Buying Bitcoin does not have to be complicated or stressful. The best bitcoin exchanges are reliable sources for Bitcoin, and they can help ensure you are satisfied with your purchase and well on your way to earning more money.
The problem with the bitcoin exchanges on the market is they are growing every day, so it’s difficult to find where to buy Bitcoin. Some of these platforms are not as reliable as others. So, doing a bit of research before jumping in with one bitcoin exchange is a smart use of your time.
We have put together nine of the best places to buy Bitcoin. Each of these has its strengths, and it is worth looking into several of them before you finalize your decision.
Best Place to Buy Bitcoins
1. Coinbase (Rating: 10/10)
Coinbase is the best place to buy Bitcoin on the market. We love this option because it is known for being strong, stable, and highly user-friendly. It doesn’t matter if you have been in the Bitcoin game for a day or years; Coinbase is a great platform to work with.
There are more than 50 million users on Coinbase, giving you the confidence you are not the only one using this service. In addition, with a strong base of users like this, the fees through Coinbase are pretty fair.
The fees charged with Coinbase include a transaction fee and a spread of .50%. Therefore, the fees get relatively high if you decide to use a debit card to make your purchases. However, if you use Coinbase for various cryptocurrency investments, a Coinbase pro could help you lower your fees.
2. EToro (Rating 9/10)
EToro earned a high spot near the top of our list because it is so easy to use. EToro works with about 18 currencies instead of the 50 plus Coinbase does, but this is a great place to start, and it even allows you to test yourself before you start trading for real money.
The practice accounts are a perfect option to see if it would be smart to invest with Bitcoin. If it turns out your test accounts don’t perform, there is no pressure to put real money into play.
The only thing keeping EToro from earning the top spot is the fees for the spread are a bit higher than other places on the market. But, overall, this is an excellent option if you are new to Bitcoin and want to try it out before making your first purchase.
3. Robinhood (Rating 9/10)
Suppose you are on a budget but are looking to try and change your financial situation using Bitcoin, then buying bitcoin on Robinhood is the way to go. With Robinhood, you will be able to buy your Bitcoin commission-free. In addition, Robinhood is a platform people like to use for a variety of investing tools.
Essentially the Robinhood platform is like a stockbroker will not charge you for their services. If you thought this was too good to be true, it isn’t. Millions of people are enjoying Robinhood and all it has to offer.
The cryptocurrency side of Robinhood will be a bit different from your stock account, but you will be able to view both from the same platform. The only major issue you find with Robinhood is finding a wallet for your Bitcoin purchase as they do not offer one.
4. Gemini (Rating 8.5/10)
Gemini has made it easy to be able to use your cryptocurrency to purchase items. Gemini is a great option to consider if you are concerned with the money changing back and forth between services and users.
When you have a Gemini account, you can use your Bitcoin at more than 30,000 retail locations. In addition, there are about two dozen different cryptocurrencies Gemini works with, so you won’t be limited in what you can do with this Bitcoin marketplace.
Another great thing about Gemini is there is no account minimum. This means if you want to get started messing around with just a few dollars, you can do so, and nobody is going to stop you!
5. SoFi (Rating 8.5/10)
SoFi stands out from the other places that sell Bitcoin because it is truly an all-inclusive financial resource for its users. With SoFi, you can save money, get credit products, invest in stocks, and even purchase Bitcoin. So if you are tired of having an app for everything you need to do financially, SoFi could be the perfect option.
The fees for purchasing Bitcoin will run at about one and a quarter percent. This is not just the Bitcoin costs but the costs for all cryptocurrencies on the website. Essentially, if you want the convenience of keeping everything in one spot, SoFi can do that for a higher price.
6. CoinMama (Rating 8/10)
CoinMama makes your Bitcoin purchasing process incredibly easy. You will find CoinMama hardly allows you time to think about whether or not you should be investing in Bitcoin. For some of us, this can be a good thing! With CoinMama, there are many different payment options and high limits.
When working with CoinMama, your Bitcoin purchase happens instantly, and you can put it in any wallet within seconds. For those nervous about the process, this can be a great benefit to the CoinMama platform.
The only real problem with the CoinMama platform is the fee structure is complex and will take you some time to figure it out. However, once you have the process down, you will understand what it takes to make some great Bitcoin investments using the CoinMama platform.
7. BlockFi (Rating 8/10)
BlockFi is a unique place to buy Bitcoin. Once you have your account established with BlockFi and you purchase your Bitcoin, there is quite a bit you are going to be able to do with it. The great thing about BlockFi is it allows you to earn interest when your Bitcoin is sitting in the account. So if you are not quite ready to sell it, you can earn some interest on Bitcoin instead.
Some of the interest rates with BlockFi can reach more than 7%, which is incredibly high. With this service, you can even use your Bitcoin as collateral for a loan. Overall this is a forward-thinking company that knows how to give users what they need for cryptocurrency.
