Bitcoin is everywhere.
A few years ago, you could have gone without knowing about cryptocurrency, but over the past few years, it seems that everyone is trading crypto, with Bitcoin being the most popular choice.
In 2009, Satoshi Nakamoto introduced Bitcoin to the world. Since then, it has gained a lot of attention from investors. In less than 10 years, the price of Bitcoin has gone from a few dollars to over $20,000 per coin.
But where’s the best place to buy Bitcoin? And how do you keep it safe?
If you want to buy Bitcoin for the first time, this guide will tell you where to buy it, how to change cash for crypto safely, how to place an order (the easy way), and how to store your Bitcoin securely (including the most secure storage solutions).
How To Buy Bitcoin
Crypto exchanges have made it much simpler to buy Bitcoin.
Follow these five steps to buy Bitcoin and keep it secure:
1. Choose a Bitcoin Exchange
To buy Bitcoin, you need to trade your dollars for some of the coins.
The first step to buying Bitcoin is finding a reputable crypto exchange that allows you to purchase the currency using U.S. dollars or another fiat currency. Choose a cryptocurrency exchange that is reputable and offers transparent fees. Be sure to find an exchange that has multiple ways to secure your account.
There are a few hundred exchanges to pick from, but not all of them are the same. Here are are a few of the most reputable exchanges on the market that we recommend:
eToro
eToro is a great choice for those who want to trade Bitcoin and learn at the same time. This exchange and social trading platform is only available to U.S.-based traders and requires an initial deposit of $10, making it accessible for beginners. This exchange makes it easy to get started with features like a virtual portfolio where you can practice your trading and CopyTrader™ which allows you to mirror the moves of traders you trust.
Read our full eToro review.
FTX.us
FTX.us is one of the largest exchanges in the world and offers a low-fee way to purchase Bitcoin. The FTX.us mobile app is designed to be easy to use, so that you can purchase Bitcoin and other cryptocurrencies quickly and easily.
Read our full FTX.us review.
Kraken
This creature is known for destroying ships and dragging sailors to their doom. It is aggressive and cephalopod-like. This crypto exchange, based in California, offers a super-simple mobile app to buy Bitcoin on their ultra-secure platform.
Read our full Kraken review.
2. Create Your Exchange Account
It’s time to create your account on one of the top crypto exchanges once you’ve selected it.
In order to make any purchases on a crypto exchange, you typically have to create an account and verify your identity. Here’s what that process looks like:
- Create your account with an email address and password.
- Provide personal details, such as legal name, address, and Social Security number.
- Provide a picture of a government issued-ID (like a driver’s license).
- Take a selfie picture.
This verification process helps to prevent fraud and protect your account. It also allows exchanges to stay compliant with government regulations.
3. Fund Your Exchange Account
After you create an account and verify your identity, you will need to add money to the account. This can be done one of several ways:
ACH (Bank Account) Transfer
The most common way to fund your account is to use your debit card. Most exchanges use a third party, such as Plaid, to securely connect to your bank account and allow transfers.
There are typically no fees for ACH transfers.
Wire Transfer
with this You can wire transfer money from your bank to an exchange, but there may be fees.
Credit/Debit Card
Most exchanges allow you to fund your account using a credit or debit card, but this is not recommended. Paying with a credit card to buy Bitcoin incurs additional fees (up to 4%), and your card issuer may classify the transaction as a “cash advance” and charge additional fees.
Google/Apple Pay
Some exchanges allow you to use Apple or Google Pay to purchase Bitcoin, but these apps are usually linked to credit and debit cards, which may come with additional fees.
While some exchanges allow you to start trading right away, it may take a few days for the transferred funds to reach the exchange.
4. Order Your Bitcoin
You can purchase Bitcoin once you have funded your exchange account.
If you are new to buying cryptocurrency, you don’t need to buy an entire Bitcoin, which can be very expensive. You can buy a fraction of a coin for a smaller amount. You can buy Bitcoin in small increments, typically $5 or $10 worth at a time, similar to purchasing fractional shares of a stock. Most exchanges have a minimum purchase amount, however.
To order, select Bitcoin as the cryptocurrency you wish to purchase and fill out the order form. You can enter the amount of Bitcoin you want to buy and press “order” to execute a trade at the current price and deposit the Bitcoin into your account.
Yup, that’s it!
Market Order
Market orders purchase Bitcoin at the current market price. This is the standard way that most exchanges work and is the simplest way to place an order.
Limit Order
You can use a limit order to pay a specific price for Bitcoin. You can predict how the price of Bitcoin will change by setting the limit price. The order will only be processed if and when Bitcoin falls to the price that you have set.
