If you want to learn how to buy Bitcoin, we’ve got you covered in our article. In case the number one crypto has caught your attention and you want to add it to your portfolio, you’ll need to find the best way to do so. Let’s look at what you should consider before buying Bitcoin and what are the most common ways to buy BTC.
What is Bitcoin?
Bitcoin was created in 2009 and while it’s not the first attempt at digital money, it’s the first cryptocurrency as we know them now. Bitcoin was created as an alternative to fiat currencies because its developer, the pseudonymous Satoshi Nakamoto, was concerned traditional money is too reliant on banks and governments. It took a few years but once Bitcoin started gaining speed, investors and businesses started recognizing its potential. Now you can find it as a payment option in many places and the country El Salvador even adopted it as legal tender. There’s no denying Bitcoin’s turned out to be a lucrative investment, even if volatile, so if you’re considering buying it, we’ll help you out. We’re not advising you on which way how to buy Bitcoin is the best one, you’ll be able to decide that for yourself once you finish reading the article.
What to consider before choosing how to buy Bitcoin?
Before picking how to buy Bitcoin, there are a few things you need to consider. Here are the factors that may influence your purchase:
- What’s the price of Bitcoin at the moment: The current Bitcoin price is one of the main things to take into consideration when purchasing the crypto. You’ll want to follow BTC’s price movements and pick the best moment, ideally when it’s lower so you get more out of your money, to buy. Remember that if a Bitcoin price seems too high for you, you can buy a fraction of BTC as well, it’s called Satoshi.
- How much does it cost to buy Bitcoin: Another thing to consider besides the price of the asset, is how much will it cost you to buy it. Different places tax your different amounts for transactions and withdraw, so research them before picking how to buy Bitcoin. If you don’t, you may end up unpleasantly surprised.
- How long does it take to buy Bitcoin: If you’re following a certain Bitcoin price and want to act quickly, keep that in mind when choosing how to buy Bitcoin. If you choose a method that takes a longer time, you may miss your target price.
How to Buy Bitcoin on a Trading Platform
One of the ways how to buy Bitcoin is by using a platform for crypto trading. Those places allow you to purchase crypto via their websites or smartphone apps with only a few steps. There are two types of trading platforms. Let’s look at them and their specifics on how to buy Bitcoin.
How to Buy Bitcoin on a Broker
Trading platforms called brokers offer not only cryptocurrencies but also other assets, like stocks and bonds, for trading. Bitcoin is the first and most popular cryptocurrency so most, if not all, brokers who sell crypto will provide it. You can use fiat currency on brokerage platforms to buy Bitcoin. Examples of brokers that you can use to buy Bitcoin are eToro, Interactive Brokers, and Robinhood.
This is how to buy Bitcoin on a brokerage platform:
- Create an account with the broker you’ve chosen
- Confirm your identity – the most common way you’ll be asked to do it is by showing a photo of your ID or other legal identification document
- Search for Bitcoin or BTC on the platform
- Deposit the fiat currency of your choice
- Buy Bitcoin
How to Buy Bitcoin on a Crypto Exchange
Unlike brokers, cryptocurrency exchanges offer only digital assets, hence the name. You can trade crypto on two types of exchanges – centralized and decentralized. With a centralized exchange, you’ll have the transaction regulated, a third party will conduct it and you can buy Bitcoin with fiat money. Binance and Kraken are some of the more popular centralized exchanges. With a decentralized one, if you pick Uniswap, for example, the transaction is executed between the buyer and the seller only and you’ll be able to pay with other cryptos.
The steps to how to buy Bitcoin on an exchange are:
- Create an account with the exchange of your choice
- Confirm your identity – you skip this step if you chose a decentralized exchange, only centralized ones will ask for your ID verification
- Search for Bitcoin or BTC on the platform
- Choose how to pay – with fiat or crypto currency, depending on the type of the exchange you choose
- Buy Bitcoin
After you’ve bought your bitcoins, you can use the platform’s built-in wallet, if they provide one, to store your crypto.
How to Buy Bitcoin on Cash App
Cash App is a mobile payment service that allows users in the United Kingdom and the United States to transfer money to each other, using only their smartphones. In 2018 Cash App became one of the ways to buy Bitcoin. Here’s how to buy Bitcoin on Cash App if you’re a resident in the supported locations.
- Download the app on your smartphone
- Create an account: To do so you’ll need to use an email or phone number, then add your debit card or bank account details and your names. Select your username, also known as a Cashtag. Then add your address details and fund your account. You’ll also need to verify your account with a photo and ID document.
