Coinbase comes out on top thanks to its solid track record and competitive fees
Bitcoin is a form of virtual currency that can be traded in the same manner as stocks or bonds and used to make online purchases. You will be required to use a Bitcoin exchange in order to purchase and sell any cryptocurrency, including Bitcoin.
You can acquire Bitcoin using other assets, such as traditional or digital currencies, if you use a Bitcoin exchange. These other assets can include traditional currency. The most reliable cryptocurrency exchanges are those that are safe, low-cost, simple to set up and operate, can be opened in a short amount of time, and accept a wide range of funding methods. The following is a list of the best places that we've found to purchase Bitcoin.
The Best Places For ou To Purchase Bitcoin in 2023
- HIGHLY RECOMMENDED OVERALL: Coinbase
- HIGHLY RECOMMENDED FOR BEGINNERS: eToro
- HIGHLY RECOMMENDED FOR INSTANT SERVICE: CoinMama
- HIGHLY RECOMMENDED FOR PRIVACY: Bisq
In contrast to more conventional brokerage businesses, exchanges for cryptocurrencies are not required to be members of the Securities Investor Protection Corp. (SIPC). Therefore, investors with cryptocurrency assets mixed together on a custodial cryptocurrency exchange risk losing their money because they are considered unsecured creditors unless the user terms specifically state otherwise.
This article does not constitute a suggestion to invest in cryptocurrencies on the part of The Balance or the author, nor can the accuracy or timeliness of the information contained herein be guaranteed. Speculative investments, such as those made in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs), come with a high degree of risk, and the markets themselves can be highly unpredictable. Before making any decisions regarding your finances, you should discuss your options with a knowledgeable expert.
HIGHLY RECOMMENDED OVERALL: Coinbase
- TYPES OF CURRENCIES OFFERED: 100+
- FEES FOR TRANSACTION: To be determined at the time of purchase
- WALLET INCLUDED: Yes
Why do we recommend it?
Coinbase is a fantastic place to start if you are entirely new to the world of Bitcoin and other cryptocurrencies because it supports a variety of the most popular cryptocurrencies and has a strong track record regarding security and affordable charges fees.
Advantages and disadvantages of Coinbase
Coinbase –– the advantages
- More than 89 million users have been confirmed
- Charges that are not unreasonable
- Availability of support for a diverse range of currencies
Coinbase –– the disadvantages
- Transaction fees are calculated when buying, selling, or converting cryptocurrency.
Overview
Coinbase, with its headquarters in San Francisco, is an effective Bitcoin wallet service as well as an exchange. Because it has more than 89 million users across more than 100 countries, it is a standard option for cryptocurrency fans, investors, and traders. Coinbase states that it has more than $278 billion in assets under management and that it facilitates more than $547 billion in trade volume each quarter. At Coinbase, you may buy and sell more than one hundred different currencies, including Bitcoin.
The costs that Coinbase charges to purchase, sell, and convert cryptocurrencies are not disclosed on the website where the services are offered. Instead, it states that the costs will be calculated at the time that the order is placed. Costs associated with funding can vary depending on the strategy. Users who are serious about their use of Coinbase may choose to consider upgrading to Coinbase Pro, which has its own pricing model.
Coinbase provides a high level of security for its customers by utilizing a system called Coinbase Vaults, two-factor verification, and offline storage for the vast majority of its customers' funds.
HIGHLY RECOMMENDED FOR BEGINNERS: eToro
- TYPES OF CURRENCIES OFFERED: 49
- FEES FOR TRANSACTION: 1 percent for buying or selling cryptocurrency in addition to the spread price, which is not published.
- WALLET INCLUDED: Yes
Why do we recommend it?
Because of its user-friendly interface and practice accounts, eToro is the platform we recommend to people just starting out in the cryptocurrency market. These accounts allow users to get a feel for buying Bitcoin without risking their own money.
Advantages and disadvantages of eToro
eToro –– the advantages
- Platform with a low learning curve
- Free practice accounts containing fictitious currency
- A copy-trading platform for beginners to get their feet wet.
eToro –– the disadvantages
- Spreads are not revealed in their specific form.
Overview
eToro is a platform that might be suitable for you if you're searching for something straightforward and concentrated, like the ability to buy Bitcoin while also expanding your knowledge of the ecosystem surrounding cryptocurrencies. Those who are new and unfamiliar with Bitcoin will appreciate how easy and uncomplicated the site is to use, as well as the CopyTrader feature, which enables users to replicate the trades of other users on the platform.
You won't put any of your real money in danger when you sign up for the service because you'll have access to a $100,000 virtual account right away. When you are ready, you can move on to live trading, where you will be using actual money. Be sure to keep track of the one percent charge that applies to each purchase or sell transaction and the different spread that applies to each cryptocurrency.
HIGHLY RECOMMENDED FOR INSTANT SERVICE: CoinMama
- TYPES OF CURRENCIES OFFERED: 10
- FEES FOR TRANSACTION: Commission fees can reach up to 3.90 percent, on top of Coinmama's market rate (which is the average rate plus 2 percent)
- WALLET INCLUDED: No
Why do we recommend it?
