How to buy your first sats — a Bitcoiner's practical guide

When I bought my first bitcoin in late 2017, I did almost everything wrong. I created an account on a Thai exchange, bought some BTC, and then left it there for months because I didn’t know what else to do. I didn’t have a wallet. I didn’t understand what “self-custody” meant. The exchange was holding my coins and I was watching a number on a screen go up and down.

I’m going to help you do this better than I did it. This guide covers the practical path from zero to having sats in a wallet you control — including four different ways to acquire them, what KYC means for your privacy, how fees actually work, and the Thailand-specific options I’ve personally used or evaluated.

One note before we start: I’m not going to tell you how much to buy or when to buy. That’s your decision. What I’m going to give you is the operational knowledge to buy safely and store correctly once you decide to act.

Before you buy: have a wallet ready

This is the step most new buyers skip, and it’s the most important one. If you don’t have somewhere to send your bitcoin, you’ll leave it on an exchange by default. That’s custodial risk — the exchange holds your coins, not you.

Get a wallet first. You have options at different levels:

Mobile wallets (Lightning + on-chain)

For small amounts and getting started, a mobile wallet is fine. The ones I’ve used and evaluated:

Muun Wallet is what I’d recommend for most beginners. It handles both on-chain bitcoin and Lightning payments in one interface, uses a recovery scheme based on your email and a recovery code (not a standard 12-word seed, which is a tradeoff worth knowing), and is non-custodial. Easy to use, works well in Thailand. The main limitation is that it doesn’t support all Lightning features — it routes via submarine swaps, which adds fees on Lightning sends.

Phoenix Wallet by ACINQ is a Lightning-native wallet with excellent UX and real Lightning channel management. It uses a 12-word BIP-39 seed. I opened my first Lightning channel through a different method back in early 2019 — the experience was technically clunky at the time. Phoenix has made this dramatically easier. For anyone who wants to use Lightning regularly, Phoenix is my current recommendation.

Blue Wallet supports both on-chain and Lightning, with watch-only wallets and multisig capabilities. More features, steeper learning curve. I use Blue Wallet for watching my cold storage balance without exposing keys.

All three are stepping stones to more sophisticated self-custody, but they’re not permanent solutions for significant holdings. Get one set up before you go near an exchange.

Hardware wallets (for real money)

If you’re planning to stack more than a trivial amount, you want a hardware wallet. I cover this in detail in the hardware wallet setup guide, but the short version: hardware wallets keep your private keys on a dedicated device that never connects directly to the internet. Ledger, Trezor, Coldcard, BitBox02, and Jade are the main options — evaluate them separately based on your threat model and technical comfort.

Get your software wallet set up and working before you buy anything. Send a small test transaction to make sure you understand how it works. Then buy.

Four ways to get sats

There’s no single right method. Each has different tradeoffs around privacy, cost, convenience, and access requirements.

1. Regulated exchanges with KYC

This is the most common path. You create an account on a regulated exchange, verify your identity (KYC — Know Your Customer), deposit fiat currency, and buy bitcoin. The exchange sends your bitcoin to your wallet when you withdraw.

Pros: convenient, familiar process, usually the tightest spreads on large amounts, clear legal status.

Cons: your identity is permanently linked to your bitcoin purchase history; exchanges are targets for data breaches; withdrawal minimums and fees can be significant; you’re trusting the exchange’s solvency during the time your funds are there.

The critical rule: withdraw immediately. Never use an exchange as a wallet. Buy, withdraw to your own address, done. The exchange is a transit point, not storage.

2. No-KYC P2P platforms

Peer-to-peer platforms let you buy directly from other individuals, sometimes without identity verification, depending on the platform and the payment method.

Bisq is a decentralized, open-source exchange that runs on your own computer. No central company holds your funds or knows your identity. Trades are secured by Bitcoin multisig deposits. I’ve used Bisq for small amounts. It’s technically involved — you need to learn how it works, deposits take time to confirm, and the UI isn’t polished. But it’s the most privacy-preserving option available.

Hodl Hodl is a non-custodial P2P platform where trades happen between users directly, with funds locked in multisig escrow. No KYC required by the platform itself (individual sellers may have their own requirements). I’ve used it for international transfers. Easier than Bisq but centralized at the platform level.

Peach Bitcoin is a mobile-first P2P app focused on European markets but available more broadly. Peer-to-peer, some trades without KYC. Worth evaluating depending on your location and available payment methods.

