Basic Course 4: Buying Bitcoin

How to acquire Bitcoin on a decentralized exchange

Overview

Learn the different ways to acquire Bitcoin and what their pros and cons are

First you will learn the terminology necessery for understanding the guide, then you will learn about ways to acquire Bitcoin and what the best choice for acquiring it is in your situation.

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Stage 1: Preparation

Stage 1.1: Terminology

Stage 1.1.1: TOR Browser

The TOR Browser is a web browser designed to provide anonymous and private internet access by routing your traffic through a global network of volunteer-run servers.

It masks your IP address and location. It helps users bypass censorship and protect their online privacy from surveillance and tracking.

Stage 1.1.2: DEX - Decentralized Exchange

A Decentralized Exchange lets users trade Bitcoin directly without intermediaries. You keep control of your funds and private keys, and most DEXs require no KYC, offering strong privacy.

Examples include RoboSats, Bisq, and HodlHodl. They use escrow or Lightning payments to ensure safe trades. DEXs protect your sovereignty but may require more technical know-how.

Stage 1.1.3: KYC - Know your customer

KYC refers to an exchange requiring your private information such as your name, address, E-Mail and/or telephone number for you to be able to purchase Bitcoin using their service.

This is sometimes done willingly but often enforced by governments. It is important to note that for you to buy Bitcoin giving your information away like that is not necessary and also poses privacy concerns such as you now being on a list which can tell a potential attacker when and where you acquired Bitcoin as well as how much and to which address.

The more valuable the asset becomes the more interesting Bitcoiners become as targets.

Stage 1.1.4: UTXO - Unspent Transaction Output

The "bitcoin network" is a decentralized system that enables users to transact, transmit, and verify information securely through its blockchain. It is intentionally energy-intensive due to its proof-of-work

Stage 1.1.5: Escrow — A trusted third party or smart contract that holds BTC during a P2P trade to prevent fraud.

Stage 1.2: Prerequisites

  • A personal computer
  • Internet connection
  • A bank account or something similar
  • TOR Browser
  • WOS (Wallet of Satoshi)
  • A lightning wallet like Phoenix Wallet
  • Cold Storage setup for large amounts

Stage 1.3: Deciding how and where to buy Bitcoin

Note that we consider centralized exchanges such as C-inbase and Kr-ken unsafe due to the history of centralized exchanges regularly failing and assets being lost.

This will be reflected in the decision making of this guide.

Essentially the only time it makes sense to use a centralized exchange is if you have no infrastructure set up to do otherwise and you absolutely want or need to buy Bitcoin this very instant. The fastest way will then be to download one single app and use it. By purchasing on this type of exchange you also save a little on fees. You will have to decide whether this price is worth becoming financially transparent and exposed to the risks of a centralized exchange.

The Bitcoin purchased should be moved into your own custody as fast as possible. Check out our guides on Hot Wallets and a Cold Wallet setup.

For better privacy and less dependency on an intermediary this guide teaches how to use the decentralized exchange RoboSats to purchase Bitcoin and recommends moving it into cold storage.

Stage 1.4: Questions to consider

  • Do I understand and know how to operate my wallets?
  • What could lead to a loss of funds during the RoboSats transaction?

Stage 2: Preparing the infrastructure for purchasing Bitcoin

Stage 2.1: Download, Verification and installation of TOR Browser

Stage 2.1.1 Downloading TOR Browser

Step 1:

In your internet browser go to www.torproject.org/download/

Step 2:

Download the TOR Browser installer as well as the signature file below. Choose the file according to your system. (Windows or Mac)

image of TOR Browser download page

Stage 2.1.2 Verification and installation of TOR

Click here to open the Windows guide

On Windows

Step 1:

Open windows powershell.

In this step, we make sure that the files we downloaded are actually from the developer. It is a bit like verifying the origin of the food you eat.

