Looking to Get Started with Bitcoin? The Easiest Way to Start in Crypto!

Are you ready to dip your toes into the world of Bitcoin but feeling overwhelmed by all the tech jargon? In this post, we break down the simplest way to start your Bitcoin journey, from deciding how much to invest to setting up your first exchange account. Whether you're curious about crypto's volatility, portfolio allocation, or securing your investments, this guide has you covered. Read on to demystify Bitcoin and take your first steps confidently!

Marc A Carignan

12/3/20242 min read

Ready to Join the Crypto Revolution?

With Bitcoin hitting all-time highs, many people are eager to join the cryptocurrency world. If you're feeling unsure about how to begin, you're not alone! Let's simplify the process so you can confidently take your first steps.

Step 1: Decide How Much to Invest

Before jumping in, decide how much you're willing to invest. Cryptocurrencies like Bitcoin are highly volatile, so never invest more than you can afford to lose. For beginners, allocating a small percentage of your investment portfolio—typically 2-5%—is common. If you're just starting out and don't have a portfolio, even a modest amount, like $500, can get you started.

Step 2: Spread Your Risk

Diversifying your investment across multiple cryptocurrencies is a smart move. Here's an example for a $500 investment:

Bitcoin: $100 (a stable and trusted choice)
Large-cap coins (e.g., Ethereum, Solana): $200
Mid-cap coins (e.g., Cardano, XRP): $200

Large and mid-cap coins often present opportunities for growth while maintaining more stability compared to new, speculative coins. Avoid extreme risk with unknown coins unless you're comfortable with the possibility of losing your investment.

Step 3: Choose a Crypto Exchange

To buy Bitcoin or other cryptocurrencies, you'll need an account with a centralized exchange. Exchanges like Coinbase or Kraken are popular and user-friendly. They act as online marketplaces where you can exchange your traditional currency (like USD or Euros) for crypto. Setting up an account usually involves:

Providing personal information (name, address, ID).
Depositing funds via bank transfer.
Once your funds are available, you can buy cryptocurrencies with just a few clicks.

Step 4: Understand Exchange Risks

While centralized exchanges are convenient, storing your crypto there long-term can be risky. Exchanges are vulnerable to hacks, and your funds aren't federally insured. If you plan to hold your crypto for a while, consider transferring it to a non-custodial wallet for added security. For short-term trading, leaving your funds on the exchange is typically fine.

Step 5: Take Control of Your Crypto

If you're holding crypto for the long term, becoming your own bank by using a secure wallet is a smart move. Non-custodial wallets give you full control over your investments, reducing risks associated with exchange hacks.

In Summary

Starting with Bitcoin doesn’t have to be complicated. Here’s a quick recap:

Decide how much to invest.
Spread your risk across Bitcoin, large-cap, and mid-cap coins.
Open an account on a reliable exchange.
Transfer your funds and purchase your chosen cryptocurrencies.
Secure your investment with a wallet if holding long-term.

For a deeper dive into securing your crypto and managing your investments, explore additional resources on The Bitcoin Tutor YouTube channel. Ready to take your first steps? Reach out to us today!