Best Places To Buy Bitcoin (BTC)
You can buy Bitcoin online through a centralized 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:
- Crypto.com: Best exchange for anyone in the US, UK, Canada, Australia and Europe
- OKX: Best exchange for Asian investors
- Nexo: Best for crypto-backed loans and high-yield savings
- Coinbase: Best for beginners and ease of use
- Binance: Best for low fees and wide crypto selection
- Gemini: Best Bitcoin exchange for all 50 US states
- Bybit: Best exchange for advanced traders
- MoonPay: Best exchange for beginners
| Marketplace | Basic Trading Fees (Spot) | Basic Trading Fees (Futures) |
|---|---|---|
| Crypto.com | 0.075% maker fee, 0.075% taker fee | 0.017% maker fee, 0.034% taker fee |
| OKX | 0.08% maker fee, 0.10% taker fee | 0.02% maker fee, 0.05% taker fee |
| Nexo | 0.20% maker fee, 0.20% taker fee | 0.06% |
| Coinbase | 0.40% maker fee, 0.60% taker fee | 0.40% maker fee, 0.60% taker fee |
| Binance | 0.10% maker fee, 0.10% taker fee | 0.02% maker fee, 0.05% taker fee |
| Gemini | 0.20% maker fee, 0.40% taker fee | 0.02% maker fee, 0.07% taker fee |
| Bybit | 0.10% maker fee, 0.10% taker fee | 0.02% maker fee, 0.055% taker fee |
| MoonPay | 1% on bank transfer, 4.5% on credit/ debit card | 1% on bank transfer, 4.5% on credit/ debit card |
Other Ways To Buy Bitcoin
If you want to buy Bitcoin outside of an exchange, there are several ways to own the most popular digital asset. Here are six common ways to buy Bitcoin:
Purchase Shares In A Bitcoin ETF
Spot Bitcoin ETFs were approved in the U.S. on January 10th, 2024 opening up a new and convenient way for investors to gain crypto exposure. In short, ETFs allow you to gain exposure to an asset without directly owning it, and without needing an account with a crypto exchange.
This can be beneficial for investors who want crypto exposure from the comfort of their brokerage account. It also can benefit those who don't want to learn the process of buying crypto itself or getting started with a wallet.
On the flip side, buying ETF shares will not allow you to self-custody your digital assets. This prevents you from engaging in DeFi with your Bitcoin and also contradicts one of the main goals Bitcoin's founding: decentralization.
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 exchangeallow it. 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. And 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, Gemini and Coinbase supports PayPal purchases for Bitcoin and other crypto tokens.
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.
Consider Dollar-Cost Averaging Bitcoin Buys
As an alternative to trying to time your entry, 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. This allows you to average out your cost basis and avoid worrying about short-term market fluctuations.
Dollar-cost averaging has several notable benefits:
- Prevents imprecise market timing
- Helps take emotion out of investing
- Can be automated
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
Dollar-cost averaging your Bitcoin investment means you’re buying less when prices are higher and more when prices are lower. This can be effective in 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.
If you don't want to worry about storing your Bitcoin, you can also consider Bitcoin ETFs, which track the price of Bitcoin and can be held in a normal brokerage.
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 |
| Security | Private keys are generated on a device connected to the internet | 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 |
To Sum It Up
Crypto exchanges are typically the best places to buy Bitcoin, including exchanges like Gemini and OKX. 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 and safeguard your private key.
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