Bitcoin is the biggest revolution in global finance in a generation, so many people want to know how to buy a Bitcoin. If you want Bitcoin, you’ve come to the right place. Bitcoin is a revolutionary digital currency, used both as a means of exchange and a store of value. But if you’re reading this, you want to know the Bitcoin price and how to buy Bitcoin. If you want to know more about how to buy Bitcoin instantly, check out our complete guide to Bitcoin, or check out the second half of this Bitcoin guide. If you’re ready to buy Bitcoin now, let’s dive right in.
What if you had invested in Bitcoin back in 2012?
According to the data at 99bitcoins, Bitcoin was worth $3.47 by January 2012. By the time we’re updating this guide, BTC price hovers around 3500 USD. If you had bought $1000 worth of Bitcoin back in 2012, that would now be worth $1,000,000 (yes, one million dollars). That is over 100,000% increase, dwarfing all other assets. It hasn’t been always an uphill path for BTC, though. The crypto asset is extremely volatile and should be traded carefully and wisely. The best place to take advantage of this volatility is through one of the regulated platforms highlighted below. Being regulated means that these brokers are accountable and have plenty of safeguard measures to protect your money.
Buying BTC Currency – Shall I do it?
Bitcoin is not just a fad. It is worth nearly $100 billion. That cannot be ignored by all the naysayers. This market has seen the most growth of any market in the financial sector and despite calls that the cryptocurrencies are in a bubble, there are still two counter-arguments that should get you involved in the crypto market:
- Bubbles can last for decades, ride it while it’s going up!
- There is real innovative technology behind the cryptocurrency. The underlying value of blockchain technology is high
The invention of the blockchain will change the world. Already there are companies giving access to the technology, to SMEs (small and medium enterprises). Which will in turn dramatically improve efficiency in these businesses.
Investors can see the clear value that Bitcoin has and that is why we have seen growth over 5000% in 2017 alone.
Three ways to Buy Bitcoin: via derivatives at brokers or directly on Exchanges
There are dozens of places online to buy a Bitcoin, but these are grouped under two main Buy Bitcoin methods: derivatives and traditional ownership. Derivatives are usually contracts where you don’t own real BTC, but you invest in the possibility that the price goes up or down. Most common derivatives include contracts for difference (CFDs), futures, and underlying assets (the method that eToro is currently using.) We’ll first explain why you might buy a Bitcoin via both methods.
Virtual currency available securely with the Best Cryptocurrency Exchanges USA and the Best Cryptocurrency Exchanges Canada for alternative digital currency coins Altcoins, or invest using Trading Robots.
Buy Bitcoin on Exchanges
Now you know how to buy BTC using a regulated broker (there are a lot of alternatives besides eToro, and you can choose the most convenient for your needs). But if you want to get real BTC directly in a wallet, then you'll need to use an "exchange". In a nutshell, it's a trading platform where you can trade, buy, sell and store cryptocurrencies. Many exchanges have a multi-currency portfolio, while some others have only Bitcoin available. Find some examples below-
Payment Methods for Buying Bitcoin
Above we have highlighted Coinbase and eToro and how you can buy bitcoin using these providers. There are advantages to using both, this obviously depends on what the user is looking for, but the best thing they do have in common is the payment methods they offer. You can buy bitcoin very quickly using either credit/debit card, bank transfer or Paypal, essentially the most popular payment methods. Although PayPal is currently only available to US citizens, more on that can be found below.
The methods we have highlighted are the best ways to pay when converting your fiat currency into cryptocurrency, you can also buy bitcoin using other cryptocurrencies but you need to already own another cryptocurrency, which would have seen you go through this process. This is step one for the beginners out there.
Below are the most widely used payment methods when it comes to buying anything and cryptocurrencies are no different. However, there are small nuances that you should be aware of each method as highlighted below:
Buying Bitcoin with a debit card
This is possibly the easiest and most accessible way to get bitcoin directly. All the methods described in this page will allow you to buy Bitcoins with a debit card. With so many people having access to traditional banking services, you will not be surprised to hear that you can buy bitcoin by using a debit card. If you have signed up to a bitcoin wallet, you can then use a bitcoin exchange to purchase the cryptocurrency using such cards. Besides the exchanges listed in this guide, you can also buy Bitcoins with a debit card using Coinmama.
