As Bitcoin rises in popularity and gets more mainstream coverage, people get more and more interested in the crypto space. We’ve learned the basics of Bitcoin, now it’s time to see how can we buy some BTC and start riding the crypto train.
Financial note: The cryptocurrency market is very volatile and requires a good degree of knowledge and patience. DO NOT invest more than you can afford to lose!
There are 2 types of places from which you can get Bitcoin or any cryptocurrency: exchanges or direct, from other people via specialized marketplaces. While we personally prefer popular exchanges, marketplaces cannot be ignored since they allow you to buy privately (without submitting your personal information) and can get you a better price at times. It’s worth analyzing both markets when you decide on buying your cryptocurrency.
Before getting yourself some Bitcoins, you must have a wallet set-up in place so you can receive the currency. While exchanges create a personal wallet for you so you can store your cryptocurrencies there, unless you do some daily/weekly trading, it’s advisable to store them safely, off the internet. There were several exchanges hacked in recent years so it’s safe to assume that it’s better for you to have control over your assets. There are different types of wallets and while the process might scare some, we created a Bitcoin wallet guide for beginners.
How do I buy Bitcoin?
As we’ve mentioned earlier, there are cryptocurrency exchanges and marketplaces. Let’s review the most popular choices:
Binance is one if not the most popular crypto exchanges in the world, with tens of cryptocurrencies, charts, margin trading, and everything else you would want from a top-notch exchange. If you want to get a better idea, you can read our Binance exchange review.
Binance also allows you to buy Bitcoin using credit/debit cards, bank transfers, or P2P trading.
The process is extremely simple and evidently, you can use your accounts BTC wallet to store anything you buy. Recently, we got our BTC from Binance via credit card payment, even if it took us a small fee for the purchase.
CEX.IO is one of our favorite places to buy Bitcoin from, thus ranking it to number 1 on our list. The service is very popular because it basically allows customers to buy and sell Bitcoin instantly using their debit or credit card. Another great feature is that if you have a verified VISA card, you can also withdraw all the funds you made via selling directly. If you’re mobile a lot, CEX.IO also has a mobile app for both iOS and Android, allowing you to buy or sell on the go.
Coinbase is one of the most popular services with more than 10 million customers in 32 countries. If you want to see if your country is accepted, please visit this page. Coinbase currently allows you to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash using your local currency via bank transfers, debit cards or credit cards. It’s worth noting that Coinbase has also an iOS and Android app that allows you to access the site while being mobile.
However, if you want to use Coinbase and want to pay lower fees while having access to more cryptocurrencies, we recommend using Coinbase Pro (GDAX). GDAX is Coinbase’s own exchange and while is a bit more complicated to buy from, it grants more flexibility when purchasing your favourite crypto and lower fees per transaction.
Gemini is another popular exchange and being an exchange, it’s a bit more complicated to use than sites like Coinbase. However, Gemini is an established brand on the market with a user-friendly interface and decent customer support. Buying Bitcoin is pretty straightforward, you have to transfer your currency on the exchange then purchase it at the current price or, set up a limit (if you think the price will go down) and the service will get you that amount once the price reaches your set target. One of the downsides is that you can only transfer your money via bank transfers either with an ACH deposit or a wire transfer.
While the name might make you smile, this is actually one of the oldest cryptocurrency exchanges on the market. Coinmama currently sells only Bitcoin and Ether and it allows purchases using your credit card. The buying process is pretty easy and it’s safe to say, this is one of our favorite services to buy Bitcoin from.
LocalBitcoins is a peer-to-peer marketplace for buying and selling bitcoin for fiat through a wide range of payment systems. The marketplace is very popular among many people because it offers an instant and private service for buying or selling Bitcoin. LocalBitcoins is also available in many different languages in many countries around the world, making it a preferred service for many. Being a user-driven marketplace, you can also find a better price than on the popular exchanges. If you worry about direct transaction safety, keep in mind that LocalBitcoins offer an escrow and reputation service to help keep both the buyer and seller safe.
Another old player on the market, xCoins allows you to purchase Bitcoin instantly using debit cards, credit cards, bank transfers, AND PayPal. Accepting PayPal on their service made them a pretty popular service, now serving more than 30k customers in over 40 countries. If your only option is PayPal or if you prefer this option instead of buying with your credit/debit card or bank account, xCoins is a very solid choice.
As you can see, there are a lot of good services to buy your Bitcoin from and while we covered only the popular ones, we might add more services in the future, as we test and review them. Happy buying!