Ad) When it comes to buying Bitcoin and cryptocurrency, there is no shortage of crypto exchanges to choose from. The best place to buy Bitcoin should offer low transaction fees, easy account setup, convenient payment methods, and a variety of digital assets available for purchase.
We’ve reviewed the best Bitcoin exchanges to help you find the best site to buy and sell Bitcoin from. Whether it’s your first time investing in Bitcoin or you’re already an active trader, here are the best places to buy Bitcoin in 2021.
5 Best Places to Buy Bitcoin in 2021- eToro: Best for beginners
– BlockFi: Best for interest-earning accounts
– Currency.com: Best for active traders
– Binance: Best for trading altcoins
– Coinmama: Best for fast account setup and verification
#1 eToro: Best Bitcoin Investment Site for Beginners
The best place to buy Bitcoin, Ethereum, and other cryptocurrencies is eToro, which has been an industry global leader since 2007 and supports over 20 million users, 20 million crypto transactions, and 140 countries.
One of the best features of eToro is CopyTrader. This technology allows anyone to start copying other traders automatically. Whether you are a beginner trader or just don’t have time to watch the markets, CopyTrader allows you to replicate moves from other successful traders inside your own portfolio.
The following cryptocurrencies are offered on eToro’s trading platform: Bitcoin, Ethereum, Litecoin, Dash, Stellar lumens, NEO , EOS, Cardano, Ethereum Classic, Bitcoin Cash, IOTA, Zcash, Tron, Tezos, Chainlink, and Uniswap.
Thanks to the eToro app, you can trade cryptocurrencies from anywhere, anytime. The mobile app has a clean and simple interface, making it suitable for any trader, regardless of experience.
Deposits to eToro currently can be made via credit card, debit card, and wire transfer. Unlike other crypto exchanges, eToro does not charge any deposit or withdrawal fees. There is a $50 minimum deposit when opening an account. It is one of the best places for beginners to buy Bitcoin, thanks to its simple user interface and ability to copy other top traders with ease.
– Buy and sell 16 top cryptocurrencies with ease
– Mobile app connects directly to your etoro wallet
– Trusted cryptocurrency trading platform with world-class security
– Several convenient payment methods to fund your account
– Copy other top traders with CopyTrader
Click Here to Learn More About etoro
#2 BlockFi: Best Platform for Earning Interest on Crypto Deposits
BlockFi is the best place to buy Bitcoin if you’re a long-term investor looking to earn interest on your crypto assets. The exchange allows users to use Bitcoin as collateral so they can secure investments and purchases. BlockFi customers also don’t have to worry about a transaction fee when they trade crypto.
BlockFi, which opened in Jersey City, NJ, in 2017, serves as the industry gold standard. You can use your credit or debit card to fund your Bitcoin wallet in less than 24 hours.
One of the best parts of BlockFi is its staking rewards. Some cryptocurrencies, such as Tezos and Ethereum, have staking rewards that allow you to earn money by leaving your crypto on the exchange. The platform then uses your crypto to mine other cryptocurrencies, create gift cards, and complete loans while paying you up to 8.6% APY.
Let’s compare BlockFi with your standard high-interest savings account. Even leaders in the industry rarely offer more than 1% interest to customers who “stake” their money. While BlockFi’s sizable APY shouldn’t be your only reason to buy Bitcoin, it’s a highly compelling one.
In early 2021, the crypto exchange released the Bitcoin Rewards Visa Credit Card. The card works like a cash-back credit card, except that you earn crypto instead of cash. The platform offers a 1.5% reward on all purchases and a $250 Bitcoin bonus for spending more than $3,000 in the first three months.
BlockFi ranks among the safest platforms for Bitcoin investors, thanks to its cold storage system. While it’s not as secure as putting your money in a bank or credit union, its custodian, Gemini, is a New York trust company. That means the New York State Department of Financial Services oversees its SOC 2 Type 1 security compliance, protecting your Bitcoin wallet.
– Earn up to 8.6% APY on crypto holdings
– Borrow cash and use your crypto as collateral
– No hidden fees and no minimum balances
– Fund your account with USD, crypto, or stablecoins
– Best Bitcoin exchange for earning interest on deposits
Click Here to Learn More About BlockFi
#3 Currency.com: Buy Bitcoin and Other Cryptocurrencies with LeverageThere are people who like to HODL (hold on for dear life), and then there are Bitcoin traders. Currency.com caters to the latter. Its sleek and modern platform provides a low-fee way for traders to buy and sell crypto in real time.
