How do You Obtain Bitcoin?

Saving with Bitcoin

The Bitcoin Journey

Saving with Bitcoin

A warning before getting started!
Mini Checklist before taking the plunge
Acquisition strategies
Who should we buy our bitcoin from?
Non-KYC solutions

A warning before getting started!

Bitcoin has become a major financial asset, mainly due to its limited supply and increasing demand. However, buying Bitcoin carries risks that require special attention. It is therefore recommended to conduct your own research and learn more about the subject to become familiar with the technology before investing any funds.

Only invest what you can afford to lose.
Bitcoin is a highly volatile financial asset, and its price can drop to 0.
Past performance is not a reliable indicator of future performance.
Contact your financial advisor if needed.

Plan ₿ Academy does not provide any investment advice, and nothing stated here should be considered as such

Mini Checklist before taking the plunge

Before diving into buying Bitcoin, make sure you have:

A secure wallet.
A solid understanding of Bitcoin.
A savings plan to follow.
A long-term vision.

If the subject is still unclear, be aware that the BTC102 course will guide you in securing and acquiring your first bitcoins. Here, we will only skim the surface of the topic.

In concrete terms, there are two questions to ask yourself:

Should you adopt a gradual or an all-at-once acquisition strategy?
Should you use a regulated or an unregulated platform?

Acquisition strategies

Dollar Cost Average

This gradual strategy involves recurring purchases, meaning buying small amounts of Bitcoin at regular intervals. This method smooths out the price over time and provides continuous growth in the amount of bitcoin owned. It is an ideal solution for long-term savings, and alleviates the concerns about Bitcoin's price volatility. Once set up, you can simply forget about it and watch your investment grow.

Beware of UTXOs: Remember to consolidate your UTXOs in your wallets from time to time. This practice is essential for effectively managing your bitcoins and avoiding unnecessary fees during transactions.

An UTXO is an output of a transaction that has not yet been spent, meaning it was not used as an input for a new transaction. Consolidating them means combining several small UTXOs into one larger one, in order to decrease the "weight" of the transaction, and thus pay lower fees.

Spontaneous purchase

An all-at-once solution could be a spontaneous purchase, which is used to immediately gain exposure to bitcoin. Whether it's buying during a crash or taking advantage of a bonus, the decision is yours. You will need to muster up your courage and press the buy-button.

In this case, you should be careful and control your emotions, as the price of bitcoin can be quite volatile. In fact, FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt) are your worst enemies! Remember to stay calm and follow the strategy you have established in advance, to avoid impulsive and potentially harmful decision-making.

Who should we buy our bitcoin from?

There are several ways to acquire bitcoins, each subject to its own set of regulations that can vary by jurisdiction. Some platforms require identification for verification (KYC), while others do not. Therefore, it is crucial to understand the regulations associated with each platform.

DCA platforms

As we introduced above, a common method to accumulate bitcoins is the Dollar Cost Averaging (DCA), which involves regularly buying small amounts. Several platforms offer this service, such as those listed on our dedicated page. In addition to the simplicity of setting up a DCA, withdrawals to your wallet are generally automatic, meaning you will always have control over your assets.

Today, almost all DCA solutions are relatively efficient and have almost similar fees, so the choice will depend more on availability in your country.

Broker platforms

For large-scale investments, regulated and recognized platforms such as Kraken, Bitstamp, and Paymium are recommended. They offer a safe and secure environment for high-volume transactions.

Their use is simple and accessible to everyone:

Set up a KYC account
Transfer funds to your account
Purchase bitcoin
Withdraw bitcoin to your wallet

After the purchase, it is advisable to immediately withdraw the bitcoins from the exchange platforms to minimize the risks of hacking and fund blocking. Be aware that withdrawal fees can be high, sometimes up to 25 euros depending on the platform.

Know Your Customer (KYC) regulations require users to provide identification to combat terrorism financing, tax evasion, and money laundering.

It is essential to recognize that KYC is a significant topic of discussion in the Bitcoin industry. While many people debate its effectiveness, there are numerous concerns associated with it. In many of our academy's training programs and content, we advise advanced users to avoid platforms that require KYC, as there are often more privacy-focused alternatives available.

Non-KYC solutions

In addition, there are several marketplaces where to buy and sell bitcoins in a peer-to-peer exchange. In general, you may consider the following:

Bitcoin ATMs
Physical meetings with other bitcoin enthusiasts
Illegal and unregulated platforms
Peer-to-peer matchmaking solutions
Neobanks operating in Bitcoin-friendly nations.

Finally, it is important to note that tax obligations may vary depending on the jurisdiction, so we strongly encourage you to consult the regulations in your country before taking any actions that could put you at risk.

If you wish to deepen your knowledge of strategies for purchasing, using, and securing your bitcoins, I strongly recommend taking the BTC 102 course after this one. There you will discover, among other things, tool recommendations suited to your profile, needs, and personal goals:

Getting your first bitcoins

Beginner

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Learn how to buy, secure, and manage your first bitcoins independently.

4.7(346)

Getting your first bitcoins

Learn how to buy, secure, and manage your first bitcoins independently.

Quiz

btc1015.3

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What is one of the things you should consider when choosing a DCA platform?