How to buy Bitcoin online

Bitcoin was the first cryptocurrency. Introduced in 2009, it was created as a digital currency that would allow people to transfer funds without the need of a government or bank. Today, it’s the most valuable cryptocurrency in the world. 

This guide will take you through the ins and outs of buying Bitcoin, what it is and what BTC is trying to achieve.

Best platforms to buy Bitcoin – 2021

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
2
Minimum Deposit
$250
Exclusive Promotion
User Score
8.1
Trade the global markets. Trade with real-time execution and professional tools
Follow and copy Naga's top traders who have mastered their trading strategies
Free personal account manager
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3
Minimum Deposit
$50
Exclusive Promotion
User Score
7.5
Over 4 million customers worldwide
Buy, sell and trade nearly 200 digital assets
Verified within 15 minutes

What is Bitcoin?

Bitcoin was the cryptocurrency that started the crypto revolution. For the first time in history, individuals could create and manage money outside the control of a bank. But what exactly is Bitcoin? And how has it made such an impact on the digital economy?

In simple terms, Bitcoin is a software protocol. You interact with software protocols every day when online. For example HTTP, which allows web servers to deliver the web content you request. Instead of delivering web content, Bitcoin allows computers running its software to manage its blockchain (a data set) and enforce rules that make the data have monetary value- which comes in the form of Bitcoins. Here are the key components of Bitcoin. 

Public-key cryptography- This is a wallet software that provides users with a public and private key. A public key is used by the protocol to prove you own Bitcoin, whilst a private key works like a password. Public keys can be shared, whereas private keys should be kept safe. 

Peer-to-peer networking- This involves a computer running the software reviewing transactions. These computers, also known as nodes, make sure the correct protocols are being followed. Specialist nodes known as miners will then compete for the right to batch transactions into blocks, which are then added to the blockchain. 

When Bitcoin was created, it was limited to 21 million Bitcoins. The blockchain behind this keeps a record of the network’s history, which is validated by nodes. This makes Bitcoin unique, as the data cannot be freely copied and modified. This ensures that unlike most digital data, which can be freely copied and modified, bitcoins cannot be. 

As of September 2021 Bitcoin has a market cap of $868,451,886,062 with 18.8 million tokens in circulation. It has a fully diluted market cap of $968,230,673,538 and a maximum supply of 21 million. One Bitcoin currently costs $46,128.06 and reached an all time high of $64,863.10 in April 2021. 

Buy Bitcoin now at our preferred partner

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Pros

  • Bitcoin is the world’s most recognised cryptocurrency. It’s used for transactions and is accepted by large companies such as PayPal. Due to its reputation, it’s also the most trusted cryptocurrency and is recognised as a good investment by many top investors.

Cons

  • Bitcoin was criticised in 2021 by Elon Musk for the amount of power used by miners. This caused it to lose a significant amount of value and as a result many investors believe that Ethereum may one day become the worlds most used cryptocurrency. 

How does Bitcoin Work?

Bitcoin was designed as a means of transaction. It can be sent from one individual to another without the need for an intermediary. The ledger is operated by nodes, who are incentivised to follow the rules of the protocol. In order to manipulate the ledger, they would need to be in control of over a third of all mining software. They would then be the world’s largest miner and therefore attacking the network wouldn’t benefit them. 

Due to Bitcoins high value, mining it is extremely expensive. Unlike other cryptocurrencies that can be mined using a normal computer, Bitcoin miners need specialist hardware and cheap electricity to propose new blocks. As a result, only a select group can mine BTC. According to global power statistics, the computational power needed to mine Bitcoin is now greater than that used by Google data centers. This makes the Bitcoin protocol extremely powerful and economically impractical to manipulate. 

Now that you know what the bitcoin is and how it works, you can use one of the brokers above to buy Bitcoin. However, if you’re still unsure on how to get started, continue reading!

How to Buy Bitcoin online

Being the world’s number one cryptocurrency, Bitcoin can be purchased on every global crypto exchange. The most popular options for investors are Binance and Coinbase, though hundreds of other cryptocurrency exchanges are available.

Here’s how you can buy bitcoin online:

  1. Start and verify your account on your chosen exchange. If you already have an account, log in. 
  1. Make sure your account is funded and search for Bitcoin (BTC). Once selected, choose how many tokens you would like to buy.
  1. To complete your transaction, click “Buy”. Your currency will be transferred into BTC which will appear in your exchange wallet. 

Congratulations, you’ve just bought your first Bitcoin!

Top platforms to buy Bitcoin

1
Minimum Deposit
$50
Exclusive Promotion
User Score
10
More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities
Buy crypto, or trade cryptocurrencies via CFDs
CopyPortfolios: Innovative, fully managed investment strategies
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
2
Minimum Deposit
$250
Exclusive Promotion
User Score
8.1
Trade the global markets. Trade with real-time execution and professional tools
Follow and copy Naga's top traders who have mastered their trading strategies
Free personal account manager
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3
Minimum Deposit
$50
Exclusive Promotion
User Score
7.5
Over 4 million customers worldwide
Buy, sell and trade nearly 200 digital assets
Verified within 15 minutes

How to Trade Bitcoin

Bitcoin is the world’s most traded cryptocurrency. It can be used to buy most cryptocurrencies and is the most popular option for trading on Binance. Trading is slightly different to buying Bitcoin. Here’s how you can start trading Bitcoin:

  1. Use Binance to buy bitcoin and make sure it’s in your wallet. 
  1. Search for the cryptocurrency you want to buy and select BTC to buy it.
  1. Click “Trade” to trade your BTC for your chosen currency. This will appear in your wallet shortly. 

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