Bitcoin is by far one of the most popular cryptocurrency tokens out there and has remained on the number one spot in terms of market capitalization ever since its inception.
Today we will explore some of the best places through which you can purchase Bitcoin tokens.
Each exchange will have its various pros and cons, trading fees, and features that make them differentiate themselves from one another. These can be in the form of the user interface and the availability of trading options, so let’s dive in and discover which ones make the cut.
Find the Best Place to Buy Bitcoin in 2022 for Your Needs
- Best Overall: DXOne
DXOne is a newer cryptocurrency exchange platform that launched in 2020 and has a unique two-token model system that includes a native cryptocurrency token as well as a native utility token. These are known as the DX1S and the DX1U.
In addition, it provides simple ways for you to modify and customize your information, the tools available, and the resources that you end up seeing on your dashboard. Alongside all of this, the exchange also offers low fees, an extensive list of supported cryptocurrency tokens, and excellent security.
- Best for Beginners: Coinbase
Coinbase was founded in 2012 and is fully regulated as well as licensed, which makes it supported across all U.S. States. It has many strategies that are made available to you and offer Coinbase Pro as an additional service on the exchange where you get access to a lot of benefits, such as a reduction in fees.
You are not limited to just buying Bitcoin, but can engage in day trading, swing trading, position trading, HODLing, margin trading, and a lot more, which makes it the perfect point of introduction for newcomer traders.
- Best for No Cost: Coinbase Pro
Coinbase Pro is considerably more advanced when compared to its non-pro counterpart, and it offers far more extensive as well as more robust charting and trading experiences. Users can purchase cryptocurrencies and set market, limit, and stop orders with lower commission fees.
It also allows users to engage in margin trading and much more advanced charting capabilities.
- Best for Instant Buying: Paxful
Paxful was founded in 2015 and is a cryptocurrency exchange that enables cryptocurrency buyers to directly interact with one another and sell or buy Bitcoin and other cryptocurrencies.
All a user really has to do is open the official website and click on Buy Bitcoin, after which a message box will appear and ask the user to input the quantity and the type of FIAT currency to be traded. This makes things simple and instantaneous.
- Best for Staking, Interest, and Dividends: Kraken
Kraken is a well-established cryptocurrency exchange known for its high level of security, ease of use, and educational content, where newer cryptocurrency traders can take an in-depth look at many altcoins before conducting any trades or purchases. Furthermore, it is one of the best exchanges when it comes to staking, interest, and dividends.
- Best for Privacy: LocalBitcoins
LocalBitcoins was established in 2012 and supported Bitcoin alongside cryptocurrency P2P exchanges. The platform includes security features such as two-factor authentication, HTTPS web encryption, login guard, PGP encryption for email communication, and a lot more.
The main reason why it raised its level of popularity is due to the fact that it offers a high level of privacy for its users.
- Best App to buy Bitcoin: SwissBorg
SwissBorg is a project that launched in 2017 and is a blockchain-based secure wealth management platform for cryptocurrency investments. It has two mobile applications, including the Wealth App and the Community App. The main reason why it is recommended is due to the fact that it supports many countries and has one of the best mobile applications through which you can purchase Bitcoin.
Easiest Way to Buy Bitcoin
Coinbase is one of the most accessible exchanges that you can trade Bitcoin on. This is because both the website and the application have a simple-to-use interface that is highly accessible to just about anyone interested in buying cryptocurrencies such as Bitcoin for the first time.
Fastest Way to Buy Bitcoin
If you are looking for the fastest way through which you can buy Bitcoin, one of your best options is the DXOne exchange. This is due to the fact that the exchange in question offers Credit Card Payments as an option, and it is a fully licensed exchange.
What You Need to Know Before Buying Bitcoin
To get started with trading cryptocurrencies such as Bitcoin, you will require some basic knowledge about how online trading works and pick a platform such as a cryptocurrency exchange that will provide you with options and facilitate the trading of Bitcoin.
Bitcoin Buying Basics
Cryptocurrencies are traded within different online platforms, such as exchanges and CFD brokerages.
Note that you will need a cryptocurrency wallet in order to store any cryptocurrency tokens that you purchase, and in the case of Bitcoin, you will need to use a cryptocurrency wallet that supports Bitcoin.
You need to consider the variety of different features found on many cryptocurrency exchanges as well, alongside conducting an analysis on their fees and their fee reduction model.
Some cryptocurrency exchanges, for example, will have a native cryptocurrency token that will allow you to reduce the fees experienced on the exchange when buying or selling Bitcoin.
The other will have a structure where the more monthly circulation you have, the lower your fees will become.
There are also numerous cryptocurrency trading strategies that you can implement when trading Bitcoin, such as dollar-cost averaging, for example.
Note that there are numerous risks involved with cryptocurrency trading.
Step by Step Guide to Buying Bitcoin
If you want to buy Bitcoin through the usage of a cryptocurrency exchange, here is what you need to do step by step.
- Pick a Cryptocurrency Exchange
The first step you need to make is to actually pick the cryptocurrency exchange where you would like to Buy Bitcoin. We have created a list of some of your best options based on a variety of different aspects, so ensure that you do your research and pick the one suitable for your specific needs.
- Sign Up for an Account
Once you select the cryptocurrency exchange you will be using, the next step you need to take is to sign up for an account. Go to the exchange in question, look for a “Sign Up” or “Get Started” option, and fill in some basic information initially, such as a username, email address, and password. Keep in mind that regulated cryptocurrency exchanges will require you to conduct a know-your-customer (KYC) verification process.
- Select Bitcoin
Within the cryptocurrencies tab or within the search bar itself, you can select BTC or a corresponding trading pair such as BTC/USD if you are trading. Simply click on it.
- Place Your Buy Order
Once you have found Bitcoin, simply place your purchase or your trade.
If you are trading Bitcoin, you can make a buy order, a sell order, a put or call order, a market order, a limit order, and a stop-loss order.
- Receive Your Bitcoin
Once the transaction is confirmed, you will see your cryptocurrency balance on the exchange’s cryptocurrency wallet given to you. You can additionally transfer this Bitcoin to your own private wallet for the highest level of security as well.
Types of Bitcoin Buying Orders
Buy Order
This is an order where you simply indicate that you want to purchase a specific amount of Bitcoin tokens.
Sell Order
This is an order that you place when you choose to cash out your position at a profit or cut your losses.
Put or Call Order
When you are using options, you can bet on the price of Bitcoin to either go up, which is known as a call order, or on its price going down, which is called a put order.
Market Order
This is an order you make when you want to instantly buy Bitcoin at the market rate specified on the exchange you have selected.
Limit Order
This is an order where you want to buy Bitcoin but are only to pay a specific price. Here, you are essentially specifying the price to ensure that you do not buy Bitcoin above that amount.
Stop-Loss Order
This is an order when you already have bought BTC but want to sell it only if the value of the token falls to a specific amount. If BTC falls under 20% of the value point you bought it at; your account will automatically sell it.
Summary
Hopefully, now you have a better understanding of how buying Bitcoin works, as well as some of the best places through which you can purchase the cryptocurrency token. Remember to always take into consideration the reputation of the exchange, its history, the customer service it offers, the options of other cryptocurrency assets you have as available, as well as the fees within the exchange.