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Bitcoin is a type of virtual currency that you can use for digital purchases or you can trade like stocks or bonds. To buy and sell cryptocurrency including Bitcoin, you need to use a bitcoin exchange.
A bitcoin exchange will allow you to buy Bitcoin in exchange for other assets, including traditional currency or other digital currencies. The best cryptocurrency exchanges are secure, cost-effective, quick to set up, easy to use, and accept a variety of funding sources. Here are our picks for the best places to buy bitcoin.
Best Places to Buy Bitcoin in 2022
Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by The Balance or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Best Overall : Coinbase
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Coinbase
- Currencies: 100+
- Transaction Fees: Maker and taker fees up to 0.50% each
- Wallet Included: Yes
New Coinbase users can get $10 in BTC when they sign up (and verify) for an account using BALANCE10. Expires 12/30/21.
If you are brand new to the world of bitcoin and cryptocurrency, Coinbase is an excellent place to start due to support for a number of popular cryptocurrencies, a strong security track record, and reasonable fees.
More than 73 million verified users
Reasonable fees
Support for a large number of currencies
Spread pricing opens possibility for high fees
High fees for debit card transactions
Coinbase is a large cryptocurrency wallet provider and exchange based in San Francisco. It boasts over 73 million users in over 100 countries, making it a popular choice for cryptocurrency enthusiasts, investors, and traders. Coinbase claims it holds over $255 billion in assets and facilitates more than $327 billion in trade volume each quarter. You can trade dozens of currencies, including Bitcoin at Coinbase.
Coinbase charges several fees, which it discloses upfront when entering a transaction. Those include a flat per-transaction fee and maker taker fees of up to 0.50% each. Funding fees vary based on the method. Serious users may want to upgrade to Coinbase Pro, which uses its own pricing model.
Coinbase offers strong security through Coinbase Vaults, two-factor authentication, and its use of offline storage for the vast majority of client assets.
Best for Beginners : eToro
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eToro
- Currencies: 17
- Transaction Fees: Spread price of 0.75% for BTC, varies with coin
- Wallet Included: Yes
eToro is currently offering a $10 bonus for customers that purchase $100 worth of cryptocurrency through their platform. This promotion is in select U.S. states.
This review promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd.), UK (eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK, no EU or UK consumer protections & not supervised by the EU or UK regulatory framework. Investments are subject to market risk, including the loss of principal.
eToro is our choice for beginners thanks to an easy-to-use platform and practice accounts that let you test out buying bitcoin without risking real funds.
Easy-to-use platform
Free practice accounts with virtual money
Copy-trading system to learn the ropes
High spread fee for bitcoin purchases
If you’re looking for a simple and focused platform that allows you to buy bitcoin while learning more about the cryptocurrency ecosystem, eToro could be right for you. Those new to bitcoin will appreciate the simple and straightforward platform and CopyTrader system that allows you to mimic trades from others on the platform.
You can test the waters with a $100,000 virtual account with no risk to your actual money when you sign up. Once you're comfortable, you can enter a live trade with real dollars. Just take note of the 0.75% spread price for bitcoin and higher fees for other currencies.
Best for No Cost : Robinhood
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Robinhood is our choice for cost thanks to commission-free bitcoin trades.
Buy or sell bitcoin without commissions
Easy-to-use platform
Limited supported currencies
No crypto wallet options
When you pay fees of 0.5% or more to buy and sell, you’re giving up a big portion of your potential bitcoin gains right off the top. Robinhood is best known as a commission-free stockbroker, but you can buy and sell bitcoin with no commissions as well. If you already have some experience with stock market investing, buying cryptocurrencies with Robinhood will likely feel familiar, a bonus for those new to bitcoin.
Robinhood Crypto is technically a separate account that you use alongside your Robinhood stock investment account. It supports a fairly short list of currencies, but that could be fine for many bitcoin buyers.
Best Instant : CoinMama
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We picked Coinmama because it offers instant bitcoin purchases with many payment options and high limits.
Instant order delivery
Transfer to any crypto wallet
Numerous funding options
Complex fee structure
Higher fees may apply to instant delivery
No ACH bank transfer support
If you want to own bitcoin as quickly as possible and already have a bitcoin wallet, Coinmama may be your best choice. Coinmama features fast account setup and verification. Once you’re logged in, you can buy bitcoin instantly using several payment methods, though there may be a fairly high price tag for those instant purchase privileges.
