Bitcoin Investment for Beginners: 6 Simple Tips to Get Started

Money Maker

“The Dinner Party Bitcoin Dilemma”

So you’re at a dinner party, right?

Your mate Steve — the one who thinks wearing boat shoes makes him a financial guru — starts yapping about his ‘Bitcoin gains.’

You nod, smile, and sip your shiraz, but deep down, you’re thinking, ‘Mate, I barely know how to top up my mobile sim card.’

Relax. You’re not alone.

Bitcoin feels intimidating because no one breaks it down properly. That changes today.

Whether you’re a complete novice or someone who’s just ‘crypto curious,’ this article will give you six simple, no-BS tips to get started with Bitcoin investing — minus the jargon and the tech-head fluff.

While your mates are still talking about it over smashed avo and flat whites, you’re here to get actual skin in the game.

Bitcoin may sound like something tech-heads or finance bros babble on about, but trust me, it’s not rocket science.

This guide is Bitcoin for beginners — plain, simple, and with a little humour to keep things fun. Let’s get you started, shall we?

What’s Bitcoin, Anyway? A Quick Refresher

Before we get into the juicy stuff, let’s clear this up.

Bitcoin is a digital currency that allows you to send and receive money without needing a bank.

No fees for some guy in a suit to “process” it, no dodgy middleman holding onto your cash.

Bitcoin runs on a blockchain — a digital public ledger that records every single transaction (remember, it’s like a massive, live spreadsheet).

It’s decentralised, meaning no single government or bank controls it.

Remember, it’s also scarce as there’s a fixed amount of supply of 21 million bitcoins, forever…

If that sounds a bit sci-fi, think of it as the people’s currency, no central power pulling the strings.

6 Simple Tips to Get Started with Bitcoin Investing

1. Start Small (Don’t Bet the House)

Here’s the thing: Bitcoin’s price jumps around like a kangaroo on caffeine.

One day it’s soaring, the next, it’s nosediving faster than your team in the finals.

For beginners, start small.

You don’t need to throw your life savings into Bitcoin to see how it works.

In fact, you can buy as little as $10 worth.

Think of it as dipping your toe in the water instead of cannonballing into the deep end.

Real-Life Example: Jane, a 29-year-old teacher from Sydney, started investing with just $50 a month.

She treated it like a savings plan, slowly growing her Bitcoin portfolio over time.

After two years, her small, consistent investments had grown to a tidy $5,000. Jane didn’t stress about price swings because she was in it for the long haul.

Why It Matters: Starting small helps you manage risk while learning the ropes. Plus, it lets you get a feel for Bitcoin without losing sleep.

2. Choose a Reliable Crypto Exchange

To buy Bitcoin, you’ll need to sign up with a crypto exchange.

Think of it like a digital marketplace for buying and selling Bitcoin. The key here? Pick a reliable one.

You want an exchange that’s secure, easy to use, and won’t disappear overnight like a dodgy eBay seller.

Some good options for beginners include Binance, Coinbase, or CoinSpot (a local Aussie favourite — this is also the one I use and have been using since 2017).

Real-Life Example: Tom, a tradie from Melbourne, nearly fell for a dodgy crypto app promising “low fees and instant riches.”

Luckily, his mate suggested CoinSpot, where he started safely and securely buying Bitcoin.

Now, Tom’s got a decent chunk of Bitcoin stashed away and sleeps soundly at night.

Why It Matters: Choosing a trusted exchange ensures your money and Bitcoin are safe. Plus, you won’t get burned by scams.

3. Buy Bitcoin via an ETF — Exchange Traded Fund

Buying Bitcoin directly isn’t the only way to gain exposure to the cryptocurrency market.

If the idea of setting up wallets, securing private keys, or dealing with exchanges feels a bit too much, a Bitcoin ETF (Exchange-Traded Fund) offers a simpler, more traditional approach.

Here’s how it works and how you can buy Bitcoin via an ETF.

