What Is the Best Way to Buy Bitcoin
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Bitcoin is the most popular cryptocurrency with the highest price and market capitalization. Therefore, multiple platforms sell the coin to institutions and individual investors. However, it can seem frustrating to find the perfect platform for buying Bitcoin with dozens of options.
We’re here to showcase some of the best platforms that allow you to buy Bitcoin. Also, we’ll go over the key features, how to get started, and the pros & cons.
Best Platforms to Buy Bitcoin in 2023
During the past decade, Bitcoin has gone from being a payment method for a small group of people to being compared with gold. As a result, Bitcoin is the most widely available coin and is sold on most crypto platforms.
What Options Do I Have to Buy Bitcoin?
Bitcoin ATMs: Bitcoin ATMs operate as in-person exchanges. Clients can insert cash into the machine and purchase Bitcoins that are transferred to their personal wallets. Bitcoin ATMs are becoming increasingly popular, with giant companies like Walmart adopting the trend. However, ATMs are expensive due to the associated costs, resulting in buyers paying a purchase and conversion fee on all transactions.
Centralized Exchanges: Centralized exchanges (CEX) offer the best experience for Bitcoin investors due to their low fees and liquidity. These platforms are overlooked by traditional financial regulators that ensure clients are receiving the best service. These exchanges have excellent security and let investors set up 2-step authentication with address whitelisting.
Furthermore, centralized exchanges offer multiple trading pairs for Bitcoin, making it convenient if you hold various coins. Afterward, you can take advantage of the platform's investment opportunities like staking.
Decentralized Exchanges: Decentralized exchanges (DEX) offer investors an anonymous method to purchase Bitcoin. These platforms require you to connect a crypto wallet to exchange funds. DEXs use smart contracts that make it safe and secure to purchase Bitcoin without the platform needing a license issued by a government authority. However, users cannot purchase BTC with their bank accounts.
P2P: People can purchase Bitcoin directly from other investors. Platforms like Bisq, LocalBitcoins, and Bitquick are great platforms for P2P exchanges. However, be extremely cautious when buying BTC from other individuals.
Brokers: Only a select few brokers offer Bitcoin trading due to the uncertainty surrounding the regulatory status of cryptocurrencies. Moreover, brokers are easier to use and more accessible to beginner investors. However, these platforms do not convey ownership of Bitcoin but provide derivative products instead.
Where Is the Best Place to Buy Bitcoin in 2023?
Nowadays, Bitcoin investors have multiple methods of purchasing coins in 2023. The platform of choice depends on your needs and required features. Here are the two best platforms for buying Bitcoin.
Crypto Exchanges
Centralized exchanges act as a third party between buyers and sellers. Due to them being operated and controlled by companies, they offer more reliability and trustworthiness. Their platforms are regulated and audited by government authorities that ensure all activities are legal and safe for clients.
Moreover, centralized exchanges offer better fees compared to other options, letting you purchase more coins with your budget. Also, CEXs offer withdrawal methods to cold or hot wallets to further increase your security.
On the other hand, you can use a decentralized exchange to purchase Bitcoins anonymously. However, these platforms require an existing crypto wallet with coins to participate in trades. So this method is for more tech-savvy investors.
Key Features
Exchanges let you withdraw coins to private wallets.
Fees are low with exchanges compared to other options.
Centralized exchanges have multiple layers of security.
Decentralized exchanges allow you to remain anonymous while investing in Bitcoin.
Exchanges provide multiple trading tools to help make more informed investing decisions.
Pros & Cons of Crypto Exchanges
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How to Get Started?
Using a crypto exchange is an easy process that takes a few steps. Below we’ve outlined how to get started.
Step 1: Choose a good cryptocurrency exchange
Step 2: Create an account
Step 3: Verify your identity
Step 4: Deposit funds
Step 5: Convert your money
Step 6: Select Bitcoin
Step 7: Select the buy button
Step 8: Your wallet will have the Bitcoin
Cryptocurrency Brokers
Crypto brokers are much different than exchanges because you don't own the coins. Instead, you’ll be buying into a derivative product and predicting the price of Bitcoin. However, brokers are perhaps the easiest platforms for beginners since they have user-friendly interfaces. Also, you can buy Bitcoin directly with your bank card.
Key Features
Crypto brokers offer derivative products, meaning you won’t own your coins.
Some brokers can offer insights into successful portfolios.
Brokers offer various coins to diversify your portfolio.
These platforms are regulated by government authorities to ensure a safe experience for investors.
Brokers can offer various investment options like CFDs, ETFs, and futures.
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How to Get Started?
Step 1: Create an account and verify it
Step 2: Deposit money
Step 3: Select Bitcoin
Step 4: Click the buy button
What Is the Quickest Way to Buy Bitcoin Anonymously?
If you’re looking to buy Bitcoin anonymously, there are several options. Here are the main methods of paying BTC without ID verification.
Bitcoin ATMs
An excellent method of buying BTC is by going to your nearest Bitcoin ATM. It requires no identification and lets you convert fiat currency to crypto. It works like a regular ATM, but you’ll need to specify that you don’t have a wallet. This will make the machine create a new paper wallet with your Bitcoins. Afterward, you can transfer the coins to your personal wallet.
On the other hand, you can enter your wallet details to transfer the BTC to your account instantly. However, Bitcoin ATMs have huge fees that range between 4% to 10%.
