In this post, we will discuss Where Do I Buy Bitcoins? This is a question that many people ask themselves when they are considering investing in digital assets. There are several different methods to buy bitcoins. Regardless of where you get them, it’s important to consider the risks of buying bitcoin since there can be some significant pitfalls with this type of investment.
Cryptocurrency Exchange Reviews
Coinbase is one of the world’s most prolific cryptocurrency providers and has been a safe haven for many investors. They offer an easy-to-use exchange that helps lower any barriers to entry in investing into altcoins by making it less confusing than traditional trading methods are seen as.
Coinbase offers insured custodial wallets for investors and traders to store their investments. These investment accounts are very convenient, as you have insurance against data breaches or hacking – your cash is stored in FDIC-insured bank accounts. To make things even better, the private key ownership of these coins remains with the investor.
Additionally, Coinbase offers the free and more advanced version called “Coinbase Pro,” which has a different fee structure than their original plan. It also includes additional charts and indicators that can be used to help learn faster for those who are just starting out on using cryptocurrency.
- Offers more than 50 cryptocurrencies.
- Cryptocurrency is safe if the website gets hacked.
- Low minimum to fund account.
- It can be expensive when not using Coinbase Pro
- Geared for more advanced users
- The user does not control the wallet’s keys.
The Binance exchange is an online platform that enables users to trade cryptocurrencies. Users can choose from over 100 different trading pairs between various coins, as well as fiat-crypto pairings.
They dominate the global exchange space, and as a result, accounts for much of crypto trading volume daily. The exchange only allows for global deposits with SWIFT, but you can purchase select cryptocurrencies with a credit or debit card. Deposits using any of the 12 other fiat currencies are allowed too.
If you’d like to trade or invest in altcoins with low market caps, Binance might be best for you. Binance lets you trade more than 50 different cryptocurrencies and offers excellent charting abilities. Their features, data, charts are truly impressive for an exchange with reasonable fees.
- There are fewer fees than other exchanges.
- Large selection of crypto and trading pairs
- More advanced charting
- This product is not for beginners.
- There are fewer trading pairs on the U.S. version of Binance.
- Not all states supported
Cash App is the fastest, easiest way to send and receive money. This service allows users to split food with roommates or cover rent when they’re late on their electric bills. If you prefer shopping online at sites that accept Cash App instead of credit cards, then this app will be your new best friend because it’s so easy to use!
Cash App is not just a mobile app for sending and receiving money. Users can also invest in stocks, ETFs, or Bitcoin with the touch of their fingers! The interface that this exchange uses makes it easy to figure out how things work without having years of experience beforehand.
The app is like Venmo but for money transfers. It also has a basic investment feature that lets you buy cryptocurrency similar to Robinhood. The Cash app lets you take money from your investment in cryptocurrency to buy Bitcoin. This is the best way for beginners to buy Bitcoin.
- Peer-to-peer money transfer
- Extremely easy functionality
- Ability to withdraw Bitcoin
- They only support Bitcoin and not any other cryptocurrencies.
- There’s a 3% charge to send money via your credit card
- Daily and weekly limits are imposed
Investing in digital assets, like bitcoin, is risky. The Gemini exchange was founded by Cameron and Tyler Winklevoss.
Gemini’s exchange was launched for U.S. customers in October 2015 and has since grown to become one of the top 15 exchanges by volume, as listed on CoinMarketCap. Unlike several other leading exchanges out there, Gemini is available across ALL 50 U.S. states and more than 50 countries globally!
Gemini is a simple platform for new crypto investors, while more experienced traders can appreciate its ActiveTrader. You’ll find exchanges that charge fewer fees, but Gemini has safety measures and insurance against online breaches to ease the minds of those new to the cryptocurrency trading world.
- Simple, easy-to-use interface.
- More than 30 cryptocurrencies.
- Available in every state, including New York, which is not found on most crypto exchanges.
