just a number. You can buy one Bitcoin or a fraction, with a total supply limit of 21 million. 

Wallets are virtual addresses where Bitcoin is stored, and popular options include, Exodus, Electrum, and Mycelium. Some brokers handle custody, but setting up your wallet is recommended. Bitcoin exchanges are the common way to purchase. After creating an account, verifying your identity, and providing payment details, you can buy Bitcoin and transfer it to your wallet. 

While some vendors accept Bitcoin as payment, most people view it as an investment or store of value. Bitcoin ETFs have been approved, such as the ProShares Bitcoin Strategy ETF, which tracks Bitcoin futures instead of holding actual Bitcoin.