A Complete Guide to Bitcoin for Beginners - Essential Checklist Before Your First Investment
Bitcoin is no longer the exclusive domain of a few tech enthusiasts. In recent years, the number of ordinary investors taking their first steps into Bitcoin has been rapidly increasing around the world, including in the US and Canada. However, at the same time, there is still a lot of anxiety about ""Is it okay to buy Bitcoin now?""
In this article, we will organize the key points that must be checked for those who are planning to invest in Bitcoin for the first time in an easy and clear manner. We will provide a realistic and practical guide based on the experiences of actual investors and expert advice.
In this article, we will organize the key points that must be checked for those who are planning to invest in Bitcoin for the first time in an easy and clear manner. We will provide a realistic and practical guide based on the experiences of actual investors and expert advice.
1. Bitcoin, is it too late?
It's been 15 years since Bitcoin first appeared, and its price has already reached tens of thousands of dollars. This is why many novice investors think, ""It's already too late."" However, this thought was present in 2017 and 2020.
Experts' opinions vary:
✔ Some still see Bitcoin as 'digital gold' and expect long-term value increases.
✔ Others recommend a cautious approach due to high volatility and remaining regulatory risks.
✔ There is also a view that the market is becoming more mature due to the continued influx of institutional investors.
✔ Some still see Bitcoin as 'digital gold' and expect long-term value increases.
✔ Others recommend a cautious approach due to high volatility and remaining regulatory risks.
✔ There is also a view that the market is becoming more mature due to the continued influx of institutional investors.
The important thing is not to predict short-term prices, but to accurately understand your own investment objectives and risk tolerance. You should first establish your own investment philosophy, not ""I'll do it because others are doing it.""
2. Essential checklist before purchasing your first Bitcoin
Choosing a trustworthy exchange
In the US and Canada, it is safest to use a legally registered exchange.
Representative exchanges:
• US: Coinbase, Kraken, Gemini, Binance.US
• Canada: Bitbuy, Coinsquare, Newton, Bitvo
Things to consider when choosing an exchange: You should comprehensively review the fee structure, security level, customer service, supported payment methods, and convenience of the user interface. Illegal exchanges or unlicensed platforms can cause hacking and fraud damage.
Representative exchanges:
• US: Coinbase, Kraken, Gemini, Binance.US
• Canada: Bitbuy, Coinsquare, Newton, Bitvo
Things to consider when choosing an exchange: You should comprehensively review the fee structure, security level, customer service, supported payment methods, and convenience of the user interface. Illegal exchanges or unlicensed platforms can cause hacking and fraud damage.
Consider using a private wallet
It is dangerous to store coins in an exchange for a long time. There are cases of hacking or exchange bankruptcy.
Characteristics by wallet type:
• Hardware wallet (e.g. Ledger, Trezor): High security, offline storage
• Software wallet (e.g. Exodus, Trust Wallet): Ease of use, mobile accessibility
• Paper wallet: Highest security, but high risk of loss
If you have a large amount of assets, we strongly recommend using a private wallet. Remember the adage, ""Not your keys, not your coins.""
Characteristics by wallet type:
• Hardware wallet (e.g. Ledger, Trezor): High security, offline storage
• Software wallet (e.g. Exodus, Trust Wallet): Ease of use, mobile accessibility
• Paper wallet: Highest security, but high risk of loss
If you have a large amount of assets, we strongly recommend using a private wallet. Remember the adage, ""Not your keys, not your coins.""
Check tax regulations in advance
Bitcoin investment profits are subject to taxation in both the United States and Canada.
Tax regulations:
• Canada: Capital Gains Tax, 50% of profits are taxable
• United States: Capital gains tax and other investment income taxes apply, tax rates vary depending on holding period
It is recommended to accurately keep transaction records, and consult a tax professional in advance as failure to report or incorrect reporting may result in legal disadvantages. It is also a good idea to utilize cryptocurrency tax calculation tools (CoinTracker, Koinly, etc.).
Tax regulations:
• Canada: Capital Gains Tax, 50% of profits are taxable
• United States: Capital gains tax and other investment income taxes apply, tax rates vary depending on holding period
It is recommended to accurately keep transaction records, and consult a tax professional in advance as failure to report or incorrect reporting may result in legal disadvantages. It is also a good idea to utilize cryptocurrency tax calculation tools (CoinTracker, Koinly, etc.).
Invest at a manageable level
Bitcoin is highly volatile. Price fluctuations of 10-20% per day are common.
