How to Buy Bitcoin in 2023
This is the best time to get into the Bitcoin trade. Cryptocurrencies are now widely accepted and they are making their way to traditional stock exchanges, with the backing of some large investors. They are easy to use and countless businesses accept them as a payment option.
In this article, we’ll explain what are the best ways to buy Bitcoin and how to do it as a novice. We’ll also present you with a few options when it comes to exchanges since all of them have some unique benefits that may be useful to a specific group of investors.
The Essentials
Before getting into the different exchanges and how to use them, we’ll first go over the essentials. The basic process for buying Bitcoin is the same regardless of which exchange you’re using and how much Bitcoin you’re buying. The process is done in 4 simple steps.
Open an Account with an Exchange
Visit any exchange you want and set up an account on it. The process is similar to setting up an account for any online service. You’ll need an email and a phone number, that way you get two-step authentication to confirm your transaction. The exchange will also require you to upload a valid ID.
You’ll need to connect a payment method with your crypto exchange account so that you can purchase cryptocurrencies using traditional fiat money. Exchanges accept most traditional payment methods such as bank transfers, debit, and credit cards.
Deposit Funds
Once you’ve set up the account and connected the payment method – deposit the funds to the exchange account. Exchanges accept payments in many different currencies and there are no fees for depositing funds other than the ones set by the bank you’re using to deposit them.
All exchanges have a limit as to how much you can deposit. It has both a lower and upper limit and the lower is usually about $10 in most exchanges. Many exchanges also accept digital wallets as payment options – PayPal and Skrill are both widely used.
Search for Bitcoin
Once you’re logged in and have sufficient funds, you should search for Bitcoin to purchase. Most crypto exchanges have a simple interface so that they can be used by a novice. Find a search bar and type in “Bitcoin”. Click on “Trade” and proceed to the final step where you’ll buy Bitcoin.
Buy Bitcoin
Once you’ve clicked on Trade Bitcoin you should type in the amount of money you want to invest in the purchase (in USD) and click on “Open Trade” to confirm that you’ve made a purchase of Bitcoin for the amount you’ve entered.
It’s simple enough and works the same on all platforms regardless of the amount you’re buying and any other features that may be different.
Where to Buy Bitcoin
There are many cryptocurrency exchanges out there, at this point there are about 200 to choose from. Investors should stick to exchanges that are properly regulated and that operate in accordance with the law. It’s also a good idea to use exchanges that are well-reviewed and have a steady base of users.
That’s a good way to make sure the exchange is reputable and safe to use. Larger exchanges are also the ones with the lowest fees and overhead expenses as they have more users to charge those fees from.
eToro
eToro is the most widely used crypto exchange platform. It’s best suited to novice investors as it has the lowest limit out there. You can purchase Bitcoin for as little as $10. eToro supports bank accounts, debit cards, and credit cards as payment methods. eToro also supports popular e-wallets, including PayPal, Skrill, and Neteller.
The fees charged by eToro are also the lowest in the industry due to how big their user base is. At this point, the fees are set at just 0.5 percent for depositing funds, and one percent on every crypto purchase. That’s lower than any other competitor.
eToro is open 24/7 at least when it comes to trading Bitcoin. The crypto is held in cold wallets so it’s perfectly safe from hacks. There’s a two-step authentication process that’s easy to follow and similar to using any other online digital service. eToro also allows trades in many altcoins.
Coinbase
Coinbase is the exchange often favored by beginners in crypto trading. You can start trading with as little as $2 and the sign-up and setup processes are simple to follow. Coinbase supports PayPal as well as most other common payment methods.
However, on the downside, Coinbase charges much higher fees than some of the other crypto exchanges out there. The fees are set at 3.99 percent if you’re trading using fiat currencies and 1.4 percent if you’re using crypto to buy Bitcoin.
There’s also a strange pricing structure so that you don’t see the fees involved when making a purchase. This means that the fees are added on when you’re approving the payment. It’s misleading and especially problematic for novice users who will go into a trade without knowing what the charge is.
Kraken
Kraken is one of the oldest cryptocurrency exchanges. It’s been operational since 2011 and that’s a very long time in an industry as novel and evolving as cryptocurrency. The fee for using a credit or debit card is 3.75 percent and the fee for buying with Bitcoin is 0.2 percent.
A major benefit of choosing Kraken is it offers Bitcoin margin accounts. Investors only need to cover 20% of the purchase price upfront – meaning Bitcoin trades can be leveraged by 5x. There’s also a “pro” trading suit that is used by experienced traders.
The Know Your Customer process is somewhat slow and it takes a while for the exchange to approve the sign-up and payment methods. If the margins are what’s important to you as an investor, you should be able to overlook all of these issues.
Binance
Binance is the largest trading exchange when measured by the volume of the trading. It supports over 350 cryptocurrencies other than Bitcoin itself. As long as you have a photo ID it should take only a few minutes to register and start trading right away.
In most cases, debit/credit card payments average 1.8-2%. While bank transfers usually require a small fee of $/€ 1. The commission for buying Bitcoin is just 0.1 percent. Binance can be used to make other trades as well, often using crypto as the payment method. This includes leveraged cryptocurrencies, futures, options, and yield farming.
In 2022, Binance was hacked and it lost $750 million in the process. It affected its reputation greatly and the exchange hasn’t recovered yet.
Conclusion
Bitcoin is a great investment to make in 2023 as it’s now worth more than ever before and more widely accepted. There are many ways to get into cryptocurrencies, but exchanges are the most common and secure way. At this point, there are hundreds of them to choose from.
The exchanges on our list are all legal and trustworthy. The main difference between them is how easy they are to navigate and how high the fees they are charging. The investors should choose which to use based on these features.
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