Wondering how to buy Bitcoin as a first-time investor? Our beginner’s guide explains the step-by-step process, including the top Bitcoin wallets, exchanges, and safety best practices.
Bitcoin (BTC) is the oldest and still the most popular cryptocurrency by far, accounting for well over 50% of the total crypto market cap. This guide will teach you how to buy Bitcoin in 2025, so you can join the millions who already own this hugely popular digital asset.
We’ll show you the easiest and safest way to buy Bitcoin, explore alternative purchase options, and teach you how to store your assets safely. We’ll also explore some of the basics of Bitcoin to find out why it remains the go-to choice for most crypto investors.
How to Buy Bitcoin in 5 Easy Steps
Here is a simplified walkthrough of how to buy Bitcoin in five simple steps:
Download a non-custodial wallet like Best Wallet, which supports instant payment methods.
Create a PIN, write down your seed phrase, and activate two-factor authentication (2FA) and biometrics.
Decide how much Bitcoin to buy based on your financial goals and risk tolerance.
Select Buy and Bitcoin, choose the payment method and purchase amount, and complete the purchase.
If you’re using a custodial wallet, consider transferring your assets to a non-custodial wallet to store your Bitcoin safely.
How to buy Bitcoin – Step-by-Step Guide
Here is our detailed guide on how to invest in Bitcoin. We explain each step comprehensively for first-time buyers.
Step 1: Create a Non-Custodial Bitcoin Wallet
The first step is to download a Bitcoin wallet that provides non-custodial storage. Wallets serve several functions, such as allowing investors to send, receive, and store Bitcoin without relying on centralized entities. The best crypto wallets also connect with fiat gateways, so users can buy Bitcoin with traditional money.
We researched over 25 wallet providers, and overall, we rate Best Wallet as the top choice for beginners. The free mobile app for iOS and Android supports a wide range of local currencies and payment methods like credit or debit cards, e-wallets, and bank transfers. This dynamic offer lets investors buy and store Bitcoin in one safe place.Wallets connect with reputable gateways that support instant payment methods
Automatically store purchased Bitcoin in a non-custodial environment
Send and receive coins without third-party approval
Free wallet types include mobile apps, browser extensions, and desktop software
Crypto Wallet Cons
Gateways typically charge higher fees than regular crypto exchanges
Users are responsible for safeguarding their private keys and seed phrases
Centralized Exchanges
Centralized exchanges (CEXs) attract billions of dollars in daily trading volume, with most platform users buying and selling Bitcoin. These platforms function like traditional brokerages, as users open accounts, deposit fiat money, and place limit and market orders.
Our research shows that MEXC is one of the best crypto exchanges for asset diversification. Besides Bitcoin, the exchange lists over 4,000 cryptocurrencies, including major altcoins and high-growth meme coins.
Some CEXs support direct fiat deposits in multiple currencies
Competitive exchange commissions that average 0.1%
Instant buy features support debit/credit cards and e-wallets
Access extensive trading tools like advanced orders and technical indicators
CEX Cons
Most platforms have strict know-your-customer (KYC) requirements
Built-in wallets offer custodial storage with counterparty risks
Decentralized Exchanges
Some investors explore how to buy Bitcoin on decentralized exchanges (DEXs), as these platforms eliminate centralized risks and KYC requirements. However, unlike Ethereum, Solana, and other Layer-1 blockchains, Bitcoin lacks decentralized application (dApp) support. This drawback means Bitcoin cannot host DEX platforms.
One workaround is THORChain. The DEX allows traders to swap its proprietary token, THORChain (RUNE), for BTC. The protocol employs liquidity pools and automated market makers (AMMs) to ensure complete decentralization.
Another solution is Wrapped Bitcoin (WBTC). Real BTC backs each WBTC token, which operates on the Ethereum blockchain. Users exchange any ERC-20 token for WBTC on Ethereum-based DEXs like Uniswap and SushiSwap.
DEX Pros
Buy Bitcoin in a decentralized and non-custodial ecosystem
Traders avoid KYC requirements
DEX smart contracts transfer coins directly to the connected wallet
DEX Cons
DEXs do not accept fiat payments
Bitcoin lacks dApp support, so users rely on secondary blockchains
Bitcoin Mining
The mining framework keeps the Bitcoin network secure and decentralized. However, large-scale companies control the Bitcoin mining industry in 2025. They have significant resources, which generate the required hash rate to consistently win mining rewards.
The main workaround for individuals is cloud mining. Users purchase contracts, which provide a share of the broader mining pool. When the pool successfully mines a Bitcoin block, users earn a proportionate share of the rewards.
Mining Pros
Mine BTC directly from the Bitcoin blockchain
Cloud mining providers serve casual investors
Mining Cons
Large entities control the Bitcoin mining industry
Many cloud mining websites operate as scams
Mining contracts provide no profit guarantees
Other Methods
Here are some other ways to buy Bitcoin in 2025
Bitcoin ETFs: Fidelity, iShares, VanEck, and other financial institutions offer spot Bitcoin ETFs. Each fund buys and holds Bitcoin on behalf of investors, so shareholders gain exposure to BTC without directly holding coins. As Bitcoin ETFs trade on stock exchanges, investors buy shares on traditional brokerages.
