Investing in cryptocurrencies, including Bitcoin, is attracting growing interest, but for crypto beginners, the first step can feel intimidating: How exactly do you buy your first Bitcoins? And how can you secure them properly?
Don’t panic. This practical guide has been designed to accompany you, step by step, in your first investment in crypto assets. Whether you want to buy Bitcoin, Ethereum, or other cryptocurrencies, you will find here clear explanations, screenshots, security tips, and practical tools to buy your first bitcoin and start in crypto.
Discover our tutorial to get started with bitcoin and cryptocurrencies in 5 key steps:
- Create an account on a crypto platform
- Deposit money into your crypto account
- Buy Bitcoin and other cryptos
- Track your investments on the crypto platform
- Secure your Bitcoin and other crypto investments
1. Create an account on a crypto platform
Once you have selected the best broker or the best crypto platform with which you want to buy Bitcoin or other cryptocurrencies, the next step will be to open an account. In the remainder of this article, we will detail step by step the procedures to create an account on a crypto platform.
If you are still unsure about which crypto platform to choose, do not hesitate to consult our guide to the best crypto platforms, which compares the main market offers according to essential criteria such as fees, security, or ease of use.
To illustrate this practical guide to buying your first Bitcoin, we chose to open an account with Bitpanda, a crypto platform known for its simplicity and regulatory compliance. Note that while some steps may vary slightly from one crypto platform to another, the account opening process generally remains standardized due to legal requirements and compliance rules (KYC/AML) imposed by MiCA regulation.
The steps to open an account on a crypto platform
The first step is, of course, to go directly to the broker’s or crypto platform’s website, click on open an account, and fill out the initial account creation form which will ask for your first name, last name, email address, and to choose a password. This step may seem trivial, but it will be important to choose a secure password. It is indeed possible at this stage to let Google choose a high-security password.
Crypto account opening form
The second step typically involves validating the authenticity of your email address. You will then be invited to go to your mailbox where an email has been sent. You simply need to click on the button “verify your email” or “confirm your email address” to move forward.
Validation of your email address
Then, and as required by regulation, you will need to fill out a questionnaire where you are asked about your professional activity, your income source, the amount of your income, your savings, etc.
Wealth questionnaire
You will then undergo what is called identity verification. During this procedure you will need to choose which type of identity document you want to provide to your crypto broker (passport, identity card, driver’s license, etc.). Make sure to choose the document that you have on hand and that is valid, of course.
Identity document verification
For the final step, you will likely be redirected to an interface like Sumsub, whose specialty is verifying user identities during online account openings. From this service provider’s interface, you will need to upload your passport or your identity card. You will then be asked via your phone to take a selfie or a short video in which you must pronounce a sentence or specific numbers.
Based on a facial recognition algorithm, this software can validate your identity and the information on your identity card or passport.
Identity validation
Once you have completed these five steps, account validation can be quite fast (15 to 20 minutes). However, it is possible that the identity verification software did not recognize your document or your face, and you are asked to retake a selfie. Do not be surprised, as it is fairly common for this automated procedure not to work on the first try.
2. Deposit money into your crypto account
If you are buying cryptos for the first time, make sure your broker or chosen crypto platform offers what is called a “Fiat gateway.” The Fiat gateway is essentially an entry door into the world of blockchain; the crypto broker then acts as an intermediary between traditional finance (EUR, USD, etc.) and the world of cryptocurrencies (BTC, ETH, etc.).
We will now describe how to deposit euros into your account before buying Bitcoin and other cryptos for the first time.
The steps to deposit euros on a crypto platform
Since this example concerns a first-time Bitcoin purchase, we will select on the crypto broker’s platform a fiat currency deposit.
However, note that someone who already owns cryptocurrencies can deposit on the crypto platform by sending them directly from another crypto platform or another crypto wallet, without having to go through a bank transfer.
Choose the type of deposit
Most crypto platforms offer several ways to deposit euros. Usually, you can do it by Visa, Mastercard, Neteller, Skrill, and sometimes PayPal. It is also possible to do it by bank transfer, but that can take longer, whereas card deposits are typically instant.
Choose the deposit method
Once you have chosen the method you will use to deposit your funds (we chose by bank card), you will need to enter the amount you wish to deposit. With the Bitpanda crypto broker we have chosen as the example in this article, the minimum amount is €10 and the maximum amount is €10,000.
Please note that the maximum amount can of course be increased, but the crypto broker will usually require you to undergo a more advanced identity verification process, in compliance with the legal obligations regulators impose on crypto brokers.
Choose the deposit amount
The final step to deposit euros into your crypto account is probably familiar to anyone who has shopped online. You simply need to enter your card numbers, the expiration date of your card, and the CVV on the back of the card. The operation is instant, but be sure to check that your crypto broker does not apply a delay of a few hours before processing your request.
