Your Step-by-Step Guide to Safely Buying and Storing Bitcoin

A Simple Guide to Safely Buying and Storing Bitcoin

I charge customers $160/hour to teach this, but you can do it yourself with just a little patience:

Option 1: Minimum Effort (Buy a Bitcoin ETF)

If you want a little exposure to Bitcoin without any technical effort, invest in a Bitcoin Exchange-Traded Fund (ETF). These track Bitcoin’s price and trade like stocks. There are 12 options in the U.S., but $IBIT (iShares Bitcoin Trust) is the largest. Simply buy shares through your brokerage account and hold long-term.

IBIT

Option 2: Own Actual Bitcoin (Self-Custody - Preferred)

To truly own Bitcoin (not just a claim via an ETF), follow these steps:

Step 1: Choose a Reputable Exchange

• Recommended U.S. Exchanges:

  • Gemini: Low fees, strong security, and user-friendly.

  • Kraken: Trusted globally, good for advanced users.
    (Avoid unregulated platforms to keep clear of scams!)

Step 2: Set Up Your Exchange Account

1. Sign Up: Provide basic details.

2. Complete AML/KYC Checks: Submit ID for Anti-Money Laundering/Know Your Customer compliance.

3. Link Your Bank Account: Use ACH transfers for zero-fee deposits.

Step 3: Buy Bitcoin

• Deposit funds via ACH, then purchase Bitcoin (BTC). Start small if you’re new.

• If you want the best price possible (0-.20% based on volume), switch to ActiveTrader in Gemini or Kraken Pro and place a market-making limit order.

Step 4: Transfer to a Self-Custody Wallet

Never leave Bitcoin on an exchange long-term! Transfer it to a secure wallet you control.

Choosing a Hardware Wallet

• Top Options:

  • Trezor - Beginner-friendly. Starts at $49

  • Coldcard - Advanced security features.

  • Bitkey - Developed by Block (formerly Square). Foolproof but not suggested for pros or large amounts.
    Hardware wallets keep your keys offline, protecting against hackers.

If you really don’t want to buy a hardware wallet, you can use the opens-source/free Electrum wallet or BitPay iPhone/Android app, but I do not recommend this for beginners, as your Bitcoin could be stolen if your PC is hacked.

Setting Up Your Wallet

1. Write Down Your Seed Phrase: Usually a 12 word backup phrase. Never share this! DO NOT SKIP THIS STEP

2. Secure the Phrase: For holdings over $1,000 use a steel backup (e.g.,Trezor Keep Metal) or a $10 steel stamping kit (found on Temu/Amazon) to protect against fire/water.

3. Store It Safely: Hide it in a fireproof safe or safety deposit box.

Withdraw from the Exchange

• In your wallet, generate a Bitcoin address.

• Copy-paste this address into the exchange’s withdrawal page. Double-check for typos!

• Confirm the transfer. Wait ~20 minutes for blockchain confirmation.

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When Should You Buy?

Use Dollar-Cost Averaging (DCA) to minimize volatility risk:

• Invest a fixed amount (e.g., $100) weekly/monthly, regardless of price.

• This smooths out market swings over time.

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Final Tip: Start small, learn as you go, and prioritize security. Bitcoin is about self-sovereignty—owning your wealth without third-party risk. Welcome to the future of money! 🚀

Need help? Comment with questions—no $160 charge here.