Bitcoin ATMs: Physical ATM kiosks sell Bitcoin in exchange for currency notes. The process suits investors who prefer to use real cash. Fees are often extortionate, and most ATM providers require KYC verification. According to CoinATMRadar, almost 40,000 Bitcoin ATMs operate in over 60 countries.
P2P Exchanges: Peer-to-Peer crypto exchanges connect buyers and sellers directly, often from the same country. Investors use local currency and payment types, transferring money only when the seller funds the P2P escrow wallet. Binance, OKX, and other CEXs offer the biggest P2P exchanges for liquidity.
Investing in Bitcoin vs Trading Bitcoin
Investing in and trading Bitcoin reflect different goals and outcomes.
Bitcoin investors are typically long-term buyers who hold for months or years. They remain in the market despite short-term volatility to capture extended growth cycles. Most investors keep their coins in a non-custodial wallet for safe storage.
Bitcoin traders are short-term speculators who capitalize on market volatility. They buy and sell BTC over short periods, often for minutes, hours, or days, depending on the strategy.
Regarding the method of trading Bitcoin, traders typically use derivative products like futures and options, since they allow leverage and long and short orders. The best crypto leverage trading platforms offer leverage of up to 1000x, which magnifies position sizes by 1000 times.
Key Considerations to Make Before Buying Bitcoin
Here are some key factors to consider when learning how to buy Bitcoin:
Choose regulated platforms: Regulated brokers and exchanges are the safest way to invest in Bitcoin. Licensing bodies enforce strict rules, particularly regarding consumer protections, segregated funds, and anti-money laundering controls.
Consider the investment budget: Never invest more than you can afford to lose. Bitcoin remains a volatile asset, so setting an investment budget is essential.
Understand buying Bitcoin vs derivatives: When you buy Bitcoin in the traditional sense, you own the underlying coins outright. Derivatives merely mirror global spot prices, so they provide no ownership rights.
Hold coins in a secure wallet: After you complete the Bitcoin purchase, store your coins in a secure wallet. Ensure the wallet provides non-custodial storage for true BTC ownership.
Learn about price movements and volatility: Bitcoin has delivered huge gains since its 2009 inception, yet the digital asset often experiences sharp price swings. Always do your own research and be prepared for short-term volatility to reduce emotional risks.
Understand investment fees: Cryptocurrency wallets, CEXs, DEXs, and other platform types charge trading fees. These eat into your potential BTC profits, so evaluate commission structures when choosing a provider.
Beware of scams: Cybercriminals steal billions of dollars worth of cryptocurrencies annually. Common scams involve phishing, deception, and remote hacking attacks through malware and viruses. Learn more about the risks of crypto scams to protect your investments.
Is Bitcoin Taxed?
Our research confirms that most countries tax Bitcoin profits the same as other tradable products like stocks, ETFs, and commodities.
As authorities typically tax realized capital gains, the liability triggers only when investors cash out. If an investor buys 1 BTC at $40,000 and sells at $120,000, they make an $80,000 capital gain.
Tax rules and concessions vary across jurisdictions. For example, the U.S. has short and long-term tax structures, where investors qualify for lower tax rates when they hold cryptocurrencies for at least 12 months. Australian investors are also incentivized to hold long-term. They receive a 50% discount when holding for at least one year.
Investors who deposit their BTC coins into a centralized finance (CeFi) service also incur income tax liabilities. Most tax authorities use the daily spot price as the cost basis, based on when investors receive their yields.
How to Sell Bitcoin
To sell Bitcoin for fiat money, investors need an account with a trading platform that supports fiat withdrawal methods, such as withdrawing to a bank account. If you hold BTC in a non-custodial wallet, transfer those coins to the platform and place a sell order.
Follow these steps to sell Bitcoin:
Open an account with a crypto exchange that accepts your preferred currency. Popular options include MEXC, Binance, Bybit, Coinbase, and Kraken.
In the exchange account, copy your unique BTC deposit address. Then transfer BTC from your private wallet to the exchange.
Sell Bitcoin for fiat money on the exchange. Then request a withdrawal to a supported method, such as bank transfers or e-wallets.
If you’ve used Best Wallet to buy Bitcoin, you can use the Swap function to exchange your Bitcoin for a number of other cryptocurrencies or stablecoins like USDT or USDC. You can also transfer your Bitcoin to an exchange to sell it directly for USD.
Remember to review fees and withdrawal timeframes before you sell Bitcoin for cash.
How to Buy Bitcoin: Why Best Wallet Is the Top Method
Overall, we found that Best Wallet is an excellent tool for buying Bitcoin in 2025. The free iOS and Android app connects with secure fiat gateways, so users can purchase BTC instantly with e-wallets and debit/credit cards.
As a non-custodial wallet, Best Wallet provides decentralized storage. Users retain exclusive access to their private keys, which unlocks full autonomy over their Bitcoin investments. The wallet also supports thousands of other altcoins on over 60 blockchain standards.
