Best Places to Buy Bitcoin in 2021 – Updated

If you are wandering where to buy to bitcoin in 2020, you should give this guide a read. Here, we listed some of the best places to buy bitcoin.

Bitcoin is a digital currency that’s mostly used for online purchases or bought as an investment, albeit a very risky one. However, Bitcoin took the world by storm when its value skyrocketed to $20,000 per coin in 2017. Though the cryptocurrency markets have since calmed down, many Bitcoin evangelists still believe that Bitcoin is the currency of the future.

Bitcoin is not sponsored by any government and works through a system where the Bitcoin community can earn coins from “mining”, or using their computer to complete calculations. These digital currencies can also be bought with fiat currencies such as dollars or any other currency.

There are different opinions surrounding the Bitcoin industry where some people think it may be worth millions in the future while others see it as an entire fraud that’s ready to fall. Regardless, if you’re still interested in getting a piece of the action in the Bitcoin industry, you’ll need to know where to buy Bitcoin and where to store them.

There are now plenty of online digital wallets attached to an account where you can buy and sell Bitcoins to cater to this hobby. This could either be a program on your computer or a physical device you plug into your computer. With it, you can easily transfer Bitcoin and use them for purchases of rare stores both on and offline. When you’re transacting in Bitcoin, do beware of large transfer fees charged by the cryptocurrency exchanges when going back and forth between coins and other currencies as it could eventually lead to a very significant amount.

Things to Consider when deciding where to Buy Bitcoin

Although Bitcoin is not yet recognized as an official currency, it is still money and should be treated with the same consideration as you would with a new credit card or loan. Here are a few things to consider when picking places to buy bitcoins.

Fees

When deciding where to buy bitcoin worldwide, you need to consider things like currency. You will need to expect to pay a conversion fee if you transfer GBP to an exchange that deals in US dollars only. Look for an exchange that accepts your currency to avoid additional fees.

Liquidity

Liquidity will depend on the cryptocurrency exchange you choose and should be a crucial factor when deciding on one. Liquidity basically means the number of bitcoins the exchange can sell before the price is affected. This can easily be identified by looking at their trading volumes. The greater the volume the more liquidity the popular exchanges have.

Speed

Some bitcoin exchanges differ in terms of platforms available. Some are solely mobile-based which means you won’t be able to buy bitcoins via a laptop. In the end, it is best to pick an exchange that operates in a platform you’re comfortable using.

Location

With the ability to now buy Bitcoin worldwide, you need to consider the location and the location of your Bitcoin exchange before deciding to trade in that company. The exchange location will significantly affect a few factors.
The first one is fees, which can differ from region to region. A US-based exchange may offer great rates to a selection of US states but prices may ramp up if you’re buying bitcoin from a European country.
Different countries will also have to adhere to different rules and regulations. So you need to make sure that your geographical location isn’t enabling the exchange to be lax when it comes to security.

Best Places to Buy Bitcoin

If you’re still reading it means you’re looking to hop on the Bitcoin wagon. Here are a few best places you can use to buy Bitcoins:

1. Coinbase

Best Overall

Being one of the largest and most respected Bitcoin platforms in the United States, Coinbase combines both an exchange and wallet into one single platform to make it one of the easiest places for beginners to start with Bitcoin. Other than Bitcoins, the crypto exchange also supports Bitcoin Cash, Ethereum, and Litecoin.

Upon signing up with Coinbase and connecting your bank account, you can quickly transfer funds in and out of your account to buy and sell Bitcoins. You can also conveniently exchange Bitcoin back to dollars at will at any time. However, Coinbase does charge a variable percentage fee of 1.49% for US transactions from a bank account or Coinbase USD wallet. Purchases made via credit or debit card will have an additional 3.99% fixed fee.

Nonetheless, the Coinbase wallet is an extremely secure crypto trading platform that can be accessed through the Web app or mobile app. The company utilizes two-factor authentication and keeps redundant digital and paper backups of data in safe deposit boxes and vaults located around the world for additional security.

The company also has a 48-hour withdrawal cancellation option to protect users from third-party fraudulent activity and offers investors the option of adding a second person’s name to the approval list to ensure better withdrawal security.
On top of that, Coinbase even insures cash balances of up to $250,000 against theft or breach in online storage. The company also holds 98% of customer currencies offline to prevent any security breach by malicious hackers. All of these features combined are what make Coinbase a true leader in digital currencies.

You would like this if:

  • You need an all-in-one platform that offers purchase to sale to safe cold storage of your bitcoins.
  • You want to conduct bitcoin exchanges on a platform that’s covered by insurance.
  • You want a reliable Bitcoin wallet with a good reputation in the cryptocurrency industry.

You might not like this if:

  • You don’t want to pay high fees for buying and selling bitcoins.
  • You prefer to use local payment methods.
  • You don’t want to have long support waiting times.

2. Robinhood

Best for Low Cost

Started out as a fee-free stock brokerage, Robinhood has recently expanded its business profile to include digital currencies. The best part about all of this is that the company maintains a no-fee policy! This means that you can buy and sell Bitcoin as well as other digital currencies completely fee-free on this platform. Robinhood even offers a mobile app where customers can conduct cryptocurrency trades and get market data anywhere they go.

