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In May 2016, you could buy one Bitcoin for about £400.
After almost reaching a value of almost £16,000 in 2017, for example, the value of Bitcoin plummeted to around £2,400 just about a year later.
There are hundreds of exchanges out there, but as a beginner, you’ll want to opt for one that balances ease of use with low fees and high security.
You may also choose to buy your crypto on a platform like Robinhood or Paypal, though buying crypto this way often means you cannot withdraw your coins and move them to another platform.
After choosing an exchange, you have to fund your account before you can begin investing in Bitcoin.
However, it charges a fee of 3.99% the value of your transaction if you pay by debit card of via PayPal.
In addition, if you use a credit card to buy cryptocurrency, it generally will count as a cash advance and be subject to a higher interest rate than you pay on regular charges.
Depending on the platform you’re using, you may be able to purchase it by tapping a button, or you may have to enter Bitcoin’s ticker symbol .
If Bitcoin’s current price was £30,000, for example, you’d need to invest that much to buy a Bitcoin.
Many crypto exchanges have an integrated Bitcoin wallet, or at least a preferred partner where you can safely hold your Bitcoin.
In addition, if you use a third-party crypto wallet custodian, you may also be permanently unable to access your coins if you lose the private key that serves as your wallet password.
When you decide you’re ready to sell your Bitcoin, you can place a sell order through your exchange, much like you did when you originally purchased it.
Your exchange, however, may have a holding period before you can make a transfer back to your bank account.
When you sell your Bitcoin, you may make a profit.
Even if you decide to go ahead, its volatility has led to many experts recommending that you do not allocate a large percentage of your funds to buying it.
Ben is the Retirement and Investing Editor for Forbes Advisor.