Key Features
These ATMs work like regular machines that let you deposit fiat currency and withdraw Bitcoins.
Bitcoin ATMs have high fees compared to other options.
There are more than 14,000 Bitcoin ATMs around the globe.
Bitcoin ATMs are compatible with QR scanners.
Bitcoin ATMs are gaining more adoption. For example, Walmart is testing them in their stores.
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How to Get Started?
Step 1: Head to the nearest Bitcoin ATM
Step 2: Provide the ATM with your wallet information
Step 3: Insert the cash
Step 4: Confirm the purchase
Prepaid Cards:
Prepaid cards let you protect your name and the number of Bitcoins you’ll own. Investors can purchase prepaid cards online or at their nearest stores. However, this method is inconvenient for those who want to buy large amounts of Bitcoin since most cards can hold up to $15,000.
Key Features
Investors can use prepaid cards to buy Bitcoins without disclosing their private information.
On average, these cards can hold up to $15,000.
Prepaid cards are convenient and work like any other bank card.
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How to Get Started?
Step 1: Buy a prepaid card
Step 2: Search for specific exchanges
Step 3: Enter the card details
Step 4: Complete the trade
What Is the Safest Way to Buy Bitcoin With PayPal?
Recently PayPal has begun adopting cryptocurrencies and offering them to their millions of users. Currently, their platform offers users BTC, ETH, LTC, and BCH. Here are the best methods to buy Bitcoin with PayPal.
PayPal Platform
The safest method to purchase Bitcoin is through PayPal. Their platform has a unique fee structure that starts at $0.50 for trades from $1 to $24.99. Afterward, PayPal applies percentage fees depending on the trade size. Also, you can make crypto payments with their service, which automatically converts coins to USD.
Key Features
Clients can use their cryptocurrencies to make payments.
PayPal offers BTC, ETH, LTC, and BCH.
PayPal users don’t need to create a separate account and can manage their money from one account.
There are no hidden fees for holding crypto.
Bitcoins cannot be transferred out of PayPal.
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How to Get Started?
Step 1: Sign up for an account and verify it
Step 2: Deposit funds
Step 3: Select Bitcoin
Step 4: Hit the buy button
What Is the Cheapest Way to Buy Bitcoin With a Debit/Credit Card?
Debit and credit cards are the most widely available options for buying Bitcoin. Below are the main methods of using your bank card to invest in BTC.
Exchanges
Crypto exchanges allow users to deposit funds into their accounts via debit or credit cards. Usually, they provide a service to buy BTC with their bank card instantly. However, this has high fees, so you’ll want to use the platform’s trading interface.
Key Features
Debit and credit cards are available on almost all exchanges.
This payment method is trusted and used by millions.
Exchanges provide multiple trading pairs for fiat currency
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How to Get Started?
Step 1: Create an account and verify it
Step 2: Go to the deposit section
Step 3: Deposit money
Step 4: Select the relevant trading pair
Step 5: Click buy to complete the trade
Brokers
The primary deposit method for crypto brokers is with a bank card. The cheapest method to buy Bitcoin is through their trading interface since you’ll get the best available price. However, some brokers have a minimum deposit requirement that could exceed your budget.
Key Features
Brokers can offer various investment opportunities to let clients diversify their portfolios.
Crypto brokers are more accessible to new investors due to their user-friendly interfaces.
Brokers can offer derivative products such as ETFs, CFDs, and futures. Therefore, users won’t have ownership of their coins.
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How to Get Started?
Step 1: Open an account and verify it
Step 2: Transfer your funds
Step 3: Select Bitcoin
Step 4: Select the buy button
What Payment Methods Are Available When Buying Bitcoin?
Investors have several payment methods available for purchasing Bitcoin. Here’s a list of the most common options people use:
Credit Card
Debit Card
PayPal
Bank Wire Transfer
Cryptocurrencies
What to Consider When Choosing Where to Buy Bitcoin?
When buying an asset like Bitcoin, there are some considerations to make beforehand. Below are the main factors that should impact your decision on where you’ll buy Bitcoin.
Fees: Platforms apply various fees for using their services. You can find this information on the fee structure page.
Features: The platform you decide to use should have all the required features. If you plan to stake, leverage, or participate in any other investment activity, you should check if the platform provides these features.
Security: Only use platforms that focus on the user experience by providing multiple layers of security. Most exchanges and brokers let their users enable 2-step authentication to add an extra layer of protection. Another method to secure your coins is by whitelisting your crypto addresses on exchanges.
Trading Options: The platform should deliver various trading options to let investors get the best available price. While most users make market trades, this isn’t the best option to get the most coins. Therefore, the exchange or broker should have a market, limit, and stop-loss orders on their trading interface.
Alternative Cryptocurrencies to Buy
Bitcoin is the most popular cryptocurrency globally, with a market cap that exceeded $1 trillion in February 2021. However, there are dozens of successful coins in the marketplace. Here are some alternative coins that you may be interested in buying:
Final Thoughts
Purchasing Bitcoin in 2023 is a brilliant investment if you plan to hold long-term. We’ve gone over the best platforms for trading Bitcoin, along with their pros and cons. Remember that Bitcoin is a highly volatile asset, so invest accordingly. Finally, take the necessary precious before using an exchange, such as reading reviews and ensuring they are regulated.
FAQs
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