You can use a credit or debit card to buy one of 9 different currencies. When you place an order, the funds are instantly verified with your connected card by Coinmama, then the cryptocurrency you chose is deposited into your crypto wallet. Those in the UK and EU have additional instant funding options that are not available in the US.
Hopefully, they’ll add US-based ACH payments as a funding method, though the nature of electronic transfers in the U.S. wouldn’t allow for instant purchases with this funding method. But if you have a credit or debit card and don’t mind the fees, Coinmama allows you to buy coins with any bitcoin wallet instantly.
Best for Interest and Borrowing : BlockFi
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BlockFi
- Currencies: 8
- Transaction Fees: Varies by coin and applies to only some transaction types
- Wallet Included: Yes
We picked BlockFi because it provides the option to borrow using bitcoin as collateral, trade with no traditional fees, and lend to earn interest.
Earn up to 9.5% APY in crypto
Use Bitcoin as collateral for USD loan
No added fees for cryptocurrency trades
Loan interest rates as high as 9.75%
If you have a lot of cryptocurrency and want to do more with it without selling, you should know about BlockFi. BlockFi enables you to earn interest when you deposit your bitcoin into an account. If you want to unlock your bitcoin without selling, you can also use existing bitcoin as collateral for a loan, but take note of the interest rates of 4.5% to 9.75% and the required 2% origination fee. You can also buy and sell bitcoin and other cryptocurrencies with no added trading fees. Instead, BlockFi is the opposite party in all your trades and they will sell to you at a small markup and buy from you at a slight discount.
BlockFi offers you the opportunity to earn interest on your crypto holdings. The current rate is as high as 9.5%, allowing those with large holdings to earn serious money. BlockFi also has a new rewards credit card that will pay you in bitcoin, which shows plenty of innovation to come from this unique crypto exchange.
Best for Privacy : Bisq
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We like Bisq’s decentralized features that improve privacy and anonymity when buying and selling bitcoin through an open-source desktop app.
Decentralized network improves privacy
Software is open source
No registration required
No identity verification required
Potential for slow transactions
Not ideal for active traders
For those drawn to the anonymity provided by bitcoin, Bisq may offer what you’re looking for. Bisq is a decentralized exchange that doesn’t require any signup or account. That means you can use Bisq to buy and sell with nearly complete privacy. The required Bisq desktop app is open source and free to use.
Bisq supports a wide range of payment methods, including bank transfers, Chase QuickPay, Popmoney, Zelle, and Western Union. Trade fees range from 0.05% to 0.70%, depending on what you’re doing and how you pay.
Bisq is best for those with at least a little crypto experience.
Final Verdict
The right cryptocurrency exchange for you will strike an ideal balance between fees, security, and trading options. That’s why it’s important to determine what you want out of an exchange before you dive in.
But if you aren’t sure exactly what you want, then Coinbase is a good place to get started. You can buy a variety of digital currencies with a fair pricing structure in a secure setting.
Compare the Best Places to Buy Bitcoin
| Company | Currencies | Trade Fee | Security | Transactions | Max Trading Amount (in USD) |
|---|---|---|---|---|---|
| Coinbase
Best Overall |
100+ | Maker and taker fees up to 0.50% each | Two-factor authentication | Buy, Sell, Transfer | Customized trading limit. $25,000/day limit on deposits |
| eToro
Best for Beginners |
17 | Spread price of 0.75% | Two-factor authentication | Buy, Sell, Transfer | Customized trading limit. $40,000 per debit card transaction |
| Robinhood
Best for No Cost |
7 | N/A | Two-factor authentication | Buy or Sell | $5,000,000 cost basis per coin position limit |
| Coinmama
Best Instant |
9 | Up to 3.90% | Two-factor authentication | Buy, Sell, Transfer | Max order and deposit limit of $15,000 |
| BlockFi
Best for Interest and Borrowing |
8 | No traditional trading fees. Transfer and withdrawal fees may apply | Two-factor authentication | Buy, Sell, Transfer | $1,200,000 per trade |
| Bisq
Best for Privacy |
Dozens | 0.05% - 0.70% | Multi-signature address | Buy, Sell, Transfer | No trading limits |
What Is a Bitcoin Exchange?
