Lesson 18: How To Buy Bitcoin

Preview

In this lesson, we will tackle one of the most essential questions for anyone looking to get into Bitcoin: how do I buy Bitcoin? This lesson is less of a tutorial, and more of an overview of different ways you can purchase Bitcoin today. It also provides an overview of different things to consider when deciding where to purchase your Bitcoin. For example, what fees will I be paying, does the exchange custody my Bitcoin or does it go direct to self-custody (more on that in the next lesson), am I required to provide KYC (Know Your Customer) personal information? The purpose of this lesson is to explain some of the things you will want to think about before you decide where to buy your Bitcoin. In the next lesson, we will walk you through how the idea of self-custody can secure your Bitcoin, especially when using a hardware wallet.

Lastly, it is recommended you review the Additional Resources section below each lesson as there are some helpful resources included for your benefit.

There Are Different Ways to Buy Bitcoin

Key Takeaways

• Main ways to buy Bitcoin:
  • Exchanges/trading platforms (lowest fees but more complex),
  • Broker services (simple, higher cost),
  • Bitcoin ATMs (fast, semi-anonymous but very high fees),
  • Peer-to-peer (P2P) purchases (private but riskier; use escrow when possible).
• Know Your Customer (KYC): Most exchanges require ID verification (driver’s license, address, etc.). Bitcoin ATMs and some P2P methods offer more privacy with less or no KYC, but often at higher cost.
• Fee structure matters: Compare deposit fees, trading fees, withdrawal fees, and the hidden cost of bad exchange rates. Payment methods like credit cards cost more; irreversible methods like wire transfers are cheaper.
• Always withdraw to your own wallet: After buying, move coins off the exchange into your personal wallet—“Not your keys, not your coins.” Exchanges can get hacked or go insolvent.
• P2P safety: When buying directly from another person, verify identity if possible, use escrow, avoid irreversible payments before receiving BTC, and wait for 2–3 confirmations before finalizing.

Additional Resources

• How To Buy Bitcoin – River.com/learn
• Best Exchange to Buy Bitcoin – River
• Bitcoin Well – Best For Direct Self-Custody
• Best Peer-to-Peer Network To Buy Bitcoin Securely – Hodl Hodl