Before You Start
Buying Bitcoin for the first time can feel intimidating, but it's actually quite simple once you know the steps. This guide will walk you through purchasing Bitcoin safely using Coinbase, one of the most trusted platforms in the United States.
What you'll need:
- A smartphone or computer
- A valid government ID (driver's license or passport)
- A bank account or debit card
- About 15-20 minutes
Important reminder about investing:
Only invest money you can afford to lose. Bitcoin's price can go up and down significantly. Start small - even $20 or $50 is a fine first purchase to learn how it works.
Step-by-Step: Buying Bitcoin on Coinbase
We recommend Coinbase because it's:
- Based in the United States and follows US regulations
- Easy to use for beginners
- Has strong security and insurance
- Offers customer support if you need help
1 Download the Coinbase app
Go to the App Store (iPhone) or Google Play Store (Android) and search for "Coinbase" - it has an orange and white icon.
Tap "Get" or "Install" to download it.
Note: This is "Coinbase" - not "Coinbase Wallet" (that's a different app).
2 Create your account
Open the app and tap "Get started" or "Sign up"
Enter your information:
- Your full legal name (as it appears on your ID)
- Your email address
- A strong password (write this down!)
Coinbase will send a verification email. Open your email, find the message from Coinbase, and click the link to verify.
3 Verify your identity
By law, Coinbase needs to verify who you are. This protects you and prevents fraud.
- Enter your phone number - they'll send a code via text
- Enter the code to verify your phone
- Take a photo of your ID (driver's license or passport)
- Take a selfie so they can match your face to your ID
This usually takes just a few minutes to process, but occasionally can take up to 24 hours.
4 Add a payment method
Now you need to connect a way to pay for your Bitcoin:
Option A: Bank Account (Recommended)
- Tap "Add payment method"
- Select "Bank account"
- Search for your bank and log in with your online banking credentials
- This is secure - Coinbase uses a service called Plaid that banks trust
Option B: Debit Card
- Faster but has higher fees
- Enter your card number, expiration date, and security code
5 Buy Bitcoin
Now for the exciting part!
- Tap the "Trade" button (usually at the bottom of the screen)
- Tap "Buy"
- Select "Bitcoin" from the list (it might show as BTC)
- Enter the amount you want to spend in dollars (example: $50)
- Tap "Preview buy" to see exactly what you'll get
- Review the details - you'll see:
- How much Bitcoin you'll receive
- The current price
- The fee Coinbase charges
- If everything looks good, tap "Buy now"
Congratulations!
You now own Bitcoin! You can see your balance in the Coinbase app anytime. The Bitcoin is stored safely in your Coinbase account.
Understanding What You Bought
A few things to know about your new Bitcoin:
You probably own a fraction of a Bitcoin
One whole Bitcoin costs tens of thousands of dollars. When you buy $50 worth, you own a small piece - like 0.0008 Bitcoin. This is completely normal and how most people buy.
The value will change
Check your Coinbase app tomorrow and the value might be slightly different. This is normal - Bitcoin's price fluctuates. Don't panic if it goes down; don't get too excited if it goes up. Think long-term.
Your Bitcoin is safe on Coinbase
Coinbase stores your Bitcoin securely and has insurance. For beginners, keeping it on Coinbase is perfectly fine. As you learn more, you might want to move larger amounts to your own wallet (see our wallet guide).
Fees to Expect
Coinbase charges fees for buying crypto. Here's what to expect:
- Small purchases ($10-50): About $1-2 fee
- Medium purchases ($50-200): About $2-5 fee
- Larger purchases: Usually around 1.5% of your purchase
The exact fee is always shown before you confirm your purchase.
Common Questions
Can I buy less than one Bitcoin?
Yes! You can buy as little as $1 worth of Bitcoin. Most people don't own a whole Bitcoin.
When should I sell?
That's up to you and your financial goals. Many people buy Bitcoin as a long-term investment and hold it for years. Don't feel pressured to sell quickly.
Is it safe?
Coinbase is one of the safest places to buy Bitcoin. However, all investments carry risk. The price of Bitcoin could go down, and you could lose money.
Do I have to pay taxes?
Possibly. In the US, if you sell Bitcoin for a profit, you may owe taxes. Coinbase provides tax documents. Consider talking to a tax professional.
What NOT to Do
Avoid these common mistakes:
- Don't invest more than you can afford to lose
- Don't share your Coinbase password or 2FA codes with anyone
- Don't believe anyone who promises guaranteed returns
- Don't send Bitcoin to strangers who promise to send more back (this is always a scam)
- Don't panic sell if the price drops temporarily
Want help buying your first Bitcoin?
We'll guide you through every click, make sure your account is secure, and answer all your questions. No judgment, just patient help.
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