Currency.com allows people to trade more than 2,000 tokenized assets with more than 8,000 other assets to come. That includes gas, stocks, oil, gold, and, of course, Bitcoin. It also has tens of thousands of active users around the globe.
Traders can take advantage of a world-class platform that rewards knowledgeable and skilled investing. Currency.com accepts credit and debit cards when funding accounts so you can get started in less than a day. The exchange has competitive commissions. Doesn’t charge hidden fees.
Users can consult 75 technical indicators that provide detailed information for when to buy Bitcoin. The ease of use makes Currency.com an ideal platform for anyone with technical analysis skills. You can also set up price alerts and split-second Bitcoin transactions so that you buy Bitcoins at the perfect price.
Not ready to maximize your trading leverage? No problem. Currency.com offers full-fledged demo accounts so you can practice on Bitcoin exchanges before using real money. When you decide to use actual money, you have the safety net of negative balance protection and guaranteed stop-loss, which protects your wallet and bottom line.
Currency.com ranks as one of the safest places to buy Bitcoin. The company, which has offices in Belarus and Gibraltar, receives comprehensive federal regulations and complies with AML and KYC laws. These measures provide traders with some peace of mind during transactions.
– 2,000+ tokenized assets to trade
– Tight market spreads
– Leverage up to 1:500
– Fully regulated trading platform
Click Here to Learn More About Currency.com
#4 Binance: Best Bitcoin Exchange for Trading Altcoins
Binance ranks as one of the best places to buy altcoins. You’ll find a diverse array of assets that you won’t find at competing Bitcoin exchanges. While it doesn’t have the ease of use of its competitors, the platform does empower people to start trading Bitcoins in minutes rather than hours.
The Hong Kong-based platform has expanded its products and services in recent years. Most notably, it partnered with Simplex to enable credit and debit card transactions. Currently, you can purchase 31 of its 200+ crypto assets with a debit card, though the purchase comes with a 3.5% fee.
Users can toggle between three interfaces when buying Bitcoin. The “basic” interface caters to first-time users, while the “classic” view offers a market trading snapshot. Experienced traders can buy Bitcoin with the “advanced” platform, which allows rapid switch pairs on the exchange.
Binance provides numerous ways for users to get in touch and stay in touch. It has a 24/7 customer service team to resolve credit card payments, fees, wallets, and other technical issues. There’s even a blog about the latest trends in Bitcoin and an online message board.
You can get started by downloading the Binance cryptocurrency exchange at the App Store or Google Play. This convenient app lets you buy Bitcoin whenever and wherever you want. You can also download the platform for crypto trading on any Windows or macOS device.
– One of the world’s largest cryptocurrency exchanges
– Buy and sell over 200+ crypto coins
– Buy Bitcoin with credit card or bank transfer
– Trading app compatible with Windows, macOS, Linux, Android, and more
Click Here to Learn More About Binance
#5 Coinmama: Reputable Website for Purchasing Bitcoin OnlineOne of the beauties of Bitcoin is that you can make purchases without a central authority. It’s significantly faster than having a middleman, such as a bank, handle the transaction for you. Coinmama understands investors’ sense of urgency, so it offers a quick and easy way to set up an account and buy Bitcoin.
Coinmama accepts debit and credit cards, Apple Pay, and bank transfers. You can deposit funds in your wallet within minutes and start trading the same day. The exchange supports every major crypto, including Bitcoin Cash, Ethereum, Ethereum Classic, Cardano, Litecoin, and Tezos.
Whenever you buy Bitcoin at Coinmama, you’ll get expedient delivery. Its instant order fulfillment allows you to take advantage of favorable spot prices and the platform’s high spending limit. These are just some of the ways Coinmama makes your Bitcoin go further.
More than 2.6 million have signed up for Coinmama since the Bitcoin exchange launched in 2013. Currently, it has offices in Tel Aviv and Dublin and services members across 188 countries. New users can join the platform’s affiliate program. Earn 15% of Coinmama’s commission on all referral purchases.
Coinmama serves as a go-to option for anyone looking to buy Bitcoin immediately. The streamlined platform and mobile app simplify the sign-up process so that you can spend more time trading instead of waiting. Fees depend on your method of payment and loyalty levels, with express debit card purchases incurring a 5% surcharge.
