Step-by-step Guide: Your First Bitcoin Purchase and Wallet Setup

Buying Bitcoin for the first time can feel intimidating, but with a clear set of steps, the process is straightforward and empowering. In this guide, we’ll walk you through:

Setting up a Coinbase account to buy Bitcoin (a reputable and beginner-friendly exchange).
Creating a Trust Wallet (a secure and easy-to-use hot wallet).
Withdrawing your Bitcoin from Coinbase to Trust Wallet (ensuring self-custody and greater control of your Bitcoin).

Moving your Bitcoin from Coinbase (or any centralized exchange) to a personal wallet like Trust Wallet gives you full control over your assets. On an exchange, your Bitcoin is held in a custodial account, meaning the exchange has access to your private keys. By transferring it to your wallet, you take self-custody, ensuring that only you have control over your Bitcoin.

This reduces the risk of loss due to exchange hacks, freezes, or closures and aligns with the core Bitcoin principle of financial independence. Remember, "Not your keys, not your coins!

In future posts and in our personalized One on One session, I will show you how to set up a Cold Wallet, to ensure maximum security for your Bitcoin and financial wealth.

Please note, the steps below were accurate at the time of publishing, however Coinbase, like many web sites, frequently make updates to their pages. It is possible that the steps will not be exactly as written, but should be very close and I will update this as frequently as possible.

You will need to perform some KYC (Know Your Customer) steps, which will require you to prove your identity and in some cases legal nationality. In order to do this, you should have your Passport and/or Legal Identity card (Drivers License or National ID card) readily available as you will need them.

This Step-by-Step guide assumes you are doing this on a laptop/desktop computer. I have another article that will walk you through how to do this, if you are trying to do everything on your Mobile Phone.

With that, let's get started!

Step 1: Setting Up a Coinbase Account

Coinbase is one of the most trusted platforms for buying Bitcoin, especially for beginners. Follow these steps to create an account and make your first purchase:

1. Sign Up for Coinbase:

Go to www.coinbase.com and click "Get Started."
Fill out the registration form:
- Enter your full name, email address, and a strong password.
- Verify your email address by clicking the link sent to your inbox.

2. Verify Your Identity:

Coinbase requires identity verification to comply with regulations and ensure security.

Log in to your account and navigate to Settings > Identity Verification.
Upload a government-issued ID (driver’s license, passport, or ID card).
Take a selfie or follow the instructions to complete the identity verification process.

3. Secure Your Account:

Two-factor authentication (2FA) provides an essential extra layer of security by requiring a second verification step, helping to protect your account from unauthorized access, even if your password is stolen or compromised. Scammers and thief's are very prevalent in the crypto world and we must be diligent in protecting our money!

Set up Two-Factor Authentication (2FA):
- Go to Settings > Security.
- Link your account to an authenticator app like Google Authenticator or receive SMS codes for additional login security.
  1. I highly recommend Google Authenticator or Authy. Simple SMS could make you susceptablet to a SIM Swap attack
Use a strong, unique password for your Coinbase account.

4. Add a Payment Method:

Navigate to Settings > Payment Methods.
Add a bank account for larger transactions or a debit/credit card for smaller, instant purchases.
- Bank transfers may take a few days but have lower fees.
- Card payments are faster but may come with higher fees.

5. Buy Bitcoin:

Log in and click "Buy/Sell" at the top of the page.
Select Bitcoin (BTC) from the list of cryptocurrencies.
Enter the amount of Bitcoin you want to buy (e.g., $50).
Choose your payment method and click "Preview Buy."
Review the transaction details (fees and total amount), then click "Buy Now."

Congratulations! You now own Bitcoin, which is stored in your Coinbase account.

Step 2: Setting Up a Trust Wallet

Trust Wallet is a popular hot wallet that lets you securely store and manage your Bitcoin. Here’s how to set it up:

1. Download and Install Trust Wallet:

Visit the official website: www.trustwallet.com.
Download the app for your device: available on iOS (App Store) or Android (Google Play).
Install and open the app.

2. Create a New Wallet:

Open the app and select "Create a New Wallet."
Agree to the terms of service and proceed.
Write down the 12-word recovery phrase displayed on the screen. This is your backup key to access your wallet if you lose your device. KEEP THIS SAFE!
- Very Important Tip: Write the recovery phrase on paper and store it in a safe place. Do not save it digitally to avoid hacking risks.
  1. Do not take a picture of it
  2. Do not store it online in Google Drive, OneDrive or any other service
Confirm your recovery phrase by selecting the words in the correct order.

3. Secure Your Wallet:

Set up a strong PIN code or enable biometric authentication (fingerprint or face recognition) for easy and secure access.
Explore the Trust Wallet interface to familiarize yourself with its features.

Step 3: Withdrawing Bitcoin from Coinbase to Trust Wallet

Now that you have Bitcoin in Coinbase and a Trust Wallet set up, it’s time to transfer your Bitcoin to your wallet for self-custody.

1. Find Your Bitcoin Address in Trust Wallet:

Open the Trust Wallet app and select Bitcoin (BTC) from the list of supported assets.
- If Bitcoin doesn’t appear, click "Add Tokens" and search for Bitcoin to enable it.
Click "Receive."
A QR code and a long string of characters will appear—this is your Bitcoin receiving address.
Copy the address to your clipboard or write it down carefully.

2. Initiate the Transfer on Coinbase:

Log in to your Coinbase account and navigate to "Assets" (or "Portfolio").
Select Bitcoin (BTC) from your asset list.
Click "Send/Receive."

3. Enter Transfer Details:

Paste your Bitcoin receiving address (from Trust Wallet) into the Recipient field.
Double-check the address to ensure it matches exactly. Bitcoin transactions are irreversible, so accuracy is critical.
Enter the amount of Bitcoin you want to send.
- If you want to transfer your entire balance, click "Send All."
Review the network fee (transaction fee). This fee goes to Bitcoin miners and varies based on network activity.

4. Confirm and Send Bitcoin:

Click "Continue" to review the transaction details.
Double-check everything, especially the receiving address.
Confirm the transaction by clicking "Send Now."
- If 2FA is enabled, (WHICH IT SHOULD BE, as we discussed and showed you how to enable!) you’ll need to enter the authentication code sent to your phone or app.

5. Verify the Transaction:

Open your Trust Wallet app and check the Bitcoin balance.
Transactions may take 10–60 minutes to confirm, depending on network activity.
Once confirmed, your Bitcoin will appear in your Trust Wallet.

Tips for First-Time Users:

Start Small: If it’s your first transfer, send a small test amount (e.g., $10) to ensure everything is set up correctly before transferring larger amounts.
Keep Your Recovery Phrases Safe: Both Coinbase and Trust Wallet will provide recovery phrases—write them down and store them in separate secure locations.
Stay Informed: Learn about network fees, wallet backups, and other security practices to enhance your confidence in managing Bitcoin.

Final Thoughts:

Congratulations! You’ve successfully purchased Bitcoin, set up a secure hot wallet, and taken control of your assets by transferring them to Trust Wallet. This step is a foundational milestone in your Bitcoin journey, providing you with the knowledge and tools to confidently manage your digital wealth.

If you’d like more guidance or have questions, feel free to reach out or book a one-on-one session with Generation X Bitcoin Academy to enhance your understanding and skills.