The Best Ways How to Buy Bitcoin in 2022
Bitcoin (BTC) is the first and largest cryptocurrency to this day. While many competitors emerged, hoping to repeat Bitcoin’s success, few have come even close to it. If you’ve become interested in the king crypto and are wondering how to buy Bitcoin, we may be able to give you basic guidance in this article. Here we’ve researched and listed the most popular ways how to buy the biggest crypto and what to consider when doing it. After you find out the most popular ways you will be able to decide more easily which one is the most suitable for you.
What is Bitcoin (BTC)?
In the late 20th century there were different attempts at the making of electronic money. However the first digital currency, in the form of the cryptocurrencies we know today, is Bitcoin. In 2009 Bitcoin was created as an alternative to fiat currencies by the pseudonymous Satoshi Nakamoto. The developer of the coin expressed concerns that traditional money is too reliant on institutions and that’s why Bitcoin was created for people who want to operate freely with their money.
The cryptocurrency needed a few years to start growing in price, however, once it did, it doesn’t seem to be able to stop. While its price rises and falls, the popularity of Bitcoin is growing steadily. Today you can pay for different goods and services with it, for example, buy a car with cryptocurrency, but it’s also the legal tender in a country.
From its past performance and fundamentals, it’s easy to admit that Bitcoin is an investment worth considering. If you too are thinking of buying it but wondering how to buy Bitcoin, keep reading. We’re not advising you as to which one is “the right one” or the ultimate best, this solely corresponds with your own trading needs and preferences. The more options you research, the more likely it is for you to make a more informed and thought-out choice.
What Should You Know Before Choosing How to Buy Bitcoin?
There is a number of things you should take into account before picking one of the ways how to buy Bitcoin. The listed factors may influence the cost of the BTC purchase so it’s good to consider them.
- The price of BTC at the moment: When you decide to trade any cryptocurrency, you should always consider the price. The Bitcoin price makes no exception as you should be following for the right one to make your purchase. Ideally, you should take advantage of a lower price and hope it rises enough in the future, to bring you returns. But if it still seems too high for you, you can always buy just a fraction of Bitcoin, called Satoshi.
- What are the additional taxes when buying Bitcoin: When you’re buying the first crypto, you should research and find out what are the additional prices you’ll have to pay. Different places may require different fees, for example, for depositing, for your transfer, or for withdrawing funds later. Get familiar with those in order to know exactly how much money you need to be putting into your purchase.
- How long does it take to buy Bitcoin: If you’ll be aiming for a certain BTC price, you’ll want to act quickly. Take this into account, when choosing how to buy Bitcoin. Some ways of purchase are faster than others. This means if you pick a way of buying the asset that takes a longer time, you may miss the price you wanted to buy at.
How to Buy Bitcoin on a Trading Platform
One of the easiest and most popular ways how to buy Bitcoin is on a platform for crypto trading. There you can easily purchase your coins using the platform’s website or app is only a few steps. Two types of platforms exist, based on the variety of assets they provide. They are brokers and crypto exchanges. We’ll explain how to buy Bitcoin on both of them.
How to Buy Bitcoin Using an Online Broker
Brokers are trading platforms for a variety of assets, for example, stocks or Forex, that may also offer cryptocurrencies, but don’t focus only on them. Since Bitcoin remains the most popular cryptocurrency to this day, it’s very likely that if a broker allows crypto trading, they’ll be offering Bitcoin as one of the assets. Popular brokers are Robinhood, eToro, and Pionex. On such brokerages, you can use fiat currencies to pay for your bitcoins.
Here’s a guide on how to buy Bitcoin on a broker platform:
- Register and create an account on the broker platform of your choice
- Confirm your identity – you’ll have to provide an ID or passport, for example, as a legal identification document to prove your identity and be able to use the account you’ve created
- Search for Bitcoin or BTC on the site or app of the broker
- Deposit the sum in the currency of your choice
- Buy Bitcoin
How to Buy Bitcoin on a Cryptocurrency Exchange
Cryptocurrency exchanges are created specifically to provide a place to trade digital assets. There are two types of exchanges – centralized, or CEXs, and decentralized, DEXs. They differ in the way they’re regulated and whether they use a third party in their processes, or not. Centralized exchanges use a third party when conducting crypto transactions and there you can buy bitcoins with fiat currencies. Coinbase and Binance are some of the most famous centralized crypto exchanges. Unlike them, decentralized exchanges like Uniswap, don’t rely on a third party for their business. There the transactions are peer-to-peer and you can pay for your bitcoins with other cryptocurrencies.
This is a step-by-step of how to buy Bitcoin on a cryptocurrency exchange:
- Register and create an account with your chosen exchange
- Confirm your identity – this step exists only in CEXs which will ask for an identification document to verify your account. If you’re using a DEX, this step is not included
- Search for Bitcoin or BTC on the exchange
- Choose how to pay – you can use crypto or fiat currencies, depending on what type of exchange you’ve decided on.
- Buy Bitcoin
If the broker or exchange where you bought your bitcoins provides a built-in Bitcoin wallet, you can store your crypto there.
How to Buy Bitcoin on Cash App
Cash App is a mobile payment service app that allows people to use their smartphones to send and receive money from each other. In 2018 it also became one of the ways how to buy Bitcoin. Though you should keep in mind that you can only benefit from its services in the UK and the USA. If you’re a resident of these countries, this is how to buy Bitcoin on Cash App.