1. Open a Brokerage Account (If You Don’t Have One Already)

If you already trade stocks or ETFs, you’re halfway there. If not, sign up for a brokerage account with a platform that offers access to Bitcoin ETFs. Popular platforms in Australia include:

2. Search for Bitcoin ETFs

Once your account is set up, search for Bitcoin ETFs by their ticker symbol. Examples of Bitcoin-related ETFs include:

3. Place Your Order

• Decide how many shares of the ETF you’d like to buy.
• Choose your order type (market order for immediate purchase, or limit order to set a specific price).
• Confirm the transaction.

4. Secure Your Bitcoin Like It’s the Last Tim Tam

Here’s where most beginners slip up: they don’t secure their Bitcoin properly. You wouldn’t leave cash lying around on a park bench, so don’t leave your Bitcoin exposed.

Your Bitcoin is stored in a wallet. There are two main types:

• Hot Wallets: Online wallets connected to the internet (convenient but riskier).
• Cold Wallets: Offline wallets (like USB drives or cards) that keep your Bitcoin safe from hackers, such as the one I use — Tangem.

Real-Life Example: Matt, a uni student, stored his Bitcoin in an online wallet but didn’t enable two-factor authentication.

One day, he woke up to find his account drained.

If only Matt had moved his Bitcoin to a cold wallet like a Tangem wallet and kept his recovery keys safe. ‘I’ve been using Tangem for over 1 year to store majority of my bitcoin and have found it the easy wallet to setup, just tap the card on your phone, and you’re ready. I recall the process taking just over 5 minutes (stretching my memory mate)’.

Why It Matters: Securing your Bitcoin protects you from hackers and accidental losses. Treat it like gold.

5. Understand Bitcoin’s Volatility (and Don’t Panic)

Bitcoin is volatile — meaning its price moves up and down like it’s got a mind of its own.

This scares beginners, but here’s the trick: don’t panic.

Zoom out.

Bitcoin has had wild swings over the years, but its long-term trend has generally been upward (important note* past performance isn’t an indication of future performance… you know what I mean).

The key is to think long-term. You’re investing in a new technology, not betting on next week’s lotto numbers.

Real-Life Example: Sarah, a 35-year-old marketing exec, bought Bitcoin in 2017 when the price was skyrocketing. When it crashed, she panicked and sold. If she’d held onto it, her investment would have doubled today. Moral of the story? Patience pays off.

Why It Matters: Volatility is normal in Bitcoin. Keep your cool and avoid emotional decisions.

6. Do Your Homework (Because Knowledge is Power)

Bitcoin isn’t a “set and forget” type of deal. Before investing, spend some time learning the basics.

Understand what Bitcoin is, how it works, and why it has value.

Read blogs, watch YouTube videos, or even grab a book like The Bitcoin Standard. Educating yourself helps you make better decisions and not fall for scams.

Real-Life Example: Emma, a nurse, spent a weekend reading about Bitcoin basics before buying her first $100 worth. Now, she confidently explains Bitcoin to her friends and keeps an eye on industry news to stay informed.

Why It Matters: The more you know, the smarter your decisions. Bitcoin rewards the curious.

Why Bitcoin is Worth Considering (My Opinion)

Bitcoin isn’t just a fad. It’s a new way of storing and transferring value that’s outside the traditional banking system. For beginners, it offers:

• A hedge against inflation: Central banks print money, but Bitcoin has a fixed supply.
• Accessible investing: You can start with as little as $10.
• Global usability: Send money anywhere, anytime, without middlemen.

Plus, let’s be real — it’s pretty cool to say you’re investing in the future of money.

Bitcoin for Beginners Made Easy

Bitcoin might feel intimidating at first, but it’s simpler than you think.

Start small, pick a secure exchange, protect your Bitcoin, and don’t panic about price swings.

This guide has given you the basics — now it’s up to you to take the first step.

Remember, every pro investor started somewhere.

Today, you’re getting started.

Tomorrow? Who knows — maybe you’ll be the one explaining Bitcoin to your mates over brunch.

Resource recap

· Read blogs, watch YouTube videos, or even grab a book like The Bitcoin Standard. Educating yourself helps you make better decisions and not fall for scams.

· Cold Wallets: Offline wallets (like USB drives or cards) that keep your Bitcoin safe from hackers, such as the one I use — Tangem.