8. CashApp (Rating 7/10)
Since CashApp is already a popular way for people to send money, many feel comfortable using it. However, if you find you want to stick with something familiar, you will like what CashApp offers. You won’t need a separate account or anything; as long as your CashApp account is funded, you can start purchasing Bitcoin.
The CashApp will have zero fees for stocks, but the cryptocurrency fees tend to vary greatly. So, overall, this will not be your best option if you are serious about your Bitcoin trading. However, if you and your friends have been discussing Bitcoin and you feel as though you are ready to make the leap, Cash App is a wise choice to consider.
9. BisQ (Rating 7/10)
Last but certainly not least is BisQ. With BisQ, you will work with a desktop app, giving nervous or privacy-concerned users a bit more peace of mind. In addition, you will find the software is straightforward to use and will allow you to complete your Bitcoin purchases without fear of cyber attack or hacking.
To understand the way BisQ works, it is best if this is not your first time dealing with cryptocurrency. Overall you will not even need to set up an account or have your identity verified; you can simply step in, purchase your Bitcoin and be on your way.
What To Look For When Buying Bitcoins
Now that you have nine great options for buying Bitcoin, you may be wondering how you can choose which is the best for you. There are a few ways to break down where to purchase Bitcoin. Considering these things before making your purchase will help you narrow down the right one for you.
Each time you buy, sell, or trade Bitcoin, there are typically fees involved. You can think of this much like stocks. With Bitcoin, you must pay attention to these fees right from the start. If the fees are a bit too high, you will likely end up struggling to make any money in this process. Watch for transaction fees and percentage or spread fees as well.
Most of the places on our list will have several other investment options to choose from and other cryptocurrencies in addition to Bitcoin. These investment options can also include stocks and bonds. If you are interested in diversifying your investments, choose something like SoFi or Coinbase that allows for more than just the purchase of Bitcoin.
Education and Guidance
Do you know what you are doing with your Bitcoin purchases, or is this all new to you? If this is new and you are unsure what you should be doing, choose a platform with excellent educational resources. Some of these options will even allow you to practice with fake transactions until you get the hang of it.
Just like when you sign up for a new savings account or a credit card when you set up a cryptocurrency account, there are often bonuses involved. If you think you will want to stick with this, compare the different bonus options. Sometimes if you open an account with a certain amount of money, you could have some free transactions coming your way.
Each of the places to buy Bitcoins in our review has a different website/app layout and system for purchasing. If you are particular about how the website is laid out and how the reporting is, take a good look around before signing up. Those who are particular about numbers and data should pay close attention to the platform layout.
How Can I Buy Bitcoin? (Step by Step Guide)
Now that you know where to buy Bitcoin, it makes sense to understand how to buy it. Buying Bitcoin is much simpler than trying to understand how Bitcoin works and what it actually is. Here are some simple steps to follow if you think you are ready to make your first Bitcoin purchase.
Step 1: Where To Buy?
For the first step, you will refer back to our list of the best possible places to purchase Bitcoin. There are many options out there, and you have to take your time to ensure you find a platform that works for you. Once you get set up, you won’t want to have to change services.
Step 2: Where To Keep Your Bitcoin?
Next, you will have to keep your bitcoin in a hot or cold wallet. This decision will be up to you. Remember — a cold wallet is not connected to the internet while a hot wallet is.
Step 3: Purchase Your Bitcoin
Once you have everything set up, you can simply purchase your bitcoin. Again, the process is straightforward and similar to any other investment you would make on stocks or the like.
Step 4: Manage
Once you have purchased your Bitcoin now, you can change it and learn all there is to know about this process. Managing Bitcoin is exciting and something many people find to be the most critical part of the process. While you are managing your Bitcoin, make sure you take advantage of any educational resources on the platform you use. These can help you make better decisions about the investments you are making.
Hopefully, you now feel as though you can make a more informed Bitcoin purchase. However, if this process is new for you, you may feel a bit leary about making your first purchase. If that is the case, we highly recommend you choosing Coinbase. The systems, the layout, and the fees make Coinbase the best possible place to buy Bitcoin in 2021.
Buying Bitcoin is legal, and for the most part, it is safe as well. It is essential to ensure you are using a reputable service when purchasing anything over the internet. When you use a provider like Coinbase and know they have over 50 million users, you will typically feel more comfortable about your purchase.
It is important to remember you must report any earnings you have with your cryptocurrencies and pay the appropriate taxes. This is the only area you could experience some issues with legality.
Buying Bitcoin is safe if you understand what you are doing and know where to purchase it. Don’t buy Bitcoin from a seller who has no reviews and no transaction history. Instead, use a larger company like Robinhood or CoinMama that has spent years in the business and knows how to protect your information and funds.
The fees for buying Bitcoin are going to vary depending on where you buy it from. This is an essential factor to look for when choosing the best place to buy Bitcoin. You will have transaction fees most of the time when purchasing Bitcoin.
Some of these are quite low, especially for those getting started. Most of the higher fees are created when you use a debit card to make your purchase. The debit card fees end up costing the seller money, and you will be the one paying for it in the end.