Robinhood stores all your coins in the same account as the one you use for trading stocks. Although Robinhood is mobile-first as they place a large emphasis on their mobile application, they also have an option for you to trade via a desktop for people who feel more comfortable managing money from their tablet. Though you may need to key in your login credentials on a smaller screen, you still can’t beat free trading!

One of the biggest downsides of Robinhood is that it does not work in every state in the United States as of May 2020. However, if you do happen to live in one of the states available, Robinhood Crypto will just be one of the best options to get started in Bitcoin trading.

You would like this if:

  • You want to trade and buy bitcoins without trading fees.
  • You prefer a user-friendly interface that brings all your cryptocurrencies, stocks, and ETFs together in one platform.
  • You want a US-regulated company that supports wire/bank transfer payment methods.
  • You want a platform that lets you use your bank account for deposits and withdrawals.

You might not like this if:

  • You live outside of the US and Australia.
  • You want to buy and sell digital currency other than Bitcoin and Ethereum.
  • You prefer a cryptocurrency exchange with better customer support.

3. Square Cash

Best for Versatility

Square is a huge financial technology company that makes mobile credit card readers as well as many other services. They’ve even developed a mobile app called Cash App that is yet another mobile app that lets you buy and sell Bitcoin without any transaction fees.

Their Cash App is a great option for sending money to family and friends for free and operates similar to Venmo. However, they’ve added an extra feature where users can now trade and exchange Bitcoins with the same app, putting Cash App near the top of the list of best places to exchange Bitcoin.

Unlike some digital wallets out there, you don’t hold your Bitcoin outside of Square. The company holds your Bitcoin on your behalf in your Square Cash account and will sell or withdraw for you. This also means that you’re not able to send coins to another wallet via Square. On top of that, Square also limits purchases at $10,000 per week with no limit to the amount you want to sell.

You would like this if:

  • You want Bitcoin exchanges that offer ease of use.
  • You prefer a refreshing design on a banking app.
  • You want a reliable Bitcoin wallet that is backed by a reliable company.

You might not like this if:

  • You want more features when trading and buying bitcoins.
  • You want to buy Bitcoin worldwide as several markets still do not have the ability to get the card or buy BItcoin with it.

Binance

Best for Low Rates in Other Currencies

If you’re looking for the best cryptocurrency exchange that supports a wide range of digital currencies including Bitcoin, Ethereum, and its own Binance Coin (BNB), then Binance is the crypto exchange for you. Binance even offers very low fees at just 0.10% for trades.

Aside from the cryptocurrencies mentioned above, Binance offers the option to trade coins into multiple currencies and other digital currencies including EOS, Skycoin, TRON, ICON, Ethereum Classic, Litecoin, Ripple, Stellar Lumens, Bitcoin Cash, and other cryptocurrencies that you probably never even heard of, making it the best place to do more than Bitcoin trading.

While this platform offers a huge range of crypto exchanges at a low cost, there have been a few bugs reported with their Android mobile app. Several users have also complained of delays when withdrawing certain currencies. Other than that, Binance is also not insured, which could be a major concern for some, especially after several irregular trades were detected and reversed back in March 2018.

You would like this if:

  • You need faster processing as Binance uses advanced technology that can process 1.4 million orders per second.
  • You want lower fees. Binance charges $0.1 transaction fees and even less if paid in BNB.
  • You prefer high liquidity when trading bitcoins.

You might not like this if:

  • You live in New York and 12 other states namely Alaska, Alabama, Connecticut, Georgia, Florida, Hawaii, Louisiana, North Carolina, Idaho, Vermont, Washington, and Texas.

4. Coinbase Pro

Best for Active Traders

Formerly known as GDAX, Coinbase Pro provides a serious trading platform with screens and a user experience much like those you’d see on Bloomberg terminals or active stock, commodity, and option trading platforms. The cryptocurrency exchange charges fees that range from 0.04% to 0.50% depending on your trading volume.

So, those looking to trade cryptocurrencies with much higher volume may prefer to go for Coinbase Pro thanks to its lower trading fee with larger trading volume. Coinbase Pro is part of Coinbase, meaning all the funds stored there are safe and insured. Cash is insured of up to $250,000 with the majority of the coins stored physically offline to prevent theft and malicious activities.

You would like this if:

  • You want a seamless trading experience with a highly intuitive interface.
  • You are a professional trader wanting to buy Bitcoin worldwide.
  • You prefer a platform that’s backed by a reputable company and fully regulated in the US.
  • You want high liquidity across their trading pairs.

You might not like this if:

  • You want a wider selection of cryptocurrency options.
  • You want to trade via a mobile app.

5. Coinmama

Best for Quick and Easy Transactions

Coinmama is an all-in-one Bitcoin exchange and digital wallet that makes it easy for people to purchase Bitcoin plus a limited list of additional currencies in the USD or Euros. This is easily the best place to buy Bitcoin with more than 2 million customers in 188 countries currently using this platform.