No-KYC purchases typically carry a premium — you’ll pay above spot price for the privacy. How much premium is acceptable is a personal decision based on how much you value privacy.

3. Lightning-native services

Some services let you buy small amounts of bitcoin directly to a Lightning wallet. Strike (where available), and various Lightning-enabled apps let you stack sats with relatively low friction. The tradeoffs depend on the specific service — always check whether it’s custodial or non-custodial, and whether KYC is required.

I use Lightning extensively for day-to-day transactions. My first Lightning channel experience in early 2019 was rough — I connected to ACINQ’s node, the channel funding transaction failed to confirm twice before finally going through, and I spent a weekend reading documentation I barely understood. Today, with Phoenix or a well-configured node, opening a channel is a different experience. Lightning is genuinely useful for small, fast payments once you’re past the setup phase.

4. Earning sats directly

The most private way to acquire bitcoin is to earn it as payment for work, without ever going through a fiat on-ramp. Platforms like Stacker News pay in sats for content contributions. Some freelance arrangements can be denominated in bitcoin. Podcasting 2.0 apps like Fountain let listeners send streaming sats to podcasters.

I’ve earned small amounts through Lightning tips on various platforms. It’s not a primary acquisition method for most people, but it’s worth knowing it exists — especially if privacy is a significant concern.

Thailand-specific: Bitkub vs P2P vs other options

For readers in Thailand, here’s an honest evaluation of the main options:

Bitkub

Bitkub is the largest Thai regulated exchange and the most straightforward on-ramp for residents. It’s licensed by the Thai SEC, supports PromptPay and Thai bank transfers, and has decent liquidity on BTC/THB pairs.

The process: register, upload your Thai national ID or passport, get verified (took me about 24 hours; current times may vary), deposit THB via PromptPay or bank transfer, buy BTC, withdraw to your own wallet.

Bitkub’s BTC withdrawal fees and minimum withdrawal amounts are worth checking before you start — they’ve changed over the years. Always confirm fees before initiating a withdrawal.

The main concern with any regulated exchange is that your purchase history, identity, and withdrawal addresses are linked and reportable to Thai financial authorities per SEC requirements. That’s not inherently bad — it’s the legal framework — but it means your KYC data exists in Bitkub’s systems and could be exposed in a breach or compelled in a legal process.

Binance (Thai users)

Many Thai users use Binance via Binance.th (the Thai-regulated entity) or through the international platform. The selection is wider, but the KYC requirements are similar and you’re dealing with a much larger, globally visible company. I have used Binance in the past. My main concern is always the same with any exchange: withdraw your bitcoin as soon as you buy it.

P2P options in Thailand

Thai users can access Bisq and Hodl Hodl, though payment method availability depends on what local sellers list. PromptPay-based P2P trades appear periodically on Hodl Hodl — I’ve seen them, though liquidity at any given moment varies. The premium for no-KYC trades in THB can be substantial, often 3-8% above spot depending on the payment method and seller.

LocalBitcoins shut down in 2023 after a long decline, removing what was once the primary no-KYC option for Thai users. The P2P landscape has shifted toward Bisq, Hodl Hodl, and Peach as its successors.

For most Thai beginners, Bitkub is the practical starting point. Accept the KYC tradeoff, withdraw immediately to your own wallet, and treat Bitkub as a fiat-to-bitcoin transit point rather than a storage solution.

KYC: what it means for your privacy

KYC (Know Your Customer) refers to identity verification requirements imposed on financial institutions by regulators. When you use a regulated exchange, they collect your legal identity, link it to your account, and may be required to report your activity to tax authorities or law enforcement.

The practical implications:

Your purchase history (amounts, dates, prices) is linked to your legal identity in the exchange’s database
When you withdraw to a Bitcoin address, that address is linked to your identity in the exchange’s records
If the exchange is hacked, your KYC data may be exposed (this has happened at multiple major exchanges)
Exchanges can and do share data with law enforcement when compelled by legal process
Tax reporting requirements in most jurisdictions mean your KYC-linked transactions may appear on government records

None of this means KYC exchanges are bad or that you shouldn’t use them. I used one for my first purchase. The point is to understand what you’re signing up for. If you’re in a jurisdiction with clear and reasonable cryptocurrency tax rules, the compliance burden is manageable. If you have reasons to value financial privacy, the premium for no-KYC acquisition may be worth it.

