I‘m thrilled you want to learn more about Bitcoin! As a fellow technology enthusiast, I‘ll walk you through the basics so you can get your first (or next!) bitcoin stack.
To start, what exactly is bitcoin and why acquire it?
Bitcoin is scarce digital money that‘s powered by a decentralized network instead of any government or company. It represents amazing technological innovation that also gives people an alternative to constantly devaluing fiat currencies.
The key property that gives bitcoin value is its capped supply – only 21 million bitcoin can ever exist. This fixed upper limit means bitcoin beats normal currency in resisting inflation. The more people who want to own a slice of that limited issuance, the higher its price goes.
Owning bitcoin gives you a way to store wealth outside the traditional financial system. It provides financial sovereignty for anyone to access.
Now let‘s get into the fun part…
Acquiring That Sweet Bitcoin
I‘ll cover 6 different methods for getting your hands on some sats, from the most convenient to the more technically involved.
Method #1: Cryptocurrency Exchanges
Exchanges provide the simplest avenue for buying bitcoin with traditional money. All you need is an account!
Over $2 billion of bitcoin gets traded every day across popular exchanges like Coinbase, Binance, and FTX. Their platforms make it easy.
To buy bitcoin on an exchange:
- Sign up and verify your identity – this required step keeps bad actors off exchanges.
- Deposit money via bank transfer or card payment. Exchanges act as an on-ramp from fiat into crypto.
- Place a buy order for bitcoin. Set the amount in dollars or input the quantity of BTC.
- Withdraw to your personal bitcoin wallet. This gives you full control instead of keeping coins on an exchange long term.
| Exchange | Users | Trading Volume | Fees | GEO Availability |
|---|---|---|---|---|
| Coinbase | 89M+ | $381M daily | 0.5% | 103+ countries |
| Binance | 120M+ | $62B daily | 0.1% | Not available in US |
| FTX | 1M+ | $10B daily | 0.07% | Global except US sanctions targets |
The main benefits of using an exchange are simplicity, liquidity and speed. The main downside is that exchanges can get hacked, so withdrawing bitcoin to your private wallet minimizes that counterparty risk.
For high rollers, over-the-counter (OTC) trading desks provide an old fashioned white glove experience. You‘ll get personalized service and better exchange rates for large size orders.
Method #2: Mine That Bitcoin!
Bitcoin mining is the competitive process that keeps the whole network running securely. Miners use specialized hardware to earn newly minted bitcoin block rewards…plus transaction fees!
It requires:
- ASIC mining rigs – purpose-built machines packed with computing power to calculate quintillions of hashes per second. Common models are the Bitmain S19 Pro (110 TH/s) and MicroBT M30S (100 TH/s).
- Cheap electricity – miners gobble power 24/7, so low electricity costs are a must for profitability. Under $0.05 per kWH is ideal. Places like the Pacific Northwest offer just that.
- Mining pools – solo mining no longer cuts it. Joining up with other miners to combine hashrate and share rewards based on contributed power solves this. Top mining pools are Foundry USA and F2Pool.
To mine bitcoin:
- Get a bitcoin wallet address to receive what you‘ll earn
- Buy specialty ASIC mining hardware like an Antminer S19j Pro
- Join a mining pool like Slush Pool
- Connect miners & configure software
- Watch the magic internet money come trickling in!
Consider leasing hashrate for passive income if self-mining feels too complex. Companies like Compass Mining handle the hardware and logistics for you in exchange for an upfront cost.
Over 1 exahash per second (that‘s over a quintillion hashes!) currently secures the Bitcoin network. But it takes massive scale to profit from mining now.
Method #3: Bitcoin ATMs
Bitcoin ATMs provide users a way to conveniently buy bitcoin by exchanging cash directly for crypto. No account or email required!
Over 30,000 BTMs have been installed globally, with almost 20,000 across the United States alone based on Coin ATM Radar data. Growth exploded as demand picked up over the last few years.
