If you’re interested in buying Bitcoin, the world’s first and most valuable cryptocurrency, there are a few things you need to know. For those considering investing in crypto, you’re probably already aware of its wild price swings and potential for further rises in value as cryptocurrencies become more mainstream.
But whether or not Bitcoin will be worth more in the future, you should never put down more than you can lose. As for what you can invest, where do you take that money in the first place?
In this guide, we will explore five different ways to buy Bitcoin so that you can get your hands on the cryptocurrency quickly and safely.
The online payment processor we all know and trust offers an easy way to buy cryptocurrencies. PayPal is also a fairly affordable means, with transaction fees for trades under £25 set at just 50 pence.
From there, you pay a commission starting at 2.3% for purchases up to £100, moving down to 1.8% for transactions up to £1,000, and so forth.
You can learn more about how to convert your funds on PayPal to Bitcoin easily on the Paxful website. This popular P2P cryptocurrency exchange and digital wallet provider also allows you to buy and sell crypto using over 350 other payment methods, so it’s a considerable option.
Another solution is to make use of a trading app such as Robinhood, eToro, or Webull. These services typically charge a spread markup instead of a direct commission for your transactions. For instance, with Robinhood, you can directly buy Bitcoin along with several other cryptocurrencies using their simple mobile app.
An online exchange that specialises in cryptocurrencies, Coinbase allows you to own your Bitcoin directly. You can trade all of the usual cryptos on their platform and store them in a vault with time-delayed withdrawals, which essentially acts as an extra layer of security.
When it comes to costs, this website charges a spread fee of 0.5% and an additional transaction fee that varies based on the payment method and transaction volume. You can expect to pay around 1.5% in total, albeit more with a debit card.
Depending on where you’re located, you might be able to make use of an ATM for bitcoins. Of course, these machines don’t actually dispense any physical currency, but rather connect to the crypto network and allow you to buy BTC with the cash you deposit.
This typically involves scanning the QR code connected to your bitcoin wallet address, which is where your Bitcoin will be sent. You usually don’t need to have a wallet from the get-go and can create a new one at the machine. Keep in mind that the service fees for Bitcoin ATMs tend to be higher than online options.
The fifth way to buy Bitcoin is through a broker. While this method means that all the technical work will be handled by the service provider, it’s usually more expensive, so be sure to check the prices in advance.