A Complete Guide to Buying Bitcoin for Newbies 2025

Understand the Basics of Bitcoin

Many people may want to know how to buy and get started with Bitcoin (BTC), which is a representative of virtual currency (cryptographic assets).

In 2024, the price is expected to soar, attracting significant attention by surpassing $100,000 (approximately 17 million yen).

This article provides an easy-to-understand explanation for beginners, covering basic knowledge of Bitcoin, how to actually purchase it, and important points to consider when investing.

The Birth and Mechanism of Bitcoin

Bitcoin is the world's first decentralized cryptocurrency (virtual currency) that was born in 2009.

It was born based on a paper published in 2008 by an unknown person or organization calling themselves "Satoshi Nakamoto." It was conceived as a new financial system that does not rely on central authorities against the backdrop of the 2008 global financial crisis.

The concept of "P2P electronic currency" that eliminates traditional central management was initially viewed with skepticism, but gradually its decentralization and scarcity have been recognized.

The mechanism of blockchain technology

The foundation of Bitcoin is blockchain technology (distributed ledger technology).

This is a system that consolidates transaction data into units called "blocks" and links them together in chronological order to form a "chain." This system makes it extremely difficult to tamper with information, ensuring transparency and security.

Each block contains the hash value of the previous block (a unique identifier for the data), ensuring reliability by having all network participants hold the same data.

Four important features of Bitcoin

1. Autonomy through decentralized systems

Bitcoin adopts a decentralized system that operates without central authorities such as central banks or governments, utilizing a peer-to-peer (P2P) network. Therefore, it functions autonomously without being subject to management or manipulation by specific institutions or organizations.

2. Transaction Transparency and Anonymity

All transactions of Bitcoin are recorded on the blockchain and can be viewed by anyone. On the other hand, the addresses involved in the transactions are encrypted and do not contain any information that can identify individuals, thus ensuring a certain level of anonymity.

3. Issuance Limit and Scarcity

One of the biggest features of Bitcoin is that its issuance limit is set at 21 million BTC. This suppresses inflation risks like those of traditional fiat currencies and ensures its scarcity value. Furthermore, a mechanism is incorporated where the new issuance amount is halved approximately every four years during a "halving" event.

4. Global Availability

Bitcoin can be traded 24/7 across borders. Remittances can also be completed in a few minutes to a few hours internationally, with lower fees compared to traditional international remittances. This makes it useful as a global payment method and a means of value storage.

The Bitcoin Market in the Spotlight

Bitcoin boasts the largest circulation volume in the world and is receiving significant attention in the cryptocurrency market. Here, we will explain the latest trends in the Bitcoin market.

Acceleration of Institutional Investor Participation

In recent years, the entry of institutional investors into the Bitcoin market has accelerated. Companies like Tesla and MicroStrategy are purchasing large amounts of Bitcoin for the purpose of diversifying their assets and protecting against inflation risks.

Elliott Capital, Apollo Management Holdings, Wells Fargo Bank, and JP Morgan are also increasingly entering the market, while Japanese companies such as Metaplanet and Remixpoint are advancing their purchases of Bitcoin.

Bitcoin ETFの市場影響力

The initial approval of the Bitcoin spot ETF by the U.S. SEC in 2024 accelerated the influx of funds from institutional investors. The cumulative net inflow into the Bitcoin spot ETFs listed in the U.S. (12 funds) has reached $35.4 billion (approximately 5 trillion yen) by March 2025.

This has enhanced Bitcoin's role not only as an inflation hedge but also as a hedging tool to maximize potential returns and diversification in a portfolio.

Regulatory frameworks of various countries

Regulatory frameworks for Bitcoin are gradually being established in countries around the world. In Japan, the Financial Services Agency has introduced a registration system for cryptocurrency exchange operators, allowing transactions under certain regulations.

In the United States, under the new Trump administration, the "Bitcoin reserve" plan is progressing, and a presidential order was signed on March 6, 2025. At this time, this reserve is based on Bitcoins seized through criminal or civil asset forfeiture proceedings, aiming for long-term value preservation without selling.

How to Buy Bitcoin: A Practical Guide for Beginners

Here, we will explain in detail the specific steps to actually purchase Bitcoin.

How to choose a reliable exchange

To purchase Bitcoin, you first need to open an account at a cryptocurrency exchange. The main points for choosing an exchange are as follows.

1. Security System – Asset storage through two-factor authentication and cold wallets, etc.
2. Fee Structure – Transaction fees, deposit and withdrawal fees, spread (buy and sell price difference)
3. Trading Volume (Volume) – When active trading is taking place, it is easier to execute buy and sell orders at desired prices.
4. Types of Supported Currencies – If you want to invest in other cryptocurrencies in the future, having a wide variety is better.
5. User Interface – Especially for beginners, the usability of apps and trading tools is important.
6. Diversity of Services – It is convenient to have a variety of services such as dollar-cost averaging and staking.