A bitcoin exchange is a digital marketplace where you can convert currency like U.S. dollars into bitcoin. Many exchanges that support bitcoin also support other cryptocurrencies.
Every bitcoin exchange uses its own pricing and platform, which may instantly draw you to one exchange over another. Advanced bitcoin users may be interested in more details about the type of exchange. For example, some exchanges use centralized systems and user accounts while others are decentralized with a focus on privacy. Depending on what you’re trying to accomplish, you may prefer one type of exchange over another.
How Does a Bitcoin Exchange Work?
Bitcoin exchanges connect buyers and sellers and act as a middleman, or a broker, in some cases. When you buy bitcoin using a bitcoin wallet, the transaction is recorded on the Bitcoin Blockchain, which publicly tracks bitcoin-based transactions. In some cases, exchanges may transact on your behalf and not deliver bitcoin to an external digital wallet.
Are Bitcoin Exchanges Legal?
Bitcoin exchanges are generally considered legal in the United States. However, it is your responsibility to report capital gains to stay on the right side of the law for your annual tax filing.
What Are Some Differences Between Bitcoin Exchanges and Wallets?
Bitcoin exchanges are a place you can buy and sell bitcoin. In many cases, the exchange also includes a wallet, which is the account that holds your cryptocurrency. When you use a centralized exchange online or through a mobile app, the exchange effectively will hold the bitcoin on your behalf.
Bitcoin also enables you to use external wallets outside of an exchange. These include computer-based and web-based “hot wallets” and offline “cold wallets” that work kind of like a USB security fob. If you buy bitcoin at most exchanges, you have the option to transfer your coins to any bitcoin wallet.
What Are Some Differences Between Bitcoin Exchanges and Mining Software?
Bitcoin mining software helps maintain the Bitcoin Blockchain. Every transaction on the blockchain is public and recorded on countless computers around the world. When a transaction takes place, computers called miners race to record the transaction and get a small fee, which is paid by those who make the transaction.
When you run a bitcoin miner, you can effectively create your own bitcoin if you win the race and get paid the transaction fee. To improve your chances, you can join a pool with other miners. However, be aware that mining is power-intensive and could wind up costing you more than it makes you. Bitcoin mining is best for those who are computer savvy.
Is Buying Bitcoin Safe?
Buying Bitcoin is safe whenever you use a vetted and respected platform. It’s important to research any platform where you’re considering purchasing Bitcoin before you decide to take the plunge. In terms of Bitcoin being a safe investment, the value fluctuates more frequently than many other traditional investments. If you’re looking to support a decentralized method of making payments, Bitcoin can be valuable. However, there’s no guarantee or insurance protecting the value of what you're purchasing.
How Can I Buy Bitcoin?
If you’re looking to buy bitcoin, follow these steps to get started:
- Pick an exchange and wallet provider: The first step is to pick a place to buy and store your bitcoin. The easiest and fastest way to start is to choose an exchange that also offers secure bitcoin storage.
- Open an account: Once you’ve picked your favorite exchange, you most likely will need to open an account and supply basic personal information. Some decentralized exchanges don’t require an account, but you’ll need an existing wallet and more technical know-how to use this type of exchange.
- Fund your account: If you choose a provider that allows you to deposit fiat current (dollars, euros, pounds, etc.), you’ll probably have to fund your account before you can make an order. You may be able to buy right away with a debit or credit card, but beware of extra fees.
- Place an order: Now it’s time for the big moment. Place your order and wait for it to fully execute. Because blockchain processing takes some time, your purchase may not be instant. There are many factors that can lead this to take anywhere from a few minutes to longer than an hour to complete.
Once your order is done, you should see your new bitcoin in your bitcoin wallet or account. Congratulations! You're a cryptocurrency owner.
Methodology
We looked at more than a dozen of the best places to buy and sell Bitcoin online and settled on the top six places based on a number of factors. These factors included the history of the exchange, customer reviews, the fees each charge, the strength of features for each digital wallet, and the speed at which you can buy Bitcoin.