- After you’ve created an account, go to the home screen of the app and select the Investing section where you can choose Bitcoin.
- Tap “Buy” and enter the amount of bitcoins you want to buy.
- Confirm your order and you’re done! That’s how to buy Bitcoin on Cash App.
How to Buy Bitcoin With PayPal
You can buy bitcoins using the online payment service PayPal. There are two ways how to buy Bitcoin with PayPal, let’s revise them.
- Buying Bitcoin directly on PayPal: You can buy Bitcoin on PayPal’s app or website but only if you’re an UK or US resident. To do so, create an account on PayPal, choose “Crypto” from the “Finances” dashboard on the app, tap buy and your purchase is ready.
- Buy Bitcoin using PayPal on another platform: You can use PayPal as a payment method on another platform, broker or exchange, to buy Bitcoin. After registering on a platform and verifying your account, select PayPal as the payment option for your bitcoin purchase. You need to know that you won’t be charged processing fees for your PayPal deposit and it’ll be immediately reflected in your account. PayPal would be a good option for traders looking how to buy Bitcoin fast.
How to Buy Bitcoin With a Credit or Debit Card
If you’re wondering “how to buy Bitcoin with credit card” or “how to buy Bitcoin with debit card”, the processes are practically the same. This is also one of the easiest ways to purchase the crypto. Brokerages and crypto exchanges accept both types of cards. The deposit is reflected almost immediately into your account and you’re not charged processing fees. You just need to select your type of card when you reach the payment option stage in the platform and you’ll be able to buy Bitcoin with a credit or a debit card.
How to Buy Bitcoin With a Bank Transfer
You can also use a bank transfer as a way how to buy bitcoins. Trading platforms accept bank transfers and don’t charge processing fees for them. Select the option to pay through bank transfer when buying bitcoins and you’ll be done. However, you have to consider that if you choose to buy BTC with a bank transfer it may take longer than other ways, since the transaction will take some time to be reflected in your account.
How to Buy Bitcoin With Cash
It’s possible to buy Bitcoin with cash. You can do it in two situations. You can use cash to pay for bitcoins in a decentralized exchange. Using cash is also how to buy Bitcoin in person. You’ll meet another trader and use cash to pay for your bitcoins. But remember, in both instances there isn’t a third party to control the transactions or help if anything goes wrong. If your bitcoins are lost, it’s only your responsibility.
How to Buy Bitcoin With a Wallet
A bitcoin wallet, or cryptocurrency wallet, is the place where you store the crypto you’ve bought. There are two types of wallets – hot storage wallets and cold storage. They differ from the way how your private keys are stored, online for the hot wallets and offline for the cold ones. Popular wallets are Exodus, Electrum and Ledger.
But you can not only store your bitcoins on a wallet, you can also use it to buy them. Some wallets are one of the ways how to buy Bitcoin. They allow you to purchase crypto with bank transfer, online payment services or credit or debit card. Using a wallet to buy bitcoins will spare you time and effort of looking for other services.
How to Buy Bitcoin With ATM
If you want to know how to buy bitcoin without an exchange – ATMs are your best bet. Bitcoin and cryptocurrency ATMs allow your to purchase crypto. The process of how to buy Bitcoin with ATM is fairly simple:
- Find a cryptocurrency ATM that supports Bitcoin near you
- Create a Bitcoin wallet: You need to first own a wallet to be able to buy and store your BTC with an ATM later. When you go to the ATM you need to show a QR code of your wallet to the device’s camera.
- Insert your money: After the machine’s scanned the QR code, you need to insert the cash amount you’ll be using to buy bitcoins.
- Buy Bitcoin: Select “Done” and you’ve bought your bitcoins on an ATM!
Bonus: How to Buy Bitcoin Cash
If you’re wondering how to buy Bitcoin Cash, often reffered to as “Bitcoin’s little brother”, the ways are the same with Bitcoin with one exception. The only difference is that Cash App only provides Bitcoin as a cryptocurrency investment at the moment so you won’t be able to buy BCH there. This crypto is quite popular though, so many trading platforms and wallets support it and you’ll be able to find a place to buy it fairly easily.
What Is the Best Way on How to Buy Bitcoin in 2022?
We’ve listed some of the ways how to buy Bitcoin for you. You can use an online trading platform for cryptocurrency, an app, PayPal, wallet or a crypto ATM. You can pay through cash, bank transfer or by credit or debit card. There are many ways how to buy Bitcoin in 2022 and you can pick the best one for you, since all of them have their perks and disadvantages. Remember to check carefully the places you’re buying your bitcoins from and always prioritize the security of your investments!