How to Buy Bitcoin – Complete Guide
Bitcoin has become a mainstream investment vehicle, with large financial institutions now entering the market this has given investors confidence in bitcoin and led to more people adding it to their portfolios. Whilst it is considered highly volatile, this does offer the prospect of huge returns on your investment. We’ve tested and reviewed many Bitcoin brokers and exchanges, and we’ll give you the three easiest options for people who want to invest in Bitcoin for the very first time.
Why Buy Bitcoin Now?
One Bitcoin costs about $7,300. In early 2018, BTC’s price topped $20,000 in some markets. The change is stark. Bitcoin saw an incredible price crash, and the bear market dragged on for eight months. Whilst bear markets keep retail investors away, it is actually where the smart money begins their investment. Markets will always move in peaks and troughs, understanding the timing of your investment is very important.
Despite a sharp reduction in value, Bitcoin has only gotten stronger, technologically speaking, during this extended bear market. Where, a year ago, Bitcoin was expensive, slow, and unpredictable, the Bitcoin of today functions just as we always wished it would.
Bitcoin retains its original utility. This is a currency that nobody owns, that is issued without the oversight of any government. It can be used in any nation and sent across any border without the use of a third party like a bank. Bitcoin has even been a financial lifeline for citizens of nations with dramatically devalued currencies like Venezuela.
We believe that Bitcoin may be experiencing a true recovery after months of bear markets. If this proves to be true, now may be the best time to invest in Bitcoin for the foreseeable future.
Where is the Best Site to Buy Bitcoin?
Here are our three top ways to buy Bitcoin in 2018. We’ll offer two CFD methods, which allow you to invest in Bitcoin without having to trade or store it. We’ll also show you one excellent traditional exchange option, where you can buy Bitcoin the normal way, for trading or long term hodling.
(Pay with: Paypal, Debit/Credit, Wire Transfer, etc.)
eToro sells CFDs (Contracts for Difference), which allow you to “buy” BTC at its current price and “sell” it after a period of time when the price is higher. You’ll get all of the profit of a normal Bitcoin trade, but you won’t have to climb the steep learning curve of responsible Bitcoin ownership (wallets, transactions, avoiding hacks).
eToro also has a strong variety of altcoins (EOS, NEO, Litecoin), which you can trade right alongside Bitcoin. We advise signing up to eToro for its simple, intuitive interface. Even beginners will have no trouble learning the ropes when they buy Bitcoin with eToro. Here are some more of eToro’s best traits.
- CySEC and FCA regulated
- 6 million users – more than a decade of operations
- Lowest commissions in the market
(Pay with: Wire Transfer, Credit Card, MoneyBookers, Liberty Reserve)
24option is another CFD option for Bitcoin investors. 24option is regulated and provides access to a diverse array of asset classes. It’s also well regulated and has a good industry reputation.
- Support for 10+ languages
- Also sells traditional asset CFDs
- Listens to customer suggestions, and regularly improves platform
(Pay with: Bitcoin, Ethereum, Bank Transfer, Credit Card)
Luno is a conventional crypto exchange, selling Bitcoin and Ethereum you’ll need to store in a personal wallet. Luno is great for mobile users and is available in more than 40 different countries around the world.
- Trade both Ethereum and Bitcoin on a single interface
- Slick mobile trading app for Bitcoin and Ethereum
- Equally accessible to people in the United States and Europe
Our Expert Opinion
Of these the options, and as evidence in our eToro review, we think eToro will be the best way to buy Bitcoin for the beginner. Buying Bitcoin with eToro allows for instant access to this exciting digital asset, before the potential bull run we’ve all been waiting for!
- eToro is one of the only Bitcoin CFD options available in the US, and certainly the most trusted.
- eToro is easier to use than Facebook. Anybody can do it.
- eToro has the best commission rates of any broker of this kind.
Buying Bitcoin: Payment Methods
Bitcoin platforms will always have differing ways to buy bitcoin, the most common methods are highlighted below.
Buying Bitcoin With Credit Card/Debit Card
If you want to buy Bitcoin directly with debit card or credit card, eToro will accept your payment with no issue whatsoever. You can also use conventional Bitcoin exchanges like Coinbase and Gemini and in fact most exchanges that allow you to buy using fiat will accept credit and debit card.
How to Buy Bitcoin With Paypal
Both eToro and Coinbull accept Paypal. Most other crypto exchanges do not. You may be able to find some alternative brokers who take Paypal, but these will surely not be as widely used and trustworthy as the options we’ve already mentioned. Exchanges tend to not offer paypal as a payment method.
How to Buy Bitcoin in Your Country
Buying methods will vary by country. Your nation may have different regulatory frameworks than another.
How to Store Bitcoin in a Wallet
Bitcoin is a virtual currency that must be stored in a virtual wallet. These pieces of software may accept Bitcoin and a wide variety of other cryptocurrencies, or Bitcoin alone. If you buy Bitcoin from a conventional broker, this step is necessary to keep your Bitcoin safe.
Other Ways to Get Bitcoin
There are other ways to get Bitcoin without simply buying it:
How to Get Bitcoin by Mining
Mining is a way to get Bitcoin without having to buy Bitcoin. Bitcoin miners use powerful computers to crack codes that release new Bitcoins into the world. There are high startup costs in Bitcoin mining, but the profit potential is high.
We feel that buying bitcoin with a broker is the safer option, the fact that they are regulated makes your investment considerably more secure. Many analysts think that the price of Bitcoin price looks good in the longer term. We’ve identified 3 methods for beginners to buy Bitcoin. Use eToro, 24Option, and/or Luno to buy Bitcoin today, and you’ll have the chance to cash in on the most exciting investment option of the past generation. Good luck investing in Bitcoin!
Extra Bitcoin Resources and News
Buying Bitcoin FAQs
Featured image source: Flickr