Stop Limit Order (Advanced)
A stop limit order gives you more control over the price you buy or sell Bitcoin at. The stop price is the price that will trigger the order, and the limit price is the price at which the order will be executed. This is an advanced strategy for experienced traders.
Price Controls (Advanced)
When filling out an order form, you can choose to pay either the bid or ask price, which are the prices listed on the order book.
Amount
This text displays the number of bitcoins you will purchase. The number is displayed in decimal form when you are buying a fraction of a bitcoin.
Estimated Fee
A quality exchange will show you an estimate of the fees before you place an order to buy Bitcoin. This is important to watch out for, as some exchanges charge more than others.
To place an order, you need to select how much Bitcoin you want to purchase, check the fees, and submit the order. If you are new to buying Bitcoin, market orders are the simplest option. You will get the fair market price for your purchase, but will have to pay more in fees.
5. Store Your Bitcoin
Owning Bitcoin is not like owning stock. While stocks represent ownership in a company, Bitcoin is a digital currency that is only accessible to those who control the private keys to it. While most crypto exchanges are a secure place to hold your coins, the fact that they technically have ownership of your Bitcoin until you transfer it to your own digital crypto wallet means you should be cautious about how much you trust them.
A cryptocurrency wallet is a software application or hardware device used to store digital assets, such as Bitcoin. The wallets are secured with a password known only to the owner, as well as private keys.
Crypto wallets come in two flavors: hot wallets and cold wallets (hardware wallets).
Hot Wallet
A hot wallet is a program or mobile app that stores your Bitcoin securely. There are apps that make it easy to transfer Bitcoin to or from a crypto exchange. These apps are protected with a password and private keys.
Bitcoin hot wallets are wallets that are connected to the internet. Two of the most popular Bitcoin hot wallets are Exodus and Mycelium.
The risk with hot wallets is that they are online and might be more vulnerable to hacks than cold wallets.
Cold Wallet
A cold wallet is a hardware device that is isolated from the internet and stores your Bitcoin offline.
Although hardware wallets are the most secure way to store your Bitcoins, they are not infallible. Disconnecting from the internet and featuring advanced encryption are two ways in which hardware wallets keep your Bitcoin private keys safe, but they are not the only ways.
Two well-known crypto wallets are the Ledger Nano X and the Trezor Model T.
The downside to cold wallets is that they are not as easy to use as hot wallets because you have to take multiple steps to transfer your Bitcoins back to an exchange.
The best way to protect your Bitcoin is to keep it in your own wallet rather than trusting a crypto exchange. Exchanges are not regulated by the government and do not have protections for customers if they lose your funds or go out of business.
Where to Buy Bitcoin with PayPal
If you want to buy Bitcoin with PayPal, your most important task is to find a reputable trading platform that can facilitate your transaction. There are a lot of trading platforms that offer this functionality, so it can be hard to choose one that meets your specific needs.
To help streamline this decision-making process, presented below are reviews of four top trading platforms that allow users to buy Bitcoin via PayPal:
1. eToro – Overall Best Trading Platform to Buy Bitcoin Online with PayPal
Our number one pick when it comes to the
best crypto exchanges
that offer PayPal functionality is eToro. eToro has an excellent reputation within the trading industry, with over 24 million users across 140 different countries. Much of eToro’s outstanding reputation comes from the platform’s high degree of safety, bolstered by regulation from top-tier entities such as the FCA, ASIC, CySEC, FinCEN, and FINRA.
eToro users can buy Bitcoin and a variety of other altcoins using eToro’s web-based platform or dedicated mobile app, which can be downloaded on iOS or Android devices. eToro charges a 1% fee for opening or closing a trade, plus the raw spread. This new pricing structure from eToro is much cheaper for cryptos than the previous fixed spread approach.
If you are interested in buying Bitcoin with PayPal, eToro is a good choice as it offers free deposits in USD with a minimum threshold of only $10. If you deposit any currency other than USD, there will be a small conversion fee of 0.5%. However, you can avoid this fee by converting the currency to USD within the PayPal platform before making your deposit. eToro allows you to buy Bitcoin with a credit card with no deposit fees.
In addition to everything else, eToro also offers some great features to help you get the best results, including the very popular ‘CopyTrader’ feature. eToro’s new CopyTrader feature lets users mirror the investment strategies of other users on the platform, automating the process. eToro has a service called the ‘Academy’ which has courses, tutorials, and podcasts to help people learn.
