If you’re new to Bitcoin, the idea of investing can sound complicated — but it’s actually very simple. Think of Bitcoin like digital gold: it is scarce and valuable, with the method of acquiring it being not so different. In this guide, we’ll walk you through the basics of how to start your Bitcoin investing journey in the easiest way possible — and introduce you to an even smarter way to invest for the long term.
Step 1: Buying Bitcoin
The first step to investing in Bitcoin is buying it. Today, this is most commonly done through online exchanges. Some of the biggest and most trusted Bitcoin-only exchanges include:
Opening an account is similar to opening a bank account — you verify your identity, deposit money, and then you can buy bitcoin with just a few clicks.
But here’s the important part: just because you bought bitcoin on an exchange doesn’t mean you truly own it yet.
Think of it like this: imagine you put gold in a bank. Your claim to the gold is in the form of a bill, and this is an IOU from the bank that says they owe you that gold. If the bank shuts down or decides not to give you your gold back, you have a problem.
Exchanges are similar. When you leave your bitcoin on an exchange, you are trusting them to hold it for you — but you don’t really control it.
Step 2: Withdrawing to a Bitcoin Wallet
To truly own your bitcoin, you need to move it into self-custody — meaning a wallet where you control the keys (a kind of password that proves ownership).
You might want to invest in a hardware wallet, to ensure your private keys are safe and offline. Product names of such a device include:
Moving your bitcoin off of an exchange into your wallet is the step where you take true ownership. Now, no one can take your bitcoin away — not a government, not a bank, not even the exchange.
In short:
- Buy bitcoin on an exchange.
- Withdraw it to your personal wallet.
- Hold it safely for the long term.
Simple as that.
But There’s an Even Smarter Way: Mining Bitcoin
Buying bitcoin is great — but what if you could produce your own bitcoin instead of buying it at whatever price the market says?
Imagine this: every day, you go to the store to buy milk. Normally, it’s cheap. But one day, a crisis hits and suddenly milk is flying off the shelves and the price triples. If you rely on the store, you’re stuck paying whatever they ask.
But what if, instead, you had bought a cow? No matter what happens at the store, you can calmly walk outside and milk your cow. You have a reliable, low-cost source of milk.
Bitcoin mining is like owning a bitcoin cow.
When you mine bitcoin, you are investing in the ability to create bitcoin at a fixed production cost, regardless of what the price does in the market. If the price goes up, your bitcoin becomes more valuable — but your production cost stays the same. That’s the secret.
Benefits of Mining:
- Acquire Bitcoin at Production Cost: Instead of paying market price, you produce your own bitcoin.
- Tax Advantages: Mining equipment (ASIC machines) can often be deducted as capital expenses. Hosting fees and electricity bills can be business expenses, reducing taxable income.
- Passive Income: Professional hosting companies like Abundant Mines offer turnkey mining solutions where they run and maintain the machines for you. You simply collect the bitcoin that your hosted machines produce.
Conclusion
In a world of uncertainty, mining is a powerful way to take control of your financial future.
At Abundant Mines, we make it easy — helping you source machines, host them in energy-rich locations, and enjoy passive payouts in bitcoin.
Book a call with us today to learn how you can start building your bitcoin wealth
Disclaimer: The information provided in this blog is for informational and educational purposes only and should not be construed as financial advice. Please consult with a financial advisor or conduct your own research before making any financial decisions.