Step 2:

If you went through our wallet set ups, you will have the program GPG4win installed. If not click here and do Step 1-4.

In PowerShell, copy the following line:

gpg --auto-key-locate nodefault,wkd --locate-keys torbrowser@torproject.org

This should show you something like:

gpg: key 4E2C6E8793298290: public key "Tor Browser Developers (signing key) <torbrowser@torproject.org>" imported
gpg: Total number processed: 1
gpg: imported: 1 EF6E286DDA85EA2A4BA7DE684E2C6E8793298290 uid [ unknown] Tor Browser Developers (signing key) <torbrowser@torproject.org>

NOTE: Your output may deviate somewhat from the above (eg. expiration dates), however you should see the key correctly imported.

If you get an error message, something has gone wrong and you cannot continue until you've figured out why this didn't work.

Step 3: Saving the fingerprint

After importing the key, you can save it to a file (identifying it by its fingerprint here):

gpg --output ./tor.keyring --export 0xEF6E286DDA85EA2A4BA7DE684E2C6E8793298290

This command results in the key being saved to a file found at the path ./tor.keyring, i.e. in the current directory. If ./tor.keyring doesn't exist after running this command, something has gone wrong and you cannot continue until you've figured out why this didn't work.

Step 4:

To verify the signature of the package you downloaded, you will need to download the corresponding ".asc" signature file as well as the installer file itself, and verify it with a command that asks GnuPG to verify the file that you downloaded. The examples below assume that you downloaded these two files to your "Downloads" folder. Note that these commands use example file names and yours might be different: in that case you will need to replace the example file names with exact names of the files you have downloaded.

gpgv --keyring .\tor.keyring Downloads\tor-browser-windows-x86_64-portable-14.5.4.exe.asc Downloads\tor-browser-windows-x86_64-portable-14.5.4.exe

The result should contain

gpgv: Good signature from "Tor Browser Developers (signing key) <torbrowser@torproject.org>
image of TOR Browser download page

If you get error messages containing 'No such file or directory', either something went wrong with one of the previous steps, or you forgot that these commands use example file names and yours will be a little different.

If it worked out we can go on to the installation.

Step 5:

Now that we have verified the software is from the developer we can right click on it and press "run as administrator".

Click here to open the Mac guide

On macOS

Step 1:

Open the Terminal app. You can find it quickly by pressing ⌘ + Space, typing "Terminal", and hitting Enter.

In this step, we make sure that the files we downloaded are actually from the developer. It’s a bit like verifying the origin of the food you eat.

Step 2:

If you went through our wallet setups, you will already have GPG installed. If you haven't click here

In Terminal, copy the following line:

gpg --locate-keys torbrowser@torproject.org

You should see output indicating the key was imported, for example:

gpg: key 4E2C6E8793298290: public key "Tor Browser Developers (signing key) <torbrowser@torproject.org>" imported
gpg: Total number processed: 1
gpg: imported: 1

Step 3: Save the key to a file

Find the fingerprint of the key you just imported:

gpg --fingerprint torbrowser@torproject.org

It will look something like:

EF6E286DDA85EA2A4BA7DE684E2C6E8793298290

Use this fingerprint to export the key to a file:

gpg --output ~/Downloads/tor.keyring --export 0xEF6E286DDA85EA2A4BA7DE684E2C6E8793298290

This creates tor.keyring in your Downloads folder.

This command saves the key as tor.keyring inside your Downloads folder. If the file doesn't appear there, something went wrong and you must fix it before continuing.

Step 4:

Go to Tor Browser Download Page and download both the Tor Browser .dmg file and its corresponding .asc signature file to your Downloads folder.

Once they are downloaded run this in terminal:

gpgv --keyring ~/Downloads/tor.keyring ~/Downloads/TorBrowser-14.5.4-osx64.dmg.asc ~/Downloads/NAMEOFYOURFILE.dmg

The output should contain:

gpgv: Good signature from "Tor Browser Developers (signing key) <torbrowser@torproject.org>"

If you see errors like “No such file or directory”, make sure the filenames match exactly what you downloaded.

image of TOR Browser download page

If everything worked, we can continue to installation.