Buying Bitcoin with a credit card
The method of using a credit card for buying Bitcoin is very similar than the exposed above. However, some exchanges have imposed restrictions to buy cryptocurrency using this payment. It depends on your region and the regulation of the platform. When buying bitcoin with a credit card, you must decide if you want to actually own the asset or if you want to buy it using leverage. We tend to recommend buying it using leverage because you will be buying it through a regulated provider. Most crypto exchanges are not regulated and, therefore, not quite safe.
Providers like eToro also have a very simple and easy process of buying bitcoin using credit cards. It is very user-friendly and makes sense for first-time traders considerably easier. Once you have signed up it is very easy to fund your account. Not only will it show you how to buy using a credit card but it also highlights some of the various advantages to using providers like eToro compared to crypto exchanges. Besides the exchanges listed in this guide, you can also buy Bitcoins with a credit card on Coinhouse and Bitpanda.
BTC credit cards? Bitcoin prepaid cards?
Bitcoin now is arguably a powerhouse in the financial sector now, maybe not up with the dollar or some banks, but its current market cap exceeds $100 billion. That is not something to turn your nose up at.
It is unsurprising that people are talking about getting bitcoin prepaid cards and even bitcoin credit cards. Although those may be a while away yet, with the growth we have seen and the uptake of retailers allowing you to purchase their goods using bitcoin, it surely must not be too long away.
Another of the best five payment methods to buy bitcoin is online transfer. This could prove to be an ideal payment option, particularly if you want to use funds that are in an account that you do not have a card for or it may help you avoid incurring fees on a specific card.
Of course, a huge number of people have money stored in online services like PayPal so it should not be a huge surprise to hear that you can use it to buy bitcoin. Bitcoin exchanges do not always allow it though so you may need to turn instead to other avenues such as making use of a CFD provider like eToro. Find more information here: How to Invest in Bitcoin Instantly With Paypal.
The thought of being able to buy bitcoin at an ATM might seem bizarre but it is now a reality. Several websites offer listings on where cryptocurrency ATMs can be found across the world and the machines offer you the chance to buy bitcoin and then transfer it into your wallet of choice.
Get Bitcoins by becoming a miner
Finally, a look at the best five payment methods to buy bitcoin would not be complete without a mention of bitcoin mining. Working on the blockchain technology that bitcoin is based on can lead to new bitcoins being released. It is technical work but, if you have significant computing experience, doing such work could be an ideal way to pay for bitcoin without parting with your own cash.
How to Buy Bitcoins with USD
Buying bitcoin with US Dollars is now a relatively simple process with most exchanges allowing you the ability to do so, in the guide below we highlight the best places to buy bitcoin when using USD.
Each payment method will have different price structures but the price of bitcoin should have no effect on those costs. The bitcoin price can affect other exchange costs so do make sure you are keeping an eye on both the exchange fees and the price of bitcoin.
Consider the price when you buy Bitcoins
Nobody knows exactly what the future of Bitcoin value will be. However, many people think that because Bitcoin can't really be controlled (at least not yet), that it will continue to become more popular around the world. Economic instability, economic crashes, governmental strife - all of these factors can and will motivate people to adopt digital currencies that aren't run by centralized governments. The first and the biggest, Bitcoin may be the go-to cryptocurrency for years to come.
If Bitcoin does continue to grow and thrive, it isn't unthinkable that the price of Bitcoin could one day hit $100,000, $1,000,000, or more! Currently, well less than 1% of people in the world have cryptocurrency of any type. In a future where Bitcoin is a truly global currency, the Bitcoin price will be much, much higher than it is today.
People who buy Bitcoin today do so because they understand these factors. They understand that the Bitcoin price may seem high today, but that this Bitcoin price is based on incredible realities that are changing global finance as we know it. People around the world are adopting Bitcoin for many reasons: to make anonymous payments, to store value like gold, to achieve massive investment returns, and to simply use as money.
