Best Places To Buy Bitcoin
You can buy Bitcoin online through a crypto exchange. But with so many exchanges, it can be difficult to pick the right one. We’ve rounded up the best exchanges to buy BTC so you can easily compare:
- Kraken: Most Established Bitcoin Exchange
- Coinbase: Safest Way To Buy Bitcoin
- Gemini: Best Bitcoin Exchange For All 50 States
- Uphold: Simplest Fees For Bitcoin & Crypto
|Marketplace||Minimum Deposit||Transaction Fees||Margin Trading|
|Kraken||0.0001 BTC||0.16% maker fee0.26% taker fee (Kraken Pro)Variable fees for Instant Buy||Yes, for qualified accounts|
|Coinbase||$2||0.60% taker fee0.40% maker fee (Coinbase Advanced)Higher fees for basic trades||No|
|Gemini||0.00001 BTC||Basic fees: up to $2.99 flat fee (under $200) or 1.49% (over $200)Active Trader 0.4% taker fee or 0.2% maker fee||No|
|Uphold||None||Flat fee $0.99 on all orders under $250 + spread (typically 1.5%)||No|
- Low Fees For Kraken Pro: Kraken’s low fees available with Kraken Pro make it one of the best places to buy Bitcoin. Pay just a 0.16% maker fee or 0.26% taker fee for trading volume up to $50,000, with additional discounts available for higher trading volumes.
- Proof Of Reserves: Log in to your account to verify Kraken’s crypto assets and ensure your holdings are included in the totals.
- Multiple Funding Methods: Kraken is one of the few exchanges to offer credit card crypto purchases (outside the US). Buy Bitcoin with a credit card or debit card, or fund your account with your bank account.
In an industry where centralized exchanges haven’t been time-tested, Kraken has weathered both bull and bear markets since 2011, making Kraken one of the most trusted Bitcoin investing sites. Fees for Instant Buys are higher than some competitors, but If you use the Kraken Pro, just a click away from the home screen, you’ll enjoy some of the lowest trading fees available.
- Multiple Funding Methods: Buy BTC with your bank account, debit card, or PayPal. If you’ve been wondering how to get Bitcoin with PayPal, Coinbase is one solution. Yes, PayPal business accounts are supported as well, but not PayPal business debit cards.
- Large Selection Of Blue-Chip Cryptos: If you need to diversify beyond Bitcoin but want to stay in the safe-ish lane, you’ll find proven names in the space, like ETH, ADA, LINK, and much more.
- Fee-Free Trading Available: With a Coinbase One subscription, priced at about $30 per month, you can buy Bitcoin with no fees, up to $10,000 in monthly trading volume.
Coinbase is one of the most trusted names in crypto, and being a publicly traded company brings more transparency than you’ll find with many other exchanges. Coinbase fees can be high if you use the Buy & Sell box, but with a few clicks, you can get those fees under control with Coinbase Advanced or if you subscribe to Coinbase One.
- Easy-To-Use Trading Interface: Gemini Basic makes buying BTC or other cryptos a snap, but you’ll save on fees by using the Active Trader interface.
- Limited Insurance Coverage: Gemini maintains crime insurance coverage, protecting against hacks to the Gemini platform, theft by employees, and unauthorized transfers initiated by Gemini.
Gemini isn’t the cheapest exchange in the space when it comes to fees, but the NY-based exchange remains competitive if you use the Active Trader platform, available at no extra charge. It’s also helpful that Gemini is available to traders in all 50 states.
- No minimum deposit
- Easy crypto-to-crypto conversions
- Web and mobile apps
- No advanced trading or charts
- No PayPal support
- High withdrawal fees (.0003 BTC), free ACH USD withdrawals
- Anything To Anything Crypto Conversions: Exchange any crypto to any other crypto in just a few clicks; no Ph.D. required. You can even exchange crypto for precious metals and vice versa.
- Simple Fee Structure: Uphold isn’t the cheapest exchange for small buys, but the flat-fee structure makes it super easy to understand your buying costs.
Sometimes, simpler is better. Uphold won’t force you to use a complicated buying interface with charts and indicators to get the lowest fees. There’s just one way to buy, making it easy to purchase tokens whether you’re new to crypto or have a few trades under your belt. With its fee structure, Uphold is best suited to purchases of $100 and up, which keeps fees below 1%.
Payment Methods Accepted
If you want to buy Bitcoin, there are several ways to own the most popular digital asset. Here are five common ways to buy Bitcoin and the benefits of using each.
Buy Bitcoin With A Credit Card
It’s possible to buy Bitcoin using a credit card as long as your credit card issuer and crypto exchange allow it. For example, Uphold supports credit cards. This means you can buy crypto even when you don’t have cash. However, transaction fees can be very expensive because crypto purchases are often considered cash advances. You’ll also pay a higher fee to deposit compared to ACH bank deposits, which are usually free.
