Looking for a Bitcoin buying guide? Wondering where to start? People have a lot of misconceptions about bitcoin, the first widely known and accepted cryptocurrency around the world.

Many people think, for example, that only hackers and suspicious people use it. However, bitcoin is going mainstream with everyone from TigerDirect to Expedia.com to Dell to even Subway accepting bitcoin payments now.

Why so popular?

Well, bitcoin has many benefits over other currencies. For example, you can send bitcoins to someone as payment without going through the middleman of the bank (and receiving additional fees). It’s also much faster than sending money via wire transfer or wire transfer. You can send bitcoins to someone and have them receive the coins in seconds.

With all of this, it’s no surprise that many people are now trying to buy bitcoin for the first time. However, it is not as easy as going to your bank and withdrawing bitcoins, or going to a store and spending some cash for bitcoin.

The system works a little differently than that. This Bitcoin Buying Guide will go over a few things you need to know before you buy, so you can shop safely.

First of all, while the price can be upwards of $2000 per coin, you don’t need to buy an entire bitcoin. Most places will let you buy parts of a bitcoin for as little as $20. So you can start small and go from there as you get more comfortable with the way things work.

Second, this article is for general purposes only and should not be taken as financial advice. Bitcoin can be risky and before making any purchase you should consult with your financial advisor to see if it is right for you.

So here are 3 easy steps to buy Bitcoins:

#1 Get a Bitcoin wallet

The first thing you need to do before buying your coins is to get a virtual wallet to store your coins. This wallet is a text string that people can use to send you bitcoins.

There are several different types of wallets, including ones you download to your phone or computer, online wallets, and even offline cold storage wallets.

Most people prefer to have a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium, and Xapo.

It’s usually as simple as downloading the wallet to your phone as an app or downloading the software to your computer from the wallet’s main website.

#2 Decide where to buy

There are several types of places to shop and each one is a little different. There are online sellers who will sell you bitcoins directly in exchange for cash (or bank transfer or credit card).

There are exchanges where you can buy and sell bitcoins from others, similar to a stock market. There are also local exchanges that connect you with sellers in your area looking to sell.

There are also ATMs where you go to buy with cash and receive your coins in your wallet in minutes.

Each bitcoin seller has its advantages and disadvantages. For example, ATMs are great for privacy, but they’ll charge you up to 20% above the going rate, which is ridiculous. (We have a BTC price of $2,000, that’s $400! So you’re paying $2,400 instead of $2,000.)

No matter where you decide to shop, remember to do your research and go with a reputable seller with a good reputation and strong customer service. First time buyers especially will have questions and may need additional support to help them with their first transaction.

Take your time and research the different places to shop before you decide. Factors to consider include coin prices, additional fees, payment method, and customer service.

#3 Buy Bitcoin and move it to your wallet

Once you’ve found a place to shop, prepare your funds (ie you can send a bank transfer or use your Visa to fund your account). Then expect a good price. (Bitcoin prices always fluctuate 24/7.) Then place your order when you’re ready.

Once your order is complete and you have your coins, you will want to send them to your wallet. Simply enter your bitcoin address and have the seller send you your bitcoins. You should see them appear in your wallet within minutes to an hour (depending on how quickly the seller ships them).

Voila, you are now a bitcoin owner. Now you can send coins to pay for other goods and services, or save them for a rainy day.

One last thing to remember: Bitcoin is still in its infancy. There are big price swings and the currency can be risky. Never buy more bitcoins than you can afford to lose.