- Download the app on your phone
- Create an account – for that, you’ll have to provide your phone number, email, bank accounts or card information, and your names. Select a Cashtag – this is your username on the app. Then add your address and fund your account. The last step would be to provide an identification document to verify the account
- When you’ve successfully registered and confirmed your account, go to the home screen of the app. There select “Investing” and choose Bitcoin
- Tap on “Buy” and write how many bitcoins you want to buy
- Confirm your order and you’ll have bought Bitcoin on Cash App
How to Buy Bitcoin With PayPal
PayPal provides payment services for millions of people around the world. It’s also one of the ways how to buy Bitcoin. You can buy the asset directly on PayPal now but you can also use the service to pay for your bitcoins in another place where you’re buying it. We’ll go over the two ways now.
- How to buy Bitcoin on PayPal: Currently, the option to buy BTC on PayPal’s app or website is available only to UK or US residents. If you’re located in one of the two places, all you have to do is own or create a PayPal account, choose “Crypto” from the “Finances” dashboard on the app, tap buy and you’ll have bought your bitcoins. The option was introduced fairly recently so if it’s successful, it may become available in more locations.
- How to buy Bitcoin with PayPal on another platform: The indirect way to use PayPal to buy bitcoins is by selecting it as a payment method on a broker or exchange you’ve chosen. After creating and verifying your account on the platform, select PayPal as the way to pay for your bitcoins. If you use this way to buy the asset, you won’t be charged processing fees for your deposit and it will be reflected in your account right away. If you’re looking for speed when deciding how to buy Bitcoin, this may be an option to consider.
How to Buy Bitcoin With a Bank Transfer
Another way how to buy Bitcoin is using a bank transfer. Platforms for crypto trading accept bank transfers as payment and won’t charge your processing fees. All you have to do is select the option to pay through bank transfer when buying your assets and you’ll be done. With this payment option, you have to consider that the speed is relatively slower since it’ll take up to a few days for the transaction to be reflected in your account.
How to Buy Bitcoin With a Credit or Debit Card
If you’re asking “How to buy Bitcoin with credit card” or “How to buy Bitcoin with debit card”, the steps for the two are the same. Like bank transfers, platforms accept card payments for your asset purchases. This way of buying BTC is faster compared to bank transfers, as the transaction is reflected almost immediately into your account and here you’re not charged processing fees again. You need to select your type of card when you reach the payment stage in the platform and you’ll be able to buy your bitcoins that way.
How to Buy Bitcoin With Cash
One of the ways how to buy Bitcoin is by using cash. This can be applied in two situations, the first one being when you’re buying Bitcoin on a decentralized exchange. DEXs allow for cash payments so you can buy bitcoins that way there. The second way to buy the asset with cash is by meeting someone in person and paying them by hand for the bitcoins to be transferred to your wallet. You have to remember in both instances that since no third party controls your transactions, you carry all the responsibility for your assets.
How to Buy Bitcoin With a Wallet
A bitcoin or a cryptocurrency wallet is the storage you use for your cryptocurrencies after you’ve bought them. There are two types of wallets, based on how your private keys are stored – online (hot storage wallets) or offline (cold storage wallets). Some of the popular options are Ledger, Trezor, and Mycelium.
Along with storing your bitcoins in a wallet, you can also use the wallet to buy them, turning wallets into one of the ways how to buy Bitcoin. Some wallets allow the use of crypto through other exchanges, by paying with a bank transfer, credit or debit card, or online payment service. You’ll have to consider the taxes that may come with the exchanges you’re using but this way of purchasing bitcoins is good for people who want to have a single service at once.
How to Buy Bitcoin With ATM
If you’re looking for how to buy bitcoin without an exchange, using a crypto ATM may be a suitable option for you. Just like fiat ATMs, crypto and Bitcoin ATMs allow you to use cash, and there you can buy your bitcoins. Once you’ve created a digital wallet and located an ATM near you that provides BTC, the steps of how to buy Bitcoin with ATM are simple:
- Scan your wallet’s QR code on the ATM’s camera
- Insert the amount of cash you want to use to buy Bitcoin
- Buy Bitcoin – after buying your tokens, they’ll be sent to the same wallet you scanned the code from at the beginning of the process
Bonus: How to Buy Bitcoin Cash
You may have heard of a cryptocurrency called “Bitcoin’s little brother”. This is BCH, a fork of Bitcoin, formed in 2017. Though it hasn’t reached BTC in price or popularity yet, this altcoin continues to interest investors even today. If you’re wondering how to buy Bitcoin Cash, the methods are the same as we’ve mentioned with Bitcoin, with one exception. You can’t buy Bitcoin Cash or any other cryptocurrency besides Bitcoin on Cash App at the moment. Despite that, BCH is quite known and you’ll likely be able to find it easy if you decide to add it to your portfolio.
How to Decide on How to Buy Bitcoin in 2022?
We gathered some of the most popular ways to buy the king crypto this year. You can do it on a trading platform, an app or payment service, a wallet, or at a crypto ATM. You can use cash, cards, or bank transfer to pay for your cryptos. As you can see, there are plenty of ways to choose from how to buy Bitcoin. We can’t make the decision for you, you’ll have to consider the listed information and do further research to pick the best way to buy BTC for you. You should always remember to carefully check the places where you’re buying your bitcoins, or any assets, and always put the security of your investments first.
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