Step 5:

Now that the software is verified, go to your Downloads folder and double-click the .dmg file. Drag Tor Browser into your Applications folder to install it.

Stage 2.2: Installation of WoS (Wallet of Satoshi)

Step 1: Go to your play store navigate to Wallet of Satoshi and click install

image of TOR Browser download page image of TOR Browser download page image of TOR Browser download page

Stage 2.3: Installation of Phoenix Wallet

If you've done the courses in order your Phoenix Wallet should be set up already. If you haven't click here to get to the guide.

Stage 2.4: Funding your wallets

To purchase Bitcoin on a peer to peer exchange such as RoboSats, which we will be using in this guide, you need to have some Bitcoin in your wallet to begin with. This is to deposit a fraction of the trades amount. This is to protect both parties with an escrow system, in which both parties place a deposit which is there to be paid out to one party in case the other tries to break the agreement and steal funds.

Here are ways to acquire the funding Bitcoin for your wallet.

  • Use a centralized exchange for your very first sats.
    Buy Bitcoin on Kraken, Bitstamp, Coinbase, or another reputable exchange. Withdraw to your Phoenix on-chain address — no RoboSats needed for this step.
  • Use a Bitcoin ATM.
    Insert cash, scan your Phoenix on-chain QR code, and get Bitcoin sent directly to your wallet. No prior Bitcoin required.
  • Buy peer-to-peer without RoboSats.
    Find a local Bitcoiner via trusted community groups, Bitcoin meetups, or friends. Pay cash or do a bank transfer — they send Bitcoin to your Phoenix wallet.
  • Earn Bitcoin.
    Sell a small service or product (art, digital work, tutoring) to someone who can pay you in Bitcoin. They send to your Phoenix address.

Best practice is to avoid centralized exchanges unless there is no other way.

Step 1:

Access Phoenix Wallet and press the receive button

image of TOR Browser download page

Step 2:

Send or have Bitcoin sent to the on chain address of your wallet or the lightning address if you have access to lightning

image of TOR Browser download page image of TOR Browser download page

Usual bond amount for trades is between 2%-15%. Anything more than 40€ will be enough, however we recommend funding with 50-100€ (current date 23.07.2025).

You should also take into consideration the amount of BTC you plan on buying and fund your wallet accordingly. If you plan on buying 0.1BTC which is 10.000.000 sats you will need this amount of inbound liquidity, meaning a lightning network channel with the capacity to receive 10.000.000 sats. You can always buy inbound liquidity in Phoenix wallet at a low fee rate.

When you send normal (on-chain) Bitcoin to your Phoenix address, it automatically turns it into Lightning by opening a channel for you. This lets you pay and receive instantly. Your phone is also your own lightning node. Channel management happens in the background without work or influence on your part.

Phoenix Wallet is now funded.

Step 3: Requesting Liquidity in Phoenix Wallet

To be able to receive a lightning payment the channel used needs liquidity. For this we need to move Bitcoin that are on chain, meaning on the baselayer network, to the second layer which is the lightning network. For this transfer a transaction fee is required.

In Phoenix wallet go to "Request Liquidity" and choose roughly the amount you will buy. Do not get less liquidity than Satoshis you plan on receiving. This would cause the payment to fail.

