Bitcoin’s popularity sets it apart from all other cryptocurrencies; over time, it has moved closer and closer to what we recognise as a currency, rather than a virtual anomaly. Unlike many of its peers, bitcoin can be exchanged for fiat currencies like the US dollar and euro. It has greater liquidity than other cryptocurrencies, meaning the loss to its inherent value is minimal when it is converted. Bitcoin is widely accepted and can be used to purchase many everyday items, from a holiday on Expedia to a website domain with WordPress. The virtual money can also be exchanged with other private users in payment for services, or perhaps to pay off a debt. Bitcoin is stored in digital wallets – coin storage which is secure and houses information surrounding ownership of the units being stored. Those starting out need to make a decision on which wallet to store their funds in. Some exchanges offer a free wallet but other platforms that sell bitcoin may require you to have a wallet in place before you make a purchase.
Whichever way you plan to buy your bitcoin, you must do your homework to ensure you understand how the company operates. We’ve listed the top 10 and, for each entry, we’ve highlighted what we think the company does best. There are numerous places to buy bitcoin available and we would always recommend that you conduct your own thorough research and due diligence before making your own personal choice. Although we have listed several providers below, it should be noted that this is through online research, not personal experience. At WikiJob, we are not financial advisors and any information provided throughout this article is for educational purposes only. CFD is not available in the United States. US users cannot trade CFDs. The eToro website contains a wealth of information on the details of buying bitcoin, making this exchange well suited to those just starting out in bitcoin trading. Traders who sign up with eToro get a virtual trading account with $100,000 in it to allow them to practise strategies before trading with real money. The company also offers trading courses and features a Learning Lab which houses a variety of tools to support clients with their trading experience. In the UK, eToro is regulated by the Financial Conduct Authority (FCA) and money is kept in tier one European banks. Unlike other exchanges in this list, eToro supports deposits and withdrawals to and from external wallets. Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. 80.2% of retail investor accounts lose money when trading CFDs with this provider. Based in California, Coinbase is one of the leading crypto exchanges in the world and a popular choice when buying bitcoin. The company offers both a wallet (which is free) and an exchange for customers. According to Coinbase, 98% of digital currency is stored offline in vaults and safe deposit boxes. The company also has a 48-hour withdrawal cancellation option in place to protect users from fraudulent activity and offers investors the option of adding a second person’s name to the approval list for added withdrawal security. Coinbase accepts payment by credit and debit card and charges a flat fee of $3.99 for the privilege – low cost compared to other US and UK exchanges. The Coinbase debit card supports around nine cryptocurrencies at the time of writing and automatically converts it when you want to use fiat currency. The card is free in the US but in the UK, a fee of £4.95 applies. There are also other fees applied for things like withdrawing more than the daily limit or using the card abroad. Make sure you check the related fees before using the card. Get £5 in Bitcoin after your first trade on Coinbase. Terms Apply. After you make a crypto purchase, BTC will be added to your portfolio. Limited time offer. Offer available to new users only. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using different contact information. Coinbase may update the conditions for eligibility at any time. Crypto.com has more than 10 million users and provides services in 90+ countries globally. For security, 100% of user crypto is kept in cold storage, while the hot wallets that are used to ensure fast transaction speeds contain corporate funds. All fiat currency is held in regulated custodian bank accounts, and there are strict security protocols around access to wallets based on the principle of least privilege. You can deposit 20+ fiat currencies using a credit or debit card, as well as through bank transfer, and through the app you can buy cryptocurrency at the true cost (with a commission). The Crypto.com offering includes a VISA card with the potential to earn up to 8% in CRO (The Crypto.com currency), a Pay application that lets you use your cryptocurrency balance to make payments online where accepted, an instant loan based on your cryptocurrency balance with no late fees and instant sending of crypto to other app users with no fees. With the Crypto.com app, you can earn up to 8.5% pa for staking crypto, and up to 14% if you stake stablecoins (which are designed to offer price stability because they are aligned with an asset). The exchange platform at Crypto.com offers tracking for all major cryptocurrencies, and with bitcoin you can easily see an up-to-date price when you decide to buy. Crypto.com allows users to purchase BTC and other altcoins at the ‘real price’ with commission paid on deposits via credit or debit card, so it might be a cheaper way to buy if you are using fiat currency. Trading fees are a small percentage (up to 3%, depending on volume) so it is possible to trade both current crypto holdings and fiat for BTC, too.