– Buy Bitcoin via bank transfer, credit card, debit card, or Apple pay
– Fast account verification
– Trusted by over 2,700,000 people across 188 countries since 2013
– Available coins include Bitocin, Bitcoin Cash, Ethereum, Cardano, Litecoin, and Tezos
Click Here to Learn More About Coinmama
What Is a Bitcoin Exchange?Trying to buy Bitcoin can be intimidating, especially because there are some crypto-related scams. For instance, Ruji Ignatova stole more than $4 billion fronting the fake crypto OneCoin. A Bitcoin exchange provides a safe. Trustworthy way to buy Bitcoins.
The leading platforms understand that security ranks as a top priority. Whether you want to hold onto your Bitcoin for the long haul or trade it daily, your personal info should remain private. It’s one reason why we selected platforms with strong reputations for secure networks and helpful customer service.
Bitcoin exchanges work like digital marketplaces. They serve as brokers, connecting traders who want to sell or buy Bitcoin. The exchanges work the same way, regardless of your country or currency.
All Bitcoin exchanges have to earn money somehow, so many of them charge conversion fees. If you buy Bitcoins with euros, an like Coinbase Pro will take a small percentage for itself. Purchases and sales depend on the broker’s ordering system and when people place their orders.
Exchanges allow you to buy Bitcoins in the same way as stocks. You can place a limit or market order, and the exchanges will complete the transaction whenever the market meets your criteria. The system ensures that traders direct the exchange when to buy Bitcoin, not the other way around.
How to Buy Bitcoin OnlinePick an ExchangeBuying Bitcoin online is simple and straightforward. The first step is picking an exchange. Ideally, you should choose one that meets your needs and has customer reviews that endorse its safety and reliability as a broker.
Remember that all cryptocurrency exchanges have different features for buying Bitcoin. For instance, if you want immediate liquidity, you should look for exchanges with a high trading volume. However, if you’re not technically inclined, look for an exchange with a user-friendly interface.
Open an AccountOnce you select a cryptocurrency exchange, it’s time to open your account. Click the sign-up button on the exchange’s website and follow the prompts. Most exchanges want a mix of personal, contact, and financial information before receiving your digital wallet.
The criteria vary for customers depending on their location. One exchange might ask customers in the US and UK to provide a photo ID and an ID verification, while outside investors need two government-issued IDs. After you verify your identity and information, you can start funding your crypto wallet.
Fund Your AccountYou can place as much or as little money as you want in your wallet. This initial transaction will let you buy and sell Bitcoin and other cryptocurrencies at your leisure. Most cryptocurrency exchanges allow you to fund your account through a debit or credit card, bank account, or wire transfer.
Cryptocurrency exchanges represent the money in your Bitcoin wallet in your native currency. For example, if you live in the United States, your funds will be in US dollars. The exchange will display a conversion of dollars to Bitcoins after your purchase.
Place an OrderThere are no hard and fast rules when it comes to purchasing Bitcoin. Chamath Palihapitiya, a Sri Lankan-Canadian venture capitalist, recommends converting 1% of your net worth into Bitcoins, though he’s less than bullish on other cryptocurrencies, like Ethereum, Tezos, and Litecoin. Meanwhile, YouTube investing and finance guru Andrei Jikh recommends placing up to 10% of your net worth into various cryptocurrencies.
Cryptocurrency exchanges process orders in less than 24 hours, with some places making your Bitcoins available immediately. Most exchanges limit orders to $25,000 per day to mitigate fraud. If you want to change your order, you can always trade Bitcoins for a different cryptocurrency or fiat money.
Remember that the United States government considers cryptocurrency as an asset. Every time you sell it for a profit, you have to pay capital gains tax. The percentage of tax that you pay when you trade Bitcoin or other cryptos will depend on how long you held it. Any losses you experience from cryptocurrency trading are not taxable.
Things to Consider Before You Purchase CryptocurrencyBitcoin and other cryptos are unlike any other asset. For starters, they’re extremely volatile. It’s not unusual for Bitcoin to fluctuate up or down ten percentage points in a day. While some experts believe that volatility will decrease as more people purchase crypto, that’s not the case in 2021.