One feature that many love is how this crypto exchange company has an option for users to buy Bitcoin in increments of $100 with just a few clicks from the homepage. While the exchange offers great real-time transactions, the added security for trading on this cryptocurrency exchange platform does come at a price as the company charges a higher fee compared to some other platforms mentioned here. Coinmama has a 3.90% commission fee on buy transactions and 0.90% on sell transactions. You even need to pay an additional 5% when you use credit or debit cards as your payment method.

Another feature to note is that though you can buy Bitcoin through Coinmama, you cannot sell it back. This may not necessarily be a negative point as this cryptocurrency exchange is suitable for those who simply want to buy bitcoin without needing the option for exchange.

Instead of buying and selling on the open market, Coinmama funds user trades from its own holdings to add a little extra security compared to using open market platforms. Coinmama also does not come with a mobile app but offers a very high-quality website with an easy-to-use interface. Additionally, Coinmama is a registered money business in the US, giving the company additional legitimacy and recognition compared to some of its competitors.

You would like this if:

  • You need the best places to buy Bitcoin worldwide as Coinmama works in almost all countries.
  • You want to enjoy the highest limits for buying bitcoin with credit cards.
  • You need a reliable and trusted cryptocurrency exchange/broker with a good reputation to buy bitcoins.

You might not like this if:

  • You don’t want to pay high fees when buying bitcoin via credit cards or debit card.

6. CEX.io

Best for Buying with Credit Card

CEX.io is a UK-based crypto exchange that accepts money transfers via bank transfer, credit, and debit card for the purchase of bitcoins. All payments made with a credit card will deliver the bitcoin to the user’s account instantly with love privilege fees compared to other crypto exchanges.

However, the authorization and verification process for CEX.io can be a lengthy one as it requires a significant amount of personal information before administering a trade. Those wishing to purchase large amounts of Bitcoins via bank transfer will even require top-level verification that involves photographs of several different identification documents, selfies, and proof of address.

You would like this if:

  • You want the best places to buy bitcoin with good levels of security.
  • You want a high trading volume with unlimited withdrawals.
  • You prefer a platform that offers different payment methods.

You might not like this if:

  • You don’t want to pay high fees.
  • You want to do more than just buy bitcoins. CEX.io offers a limited number of digital currencies.

7. Bitpanda

Best for Choice of Payment Method

Serving an European customer base, Bitpanda offers a good selection of payment methods with the cost of buying and selling bitcoin on par with Coinbase at 1.49%. However, it is worth noting that the full fee breakdown is not easily found on the website and the fees are directly incorporated within the buying price.

Bitpanda also offers a level of privacy depending on usage. A verified email will let you buy bitcoins but have limited amounts to sell. With a verified ID, you can buy bitcoin with a credit card and purchase substantially more bitcoins with other payment methods.

You would like this if:

  • You prefer a platform that offers the best choice of payment method.
  • You want a fast and reliable exchange to buy Bitcoin.

You might not like this if:

  • You live in the United States and China as Bitpanda is designed for Europe.

Conclusion

Deciding on which cryptocurrency to buy may be fairly straightforward but choosing an exchange and wallet can be a more complex process. Choose well and you could enjoy a substantial return on your investment knowing that your funds are safely secured. Picking bad exchanges could potentially turn your Bitcoin experience into a negative one.
It is always advisable to check written reviews by other traders before selecting an exchange or crypto wallet that’s best for you. Remember to read the pros and cons features in the comparison articles to get a better picture of the exchanges.

Frequently Asked Questions

What is Bitcoin?

Bitcoin is a digital currency, also known as a cryptocurrency that’s created, distributed, and kept through a blockchain, which is a decentralized ledger system that aims to lower the costs of making payments.

Bitcoins are also easier to use compared to institutions like PayPal or debit card/credit card. You can also make transactions that cross international borders without the additional fees associated with ATM withdrawals and international money transfers. As of today, many stores even accept Bitcoin as payment such as brands like AT&T and Overstock.

How Does Buying Bitcoin Work?

Bitcoin traders will sell their bitcoin through platforms that also provide hardware wallets for users to buy and store their Bitcoins. Such a platform serves as an exchange that will anonymously match buyers and sellers to perform transactions. The digital wallet also allows users to utilize other traditional financial resources such as a debit card, credit card, or bank transfer to complete the purchase of Bitcoin.

Another option is a peer-to-peer exchange service that connects buyers and sellers to make their own Bitcoin transactions via the platform. Both parties are able to communicate with each other, which gives the buyer a chance to shop around for the best deal. There are also various in-person Bitcoin ATMs in some cities that allow you to buy Bitcoin directly.

Is Buying Bitcoins Safe?

Yes, buying Bitcoins is safe whenever you use vetted and respected exchanges. Hence, it is important for you to research any platform before deciding to take the plunge. In terms of Bitcoin being a safe investment, the value actually fluctuates more frequently compared to other traditional investments. So, if you’re looking to support a decentralized method of making payments, then you might just find Bitcoin a valuable investment. However, there’s no guarantee or insurance protecting any value of what you’re purchasing with Bitcoin.

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