Uphold allows clients to trade directly between different asset classes in one transaction – so you can trade anything to anything. Uphold also focuses on Socially Responsible Investing (SRI) by providing an opportunity to trade on carbon tokens for more than just a financial return. New traders will like the transparent pricing – there are no commission or account fees, and no withdrawal or deposit costs, but the trading fees are built into the spread. Uphold will present a complete price for each trade that includes fees, so you will know exactly what the trade will cost. Uphold has a quite simple trading platform that is available on the web, as a desktop application and on mobile. Uphold also offers a debit card option, where you can pay for goods and services using any asset in your portfolio – and earn cashback as well as crypto on your purchases. Uphold makes it simple to buy, sell and trade cryptocurrency including bitcoin and 57 other altcoins. The simple format of the one-click transactions makes this perfect for beginner traders as well as those who have more experience – there are more advanced trading tools available for the savvy investor, including AutoPilot where you can schedule recurring buy/sell transactions. The 0.8–1.2% spread cost is all that you will pay on a transaction, and there are no other commissions or fees.
Highlights of the CoinSmart platform include a simple interface, learning tools and 24/7 support, alongside enterprise-grade security and reporting tools for tax auditing purposes. Users can deposit with CAD, EUR and USD, using Interac, wire transfer, SEPA and crypto, and there are nine cryptocurrencies available to trade. The trades are all commission-based, with 0.20% on a single trade, and 0.30% on a double trade. For the advanced trader, different trading tools are available including limit orders and stop loss, as well as read time charting and customised orders with order book functionality. The basic account has all the functionality needed to make trades, but there is a Premium account aimed at professional traders that adds OTC trading, preferential pricing and a dedicated account manager to the basic account. Buying bitcoin with CoinSmart is easy because the platform is designed with the idea that cryptocurrency should be accessible to everyone. One-click trading and straightforward pricing alongside great educational resources help to make the whole process simple. The platform is secured using 2FA, and there are strict KYC/AML regulations in place to ensure that all user data is verified. Most of the cryptocurrency assets are held in cold storage, to help protect them from hackers. There is not much choice of cryptocurrency available on CoinSmart, but the client support and the easy-to-use interface make this a great platform for new and experienced traders in Canada as well as other countries.
Styled as a crypto exchange for everyone, there is a whole Resource Center full of the basics of trading cryptocurrency. The feature-loaded interface is easy to use for beginners, and the long and short-term investment strategies, including margin and futures trading, are suitable for the more experienced investor. The exchange has fees that are volume-based and investor friendly, with bigger trades attracting 0% trading fees – but the exchange is very upfront about the costs involved with buying and selling Bitcoin on a maker-taker structure. Kraken allows deposits to be made in cryptocurrency, and accepts the following fiat currency:
USD EUR CAD JPY GBP CHF AUD
Accounts can be funded by wire transfer and SWIFT, but not through credit and debit cards. The Starter Account allows basic deposits, exchanges and withdrawals for cryptocurrency, and just needs basic information like name, date of birth and address. The Intermediate and Pro accounts allow for withdrawals into fiat currency but need more Know Your Customer (KYC) information like a valid Social Security number, photographic ID and proof of residence. With the Pro account there are higher limits and access to the anonymous ‘dark’ trading pool and over the counter desk for large transactions. The Kraken mobile application is available for both iOS and Android, allowing for simple buying and trading of Bitcoin and other cryptocurrencies and full use of trading strategies.
