How do I buy Bitcoin? The Crypto Coach shows you how


Bitcoin with bright key on blue background

You can buy a minimum of $ 5 a week in Bitcoin and increase your ownership over time.

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What’s the first thing that comes to mind when you think about cryptography? I bet it’s Bitcoin.

Of the more than 19,000 cryptocurrencies in the ether, Bitcoin is the first and most recognized digital cryptocurrency. Despite recent price declines, just below $ 36,000 per coin, it is still the largest cryptocurrency by market capitalization, with $ 683.6 billion as of May 6. And despite declining market values, Bitcoin remains the most reliable blockchain cryptocurrency, providing stability and security.

What is Bitcoin?

In its simplest definition, Bitcoin is a virtual and digital currency that runs on a peer-to-peer network that has no central authority; without supervision of banks or government entities such as the Federal Reserve of the European Central Bank. Instead of a regulated bank, a decentralized registration system known as the blockchain records all Bitcoin transactions, and copies of that book are stored on computer servers in the Bitcoin blockchain network around the world. Originally conceived as an alternative payment system for goods and services, that is, until high transaction rates made it too expensive, it became a store of value for many users, as did precious metals. Some equate it to digital gold.

The creator of Bitcoin is allegedly a computer programmer named Satoshi Nakamoto, whose true identity has not yet been revealed. No one really knows who he or she is or if Nakamoto is a pen name for a group of programmers who invented Bitcoin.

Satoshi Nakamoto’s nine-page white paper, which outlines the concept of Bitcoin, was published on October 31, 2008. Just a couple of months later, on January 3, 2009, Bitcoin went live. Since then, it’s been a roller coaster ride, especially for those who invested in their early days for penny fractions and have since become millionaires. In 2010, a Bitcoin cost nine cents. A year later, it amounted to $ 30, and in 2017 it amounted to $ 20,000 per coin. On November 10, 2021, Bitcoin hit its highest price to date at $ 68,991, according to CoinDesk.com. Since then, the price has fallen erratically – losing almost half of its value – as a result of investors’ fears of rising inflation and the COVID-19 pandemic, among other market factors.

Today, a Bitcoin stands at less than $ 36,000.

How do you buy Bitcoin?

Fortunately, you don’t have to buy an entire Bitcoin to get into the action, but you can still buy a fraction of a coin. For example, you can buy a minimum of $ 5 a week in Bitcoin and increase your stake over time.

Many of you want to learn how to buy Bitcoin and keep it in a hot wallet. In this post, I will show you how to buy Bitcoin, or $ BTC, using the Cash app, which is the easiest way to buy Bitcoin.

I use it whenever I need to make a quick purchase of $ BTC. Bitcoin is the only cryptocurrency that supports the Cash app, but once you have Bitcoin, you can keep it or exchange it for any other available cryptocurrency. All major exchanges support the conversion of $ BTC to another currency because $ BTC is the gold standard for cryptocurrencies. Once you sign up for the Cash app on your iOS or Android platform, you can easily buy Bitcoin. The Cash app is also a hot wallet so you can buy and hold your cryptographic assets online without moving them, and buy and sell them as you see fit.

First, tap the Bitcoin icon at the bottom right.

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Cash application

Tap “Buy” to choose how much Bitcoin you want to buy.

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Cash application

In this example, I am buying Bitcoin worth $ 25.

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Cash application

Tap “Next” to continue and confirm the purchase amount.

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Cash application

Tap Confirm and congratulations on your first Bitcoin purchase.

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Cash application

Tap Done and you can now see that you have a balance of $ 24.44.

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Cash application

How do you sell Bitcoin?

Now that you have Bitcoin, you have the following options: buy, sell, or transfer.

Since the Cash app offers you a hot wallet, you can simply store your Bitcoin online securely. You can see your Bitcoin address below by tapping “View Bitcoin address”. This will show you your $ BTC address and a QR code if you ever want to receive $ BTC from someone else.

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Cash application

If you want to sell, just tap “Sell,” choose the amount, and it will appear as cash in your Cash app account. The Cash app will also store all your purchases and sales for tax purposes. You can download your excerpts monthly or wait until you receive a year-end excerpt.

If you’re like me and want to store your Bitcoin more securely, like a cold wallet, you can tap the arrow icon and send the $ BTC to a cold wallet. In this example, I’m going to send it to my Arculus Cold Wallet.

Tap the transfer icon and choose the amount of Bitcoin you want to send.

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Cash application

Tap Send and enter the $ BTC deposit address of your cold wallet.

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Cash application

You have successfully transferred your Bitcoin to Cold Storage.

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Cash application

Let us now look at the taxes of this transaction. I track my transaction using Koinly tax software.

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Koinly

As you can see above, I tracked the initial deposit or purchase of Bitcoin to the deposit of the same in my cold Arculus wallet.

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Koinly

Koinly does a great job overseeing my tax calculations and providing the proper tax documents at the end of the year.

Now that you’ve bought Bitcoin, let me know what you think of it. Share your opinions about Bitcoin in the comments box below or if you have questions about buying other cryptocurrencies.

Glossary:

  • Cold Wallet – A hardware or offline wallet that is not connected to the Internet and requires physical confirmation on the device to send funds.
  • Hot wallet – A virtual wallet that is connected to the Internet at all times.

The information presented by Crypto Coach and ZDNet is not intended to be individual investment advice and is not tailored to your personal financial situation. It does not constitute legal, accounting or tax advice, or a recommendation to buy, sell or hold any investment. We encourage you to discuss your investment options with your financial advisor before making any investments.



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