How to Buy Bitcoin BTC: Quick-Start Guide

Some crypto apps, such as games, crypto wallets or other online services that use blockchain technology, allow users to buy and sell digital assets directly within their app. If you’re looking to purchase Bitcoin or other digital currencies as an investment, it’s important to keep costs to a minimum. Given the novelty of the crypto market, many brokers would love to maximize their commissions (in contrast to the stock market where trading fees have gone to zero). Those fees eat into your profits, so look for a way to minimize those frictional costs.

These fees are higher than those on most crypto exchanges, especially for purchases under $200. For purchases from $200 to $1,000, the fee drops to 1.8%, and for purchases of $1,000.01 or more, it drops to 1.5%. However, these wallets aren’t as secure as hardware wallets, because they’re always connected to the internet. If you’re comfortable taking custody of your BTC, the safest way to is my car an asset or a liability store it is in a crypto hardware wallet, sometimes referred to as a “cold-storage” wallet.

You’ll be able to buy bitcoins and some ATMs will allow you to sell them, too, using cash or a debit card. Commissions can be pricey, with some ATMs charging around 7 percent per transaction, while the fees at others may stretch into the teens. If you’re looking to trade Bitcoin, the good news is that you now have several options.

1. You do not even need to open a separate and specialized account to do so, since major brokers offer a way to buy them via ETFs.
2. You’ll pay $0.49 for purchases or sales between $1.00 and $4.99 and $0.99 for purchases or sales between $5.00 and $24.99.
3. Some crypto apps, such as games, crypto wallets or other online services that use blockchain technology, allow users to buy and sell digital assets directly within their app.
4. They carry a variety of different fees and consumer protections, so do your diligence before choosing.

What information is needed to purchase Bitcoin?

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. Bitcoin is the dominant force in the market for cryptocurrencies, but there are thousands of other cryptocurrencies — some reputable, some not.

Trading apps

Cryptocurrencies are traded on public exchanges, but they are generally not subject to the same regulations as stocks and other traditional investment products. Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services.

The crypto exchange you use probably has an integrated Bitcoin wallet or at least a preferred partner where you can safely hold your BTC. Some people, however, do not feel comfortable leaving their crypto connected to the internet—in a “hot wallet”—where hackers may more easily steal it. Bitcoin can function either as an investment or a medium of exchange. If you’re spending Bitcoin, there are a handful of retailers and digital services that allow you to use crypto as payment. If you’re using cash in one of these apps, you may wind up using a third party service such as MoonPay to fill your order. Such services can cost a bit more than regular exchanges, but offer some advantages in the form of quick, relatively painless transactions.

Look at their features, fees, security and overall reputation to decide which platform best suits your needs. Consider an exchange registered with FinCEN for added peace of mind. If this is your first time buying cryptocurrency, look for a platform that accepts US dollars. Once you’ve purchased your bitcoin, you should be able to transfer it to another exchange later, so don’t worry too much about extra features for now. Hardware wallets provide a secure and private way to hold your bitcoin, which is stored directly on the blockchain rather than being entrusted to a third-party exchange or platform. Cold wallets, or hardware wallets, offer a safer way to manage the private keys to your crypto assets, as they remain mostly or completely disconnected from the internet.

Cryptocurrency

Investors who day trade — a risky investment strategy that involves frequent buying and selling — try to buy Bitcoin low and sell it if and when its value moves higher. Our partners cannot pay us to guarantee favorable reviews of their products or services. You’ll pay $0.49 for purchases or sales between $1.00 and $4.99 and $0.99 for purchases or sales between $5.00 and $24.99.

Where could Bitcoin’s price be heading?

And if you’re looking to store it in an extra safe fashion, you could use a bitcoin-only hardware wallet like the Coldcard Mk4. The following steps to buy bitcoin are for US residents and should work with most cryptocurrency exchanges, investing apps and brokerages. In addition, if you use a credit card to buy cryptocurrency, it generally will count as a cash advance and be subject to a higher interest rate than you pay on regular charges. Moreover, taking on debt to buy volatile investments is extremely risky. There are scores of exchanges out there, but as a beginner, you’ll want to opt for one that balances ease of use with low fees and high security.

You are responsible for managing your private key or seed phrase, which, if lost, may result in inaccessible funds. Venmo also now allows you to move your BTC from its custody into a non-custodial wallet or transfer it to a friend. If you send your BTC out of the Venmo or PayPal networks, you’ll have to pay a blockchain fee, which varies according to network congestion.

NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

One common rule of thumb is to invest no more than 10% of your portfolio in individual stocks or risky assets like Bitcoin. And as always, it’s a good idea to make sure you understand what you’re investing in. The Securities and Exchange Commission has officially approved a spot Bitcoin ETF. As you’re considering how to buy Bitcoin, you’ll want to evaluate the following factors, since they should influence your choice of where to buy it or whether to ultimately avoid it altogether.

Some traditional brokers have also ventured into the cryptocurrency arena, including Interactive Brokers and TradeStation. And with the introduction of Bitcoin ETFs, major brokers offer funds that let you buy the crypto, too. The offers that appear on this site are from companies that compensate us.

In this article, we’ll teach you the easiest and safest ways to buy and store Bitcoin. While more secure than a hot wallet, a cold wallet has other potential risks, including theft of the device, loss of the wallet and even loss of the password. Bitcoin is one kind of digital currency or cryptocurrency, a way to pay for things that exists only virtually. The currency debuted in 2009 and really broke into mainstream consciousness in 2017 with its rapid rise that year. Coins are created, or “mined,” when computers that organize the currency process and legitimize transactions in the currency.