Getting Started with Bitcoin

Step 1: Set Up Your First Wallet

Before you can receive Bitcoin, you need a wallet. Think of it as your personal bank account that only you control.

A Bitcoin wallet is a piece of software that manages your Bitcoin addresses and their corresponding private keys. These keys are what allow you to spend the Bitcoin associated with an address. The wallet itself doesn't "store" your Bitcoin; your coins exist on the global blockchain. The wallet simply holds the keys that prove you own them.

Critical Security Note

Your seed phrase **is** your Bitcoin. Anyone with access to it can steal your funds. Never share it, never screenshot it, and never store it on an internet-connected device. Treat it like your most valuable possession.

Step 2: Understand Bitcoin Addresses

This is the information you share to get paid.

Address Formats Explained

1... - Legacy (P2PKH)

The original address format. Higher fees.

3... - SegWit (P2SH)

Lower fees than Legacy, widely compatible.

bc1... - Native SegWit (Bech32)

The newest format with the lowest fees.

Address Reuse

For maximum privacy, you should generate a new address for every transaction you receive. All modern wallets do this for you automatically. Think of it like giving out a unique invoice number for every payment.

Step 3: Find a Peer-to-Peer Platform

These are marketplaces where you can trade directly with other people.

Online P2P Platforms

Bisq

A fully decentralized exchange software you run on your computer. No KYC required.

RoboSats

A simple and private way to buy and sell Bitcoin using the Lightning Network. No KYC.

Hodl Hodl

A global P2P platform that uses multi-sig escrow. No KYC for most trades.

Safety Tips for P2P Trading

Start with small amounts to build reputation and learn the process.
Always use the platform's escrow service. Never release funds until payment is confirmed.
For in-person trades, meet in a public, busy location.
Verify the Bitcoin transaction on a public block explorer before handing over cash.
Trust your instincts - if a trade feels wrong, cancel it.

Advanced Method: Mining

This is how new Bitcoin is created, but it's not a practical method for most people today.

Mining is the process where powerful, specialized computers (called ASICs) are used to solve complex mathematical problems. The miner who solves the problem first gets to add the next block of transactions to the blockchain and is rewarded with a small amount of newly created Bitcoin. This is the only way new coins enter the ecosystem.

Reality Check

Today, Bitcoin mining is a highly competitive industry requiring enormous investment in hardware and access to extremely cheap electricity. It's not profitable for individuals to mine from home. Most miners operate in large data centers or join "mining pools" to combine their computing power and share rewards.

Important Disclaimers

Legal and tax considerations you should be aware of.

Legality: Bitcoin's legal status varies by country. Research the laws in your jurisdiction before buying, selling, or trading.

Taxes: In most countries, Bitcoin is treated as property. Buying, selling, or trading it can be a taxable event. Keep good records of your transactions.

Verification: While some platforms allow anonymous trading, many P2P exchanges may require identity verification (KYC) for larger trade volumes to comply with local regulations.

Common Beginner Mistakes to Avoid

Learn from others so you don't have to learn the hard way.

Security Mistakes

Never, ever share your 12-24 word seed phrase with anyone for any reason.
Don't store large amounts of Bitcoin on a mobile or desktop wallet long-term. Use a hardware wallet.
Always triple-check the recipient's address before sending. A single wrong character means lost funds.
Do not screenshot your seed phrase or save it in a text file on your computer or cloud storage.

Trading Mistakes

Don't rush into large P2P trades without experience or with an untrusted party.
Always wait for at least one network confirmation before considering a transaction final.
Don't trade more than you are willing to lose, especially while you are learning.
Be wary of deals that seem 'too good to be true'. They usually are.

Your Bitcoin Journey Starts Here

You now have the fundamental knowledge to acquire Bitcoin permissionlessly.

You've learned that Bitcoin ownership doesn't require a bank or an exchange. The choice is yours. Start small, prioritize security, and remember: with Bitcoin, **you are your own bank**. That means both the freedom and the responsibility are entirely in your hands.

Your Next Steps:

Download a reputable open-source Bitcoin wallet.
Secure your seed phrase properly (offline!).
Start with a small, low-risk P2P trade to learn the process.

The Bitcoin network operates 24/7, 365 days a year, waiting for your first transaction. No applications to fill out, no approval required—just voluntary exchange between willing participants.