No one knows the future, but it's unlikely that Bitcoin value is going to fail anytime soon. This means that investors who get in now will own a piece of history, and will have "gotten in early" because even though Bitcoin is on everybody's lips, it's not in many of their wallets. We can't tell you what to do, but we obviously think that Bitcoin is a compelling investment at any Bitcoin price.
If you'd like to know more about Bitcoin, check out the following Bitcoin FAQ where we'll cover questions from around the web. [/su_note]
Should I Purchase Bitcoins or Altcoins?
Altcoins are basically every other cryptocurrency that isn't Bitcoin. The fact they gave that concept a name shows you the power Bitcoin has in the market.
That is not to say that other cryptocurrencies do not have value. Ethereum is currently sitting second in the market cap table. Ethereum has developed a blockchain that can run side blockchains at the same time. This essentially means that you can develop your own cryptocurrency without building your own blockchain.
And there are more coins that offer good investment opportunity, Ripple, Litecoin, Dash, to name a few, are all exciting prospect. With all these new coins cropping up, cryptocurrency reach is increasing and there is now a vast amount of information you can get your hands on, websites such as invezz and buyripple offer great insights into other cryptocurrencies.
Whilst Bitcoin and Ethereum lead the way, there are lots of dodgy coins out there. It is advisable to stick with reliable coins for investment purposes.
Fees when buying Bitcoins directly
When you buy Bitcoin through an exchange you will be charged a commission. This will vary depending on the exchange you are going through but will normally lie between 1% and 5%. As an incentive for you to buy more Bitcoins, the fee is reduced the more you buy, which is not the nicest of tactics.
For example, in Coinbase they charge you a commission of around 1.49% in both purchase and sale. At LocalBitcoins you can make transactions without having to pay a commission to the platform, but commissions are necessary to maintain the system, so it isn't negative either, as miners need to receive some sort of compensation for their block work and you'll get Bitcoins in your wallet much faster. Please check our individual reviews to assess the fees on each platform. Ultimately it costs you more than it would if you were trading CFDs.
Bitcoin Resources - Quick Links
- Bitcoin Price & Inflation – http://www.thehalvening.com/#2
- BTC Stats – https://blockchain.info/stats
- Bitcoin Volatility Index – https://bitvol.info/
- BTC Countdown – http://bitcoinblockhalf.com/
- Bitcoin Clock – http://bitcoinclock.com/
- BTC Block Reward Halving Countdown – http://www.bitcoinblockhalf.com/
- Live Bitcoin Transactions – https://blockchain.info/unconfirmed-transactions
- Bitcoin Acceptance Map – http://www.coinmap.org
- Bitcoin ATM map – https://bitcoinatmmap.com/
- The Original Bitcoin Whitepaper by “Satoshi Nakamoto” – https://bitcoin.org/bitcoin.pdf
- Bitcoin Exchange Data – https://data.bitcoinity.org
- Bitcoin Price Forecast – https://www.coinfan.net/btcforecast/
- The original Bitcoin whitepaper by “Satoshi Nakamoto” – https://bitcoin.org/bitcoin.pdf
- Bitcoin Forum - Reddit – https://www.reddit.com/r/Bitcoin/
- Bitcoin Developers - Twitter Channel – https://twitter.com/lopp/lists/bitcoin-developers
More about Bitcoin
- Best time to Buy BTC
- 5 steps to start Bitcoin Trading
- 5 things to know about Bitcoin Mining
- Bitcoin price prediction 2020
- Similar Altcoins
Final Thoughts on Bitcoin
By now you know how to buy Bitcoin, thoughts on the price of Bitcoin, ideas about investing in bitcoin, and where Bitcoin value comes from. No one can say how the price of Bitcoin will change day to day, but because the value of Bitcoin is based on reliable technology and widespread adoption in the world, investing in Bitcoin is likely a very good idea.
Those who invest in Bitcoin today will have a wild ride ahead of them as the technology spreads, regulations are put in place, and other cryptocurrencies rise alongside Bitcoin. Buying Bitcoin is just the first step. We hope that the price of Bitcoin you buy today looks like a very cheap Bitcoin price in the months and years to come.