- Site insurance of digital assets against exchange hacks.
- High fees and complicated fee structure
- Fewer trading pairs supported
- Not available in most states, yet
- No stop-limit orders
What to Look for When Buying Bitcoin
The best location to buy Bitcoin for you will depend on the features that matter most to you. The following are the things to think about when evaluating cryptocurrency exchanges, brokers, and apps:
You need to think about the cost of buying and selling Bitcoin. It can be different on each site that you may use. It is important to know what you will pay before deciding which site to use.
To be certain, all of the places on this list will let you buy Bitcoin. However, when looking to invest in alternative cryptocurrencies, you need a platform that offers the variety and selection you seek. If you would like to invest in Bitcoin and stocks in the same place, make sure the platform offers this option.
Some of the biggest cryptocurrency exchanges have videos, articles, and tutorials to help people learn about Bitcoin. Other exchanges don’t have this kind of thing. This can be a big difference when looking for the best place to buy Bitcoin for someone who already knows how it works.
Some of the best places to buy Bitcoin are also offering a sign-up bonus. These bonuses are great because they give you more money for your first purchase! Always remember that the sign-up bonus is not the only thing you should consider when deciding where to buy your Bitcoin, though.
There are many different levels of investors, which means that there is a wide variety in the wants and needs. First-time Bitcoin buyers or those who only plan to trade infrequently may want as simple an interface as possible. Still, for more experienced traders with higher risk tolerance, it might be worth investing in features like charts and order options.
Purchasing Bitcoin and Other Cryptocurrency in 4 Steps:
If crypto and blockchain are an area you’re interested in learning more about, here are some steps to buy Bitcoin and other cryptocurrencies.
Decide Where to Buy Bitcoin
There are a lot of ways to buy bitcoin and other cryptocurrencies. You can do this on an exchange or with a broker.
You can buy bitcoin from a cryptocurrency exchange. The exchanges charge for the bitcoin you purchase. Do your research to find the right exchange for you. Some of the popular places people look include:
There are not many brokerages that will trade in Bitcoin. Robinhood is a brokerage company that does this.
Robinhood and TradeStation are both discounted stock trading platforms. Robinhood also offers an exclusive mobile app where you can trade bitcoin without being hit with any fees.
Like its stock-trading platform, Robinhood costs nothing for bitcoin trades. Other brokers are planning to offer cryptocurrency trading soon.
Some ways to buy or invest in bitcoin
- Peer-to-peer bitcoin owners
- Bitcoin ATMs
- Bitcoin futures
- Grayscale funds
Decide How to Store Bitcoin
Bitcoin can be stored in two types of digital wallets: a cold wallet and a hot wallet. Hot wallets tend to offer faster transactions but have an increased risk, whereas cold wallets take longer to process with the added benefit of greater protection for assets.
When using a hot wallet, Bitcoin is stored online by exchange or provider and accessed through a browser on the internet. You can get a free hot wallet on any trading exchange you join. This is where your bitcoins will be automatically stored. But many people like to store their bitcoins in third-party wallets that they download for free.
Though advocates of the blockchain technology underlying bitcoin claim that it is safer than conventional electronic transfer methods, a significant drawback for hot wallets is that they are lucrative targets for hackers.
Bitcoin exchanges and other online wallets are vulnerable to hacks.
If you want your bitcoin safe, purchase a cold wallet. Cold wallets are portable devices that will allow you to securely access and carry your bitcoins for as much as $100; they are considered safer than hot wallets because they’re encrypted.
Cold wallet providers include:
- Ledger Nano
Make your Purchase
A long, convoluted process to buy bitcoins-which preferably starts with linking your bitcoin wallet to the bitcoin exchange of your choice-might end up as a straightforward transaction. This is because while bitcoins are trading at around $10,000 per unit, they can be bought and sold for lesser amounts -often in fractional amounts like 25 dollars or less.