For example: If you want to buy 99000 Satoshis, get 100000 sats liquidity.

image of TOR Browser connect page image of TOR Browser connect page image of TOR Browser connect page image of TOR Browser connect page

Step 4: Funding WoS (Wallet of Satoshi)

Now we need to add a small amount of Bitcoin to the wallet, this will be to pay a fee later on when using Robosats

image of TOR Browser download page image of TOR Browser download page

Tap the "receive" button. Then use either the QR code or the written address to send BTC to the wallet. Add around 20.000 sats. (amount may vary depending on how much you plan on purchasing and market situation. Current date 2025)

Stage 3: Your first Bitcoin purchase

Stage 3.1: Accessing RoboSats via TOR Browser

Step 1:

Open TOR Browser and press the connect button

image of TOR Browser connect page

At this point you can also access this website in Tor Browser for maximum privacy and simply clicking links instead of copying them over between browsers.

Step 2:

Go to https://robosats.org/docs/access/

Step 3:

Click on the Onion address as displayed here

image of TOR Browser connect page

You have now accessed RoboSats.

Stage 3.2: Generating a trade identity

Step 1:

Click on the Start Button

image of TOR Browser connect page

Step 2:

Click the "generate Token" button

image of TOR Browser connect page

Step 3:

Follow the on screen instructions, make sure to save the generated key somewhere safe until the trade is over and you have received your Bitcoin.

image of TOR Browser connect page

You now have an identity for the trade. Think of it like an avatar in a game.

image of TOR Browser connect page

Stage 3.3: Choosing a trade offer and purchasing Bitcoin

Step 4:

Go to the "Offers" tab.

image of TOR Browser connect page

Step 5:

Choose to "buy"

image of TOR Browser connect page

Step 6:

Choose which currency you want to use.

image of TOR Browser connect page

At this point you should make sure that your online banking supports instant SEPA transfers if you choose bank transfer. Also make sure you enable international payments. Either enable all countries or to the specific country of your trade partners bank, which you will see later in the trade.

If the trade fails a small fee can occur.

Step 7:

Look at the trade offers and choose one that is an amount you'd like to purchase and click on it

image of TOR Browser connect page

Now you will see the following tab

image of TOR Browser connect page

Step 8:

Enter the amount you want to purchase and click "take order"

image of TOR Browser connect page

Step 9:

Using WoS (Wallet of Satoshi) you will now send a small amount of Sats as a deposit to be frozen for the duration of the trade.

In WoS go to "send". You can either scan the QR code with your phone on which you use Wallet of Satoshi, or you can copy to clipboard and input the invoice that way.

image of TOR Browser connect page

Step 10:

Using Phoenix Wallet we will now create a lightning invoice for the exact amount of the trade. Meaning the exact number of Sats shown on the trade.

image of TOR Browser connect page
image of TOR Browser connect page image of TOR Browser connect page image of TOR Browser connect page image of TOR Browser connect page

Step 11:

If the trade happens RoboSats will open a chat between the two trading parties

You will also receive the banking information where you will send the money in exchange for the Bitcoin and potentially the trader will ask you to enter a payment reference so they can easily match the trade to the banking transaction.

Here they will also give you additional information on their requirements. You do not have to comply, so if something unreasonable is asked for, do not go through with the trade. Things like not putting a reference are fine.

image of TOR Browser connect page

Step 12:

Once you sent the money, let the other party know by pressing the button. You can additionally tell them via chat.

image of TOR Browser connect page

Step 13:

Wait till you receive your Bitcoin in Phoenix Wallet.

Step 14:

Unless you plan on using the BTC on your hot wallet, best practice is to move it to cold storage. You can either do that now or after completing a few other trades.

Sending larger amounts at once will save on transaction fees.

Stage 4: Final Considerations

Considering you have completed courses 1-4 you are now in posession of a Bitcoin Core Node to verify your own transactions, a hot wallet setup for every day use and a cold wallet setup for long term storage as well as the ability to purchase Bitcoin safely and privately using RoboSats.

From here it is essential to remain vigilant and develop your seed storage strategy to protect your wealth from nature, criminals and your own negligence.

Go deeper on long-term storage and inheritance in the Advanced CoursesPremium.

Contact us at contact@btcguides.de with any questions about the guides as well as inquiries about live workshops on seed storage and instant payments for merchants.

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