Just consider the trajectory Bitcoin has had since its release in January 2009. At the time, it was worth virtually nothing. Two years later, in February 2011, it reached the same value as the U.S. dollar. Here are some other significant milestones in Bitcoin’s price history:
– November 2013 – $1,242
– April 2014 – $340
– March 2017 – $1,290
– September 2017 – $5,013.91
– December 17, 2017 – $19,783.06
– December 22, 2017 – $13,800
– December 7, 2018 – $3,300
– July 27, 2020 – $10,944
– December 16, 2020 – $20,600
– January 3, 2021 – $32,800
– January 8, 2021 – $41,973
– January 24, 2021 – $33,078
– February 16, 2021 – $50,000
While Bitcoin offers incredible returns, you should make sure to take a calculated risk. The last thing you want is to invest in Bitcoin when the price is on an upswing, only to have it crash later. The basic rule is that you should never invest more money than you can afford to lose.
Second, the Internal Revenue Service (IRS) doesn’t consider Bitcoin or any other cryptocurrency as fiat money. According to the Virtual Currency Tax Fairness Act of 2020, owners have to pay taxes on any profits made during crypto trading. This tax only applies if you trade, sell, or swap Bitcoin. It ranges from 0 to 20%, depending on your income and how long you held the asset.
Third, Bitcoin has some fees. Explaining the fees behind blockchain could take another whole article, but here’s a brief overview. A single Bitcoin transaction costs $24 to $31, according to BitInfoCharts.
You pay fees to miners on the Bitcoin network. These miners solve a cryptographic puzzle that formalizes your transaction. Once the miners solve the puzzle, your transaction will always remain on the blockchain, which stores the information.
Mining Bitcoins is a time- and energy-intensive process, but it’s what separates Bitcoin from less secure forms of currency. Users have to pay miners to ensure a healthy and functional network. One way to reduce the fees is to wait for the prices to drop. You can also use a wallet with scaling technology, such as SegWit (a.k.a. bech32).
What is the Best Cryptocurrency to Buy?It’s important to remember that every cryptocurrency is distinct and does slightly different things. Bitcoin serves as a replacement for fiat money, while Ethereum is software where users trade for services using ether. Meanwhile, Tezos secures smarts contracts, and Litecoin provides a faster and more efficient version of Bitcoin.
The best investment for you will depend on your needs. Let’s say you want to purchase some NFTs (non-fungible tokens.) If you buy one of these unique pieces of digital artwork on Open Seas, the largest NFT platform, you’ll need to have ether.
Of course, many people treat Bitcoin like stock trading or mutual funds. They’re not as concerned with the way blockchain technology works. All they care about is the return on investment. According to Coinbase, here are the financial returns for the largest cryptocurrencies by market cap between March 9, 2020, and March 9, 2021:
– Bitcoin: 580%
– Ethereum: 797%
– Uniswap: 969%
– Litecoin: 291%
– Chainlink: 652%
– Bitcoin Cash: 95%
– Stellar lumens: 709%
– Wrapped Bitcoin: 574%
– Aave: 82,244%
– Cosmos: 588%
These returns do not include trading fees or transaction fees from the exchange. The rate will depend on your provider. When you place your orders. Cryptocurrencies are notoriously volatile. Can swing several percentage points within a day.
Final Thoughts – Is Buying Bitcoin the Right Move for You?Cryptocurrency is an inevitability. The technological implications have already percolated into the mainstream. It’s not an accident that Apple Pay and PayPal accept Bitcoin trades on their platforms, Tesla invested $1.5 billion in Bitcoin, and JPMorgan Chase created its own crypto in the past year.
The real question isn’t whether cryptocurrencies are here to stay but whether Bitcoin is the right investment for the long term. That’s hard to say. Bitcoin appears to be the crypto that will gain worldwide acceptance first since it has the largest market cap and cachet. However, Bitcoin has some limitations that competitors like Ethereum and Litecoin don’t.
If you’re looking into cryptocurrency investments, your best bet is to find a reliable exchange and invest in several assets. Bitcoin and Ethereum are the two most prominent ones, though some other cryptos, like Litecoin and Chainlink, deserve your consideration. Diversifying your account is the best way to reap the benefits in bull markets. Protect your bank account during downtimes. Bitcoin is a once-in-a-lifetime technology. Promises to change the way humans make transactions. Millions of people have already recognized the potential of this computer code and its far-reaching capabilities.