Relatively few crypto exchanges support credit cards.
Buy Bitcoin With A Debit Card
Like credit cards, you can buy Bitcoin with a debit card. As long as your card has sufficient cash, you can link it to your crypto exchange, and you’re good to go. Transaction fees for debit cards are lower than for credit cards in many cases, but be sure to research funding costs before you confirm the transaction.
Buy Bitcoin With Your Bank Account
If you’ve ever used your bank account to pay a bill online, you’ve used ACH (Automated Clearing House). You can use this online banking system to buy Bitcoin on most crypto exchanges, often with no deposit fees. One downside of using ACH is that some banks may limit the amount you can send or the number of transactions you can make each month.
Buy Bitcoin With A Wire Transfer
When you need to fund your account quickly or need to transfer a larger amount of money, wire transfers can be a better option than ACH transfers. Typically, the bank will charge an outgoing wire transfer fee, and many exchanges also charge an incoming wire transfer fee.
Buy Bitcoin With PayPal
You can buy Bitcoin through PayPal’s website or app, but some crypto exchanges also support PayPal deposits. For example, Coinbase and Gemini both support PayPal purchases for Bitcoin and other cryptos.
Buy Bitcoin With Bitcoin ATMs
Another option is a Bitcoin ATM. A Bitcoin ATM allows you to buy and sell cryptocurrencies using cash or a debit card. However, you may need a Bitcoin wallet to make a transaction. In addition, transaction fees can be high.
Here’s a step-by-step guide on how to buy Bitcoin with a credit card on Kraken.
Note: Kraken does not support credit cards in the US (debit cards accepted).
Step 1: Log in to your Kraken account and select “Buy Crypto.”
Choose your BTC purchase amount and add a payment method.
Step 2: Enter your card details.
Complete your card information and confirm the purchase.
When To Buy Bitcoin
Even a quick look at a Bitcoin price chart makes it clear that the price of BTC can be erratic. It isn’t unusual to see 5% or 10% daily moves or much larger moves on monthly charts. If you’re a technical trader, the advanced trading interface on exchanges like Coinbase offers technical indicators to help guide your trading decisions. You can use dozens of built-in indicators to help you read the tea leaves of price direction so you don’t overpay — hopefully.
Consider Dollar-Cost Averaging
As an alternative to using technical indicators (or just guessing), you can use a tried and true method called dollar-cost averaging.
Dollar-cost averaging (DCA) is an investing strategy where you invest a fixed dollar amount at regular intervals, such as daily, weekly, biweekly, or monthly. The strategy is ideal for investors who succumb to emotions such as “fear of missing out” (FOMO).
Dollar-cost averaging with Bitcoin has several notable benefits:
- Lowers investment risk
- Prevents imprecise market timing
- Helps take emotion out of investing
As with any investment strategy, DCA has downsides too:
- Higher transaction costs due to more frequent purchases
- Possibly lower returns because you’re holding cash rather than investing in a lump sum
By definition, dollar-cost averaging your Bitcoin investment means you’re buying less when prices are higher and more when prices are lower.
Remember, you’re investing a fixed amount on a fixed schedule. This prevents having your entire position at nearly $70,000, the Bitcoin all-time high, only to watch it fall down into the teens. It also prevents you from having all of your position at the lows when Bitcoin surges again. Dollar-cost averaging can be an effective strategy to reduce the effects of price volatility while removing the emotion and guesswork from investing.
Where To Store Your Bitcoin
In the same way you keep your cash or credit cards in a physical wallet, you can store Bitcoin in a crypto wallet. A crypto wallet can either be “cold” or “hot.” Your account on an exchange would be considered a hot wallet, although, in this case, the exchange provides custody of your Bitcoin.
Many BTC investors prefer to move their Bitcoin to a self-custody wallet.
|Hot Wallets||Cold Wallets|
|Best For||Short-term storage, smaller amounts of BTC||Long-term storage, larger amounts of BTC|
|Maximum Number Of Currencies||One to tens of thousands of cryptocurrencies||One to tens of thousands of cryptocurrencies|
|Security||Average because the private keys were generated on a device connected to the internet||Excellent since the wallet’s private keys are generated offline and stored on a device not connected to the internet|
|Loss Protection||Recovery and backup options are available and can be accessed on multiple devices||Recovery and backup options are available to restore recovery phrase on a new device|
|Ease Of Transfer To Exchanges||Very easy to transfer digital assets, provided there’s an internet connection||Transferring digital assets on cold wallets requires an extra step, such as plugging into a USB port or connecting via Bluetooth|
|Price||Free, but some may charge fees for crypto swaps or buying crypto from within the wallet app||You must buy an external storage device in most cases; prices start at about $50|
A hot wallet is a virtual cryptocurrency wallet held online that allows you to store, send, and receive cryptocurrencies. You can access a hot wallet on devices such as phones, tablets, and computers, provided there’s an internet connection.
