Where to Buy Bitcoin

Where to Buy Bitcoin

Traditional Investment Platforms

Traditional investing platforms typically offer stocks, options, and other traditional assets. Many investment platforms now offer Bitcoin as well. The investment process on these platforms is similar to buying stocks. Investors looking to enter the market at a specific price may benefit from using limit orders, where your order will only be executed if it can be purchased at the desired price. Those looking to get into the market as quickly as possible may consider using market orders, as long as you understand that your order may not be filled at the exact price you want. These traditional investment platforms have one key advantage over other options: they are simple to operate and safe.

Cryptocurrency Exchanges

Cryptocurrency exchanges are platforms that only offer cryptocurrencies. Most cryptocurrency exchanges will require users to submit some form of identity verification to create an account. Once you create your account, you have the option to link your bank account and transfer the funds you want to invest. From there, you can choose to enter the market with a limit or market order.

Mobile Payment Service

Investors can also access the market through mobile payment apps they may already use. These apps allow users to link bank accounts and buy Bitcoin directly from their smartphones, typically through a tab labeled "Cryptocurrency" on the mobile dashboard.

Alternative Platform

Some investors buy Bitcoin using a credit or debit card, typically through online platforms designed to support this process. These platforms can be convenient, but be aware that they often come with hefty fees, with some services charging as much as 4.5% on card transactions.

5 Steps to Buy Bitcoin

1. Choose a Broker or Cryptocurrency Exchange

To buy Bitcoin, first you need to choose a broker or cryptocurrency exchange. While both allow you to buy Bitcoin, there are key differences to keep in mind.

2. Create and Verify Your Account

Once you decide on a cryptocurrency broker or exchange, you can sign up and open an account. Depending on the platform and the quantity you plan to purchase, you may be required to verify your identity. This is an important step to prevent fraud and meet anti-money laundering regulatory requirements.

3. Deposit Cash to Invest

To buy Bitcoin, you need to make sure you have funds in your account. You can deposit money into your crypto account by linking your bank account or paying with a debit or credit card. Depending on the exchange or broker and how you funded, you may have to wait a few days before you can use your deposited funds to purchase Bitcoin.

4. Place a Bitcoin Order

Once you've funded your account, you're ready to place your first Bitcoin order. Additionally, the exchange has hundreds of cryptocurrencies to choose from, from well-known names like Bitcoin and Ethereum to more obscure cryptocurrencies like Theta Fuel or Holo.

5. Select Storage Method

Cryptocurrency exchanges are not supported by protections such as the UK Financial Services Compensation Scheme, and they face additional risks of being stolen or hacked. You could even lose your investment if you forget or lose the code to access your account. This is why it is so important to have a secure storage location for your cryptocurrencies.