Comparison of Domestic and Overseas Exchanges

| Exchange Type | Advantages | Disadvantages | |------------|---------|-----------| | Domestic Exchanges | • Registered with the Financial Services Agency, providing a sense of security• Support in Japanese is readily available• Easy deposits and withdrawals in Japanese yen• Tax-related processing is simpler | • The variety of currencies handled tends to be relatively small• Fees tend to be higher than overseas exchanges• Trading functions may be limited | | Overseas Exchanges | • A wide variety of cryptocurrencies available• Competitive fee structure• Diverse trading features and operational services• High liquidity | • Risk of not being licensed by the Japanese Financial Services Agency• Language support issues• Withdrawal procedures may be complicated• Tax reporting may become complex |

Account Opening Procedure

The steps for opening an account at a typical exchange are as follows:

1. Access the official exchange website: Download the official website or app.
2. Account Registration: Enter your email address or mobile phone number.
3. Enter the authentication code: Enter the authentication code sent to the registered email or phone.
4. Setting a Password: Set a secure password
5. Know Your Customer (KYC): Submission of identification documents and taking a facial photograph.
6. Enter Additional Information: Input information such as occupation and purpose of transaction
7. Review and Approval: Once the exchange's review is complete, the account will be opened.

Actual Trading Methods and Strategies

Deposit Method

There are several methods for depositing to the exchange, but the most common methods are as follows.

1. Deposit via bank transfer:
   • How to deposit into the designated account of the exchange
   • It may take time to reflect.
2. Deposit with Credit Card/Debit Card:
   • It may reflect instantly, but the fees can be high.
3. Convenience Store Deposit：
   • Available on some domestic exchanges
   • The fees are relatively high.
4. Deposit with Cryptocurrency：
   • How to transfer the virtual currency you already own
   • Send funds to the exchange wallet address

For those who are new, it is recommended to start with a small amount (around a few thousand yen).

Specific Methods for Spot Trading

The most basic way to purchase Bitcoin is through spot trading.

1. Log in to the exchange and open the "Spot" trading screen.
2. Select the trading pair (e.g., BTC/JPY)
3. Enter the purchase amount or quantity
4. Click the "Buy" button

There are two types of orders in trading: "market orders" and "limit orders."

• Market Order: A method to execute a trade immediately at the current market price.
• Limit Order: A method of placing an order at a price specified by oneself, which will execute when that price is reached.

It is easy for beginners to start with market orders, but once they become accustomed, utilizing limit orders may provide the opportunity to trade at more advantageous prices.

Recommended Purchase Style for Beginners

For beginners, the following purchasing styles are recommended. Let's proceed with the purchase in a style that matches your risk tolerance.

1. Dollar-Cost Averaging：

   • Invest a fixed amount regularly (such as weekly or monthly)
   • By continuously purchasing regardless of price fluctuations, you can stabilize the average purchase price.
   • Many exchanges offer an automatic accumulation feature, and the setup is simple.

2. Small Amount Diversified Investment:

   • Do not use all your investment funds at once; purchase in multiple installments.
   • Can mitigate risks due to sudden market fluctuations
   • For example, a method of investing 20% of the planned investment amount over several weeks.

3. Long-term holding (commonly known as HODL):

   • Hold with a long-term perspective, unaffected by short-term price fluctuations.
   • You can reduce the burden of fees and taxes from frequent trading.
   • Investment style that expects long-term value appreciation of Bitcoin

Risks and Opportunities of Bitcoin Investment

Investing in Bitcoin has many advantages, but there are also risks involved. It is important to understand both sides before making an investment decision.

Benefits of Bitcoin Investment

1. Scarcity and Supply Limit：

   • The issuance limit is fixed at 21 million BTC.
   • The new supply will decrease due to the halving that occurs approximately every 4 years.
   • Has strong inflation-resistant characteristics

2. Available for trading 24 hours a day, 365 days a year:

   • Unlike traditional financial markets such as the stock market, it is always possible to trade.
   • Accessible from anywhere in the world

3. Portfolio Diversification Effect：

   • Low correlation with traditional asset classes
   • Risk reduction effect through asset diversification

4. Transparency and Traceability:

   • All transactions are recorded on the blockchain.
   • Tampering with data is extremely difficult

5. Increase in Institutional Investor Participation：

   • The entry of major companies and financial institutions is advancing the maturation of the market.
   • The approval of ETFs makes investment access easier.

Risks and Precautions of Bitcoin Investment

1. Price Volatility Risk：

   • Prices can fluctuate significantly over a short period.
   • There is a history of experiencing declines of over 80%.

2. Regulatory Risk：

   • The market may be affected by regulatory trends in various countries.
   • Risk of tax reform

3. **Security