Deposit by bank card
Note: remember to check that the crypto platform you chose does not apply excessively high fees on certain deposit methods; not all are free.
3. Buy Bitcoin and other cryptos
Now that you have money on your crypto platform, it’s time to buy a cryptocurrency. In this article we chose to buy the most well-known crypto: Bitcoin!
Steps to buy Bitcoin for the first time
Depending on the crypto platforms, you will now need to click the “Buy” button or the “Trade” button. Either way, it comes down to the same thing, and you will now need to choose which cryptocurrency you want to buy.
Some crypto platforms offer you the ability to buy up to 50 cryptos, others up to 600 cryptos, while some exchanges offer thousands of crypto assets.
If you are a beginner in the world of cryptocurrencies, it is recommended not to start with overly exotic crypto assets and to begin with heavyweight assets like Bitcoin or Ether. This is what we do in our example, as we choose Bitcoin.
Choose the crypto to invest in
The second step is to choose the euro amount you want to buy in Bitcoin. Even though a Bitcoin can be worth tens of thousands of euros, it is actually possible to buy 20 €, 10 €, or even 1 € of Bitcoin.
If you are a beginner and not sure, it is best to start with a small amount. It will always be possible to invest more later. If immediate purchase of a crypto asset is possible, some crypto platforms also allow buying at a predetermined price by placing a specific stock order (limit order).
Choose the amount of the Bitcoin purchase
Usually, as a security measure, the crypto platform provides a summary of your transaction before confirming it. Carefully check that all information is correct; this is also your chance to review the fees the crypto broker will charge. If everything is in line with your wishes, you can click on “confirm the transaction” or “buy now.”
Confirm the Bitcoin purchase
You will then see a message confirming your Bitcoin purchase. You can thus see the final Bitcoin amount of your investment. Here, we purchased 0.00021 BTC. Some crypto platforms will also send you a confirmation email with a summary of your cryptocurrency purchase.
Bitcoin purchase confirmation
4. Track your investments on the crypto platform
Investment tracking tools for cryptocurrencies can vary from one crypto platform to another. Nevertheless, despite different interfaces and display modes unique to each exchange, the essential features remain similar, with a visualization of your portfolio, performance tracking, and transaction history.
Example of crypto portfolio tracking
One of the most common ways to represent a cryptocurrency portfolio on a crypto platform is the pie chart. In the example below, we only bought Bitcoin, so the visual is fairly simple.
However, if you buy 5 or 10 cryptocurrencies, you will be able to view your investments quite easily on the crypto broker’s interface. Usually, you also have the option to view the evolution of your crypto portfolio in the form of a graph showing the performance of your investment.
Composition of the crypto portfolio
Tracking your crypto investments may require selling them, exchanging them for other promising cryptocurrencies (swap), setting up an investment plan with regular purchases to smooth out your purchase price… or, if possible with the crypto you bought, staking to generate regular income.
What to do with cryptocurrencies in your portfolio?
5. Secure your Bitcoin and other crypto investments
It is crucial to secure your crypto investments, and the first step is to enable two-factor authentication whenever possible and when your crypto platform allows it.
Choosing a unique password for your crypto account, and of course a fairly complex password, is also an essential security measure.
Remember that the situation is very different from investing in the stock market via one of the top PEA or the top securities account. Indeed, unlike a traditional stock brokerage account, where someone who has access to your account cannot transfer your shares, with a crypto account someone who has your password could send all the cryptos you purchased to an external wallet with no recourse for you to recover them.
Send your crypto to a cold wallet (like Ledger)
If you want protection against hacking, you can send your cryptocurrencies to a device like Ledger (cold wallet, or hard wallet), by entering your cold wallet’s blockchain address and permanently moving the crypto you purchased from an online crypto exchange to secure it on a cold wallet. But be careful not to lose the password for your cold wallet or your Ledger key, because no one will be able to unlock your cryptos for you!
Transfer your cryptos
You are now ready to make your first investments in Bitcoin or other cryptocurrencies, with confidence. This guide to buying your first Bitcoin has helped you lay the essential foundations: opening an account on a secure crypto exchange, making a fund deposit, purchasing your first cryptos, tracking your crypto portfolio, and understanding the importance of protecting your funds. But this is only the beginning of your journey into the fascinating world of blockchain and crypto. In upcoming articles, we will go further by explaining how to conduct decentralized crypto transactions (DEX) and how to manage your crypto assets via a cold wallet.
All information provided here is, by nature, generic. It does not take your personal situation into account and does not constitute personalized recommendations for executing transactions and cannot be considered financial investment advice, nor any encouragement to buy or sell financial instruments. The reader is solely responsible for using the information provided, with no recourse against Cafedelabourse.com. The publisher’s liability cannot be engaged in case of error, omission, or ill-timed investment.