2. Crypto.com – Great Place to Buy Bitcoin using PayPal with Low Fees
Another option if you’re wondering how to buy Bitcoin with PayPal is Crypto.com. Crypto.com offers one of the
best crypto apps
on the market, along with a web-based exchange platform that will appeal to advanced traders. This trading platform offers over 250 cryptocurrencies to trade, including BTC and a variety of altcoins. Since Crypto.com accepts FIAT deposits, PayPal users can send over USD via a bank transfer.
Crypto.com allows users to top up the balance on their Crypto Visa Card using PayPal. The fee for this is 2.1%, but it will come instantly, so you can start getting rewards from your spending right away. Compare this to Gemini, which only charges a 0.35% maker/taker fee. Crypto.com exchange charges a maker/taker fee of 0.4% when buying Bitcoin while Gemini only charges a 0.35% maker/taker fee. This fee can be reduced by 10% if you pay your trading fees using CRO, which is Cryptos native token.
3. Binance – Respected Crypto Exchange with Huge Asset Selection
Binance is ideal if you’re looking to buy Bitcoin or any of the
best altcoins, as the platform offers an impressive 500+ crypto assets to trade. The selection includes DeFi tokens and crypto-to-crypto trading pairs, which will appeal to experienced crypto traders. Although Binance is primarily used as a cryptocurrency exchange, users can still fund their trading balance using FIAT currency. However, the only way to buy Bitcoin using PayPal is to go through Binance’s P2P trading service, assuming another user offers that option.
4. Coinbase – Huge Crypto Exchange Allowing Direct Bitcoin to PayPal Purchases
For investors wondering how to buy Bitcoin with PayPal instantly, Coinbase offers a streamlined way of doing so. Coinbase is one of the world’s largest cryptocurrency exchanges and provides over 95 cryptos to trade. Notably, once you have completed Coinbase’s verification process, you can link your PayPal account directly to your Coinbase account. Only US-based users can buy crypto through Coinbase using PayPal, although all other customers can cash out using the service.
Coinbase allows you to cash out in USD, EUR, and GBP, with high daily limits that will appeal to advanced traders. When using Coinbase Pro, a taker fee of 0.6% and a maker fee of 0.4% is charged. If you want to buy crypto through the Coinbase App, you’ll have to pay a transaction fee based on trade volume and payment method, plus the spread. This can be costly.
Why Buy Bitcoin with PayPal?
When researching how to buy Bitcoin with PayPal, you’ll likely find out about the various benefits that come with using this approach. Since PayPal has 390 million active users, it is understandable that many people would use it. With that in mind, presented below are five of the main advantages of using PayPal to purchase Bitcoin:
Speedy Deposits & Withdrawals
Many traders choose to use PayPal because it is very efficient in processing deposits and withdrawals. If you have an account with a trading platform that accepts PayPal, you can link your PayPal account to your trading balance to make instant deposits. The process is designed to be quick and easy, usually taking only a few minutes.
To transfer Bitcoin to PayPal, you must first close your position on the trading platform and then withdraw the proceeds to your PayPal balance. Other payment methods have a much longer timeframe for withdrawals than PayPal. For example, PayPal withdrawals from eToro take up to two business days, whilst bank transfers or credit/debit card withdrawals can take up to ten business days.
High Degree of Security
Many people trade cryptocurrencies through PayPal because it is a safe way to do so. As mentioned on the PayPal website, the platform uses end-to-end encryption to keep your data and transactions secure. This also includes making sure we are compliant with data protection laws and using ‘key pinning’ to protect your information.
This is yet another great security feature that PayPal has to offer its users. With email confirmations being sent out after each and every transaction, users can be rest assured that their personal and financial information is well-protected. This is useful because if there is an unrecognized transaction, you can notify PayPal and they will fix it. Also, PayPal has a security team that is dedicated to monitoring payments 24/7. They will alert you if anything suspicious occurs on your account.
User-Friendliness
The process of buying Bitcoin with PayPal is user-friendly and rivals the popular payment methods of credit or debit cards. PayPal users have the option to increase the funds in their PayPal balance by transferring money from their bank account. The funds are protected by PayPal’s various security features. When you have enough money to cover the cost, you can easily connect your PayPal account to an online broker or exchange that supports this type of payment.
If you would like to use eToro, all you need to do is make a deposit and select PayPal as yourpayment method of choice. First, you need to have a PayPal account. Then, you will need to enter your login information into a portal on eToro’s website so that your PayPal account can be linked to your eToro account. After making your deposit, you can begin investing in Bitcoin or other DeFi coins.
Can Use Mobile App
The PayPal mobile app is very user-friendly and has great features that have contributed to its fantastic reputation. The app can be downloaded from the App Store or Google Play. It allows users to send money to anyone in the world using the recipient’s mobile number or email address. It is extremely useful to have someone else send you money to fund your trading account.
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