While hot wallet wallets allow you to access your digital assets anywhere, the private keys are generated on an app connected to the internet. For this reason, hot wallets are ideal for storing small amounts of digital assets.
Here are the top three hot storage wallets:
- Coinbase Wallet (mobile)
- Convenient access without extra devices
- Low cost (typically free)
- Susceptible to software bugs or vulnerabilities
- Potential for private keys to become compromised
In contrast to hot wallets, cold storage wallets are not connected to the internet when the private keys are generated. Instead, digital assets are secured by a hardware device, adding an extra security layer from potential attacks.
Here are the top three cold storage wallets:
- Less vulnerable to online attacks
- Easy to recover crypto assets
- Can be costly
- Transfers between cold storage devices can be cumbersome
To Sum It Up
Crypto exchanges are typically the best places to Buy Bitcoin, including exchanges like Coinbase and Kraken. To buy BTC on an exchange, you must register and fund your account. Keep in mind that the trading fees and trade minimums vary by exchange. Once you’ve purchased your Bitcoin, ensure you store it in a digital wallet to safeguard your private key.
Frequently Asked Questions
You can buy Bitcoin through a bumble of payment apps, Like PayPal and Cash App, but often the best place to buy Bitcoin is through an exchange. Crypto exchanges like Coinbase usually have lower fees and allow you to move your Bitcoin off the platform into a self-custody Bitcoin wallet.
If you’re just learning how to buy Bitcoin, an exchange may be the best place to buy BTC for several reasons. Beginner-friendly exchanges like Coinbase walk new users through the process with helpful articles and on-page tutorials.
Take your time, and be sure to note the fees on the confirmation screen before your commit to the trade. The convenient Buy & Sell boxes used by many exchanges can be costlier to use compared to the advanced trading interface.
The best place to buy BTC will differ for each investor, depending on their priorities. For low-cost BTC trades, you can consider Kraken Pro, whereas if you want to research the exchange before making a deposit, a publicly traded exchange like Coinbase might make a better choice.
Transaction fees for Bitcoin vary based on the crypto exchange or financial app you use. For example, a $10 Bitcoin purchase using Coinbase’s Buy & Sell box costs $0.99, or nearly 10%. The same trade costs $0.06 using Coinbase Advanced.
One of the easiest and most convenient ways to buy Bitcoin anonymously is using a Bitcoin ATM. With a Bitcoin ATM, you don’t need to undergo a verification process, and you can buy crypto in cash. The ATM will generate a paper wallet with a private key that you can use to send your purchased Bitcoin to wherever you want.
Since its inception in 2009, Bitcoin has outperformed every major asset class, including gold, major stock indices, and real estate. Bitcoin’s meteoric rise from pennies to tens of thousands of dollars is now factual history, but its future price is speculation. We can’t provide financial advice, but we encourage readers to do their own research on Bitcoin and read the Bitcoin Whitepaper before making any buying decisions.
To buy BTC in the safest way, choose a trusted exchange and make your purchase — but don’t leave your Bitcoin on the exchange indefinitely. Several exchanges have closed down over the years, leaving investors unable to withdraw their Bitcoin stored on the exchange. After you’ve made your purchase, consider withdrawing your Bitcoin to a self-custody wallet for safekeeping.
Kraken and Coinbase offer low-cost BTC purchases if you use the advanced trading interface on each exchange.
The primary fees you’ll baying when buying Bitcoin are trading fees, but you may encounter other costs as well.
- Deposit Fees: Depending on your payment method and the exchange you choose, you may have to pay a deposit fee. Typically, ACH transfers are free, whereas debit and credit card transactions can be costlier.
- Trading Fees: On most exchanges, expect to pay a small percentage of the transaction or a flat fee based on the purchase amount.
- Withdrawal Fees: In most cases, you’ll pay network fees to withdraw your Bitocin to another Bitcoin wallet address. However, if you sell your Bitocin, in many cases, you can withdraw to your bank account with no additional fees. Each exchange sets its own policy on withdrawal fees.
- Wallet Costs: Most software Bitcoin wallets are free, but if you decide to invest in a hardware wallet like a Ledger device, you’ll have to purchase the wallet. Starting prices for Bitcoin hardware wallets usually range from $50 to $60, with step-level and premium wallets increasing the purchase price.