Manage your Investment
Day trading with bitcoin is a good idea. You can buy it and then sell it for more money if its value goes up. But you should remember that bitcoin could be a digital currency, so you should buy and hold for the long term rather than day trading. This will create a complex tax situation.
How Much Should You Invest in Bitcoin? 5 Factors to Consider
Here are five ways to invest in bitcoin – consider these risk factors when deciding how much to invest in cryptocurrency.
You need to be careful in the crypto market because its price changes quickly.
Think about the amount you want to invest in Bitcoin. Think of a number that would not be too much money for you if it all went away.
- Will you feel at ease losing your full investment?
- Will you judge yourself severely for investing this money?
- Will you lose sleep because of this decision?
If your answer is yes, you need to lower the amount you want and ask yourself the same questions again. If you are not certain about your answer, ask your friend or family member who might know.
You might invest too much money if you panic. You might sell your investment at a loss. But do not do that except it is the right decision, not just an emotional one.
People often think of investing as a good idea. You can be emotional when you lose it. But what if you invest a little bit and make it x20? That happened to some people in late 2017 when the cryptocurrency price was high, and they became millionaires because of their investment.
But if they were too greedy to be rational about their investments, do you think they sold during the market crash? No. Most of them went back to where they were during the market’s fall.
Cryptocurrencies are volatile investments that only financially savvy investors can make money on.
Investing an amount you’ll feel emotionally disconnected from is always a good idea. When the market goes down, your feelings won’t be emotionally invested, so it will hopefully lessen the blow. Indeed, when it starts going up again, those emotions that seemed to have gone away may reappear and give your profits more fuel.
Bitcoin’s price has been on a rollercoaster, as you probably know. What is written about it now centers around its highs and lows.
However, one thing that hasn’t changed is the advice to be cautious when investing in cryptocurrencies.
The cryptocurrency market is made of many different cycles. These cycles last for 1 to 2 years. Prices surge fast, creating bubbles. BIG bubbles. And then these bubbles burst badly.
This is really important. If you buy Bitcoin when it is down, you will make more money than when it is up. That means that if you plan to invest in Bitcoin, then the best time to do so would be when the market cycles are at their lowest because then your investment will be worth more.
Change of Mind
People do not always stick to what they say about investing in cryptocurrencies. Even if people want to invest, the market is changing all the time, and people might change their minds.
Before you buy Bitcoin, make sure to plan what you want and when. Determine how much money you want to spend and over how many months. Then buy it at that time.
Before you decide how much to invest in Bitcoin, leave room for change. Set the amount you think is best, and then invest it over time. You can do this by investing it every three months, six months, or 12 months.
Diversification is when you invest in different things. This way, if one thing goes wrong, it will not affect the rest of your investments. You should invest in cryptocurrencies and other things like stocks, real estate, and gold too.
Leaving some of your money at the bank is a viable option when you need to save cash for later.
All in all, don’t put all your money in one place. It would be like when you play roulette and bet on the number that has not come up yet. You will probably win for a while and then lose everything.
Where Do I Buy Bitcoins?
There are a lot of ways to purchase Bitcoin. They can be grouped into three categories.
Cryptocurrency exchanges are places that buy and sell cryptocurrency. Coinbase and Gemini are examples of major cryptocurrency exchanges.
By using certain stockbrokers, individuals are able to purchase stocks, bonds, mutual funds, and certain cryptocurrencies. Robinhood is a good example of such a broker that offers cryptocurrency.
The stockbrokers and exchanges may have apps, but some facilitate the purchase and sale of Bitcoin that don’t fall into these categories. Cash App and Venmo are some of the apps that offer this service.
Generally, investing in Bitcoin comes with more risk than investing in traditional assets, but this also means you will gain the benefits of a possible increased return.
There are many exchanges, apps, and brokerages that can be considered safe. But there is not one that is safer than the others. It’s also important to note that not all of them protect you against unauthorized access to your account.