How to Buy Bitcoin [Best Places to Buy BTC 2021]

Intro

Current Bitcoin (BTC-USD) Trading Price

Buying Bitcoin in 3 Simple Steps

  1. Decide the best place to buy Bitcoin
  2. Choose your buying strategy
  3. Make Your Bitcoin Purchase

1. Decide Where to Buy Bitcoin

With Bitcoin's recent price surge, you now have a plethora of options for your Bitcoin purchases. Most articles on this subject provide little insight into the best places to buy Bitcoin and which places to avoid. Luckily, I've used crypto exchanges, crypto trading apps, third party sellers and more so I know the pros and cons for each purchasing strategy.

Cryptocurrency Exchanges (My Preferred Method for Buying Bitcoin)

You can purchase Bitcoin easily from several cryptocurrency exchanges. Crypto exchanges allow you to deposit funds and purchase Bitcoin safely and securely without any major risks or hassles. The downside is you must pay a transaction fee on each purchase but using exchanges is still the best long term strategy for Bitcoin buyers.

Here's a list of the best crypto exchanges for buying Bitcoin:

Stock Trading Apps (DO NOT BUY from places like Robinhood)

Popular stock trading apps like Robinhood offer cryptocurrencies like Bitcoin for purchase on their platform without any fees. Users buy Bitcoin to avoid paying commission fees but end up losing in the long run because you cannot fully control 100% of your Bitcoin.

Here's a list of popular crypto trading apps to avoid:

  • Robinhood
  • Webull
  • eToro

Robinhood treats Bitcoin on its platform like a stock not private property. Bitcoin is a form of digital gold that was designed to be bought and held like personal property. When you buy Bitcoin on stock trading apps, you cannot move your Bitcoin to offline storage (like a cold wallet) or send it to another Bitcoin wallet.

Your only option is to sell your Bitcoin, wait 5 days for the transaction to settle, then buy back your Bitcoin on a preferred platform like Coinbase.

After 5 days, the price of Bitcoin may trade much higher and you'll end up paying more for your Bitcoin plus transaction fees.

DO NOT BUY BITCOIN on Robinhood, Webull, eTORO or any of these commission free trading apps.

Bitcoin ATMs

Bitcoin ATM
Photo by Elise from Pexels

Bitcoin ATMs are propping up all over the world and make it extremely easy to buy Bitcoin on the go. You'll need a crypto wallet to get started because you need a Bitcoin address to receive your BTC. CoinATMRadar lists over 7,000 Bitcoin ATMs in the US alone and you can easily find your nearest ATM.

Peer-to-Peer Bitcoin Marketplaces

You can buy Bitcoin directly from another seller just you would buy something on Craigslist or eBay. P2P exchanges