· In terms of exchanges, some good options for beginners include Binance, Coinbase, or CoinSpot (a local Aussie favourite — this is also the one I use and have been using since 2017).

· IBIT: Blackrock’s Bitcoin ETF — ishares Bitcoin Trust (Australia/US) this is listed on the NASDAQ (IBIT), and I’m invested in this ETF, along with holding a small amount of bitcoin via the exchange Coinspot (been on here since 2017) and majority of my bitcoin via cold storage wallet — Tangem wallet (use my link an get 10% OFF automatically).

Slug: bitcoin-investment-for-beginners

Meta Description: New to Bitcoin? Start investing with confidence using these 5 simple tips for beginners. Learn how to buy, store, and manage Bitcoin safely.

Here are some straightforward metrics

that beginners can use to assess Bitcoin (see below). CoinMarketCap illustrates many of the below metrics on one page — https://coinmarketcap.com/currencies/bitcoin/

1. Price: The current market value of Bitcoin, indicating how much one Bitcoin is worth in fiat currency (e.g., USD).
2. Market Capitalisation: Calculated by multiplying the current price by the total number of Bitcoins in circulation, this metric reflects the total market value of Bitcoin.
3. Trading Volume: The total amount of Bitcoin traded within a specific period, showing the level of market activity and liquidity.
4. Hashrate: Measures the total computational power used to mine and process transactions on the Bitcoin network. A higher hashrate suggests a more secure and robust network.
5. Mining Difficulty: Indicates how challenging it is to mine a new block. The network adjusts this periodically to ensure blocks are added at a consistent rate.
6. Transaction Volume: The total number of transactions processed over a certain period, reflecting the network’s usage and adoption.
7. Number of Active Addresses: Represents the count of unique addresses participating in transactions, serving as a proxy for user activity.
8. Fees per Transaction: The average fee users pay to have their transactions processed, which can indicate network congestion and demand.
9. Mempool Size: The aggregate size of unconfirmed transactions waiting to be added to the blockchain. A larger mempool can signal higher network congestion.
10. Supply Metrics: Includes the total supply of Bitcoin, the number of Bitcoins mined, and the remaining supply to be mined, highlighting Bitcoin’s scarcity.

For beginners, focusing on these metrics can provide a foundational understanding of Bitcoin’s market dynamics and network health.

This is Part II of your Bitcoin for Beginners: The Quickest Way to Learn About Bitcoin series

By Stevo — Armchair Banker MAppFin, AdvDipFP, ADA

‘Meet Stevo, the financial wizard behind Armchair Banker. With 15 years of experience in investment banking, corporate finance, and markets, Stevo’s résumé is so impressive it could intimidate a spreadsheet.’

For more ‘Ah-ha’ money and finance guides, visit www.armchairbanker.com and www.armchairbanker.com

Follow us on socials subscribe to our newsletter

Medium — https://armchairbanker.medium.com/

Facebook — https://www.facebook.com/armchairbanker

DISCLAIMER: The information in this article does not constitute personal financial advice. Consult your adviser or stockbroker prior to making any investment decision.

MORE DISCLAIMERS: Stevo is not a Financial Adviser, however, works as an Investment Banker assisting ASX listed companies with retail capital raises. All opinions expressed and written by Stevo, including all other ‘Armchair Banker’ contributors, is for informational and entertainment purposes only and should not be treated as investment or financial advice of any kind. Any information provided from our articles, blogs, and written opinions is general in nature and does not take into account your specific circumstances. Armchair Banker and its contributors are not liable to the reader or any other party, for the reader’s use of, or reliance on, any information received, directly or indirectly, from any content by Armchair Banker in any circumstances.

The reader should always (we’re serious about this):

1. Conduct their own research

2. Never invest more than they are willing to lose

3. Obtain independent legal, financial, taxation, and/or other professional advice in respect of any decision made in connection with this video.

Full Disclosure: Stevo holds Bitcoin at the time of publishing.

Using my provided links/affiliate links could result in a payment or fee discount for Stevo, helps keep the lights on mate.

Originally published at https://www.armchairbanker.com on December 19, 2024.

Bitcoin Investment for Beginners: 6 Simple Tips to Get Started was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.