By Sarah Williams - Independent financial writer and Bitcoin educator since 2017. I translate technical concepts into practical knowledge for everyday users.

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How to Buy Bitcoin Safely in 2025 - Avoiding Scams and Keeping Your Coins Safe

I was going through some old photos yesterday and found screenshots of my first Bitcoin purchase back in 2018. The exchange I used doesn't even exist anymore! Made me realise how much the landscape has changed for buying Bitcoin.

I get asked about this constantly - just last week my sister's friend messaged me at 11pm asking if she should "invest in the Bitcoin" (her exact words). So I figured I'd write up a proper guide on how to buy Bitcoin safely in 2025, because it's still confusing as hell for most people.

First things first - know what you're getting into

Before you even think about buying Bitcoin, understand what you're actually purchasing. Bitcoin isn't a company or a stock - it's a peer-to-peer digital currency created by Satoshi Nakamoto that works without banks or governments. You're buying a piece of a decentralised network. Some people call it digital gold because of its limited supply and store of value properties.

I still remember when my dad bought his first Bitcoin and kept asking me when the "Bitcoin company" would send him dividends. Bless him.

The practical reality is that Bitcoin's price can be extremely volatile. I've personally watched my Bitcoin holdings drop 70% in value and then triple months later. So only buy what you can afford to lose - this isn't financial advice, just me sharing what I've learned the hard way.

Choosing where to buy your Bitcoin

There are loads of options for buying Bitcoin these days, but they broadly fall into a few categories:

Exchanges - These are websites where you can buy and sell Bitcoin. They're like the Amazon of crypto.

• Coinbase, Kraken, Binance - the big players that have been around for ages
• Newer exchanges that might offer better fees or features

Peer-to-peer platforms - These connect you directly with other people selling Bitcoin

• LocalBitcoins, Paxful, Bisq
• Usually have more payment options but can be trickier to use

Bitcoin ATMs - Physical machines where you can buy Bitcoin with cash

• Convenient but typically have higher fees
• Good for privacy but fewer and fewer of these exist in the UK now

Investment apps - Apps like Revolut, PayPal, Robinhood

• Super easy to use but you often can't withdraw your Bitcoin (which means you don't really own it!)

In my experience, most beginners should start with a major exchange like Coinbase or Kraken. They're regulated, easy to use, and have been around long enough that they're unlikely to disappear overnight with your money.

I personally use Kraken for most of my Bitcoin purchases because their security is solid and their fees aren't too bad. But that's just me - you might prefer something else.

Step-by-step guide: How to actually buy Bitcoin

1. Choose your exchange - Pick one of the major exchanges and create an account

2. Verify your identity - This is annoying but necessary. You'll need to upload ID and possibly take a selfie. It's called KYC (Know Your Customer) and it's required by law. Takes anywhere from 10 minutes to several days depending on the exchange.

   I once had to wait TWO WEEKS for verification during a bull market. Nearly threw my laptop out the window.

3. Secure your account - For God's sake, enable two-factor authentication (2FA). Use an authenticator app, NOT SMS. My friend lost £5,000 because someone sim-swapped him and bypassed his SMS authentication.

4. Add payment method - Usually a bank transfer or debit card. Credit cards often don't work or charge extra fees.

   Bank transfers are cheaper but slower. Debit cards are instant but more expensive. I usually use bank transfers because I'm patient and cheap.

5. Make your purchase - Finally! You can now buy Bitcoin. You'll see something like "BTC/GBP" or "BTC/USD" which is just the trading pair.

   You don't have to buy a whole Bitcoin! You can buy as little as £10 worth. I started with £50 back in the day.

6. Move your Bitcoin to your wallet - THIS IS CRUCIAL. Don't leave your Bitcoin on the exchange if it's a significant amount.

What this means for you is that exchanges can get hacked or go bankrupt (remember FTX?). If your Bitcoin is sitting on an exchange when that happens, you might lose it all. Instead, move it to a wallet you control.

Choosing a wallet for your Bitcoin

There are two main types of wallets:

Software wallets - Apps on your phone or computer

• Easy to use but less secure than hardware wallets
• Good for smaller amounts
• Examples: BlueWallet, Muun, Exodus

Hardware wallets - Physical devices that store your Bitcoin offline

• Much more secure
• Best for larger amounts
• Examples: Trezor, Ledger, ColdCard

I use a combination - BlueWallet for small amounts I might want to spend, and a Trezor for my long-term holdings.

The wallet you choose will give you a "recovery phrase" or "seed phrase" - usually 12 or 24 words. THIS IS EVERYTHING. If you lose this, you lose your Bitcoin. If someone finds this, they can steal your Bitcoin.

Write it down on paper. Store it somewhere safe. Don't take a photo of it. Don't store it on your computer. I have mine written in a notebook in a fireproof safe, and another copy at my parents' house. Might be overkill, but I sleep better.

Common mistakes to avoid

• Sending your Bitcoin to the wrong address (check twice, send once)
• Forgetting your password or seed phrase
• Falling for scams (no, Elon Musk is not doubling your Bitcoin)
• Buying from sketchy exchanges to save on fees
• Telling everyone how much Bitcoin you own (seriously, don't)

I've made most of these mistakes myself. Learn from me instead of learning the hard way.

Frequently asked questions

How much Bitcoin should I buy as a beginner? Start small - £50 to £100 is plenty to learn with. You don't need to buy a whole Bitcoin; you can buy tiny fractions (even £10 worth).

Can I lose all my money buying Bitcoin? Yes. Bitcoin is volatile and speculative. Only invest what you can afford to lose completely. Never borrow money to buy Bitcoin.

Which exchange is safest for UK buyers? Coinbase and Kraken are both FCA-registered and have strong security records. Choose based on fees and features that suit you.

Do I need to pay tax on Bitcoin? In the UK, yes - Bitcoin is subject to Capital Gains Tax when you sell. Keep records of all purchases and sales.

What if I lose my wallet recovery phrase? Your Bitcoin is gone permanently. There's no customer service to call, no password reset. This is why you must store it securely.

Is it too late to buy Bitcoin? That depends on your investment thesis. Bitcoin has had multiple boom-bust cycles. Research thoroughly before investing.

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Anyway, hope that helps someone out there! Bitcoin doesn't have to be scary or complicated. Start small, be careful, and you'll be fine. And if you need more help, my DMs are usually open unless I'm having one of my periodic social media detoxes...

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Originally published on LearnOnChain Reading time: 6 minutes