How to Buy Bitcoin (BTC)

SHORT ANSWER: You can buy Bitcoin with Coinbase, eToro & Robinhood)

In early 2009, Satoshi Nakamoto created what is arguably one of the most significant monetary inventions of all time. Though it was mostly used in the depths of the internet for its early years, it rose to prominence in the late 2010s and has not looked back. Bitcoin has seen some of its best months of all time as of late. With increased institutional adoption, new spot ETFs and strong retail activity, Bitcoin reached a new all-time high (ATH) in March 2024. Many see the momentum continuing, and the price of Bitcoin, according to some, could go as high as $1.5 million by 2030. 

How to Buy Bitcoin in 3 Steps

Let’s take a look at the easiest way to buy Bitcoin in just 3 steps.

1. Open an Account

The fastest way to buy Bitcoin is through an online crypto brokerage. These sites operate similarly to stock brokers but specialize in crypto. Opening an account is usually straightforward. You can use an email or phone number to create an account. Additionally, you will likely have to verify your account according to know-your-customer (KYC) laws with documentation like a driver’s license or passport

The process is usually pretty quick. Most accounts can be opened and documentation submitted within 10 minutes. After that, it usually takes 1-2 business days for the exchange to verify your account.

2. Fund Your Account

With a verified account, the next step is to fund your account through a wire transfer or ACH transfer. For a wire transfer, you transfer money directly from your bank account to the brokerage. To complete a wire transfer, you can enter your account information into the brokerage and enter the amount to transfer. Most banks charge fees.

For an ACH transfer, you can use a third-party application to help transfer the funds, which is usually slower (2-3 business days) but can be cheaper. One of the more prominent ACH transfer companies is Plaid. It allows you to securely log in to your bank account on the brokerage and transfer the funds.

You can buy Bitcoin with a credit card or on personal payment apps.

3. Buy Bitcoin

Now that you have a funded and verified account, most of the heavy lifting is over with. The last step is to place a buy order for Bitcoin. Navigate to your portfolio and use the search feature to find Bitcoin (BTC). Once on the Bitcoin page, enter the amount you would like to buy. From there, you can click to execute the trade. The Bitcoin should show up in your portfolio along with a confirmation email. 

How to Buy Bitcoin With a Credit Card

Another way to buy Bitcoin is with a credit card to escape some of the hassles of creating and verifying an account, as well as access to Bitcoin without having to possess the necessary cash. 

To buy Bitcoin with a credit card, you can navigate to one of the sites that offer the service, such as Paybis, Coinmama and CEX.IO. On these sites, you can choose from Apple Pay, Google Pay, debit cards and others, or you can use any of the major credit card companies, such as Visa, Mastercard, Discover and American Express. 

How to Buy Bitcoin With PayPal

Another way to get easy access to Bitcoin is through the PayPal app. The app supports numerous crypto offerings and allows you to pay for products and services with crypto. 

To buy Bitcoin on PayPal, create and fund an account, which is similar to the steps for a brokerage account. From there, set up a PayPal cash account and navigate to the crypto page on PayPal to execute your trade. 

How to Store Bitcoin Safely

Wallets differ from exchanges in that they function as a decentralized place to store crypto instead of trading it. You can choose from multiple forms of virtual wallets. While having a wallet is not a necessity to purchase BTC, it can increase the security of your assets.

Best Hardware Wallet: Ledger

Ledger is a hardware wallet that is easy to use and supports the sending and receiving of many cryptocurrencies. Once you have purchased a Ledger hardware wallet, you download its software onto your computer and create an account. You’ll be assigned a wallet address (typically a long string of letters and numbers), and then you can send and receive crypto through the wallet. Hardware wallets offer an extra level of security as opposed to software wallets, but they cost money while software wallets are typically free. 

Best Software Wallet: ZenGo

ZenGo is a wallet that allows you to store, send and buy cryptocurrencies. When you open a ZenGo account, you will be assigned an Ethereum wallet address, but you can add Bitcoin via the wallet’s interface. The platform is secure, using two-factor authentication to prevent hacks. ZenGo is a free software wallet that supports hundreds of tokens.

Where to Buy Bitcoin

If you are looking for an exchange to buy Bitcoin, some of the best options are shown below with detailed reviews. This guide can make it easy to compare the options available and choose the exchange that most closely fits your needs.

Alternative Ways to Buy Bitcoin

Apart from the ways of buying Bitcoin mentioned above, there are also a handful of other ways to access BTC.

• Bitcoin ATMs: A Bitcoin ATM operates similarly to a regular ATM, as it allows users to deposit cash and send Bitcoin to a wallet address. Though they are not available everywhere, the network of Bitcoin ATMs is growing. 
• Mining: Bitcoin uses a proof-of-work (PoW) consensus model, which means that anyone can contribute computing power to verify transactions and earn BTC in exchange. However, mining involves purchasing and configuring expensive mining computers, called ASIC miners.  
• Spot ETFs: In early 2024, the U.S. Securities and Exchange Commission (SEC) approved more than 10 spot Bitcoin ETFs. This means that Bitcoin is accessible on stock exchanges around the world. While the ETFs do not allow you to hold Bitcoin, it does give you access to the price movements. 

Buying Bitcoin Has Never Been Easier

For a long time, it was difficult for most people to purchase Bitcoin because of the technical knowledge required. As Bitcoin inches toward being more mainstream, it has become more available. You can purchase Bitcoin through exchanges and payment apps, with credit cards and by using ATMs. So, all you have to do is pick which option is right for you and start buying today.

Frequently Asked Questions