Investment principles:
• Start with 5-10% or less of your total assets
• Invest only the amount that you can live without losing
• Never 'invest with a loan' or 'go all in'
• Consider a regular installment purchase (Dollar Cost Averaging) strategy
A planned and systematic approach is needed rather than emotional investment.
Investment principles:
• Start with 5-10% or less of your total assets
• Invest only the amount that you can live without losing
• Never 'invest with a loan' or 'go all in'
• Consider a regular installment purchase (Dollar Cost Averaging) strategy
A planned and systematic approach is needed rather than emotional investment.
3. Top 5 Bitcoin Investment Mistakes
If you know the mistakes that beginner investors often make in advance, you can greatly reduce trial and error. We have compiled it based on the experiences of actual investors.
1
Lost password/seed phrase
If you lose the seed phrase, which is essential for wallet recovery, you can permanently lose your assets. Keep physical backups (paper, metal plates, etc.) in multiple safe places. It is recommended to avoid digital storage as there is a risk of hacking.
If you lose the seed phrase, which is essential for wallet recovery, you can permanently lose your assets. Keep physical backups (paper, metal plates, etc.) in multiple safe places. It is recommended to avoid digital storage as there is a risk of hacking.
2
'Blind Investment'
If you invest without understanding the basic concepts or market structure, there is a high possibility of loss. At least understand the concept of blockchain, mining, and wallets. It is important to build basic knowledge through YouTube, blogs, books, etc.
If you invest without understanding the basic concepts or market structure, there is a high possibility of loss. At least understand the concept of blockchain, mining, and wallets. It is important to build basic knowledge through YouTube, blogs, books, etc.
3
Social media scams
It is easy to fall for celebrity impersonation and 'double your money' scam events. Think that 99% of investment proposals from Telegram, Twitter, and Instagram are scams. Always be suspicious of information from non-official channels.
It is easy to fall for celebrity impersonation and 'double your money' scam events. Think that 99% of investment proposals from Telegram, Twitter, and Instagram are scams. Always be suspicious of information from non-official channels.
4
Be swayed by short-term surges and plunges
Being overly excited and depressed by Bitcoin's price fluctuations will ruin your long-term investment plan. Don't be swayed by FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt), and stick to your own investment principles.
Being overly excited and depressed by Bitcoin's price fluctuations will ruin your long-term investment plan. Don't be swayed by FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, Doubt), and stick to your own investment principles.
5
Failure to report income taxes
Even if you make a profit, if you do not report it properly, you may face tax and legal problems later. Record all transaction details and seek help from a tax professional if necessary. It is also a good idea to use a tax calculation app in advance.
Even if you make a profit, if you do not report it properly, you may face tax and legal problems later. Record all transaction details and seek help from a tax professional if necessary. It is also a good idea to use a tax calculation app in advance.
4. Realistic advice for beginner investors
✔ Start with a small amount: You don't have to invest a lot of money from the beginning. It is a safe and wise way to learn the market by investing $50-$100 regularly every month.
✔ Keep a long-term perspective: Bitcoin is not about hitting the jackpot in a short period of time, but rather, you should approach it from a long-term perspective. Set up an investment plan for at least 3-5 years.
✔ Carefully gather information: Get information from communities, YouTube, blogs, etc., but be critical of your own judgment rather than blindly following it. Develop the habit of cross-checking information from multiple sources.
✔ Establish investment principles: You must establish your own investment principles and be unswayed by temptation or fear. Decide in advance on buy/sell criteria, risk management methods, etc.
✔ Continuous Learning: The cryptocurrency market changes rapidly. Constantly study new technologies, regulatory changes, and market trends. It is also good to utilize free online courses or books.
5. Conclusion — Unprepared investment is dangerous, prepared start is strong
Bitcoin is still controversial, and its future is not certain.
However, if you prepare properly, stick to the basics, and approach it carefully, Bitcoin can definitely be an interesting investment. If you are about to take your first step into Bitcoin today, I hope this checklist will help you get started safely and wisely.
Disclaimer: The content of this article is for informational purposes only and is not intended to be an investment recommendation. All investment decisions should be made at your own risk and you are encouraged to seek professional advice before making any investment.
✅ Available AI keywords
Bitcoin beginner guide / First crypto investment / Bitcoin checklist 2025 / Crypto tax USA Canada / Secure crypto wallets / Crypto investment mistakes / Bitcoin volatility risk / Best crypto exchanges USA Canada / Bitcoin for beginners / Bitcoin investment planning / Digital asset security / Cryptocurrency education / Bitcoin dollar cost averaging / Crypto portfolio management / Blockchain fundamentals