Bitcoin ATM Installations by Year [Source: Coin ATM Radar)
The average fee hovers around 8%, but can stretch as high as 20% per transaction. Not cheap, but super easy to use.
To buy bitcoin from a BTM:
- Find a Bitcoin ATM near your location
- Verify your wallet address by scanning its QR code
- Insert cash into the machine
- Complete the purchase and send BTC to your wallet!
Now you know where to access those iconic machines when you need some crypto in a pinch!
Method #4: Bitcoin-Paying Jobs
As Bitcoin continues going mainstream, companies have started viewing it as a legitimate form of value transfer.
Forward-thinking firms now offer employees the option to take all or part of their salary in BTC. This provides a frictionless way to stack sats without having to manually buy and withdraw from an exchange each month.
Prominent industry examples include:
- Coinbase – One of the most popular crypto exchanges lets employees take 100% of pay in crypto assets like bitcoin and ether
- Twitter – The social media giant announced an option for U.S. employees to elect to receive BTC through payroll
- Shopify – The e-commerce leader offers bitcoin balance contributions to staff through giving, learning, and development funds
If your current workplace doesn‘t offer the ability to take some pay in bitcoin, check out a service like BitWage. It lets you seamlessly integrate recurring bitcoin purchases funded from payroll.
And you can always ask leadership to consider adding bitcoin to its comp packages! As more professionals request it, the work world will keep moving towards web3 pay rails.
Method #5: Bitcoin Faucets & Games
I wanted to highlight some unique ways to earn a small amount of bitcoin for free. They offer a fun introduction to bitcoin and cryptocurrencies more broadly:
Bitcoin Faucets pay out tiny amounts of BTC (known as "drips") in exchange for completing simple online tasks:
- Complete captcha verifications
- View ads
- Click affiliate links
- Invite friends
Leading faucet platforms include MoonBitcoin, FreeBitco.in, and Bonus Bitcoin. Just know that the satoshi amounts will be small to start out.
Bitcoin Games let you earn BTC and crypto tokens through fun gameplay:
- Alien Run – a Mario Bros style runner game with cash prizes
- Spark Profit – simulated trading & forecasting challenges
- Bitcoin Blast – match three puzzle game with sats rewards
While you won‘t get rich earning bitcoin this way, it serves as great onboarding and value transfer education!
Choose Your Bitcoin Vault
Alright, you now know multiple ways to get bitcoin exposure. But where do you actually store it? That brings us to bitcoin wallets.
These specialized applications give you complete ownership over your holdings for independent financial sovereignty. Wallets come in many formats – here is what to consider:
Hardware wallets offer unmatched security by handling private keys offline in a separate specialized device. Trezor and Ledger lead the pack.
Mobile wallets focus on convenience and privacy. Top iOS and Android picks include Samourai, Electrum, Blockstream Green, and BlueWallet.
Desktop wallets give technically advanced users more options. Wasabi stands out especially for CoinJoin-based privacy boosting features.
Web wallets provide good accessibility by being browser-based. They tend to be more vulnerable compared to standalone wallets – better for small amounts!
Evaluate your priorities between security, privacy, and usability to decide what‘s best for your needs and skill level.
And remember – when acquiring significant bitcoin savings, using a hardware wallet vaults it far out of reach for hackers!
Let‘s Get Your Bitcoin!
I hope you now feel empowered to start owning this revolutionary internet money. Even dipping your toes by earning a few bucks worth of BTC will get you comfortable for taking it to the next level!
- Decide which one(s) of the 6 acquisition methods resonate best
- Set up a self-custodied wallet to be the foundation of your financial fortress
- Start small if needed, but make that first purchase!
With some constants tricks, dollar cost averaging, and long term holding, you‘ll do just fine owning bitcoin. And who knows – it may very well keep exceeding our wildest expectations!
Want to chat more? Let me know what methods you end up going with and how it turns out for you.
