🌱 Module 2: Getting Bitcoin

Your First Bitcoin: Where to Start

You have a wallet. Now you need to put Bitcoin in it! There are several ways to acquire Bitcoin, each with its own trade-offs between convenience, privacy, and cost.

In this module, you'll learn about:

• Cryptocurrency exchanges (the most common method for beginners)
• Peer-to-peer platforms (more privacy, slightly more complex)
• Bitcoin ATMs (instant but higher fees)
• Other methods (earning, gifts, mining)

Method 1: Cryptocurrency Exchanges

Best for: Beginners, large purchases, lowest fees

Cryptocurrency exchanges are platforms where you can buy bitcoin with traditional currency (USD, EUR, etc.). They're the most common way for newcomers to acquire Bitcoin.

How to Use an Exchange (Step-by-Step)

1. Create an account - Provide email, password, enable 2FA
2. Complete KYC verification - Upload ID, verify identity (required by law)
3. Add payment method - Link bank account or debit card
4. Buy Bitcoin - Enter amount, confirm purchase
5. Wait for confirmation - Usually instant to a few days
6. Withdraw to your wallet - Transfer to your non-custodial wallet. Remember: "Not your keys, not your coins."

Understanding KYC/AML

KYC (Know Your Customer) and AML (Anti-Money Laundering) are regulations that require exchanges to verify your identity. See our KYC Best Practices guide →

Why Exchanges Require KYC

• Legal requirement - Exchanges must comply with financial regulations
• Prevents fraud - Reduces stolen credit card purchases
• Tax reporting - Exchanges report large transactions to tax authorities

Privacy Considerations

When you use a KYC exchange, your Bitcoin purchases are linked to your identity. This means:

• Government can see how much Bitcoin you bought
• Exchange has your personal information
• On-chain transactions can potentially be linked to you

Is this bad? Not necessarily. Most people use regulated exchanges and accept this trade-off for convenience. If privacy is important to you, consider P2P methods below.

Method 2: Peer-to-Peer (P2P) Platforms

Best for: Privacy, avoiding KYC, local transactions

P2P platforms connect buyers and sellers directly. You trade with another person, not a company.

Popular P2P Platforms

P2P Trade Flow

1. Find an offer - Browse sellers in your country/payment method
2. Start trade - Accept offer, Bitcoin locked in escrow
3. Send payment - Pay seller via agreed method (bank, cash, etc.)
4. Confirm payment - Mark as paid on platform
5. Seller releases Bitcoin - Escrow releases to your wallet

Method 3: Bitcoin ATMs

Best for: Immediate purchase, cash-based, no bank account

Bitcoin ATMs are physical machines where you can buy bitcoin with cash or debit card. Find them at https://coinatmradar.com

How Bitcoin ATMs Work

1. Find nearby ATM using website/app
2. Bring cash and your wallet QR code
3. Scan your receiving address
4. Insert cash
5. Confirm transaction
6. Bitcoin sent to your wallet

Warning: Bitcoin ATMs charge the highest fees. Only use them if you need immediate Bitcoin and have no other option. For regular purchases, use exchanges or P2P.

Other Ways to Get Bitcoin

Earn Bitcoin

• Get paid in Bitcoin - Ask employers or clients to pay you in BTC
• Freelance platforms - Bitwage, Coinbase Commerce for businesses
• Microtasks - Platforms like Lolli (cashback) or Fold (rewards)

Receive as Gift

• Friend or family sends you Bitcoin
• Bitcoin gift cards (BitRefill)
• Lightning tips/donations

Mining (Not Recommended for Beginners)

Mining requires specialized hardware (ASICs), cheap electricity, and technical knowledge. Unless you have free electricity and technical expertise, buying Bitcoin is far more economical.