One practical consideration: once a KYC exchange has your identity linked to a withdrawal address, that on-chain transaction is permanently in the public blockchain. Chain analysis firms like Chainalysis can trace UTXOs forward from known exchange withdrawal addresses. If privacy matters to you, the UTXO you receive from an exchange is “tainted” in the sense that it’s linked to your identity at the exchange. This can be managed with coin mixing or coinjoin techniques, but that’s an advanced topic beyond the scope of this guide.

Fees: spot price vs all-in cost

The quoted price on an exchange is not what you pay. The all-in cost includes:

Trading fee — typically 0.1–0.5% of the trade value, depending on the exchange and your volume tier.

Spread — the difference between the buy and sell price. On major exchanges with good liquidity, this is small (0.01–0.05%). On P2P platforms, it can be much wider.

Deposit fee — some exchanges charge for fiat deposits. Thai exchanges using PromptPay often have low or zero deposit fees.

Withdrawal fee — for Bitcoin withdrawals, exchanges charge a fee that covers the on-chain transaction cost plus their margin. This is often a flat fee (e.g., 0.0005 BTC) regardless of the amount withdrawn. On a small purchase, this can significantly increase your effective cost. The implication: fewer, larger withdrawals are cheaper than many small ones.

Lightning withdrawals — a few exchanges now support Lightning Network withdrawals, which cost only a few sats in routing fees. If available, this dramatically reduces withdrawal cost for smaller amounts.

I use the Sats Converter to quickly translate between BTC amounts, sats, and THB so I can calculate my true cost including fees before I execute a trade.

When comparing exchanges, compare the all-in cost: (spot price + trading fee + withdrawal fee) versus alternatives. The exchange with the lowest listed fee isn’t always cheapest once you factor in spread and withdrawal costs.

After you buy: move it immediately

I’ll say this clearly: when you buy bitcoin on an exchange, your first task after the purchase confirms is to send it to your own wallet.

“Not your keys, not your coins” is not an abstract slogan. It’s a description of how custody actually works. When you hold BTC on an exchange, you hold an IOU — the exchange promises to give you bitcoin when you ask for it. That promise is backed by their solvency and their operational security, both of which have failed multiple times across the industry.

The FTX collapse in November 2022 wiped out billions of dollars in customer funds — funds that customers had deposited trusting that the exchange would hold them. I watched people I know lose significant amounts. Every single loss was preventable by withdrawal.

Send to your own wallet. Always. Even if it takes a few minutes and costs a withdrawal fee. The fee is insurance.

My specific withdrawal routine: as soon as my purchase is confirmed and I’m able to withdraw, I initiate the withdrawal to a receiving address I’ve verified in my own wallet. I paste the address, double-check the first and last 4–6 characters, confirm the amount, and submit. I then watch for the on-chain confirmation before I close the browser. I’ve been doing this since 2018 and it takes about five minutes per withdrawal.

My exact first-buy flow

Here’s the step-by-step I’d follow if I were doing this fresh today in Thailand:

Install Phoenix Wallet on my phone. Go through the setup, note the 12-word seed phrase on paper (not a screenshot), confirm I can restore with it
Create an account on Bitkub (or whichever regulated exchange you choose). Submit KYC documents, wait for verification
Deposit a small amount of THB via PromptPay — enough to cover the purchase I want to make plus withdrawal fees
Buy BTC at the market price. Don’t try to time it. Buy the amount I decided beforehand
Go to Phoenix Wallet, tap “Receive”, note the on-chain Bitcoin address shown
Initiate withdrawal from Bitkub to that address. Double-check the address characters carefully
Wait for confirmation — typically 10–60 minutes depending on network congestion and the fee the exchange selected
Confirm the balance appears in Phoenix Wallet
Move funds to cold storage once I accumulate an amount worth the overhead of a hardware wallet

That’s it. Nine steps from zero to sovereign custody of a small amount of bitcoin.

For larger amounts, I’d skip the mobile wallet entirely and go straight to a hardware wallet. The hardware wallet setup guide covers that process in detail.

What is Bitcoin? — if you want to understand what you’re buying before you buy it
Self-custody basics — the deep dive on why moving off exchanges matters and how to do it correctly
Hardware wallet setup — once you have an amount worth protecting with dedicated hardware

Stacking Plan — model how regular bitcoin purchases accumulate over time
Sats Converter — convert BTC, sats, and fiat on the fly while calculating your true purchase cost
Address Validator — verify a Bitcoin address is valid before you send anything to it