If you’re wondering how to buy bitcoin online, you’re in the right place. Our buyer’s guide has all the information you need, including different exchanges, payment methods, wallet storage options, and more. Use our guide to make a confident purchasing decision at the right time.
Buying bitcoin is an increasingly popular investment for traders. You can buy bitcoin using various exchanges — eToro, Libertex, Cex.io, Coinbase, or Robinhood — and payment methods such as PayPal, credit card, or debit card. However, as you buy BTC online, you want to be wary and know how to avoid BTC scams.
Best Way to Buy Bitcoin
The best way to buy bitcoin is through a reputable crypto exchange, such as Coinbase or eToro. Such exchanges offer various payment methods and minimize your chance of falling for a BTC scam.
How to Buy Bitcoin
You can purchase BTC on crypto exchanges using various payment methods, including PayPal and bank transfer. We’ll cover this in more detail later.
Before You Buy
When purchasing BTC on cryptocurrency exchanges, you’ll need to provide some form of identification. Note: this is usually a good sign of a trustworthy exchange. Accepted identification may include:
- Photographic proof of ID (e.g., passport or driving license)
- Proof of address
- A verification code sent to an email address
1. Select an Exchange
You should choose a trusted exchange to avoid BTC scams, as some cryptocurrency exchanges are scam sites. You should also choose based on your needs: for example, eToro is a good platform for international BTC investments. For more information, check out our full guide to the best cryptocurrency exchange 2021.
2. Connect Payment Method
Like with any online purchasing site, you have to connect an appropriate method of payment to buy bitcoin. The best crypto exchanges use various payment methods, which we’ve provided details of below.
Some crypto exchanges accept PayPal. However, know that you’re likely to incur higher fees if you want to buy BTC with PayPal than with other methods, such as by bank transfer. Check the platform you’re using for its policy on buying BTC with PayPal.
One of the most common methods to buy bitcoin is using a credit card. This method is the same as making a regular purchase online using your credit card. The only difference is whether you store your BTC in the exchange or withdraw it to a bitcoin wallet.
If you don’t own a credit card or can’t use yours for any reason, you can buy bitcoin with a debit card on many crypto exchanges.
Buy Bitcoin Instantly
There is usually some delay with standard purchases as the blockchain verifies the transaction, so instant transactions are an increasingly popular option for investors. Just know that an ‘instant purchase’ option may cost more than a regular BTC purchase.
3. Order Bitcoin
If you buy BTC in bulk, it’s a good idea to store it in a cryptocurrency wallet, which doesn’t incur fees.
4. Store Bitcoin
Many crypto exchanges allow you to store BTC. However, this is arguably not the most secure storage method. Storage options include:
- Cold wallet. This is essentially the security information (private key and address) stored on a device not connected to the internet. Your private key and address are in this wallet, so you aren’t at risk of losing that information. You can access your wallet at any time by checking this device. Also referred to as a hardware wallet, it is different from a standard USB device because it runs software that allows you to view your portfolio while offline.
- Paper wallet. Arguably the most secure way to store information, a paper wallet essentially means writing down your security information in a physical location (i.e., a piece of paper) where hackers can’t find it.
- Hot wallet. This wallet is for storing a small amount of tradeable BTC. Hot wallets are online and thus more vulnerable to attack than cold wallets.
- Storing on an exchange. Cryptocurrency exchanges are less safe than wallets, as your currency is only as safe as the platform protecting it.
How to Buy Bitcoin Anonymously
There are a couple of options for buying BTC anonymously:
- Using cash. This would require you to know a BTC provider who accepted cash, was trustworthy, and was near enough to you for the transaction to be worthwhile.
- Exchanging a BTC gift card. This method is only available in some countries and not accepted by all platforms.
The best way to buy BTC is openly and use safe practices to protect your investment.
How to Buy Bitcoin in USA
Most crypto exchanges favor the USD as an exchange currency. You can use any of the exchanges and payment methods mentioned here to buy in the USA.
Where to Buy Bitcoin
Below, you’ll find a guide to the best cryptocurrency exchanges of 2021.
Buy Bitcoin on eToro
If you want to trade BTC internationally, then eToro should be your first port of call. Its service includes:
- Social copy trading
- Mobile-friendly app
- Low beginner trading rates
- International accessibility
Buy Bitcoin on Libertex
Libertex is a well-known crypto trading platform. It accepts multiple deposit types, allows seamless trading, and has a robust security system.
Buy Bitcoin on Cex.io
Cex.io is a platform that permits many deposit types and supports numerous digital assets. It carries many altcoins, which make it perfect for first-time digital traders’ advice.
Buy Bitcoin on Coinbase
Coinbase is perhaps the best crypto exchange for beginners. Its platform is informative, helping new traders with common questions regarding BTC trading.
Buy Bitcoin on Robinhood
Robinhood is a good platform for beginners. It has no account minimum.
Alternative Ways for Buying Bitcoin
Besides the exchanges, you can buy BTC through ATMs, peer-to-peer (P2P) transfers, and grayscale funds. However, we would recommend a trustworthy cryptocurrency exchange over any ATM or an alternative method.
When to Buy Bitcoin
When you buy bitcoin, you want to be strategic and purchase when the price of Bitcoin is lower but on an upward trend. For the best projections and market analysis, follow sites that are up-to-date with crypto trading trends.
How to Trade Bitcoin
The best advice is to acquire an in-depth knowledge of how bitcoin works. It will allow you to make more accurate predictions on the cryptocurrency’s future and make better trading choices.
Avoid Scams When Buying Bitcoin Online
There are many bitcoin scams in operation. Avoid these scams and protect your investment by:
- Checking the company’s website for ICO rules compliancy
- Ensuring that a platform only trades currencies powered by blockchain
- Learning about the people who founded the company — do they exist? If they do, why should you trust them?
Experienced traders know that bitcoin value is more than waiting for lows and highs. You need to understand cryptocurrencies and work with a platform that trades BTC honestly if you want to understand where bitcoin price will go next. Only then will you make good returns.
Buy Bitcoin FAQ
How do I buy bitcoins?
You can purchase BTCs via many crypto exchanges.
Can I buy bitcoin for $10?
You can purchase any number or percentage of bitcoins. Even $10 is enough to invest.
Is buying bitcoin a good investment?
If you buy when the bitcoin value is low and wait for the next BTC price spike, you can make huge profits.
Should I buy bitcoin?
If you’re interested in the highest benefit currency trading potential, buying BTC is one of the best options.
What can you buy with BTC?
Some goods and service companies already accept BTC. More may follow soon.
How much bitcoin should I buy?
The amount you purchase depends on the bitcoin value and the funds you have. Know that small-scale trading often means smaller payouts.
Is it too late to buy bitcoin?
No. BTC fluctuates in fiat price, meaning that it could still crash and rise again. Even so, BTC is consistent, judging by crypto standards.