Regulated by the NYSDFJ, Gemini is one of only a handful of cryptocurrency exchanges that are regulated and available in all 50 states as well as 50 or more countries around the world. Traders can buy, sell and exchange more than 30 cryptocurrencies, and while crypto conversion is free, there is a convenience charge on each transaction of 0.50% over market price, and a trading fee of $0.99 to $2.99 or 1.49% for transactions over $200. The trading platform offers multiple tools so traders can do more than just buy and sell cryptocurrency, and the mobile application is available on iOS and Android, fully optimised to buy and sell on the go. With the mobile app you can set price alerts, and even complete an account set up directly in the application. Buying Bitcoin through Gemini is simple and straightforward – just deposit either fiat currency or other coins into your account, and decide if you want to buy straight away, or wait until it reaches your preferred price. You can buy and sell Bitcoin on the website, or through the mobile app.
Binance is one of the world’s leading cryptocurrency exchanges. Binance has free deposit and withdrawal fees for UK customers and a 0.1% trading fee. The company is well known for supporting a wide range of digital currencies which means bitcoin traders have a vast array of options for trading multiple currencies.
Robinhood allows users to buy and sell bitcoin free of charge. The company has only recently introduced a web version, having been solely mobile-based, so is better suited to those who are comfortable using their phone to manage their money. Currently Robinhood is only accessible to US clients.
Fees
Different exchanges have different fees so it’s very important to make sure you know this information before committing. When deciding where to buy your bitcoin, it pays to consider things like currency; if you transfer GBP to an exchange which only deals in US dollars, you will immediately be charged a conversion fee. By choosing an exchange that accepts your currency, you can avoid these fees. Liquidity is how many bitcoins the exchange can sell before the price is affected. You can identify how good a company’s liquidity is by looking at their trading volume (perhaps look at the number of bitcoins traded in the last month, for example); the greater the trading volume, the more liquidity the company has.
Speed
Different exchanges have different speeds when it comes to getting your bitcoins to your wallet and making transactions. Some could take five days to get the currency to your account whereas others will be far quicker.
Accessibility
Some exchanges differ in terms of platforms available for use – for example, some are solely mobile-based and, in this case, you would not be able to manage your money from a laptop. In the same way that you probably wouldn’t feel comfortable making a large bank transfer on a friend’s mobile you’re not used to, you shouldn’t choose an exchange which operates from a platform you’re not fully comfortable using.
Location
Consider your location and the location of the exchange and do some research as to how straightforward it will be to trade with that company. Fees, especially, can change significantly from region to region – a US-based exchange, for example, may offer great rates to a selection of US states but the prices may ramp up for a European country. Also, different countries have to adhere to different rules and regulations so it’s important to make sure geographical location isn’t enabling the exchange to be lax when it comes to security. Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. 80.2% of retail investor accounts lose money when trading CFDs with this provider. You can also use the CopyTrade feature, which is a helpful way to learn. If you already have a bitcoin wallet, Coinmama is another good option. Upon logging in, you will be able to buy bitcoin instantly. Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. 80.2% of retail investor accounts lose money when trading CFDs with this provider. Past performance is not an indication of future results. If you are planning to buy small amounts of bitcoin, an online wallet is usually sufficient. This will automatically be created when you open an account with an online bitcoin exchange. If you plan to make regular bitcoin transactions, consider buying a hardware wallet. As a beginner, it is sensible to use a safe and reliable exchange like eToro for your first bitcoin purchase. Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. 80.2% of retail investor accounts lose money when trading CFDs with this provider. If you search online for ‘free bitcoin’, you will be able to find out more about shopping online to earn bitcoin, crypto mining to earn bitcoin and answering surveys to get free bitcoin. Reading reviews written by other traders can be very useful when it comes to making sure an exchange is as good as you think it is – pros and cons featured in comparison articles online can alert you to areas of the exchange’s website you need to look at more closely to get the full picture. This article promotes 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. WikiJob does not provide tax, investment or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
