Investing in Bitcoin (BTCUSD) may seem complex, but it’s quite straightforward. All you need is an account on a cryptocurrency exchange or service, along with a secure method to store your bitcoin.
To start, Bitcoin investors require a cryptocurrency exchange account, identification documents (if using a Know Your Client (KYC) platform), a reliable internet connection, a payment method, and a personal digital wallet separate from the exchange. Payment options for buying Bitcoin include bank transfers, debit cards, and credit cards. You can also purchase bitcoin through specialized ATMs or peer-to-peer (P2P) exchanges.
Four Main Ways to Buy Bitcoin
- Bitcoin Wallet Apps: Use apps like the Bitcoin.com Wallet for self-custody and instant purchases.
- Bitcoin.com Website: Buy directly through the website with various payment methods.
- Brokerages: Platforms like eToro offer an easy way to buy and trade bitcoin.
- Centralized Exchanges (CEXs): Exchanges like Binance, Bybit, or Coinbase allow users to buy and store bitcoin.
Key Points to Consider
- Payment Methods: Options include credit cards, bank transfers, and PayPal, each with different fees and privacy levels.
- Platform Used: Options range from wallet apps to peer-to-peer exchanges.
- Where Your Bitcoin Goes: Choose between self-custodial wallets or third-party platforms like exchanges.
Self-Custody vs Custodial Wallets
- Self-Custody: Control your bitcoin entirely, send and receive without third-party interference, and avoid restrictions.
- Custodial Wallets: These may impose limits on usage, and withdrawals can be delayed or blocked.
Why Verify Your Identity?
When purchasing bitcoin through regulated services using government-issued currency, Know Your Customer (KYC) laws require identity verification.
Fees for Buying Bitcoin
Fees vary depending on the platform and payment method used. For example, credit card purchases may include higher fees than a peer-to-peer transfer.
Ways to Buy Bitcoin
1. Using the Bitcoin.com Wallet App
- Download the app and follow the steps to buy bitcoin directly in your wallet.
2. Bitcoin.com Website
- Purchase through the website by entering your Bitcoin wallet address and payment details.
3. Centralized Cryptocurrency Exchange
- Create an account on an exchange like Kraken or Binance, purchase bitcoin, and transfer it to your wallet.
4. Brokerages
- Use platforms like eToro for easy bitcoin trading, with secure management of assets without needing a private wallet.
5. Peer-to-Peer Trading
- Platforms like Peach Bitcoin allow users to buy bitcoin from others using various payment methods and an escrow system for secure transactions.
