To access this content, you’ll need to upgrade your eToro Club membership. Explore the benefits of our higher tiers and unlock a world of exclusive learning opportunities. There are plenty of sources available to investors hoping to learn more about Bitcoin and how it works.
Many crypto apps and exchanges will estimate transaction fees for you while you’re setting up an order. Make sure you take note of these fees — plus any additional fees charged by the app or exchange itself — before buying Bitcoin. Technically, a bitcoin wallet is not a way to buy Bitcoin; it’s a method of storing Bitcoin. But most Bitcoin wallets these days let users purchase Bitcoin within the app that controls the wallet, typically through third-parties that facilitate the transaction.
- In this article, we’ll teach you the easiest and safest ways to buy and store Bitcoin.
- Because cryptocurrency markets in general are very volatile, it’s nearly impossible to find the “right time” to buy or sell — the price could soar moments after you sell, or plummet as soon as you buy.
- When you buy bitcoin from our website, you’ll need to decide where to receive it.
- You can pick up Bitcoin with no direct commission by using a trading app such as Webull or Robinhood, though you’ll end up making up for it with a spread markup.
- Other times, however, it might be the best investment of your life – that said, nobody knows when that time comes!
If you’re spending Bitcoin, there are a handful of retailers and digital services that allow you to use crypto as payment. With a hot wallet, Bitcoin is stored by a trusted exchange or provider in the cloud and accessed through an app or computer browser on the internet. Any trading exchange you join will offer a free Bitcoin hot wallet where your purchases will automatically be stored. But many users prefer to transfer and store their Bitcoin with a third-party hot wallet provider, also typically free to download and use.
Bitcoin transactions are verified by crypto miners via a proof of work consensus mechanism. Proof of work is a validation process that uses a group of miners to validate each block in the blockchain. There are many reasons why experts believe Bitcoin and other cryptos should only be a small percentage of any investor’s portfolio. One reason is that although cryptocurrencies have been lucrative for some long-term investors, cryptocurrencies in general still suffer from extreme volatility. Experts generally agree that cryptocurrencies shouldn’t make up more than 5% of your portfolio. Given its position as the first and largest cryptocurrency, Bitcoin could easily be a sizable portion of those holdings.
Read More on CryptoNinjas
When you have set up your exchange account (such as Binance), it will ask you to set up two-step verification. This keeps your account secure, and I strongly advise that you set it up. Whenever you sign up or log in to a website that you buy, sell or store cryptocurrency on, you should always check that the website has an SSL Certificate. There are many ways for you to store your BTC safely once you have bought them. So, now that you know how to buy Bitcoin, time to know how to keep them safe.
Wallets by Crypto
Wallets can be used to keep your bitcoin safe and accessible, while still allowing you to send and receive it. Others have their own cryptocurrency wallets or separate storage accounts to which they allow you to transfer certain cryptoassets. These sites often have a relatively high level of security, meaning that your assets are safe on the platform on which you bought them, bitcoin included. Bitcoin is a potentially lucrative investment due to its historical price increases and position as the most valuable cryptocurrency. We do not give investment advice, but if you are investing in Bitcoin, always prepare for downtimes or huge losses in spot or futures markets.
Cryptocurrency Exchanges
Unlike fiat currencies, most cryptocurrencies have a limited maximum supply. For Bitcoin, there will only ever be 21 million bitcoins created. Satoshi Nakamoto designed it in such a way that bitcoin production would slow down as time went on, meaning that the last bitcoins will be mined by around 2140. Decentralized Exchanges (DEXs), on the other hand, allow users to swap one digital asset for another directly, without the need for intermediaries. Unlike CEXs, DEXs are permissionless and offer full user control, meaning you can trade anonymously without revealing your personal information. Well-known DEXs include Uniswap, dYdX, PancakeSwap, Hyperliquid, Curve, and Raydium.
- Centralized Exchanges (CEXs) act as intermediaries, connecting buyers and sellers while securing transactions on their behalf.
- You can purchase Bitcoin using familiar apps like PayPal, Cash App, and Robinhood, order it on an exchange like stocks, or even buy it in person.
- This isn’t just about crypto, it’s about taking control of your financial independence.
- When you open an account at a traditional brokerage or a crypto exchange, you’ll need to provide basic personal information.
- If you want to use an ATM, then you must spend time traveling to an ATM.
How to Buy Bitcoin in 2025: 5 Ways to Invest in BTC With Cash & More
But if you’re ready to enter the world of Bitcoin, this step-by-step guide will walk you through everything you need to know, from choosing a cryptocurrency exchange to securing your Bitcoin wallet. Bitcoin is now considered a lucrative asset, long gone are the days of it being a mysterious digital experiment. Since 2025, institutional investment has skyrocketed along with the price. The addition of ETFs tied directly to the price of bitcoin allows more investors to join in and solidifies it as its own asset class.
This means you can save money on transaction fees when you’re not in a rush, or pay more to send faster when you are. So, those are the best ways of buying bitcoin without using your identity. If you’re looking for speed, though, use Binance, Kraken or KuCoin. You will have to verify your identity, but you can pay with a debit / credit card.
Spot ETFs hold actual Bitcoins in secure storage, allowing them to closely track the real-time price of Bitcoin. Here, trading with momentum the ETF issues shares representing ownership of the underlying Bitcoins. As the price of Bitcoin fluctuates, so does the value of these shares. Bitcoin can be a risky investment, so it’s important to think carefully about your goals and your strategy before you decide.
These work like normal ATMs, only you can use them to buy and sell Bitcoin. They are often placed in locations where you might find normal ATMs, such as convenience stores and grocery stores. Before you carry out a transaction, make sure you look at the fees you’ll be charged, and have a plan for where to send the Bitcoin once you buy it. Fees on Bitcoin ATMs are typically much higher than any fee you’d pay using a crypto exchange or traditional stockbroker. You’ll also need to set up a Bitcoin wallet before you use the ATM, which, generally, is less beginner-friendly than just using a crypto exchange, as we outlined above.
Bitcoin wallets and wallet software
If you want to use an ATM, then you must spend time traveling to an ATM. Or, if you buy Bitcoin using cash on LocalBitcoins, then you must either travel to meet the seller or travel to a bank to send the cash. For which purpose or what kind of people is the crypto exchange most useful.
