Tutorial: how to buy Bitcoin the easy way?

Bitcoin is a crypto-currency that was invented in 2008 by an anonymous group (or a single individual) answering to the name of Satoshi Nakamoto. It wasn’t until 2017 that the digital currency was democratized. Since then, the craze of the general public becomes stronger every year.

To help you in your first steps, we have prepared a comprehensive guide to buying Bitcoin. We will review several well-known and reputable players in the ecosystem. It’s best to focus on long-standing platforms that have proven their resilience over time – and are regulated.

Once we’ve explained how to buy Bitcoin, we’ll also come back to the risk (inherent in Bitcoin and those related to trading), the tax declaration of the capital gain and many other parameters to consider. If it is already at an all-time high today, financiers are anticipating a bright future for Bitcoin.

Some even claim that it could reach $1 million. But beware of volatility: the recent drop in May and June 2021 is proof that investing in a moderate way is necessary.

Use Coinbase to buy your first tokens

The Coinbase platform, founded in June 2012 by Brian Armstrong and Fred Ehrsam, is a crypto-currency exchange platform for buying, selling and storing bitcoins, ethers and litecoins. In 2016, Coinbase reached the second position in the Richtopia ranking of the 100 most influential organizations in blockchain.

In May 2017, the platform reached a record number of over 7,400,000 users across 190 countries. Its clean interface, and fast payment methods (via credit card in particular) make this crypto exchange the most accessible platform for beginners.

The platform has never been hacked and guarantees the funds of its users up to a certain amount close to 10 000$. These reasons make us recommend Coinbase for buying bitcoins and cryptocurrencies. In this tutorial you will discover how to create your account, secure it, how to buy your first bitcoins and how to use the exchange!

Coinbase is a reputable, secure and easy to use platform. It is the most popular site in the world for buying and selling bitcoins, ethers and litecoins. By using the link below you will get a 10€ bonus for buying your first bitcoins.

> Get 13$ worth of Bitcoin for free on Coinbase now !

Strategy with Bitcoin

Only invest what you are willing to lose. This is the most important principle to keep in mind at all times. This applies to crypto-currencies as well as any other financial asset. No matter how the price of this asset changes, you should always keep a cool head and never let your emotions get the better of you.

In order to not get carried away, you should always set rules: a goal to reach (which you should stick to) and protections in case of a downturn. You have to know how to set an investment plan to secure your profit, step by step. Bitcoin will not go up forever, so you have to know how to set reasonable goals so you don’t go out too late.

At the beginning of 2021, the American bank JP Morgan gave an advice to its customers: invest 1% of their funds in Bitcoin. This is a way to not risk too much capital while having a certain exposure to crypto-currencies. With the currency’s price rising, this percentage could represent a larger percentage in the overall portfolio.

Should you focus on Bitcoin? Should you choose other crypto-currencies that have even more potential? If you’re just starting out and decided to buy Bitcoin a short time ago, it’s best to focus on the most important crypto-currencies. Bitcoin and Ether are the two most popular. They are also less volatile than the others (although they are very volatile compared to more traditional financial assets).

In the world of crypto-currencies, there are always fads. In 2017, there was the ICO (Initial Coin Offering) bubble. This way of raising funds completely disappeared in 2018, leaving many investors with significant losses. Since the end of 2020, decentralized finance (and DeFi tokens) have been a huge success. Until when? The same goes for NFTs? No one knows.

If you’re starting out with crypto-currencies, it’s best to buy Bitcoin at first. That’s what institutional investors do as well. However, you can afford to invest a small portion of your crypto portfolio in (even) riskier projects. You will need to adopt a shorter-term investment strategy because risky projects may disappear at some point.

In May 2021, the crypto-currency market experienced a terrible correction. Bitcoin dropped more than 50% to fall below $30,000 (from a high of $63,000 just weeks before). This is proof that you should only invest a limited amount. It is also proof that you should be patient and see it as a long-term bet. If you buy Bitcoin, you have to be in it for the long haul.

Where will the price of Bitcoin go?

At the moment, it is very difficult to know how far the Bitcoin price will go. Many experts say that it will go nowhere. Since 2020, however, several banks have revised their position. For example, an analyst at JP Morgan anticipates a Bitcoin price of around $146,000. For its part, Goldman Sachs has stated that crypto-currencies have « reached a point of no return » and that they will endure.

The most optimistic anticipate a Bitcoin price beyond the million dollar mark. The more pessimistic ones seriously believe that the price will fall to zero at some point. Hence the importance of investing only what you are willing to lose.

However, there is an important parameter to consider with Bitcoin. It will be available in limited quantities (maximum 21 million units). The more it becomes available (and the more people want it), the more the price will tend to rise. The demand will be higher, but the supply will always remain the same. This is an important point that distinguishes Bitcoin from more traditional currencies like the Euro or the Dollar. With the health crisis, central banks have not hesitated to use the money printing press to print currencies.

Conclusion: where to buy Bitcoin?

To conclude this page and tutorial on how to buy Bitcoins, all that’s left is to choose the platform. For those who want to have the easiest, fastest and most secure experience, Coinbase offers the easiest platform to use. With just a few clicks, you will be able to enjoy the services of the European regulated platform. For beginners, the platform is reassuring and comfortable.

If you want to use a more reputable payment like PayPal, feel free to read our guide on how to buy Bitcoin using PayPal!