We went with Coinmama since it allows rapid purchases of Bitcoin, has a wide variety of payment alternatives and has significant spending limits.
Advantages and disadvantages of CoinMama
CoinMama –– the advantages
- Instant order delivery
- Transfer to any cryptocurrency wallet of your choice
- A plethora of potential funding avenues.
CoinMama –– the disadvantages
- Complex charge structure
- There is a possibility that instant delivery will incur additional expenses.
- There is no support for ACH bank transfers.
Overview
If you already have a Bitcoin wallet and want to get your hands on Bitcoin as quickly as possible, Coinmama might be the ideal option for you. Coinmama has a streamlined process for establishing new accounts and verifying existing ones. After logging in, you will have access to several different payment options that will allow you to buy Bitcoin instantly. However, the instant purchasing privileges may come at a relatively hefty cost to you.
People in the United Kingdom and the European Union have access to a wider variety of instant funding choices than those in the United States. There are ten different currencies that you can purchase with either a credit or debit card. After you place an order, Coinmama immediately verifies the funds using the associated card, and then the cryptocurrency of your choice is placed into your cryptocurrency wallet.
It is hoped that they would add ACH payments originating in the United States as a means of funding, even if instant purchases cannot be made using this mode of funding due to the nature of electronic transfers in the United States. Coinmama, on the other hand, enables users to instantaneously buy coins using any Bitcoin wallet as long as they have a credit or debit card and are willing to pay the associated costs.
HIGHLY RECOMMENDED FOR PRIVACY: Bisq
- TYPES OF CURRENCIES OFFERED: Multiple
- FEES FOR TRANSACTION: 0.12 percent for the maker and 0.88 percent for the taker.
- WALLET INCLUDED: Yes
Why do we recommend it?
When purchasing and selling Bitcoin through an open-source desktop client, we find that the decentralized aspects of Bisq, which promote privacy and anonymity, are beneficial.
Advantages and disadvantages of Bisq
Bisq –– the advantages
- The decentralization of the network helps to promote privacy.
- The software is of an open-source nature.
- No signup required
- There is no obligation to verify your identity.
Bisq –– the disadvantages
- Possibility of slowing down transactions
- This is not the best option for active traders.
Overview
The decentralized exchange known as Bisq does not call for any signup or account creation. This means that you can use Bisq to buy and sell items while maintaining a high level of discretion. Bisq might be able to deliver what you're searching for if you're interested in the privacy that Bitcoin provides. The Bisq desktop app is required, and it is open source as well as free to use.
Bank transfers, Popmoney, Zelle, and Western Union, are only some of the supported payment methods by Bisq, which also offers a wide variety of other options. Fees for trades might range anywhere from 0.12 percent to 0.88 percent, depending on the transaction's nature and the payment method used.
Those already familiar with cryptography will benefit the most from using Bisq.
The Best Sites For You to Purchase Bitcoin in 2023 – the bottom line
It is recommended that you search for a cryptocurrency exchange that balances the costs, the level of security, and the number of trading alternatives available. Before participating in a conversation, you should think carefully about what it is you hope to achieve from the interaction. Coinbase is a terrific spot to begin, mainly if you are unsure of precisely what it is you want. A wide range of digital currencies can be purchased in an environment that is both safe and offers a competitive price.
An Overview of the Leading Marketplaces for Purchasing Bitcoin in 2023
COMPANY
|
CATEGORY
|
CURRENCIES
|
TRANSACTION FEE
|
SECURITY
|
TRANSACTIONS
|
MAX TRADING AMOUNT (IN USD)
|
| Coinbase |
OVERALL |
100+ |
To be determined at the time of purchase |
Two-factor authentication |
Buy, Sell, Transfer |
Customized trading limit. $25,000/day limit on deposits |
| eToro |
BEGINNERS |
49 |
1 percent for buying or selling cryptocurrency in addition to the spread price, which is not published. |
Two-factor authentication |
Buy, Sell, Transfer |
Customized trading limit. $40,000 per debit card transaction |
| Coinmama |
INSTANT SERVICE |
10 |
Commission fees can reach up to 3.90 percent, on top of Coinmama's market rate (which is the average rate plus 2 percent) |
Two-factor authentication |
Buy, Sell, Transfer |
Max order and deposit limit of $15,000 |
| Bisq |
PRIVACY |
Multiple |
0.12 percent for the maker and 0.88 percent for the taker. |
Multi-signature address |
Buy, Sell, Transfer |
No trading limits |
Frequently Asked Questions (FAQs)
What Exactly Is an Exchange for Bitcoins?
A digital marketplace in which traditional currencies, like U.S. dollars, can be traded for Bitcoins is known as a Bitcoin exchange. A significant number of cryptocurrency exchanges that offer Bitcoin also support a variety of other cryptocurrencies.
Each Bitcoin exchange has its unique price and platform, which may prompt you to choose one Bitcoin exchange over another immediately. Bitcoin users with more experience may be interested in additional information regarding the sort of exchange. Some cryptocurrency exchanges, for instance, make use of centralized systems and user accounts, whereas others are decentralized and emphasize users' right to privacy. It's possible that, depending on what you're trying to do, you'll find that one form of trade works better for you than another.
Explain the Process of Buying and Selling Bitcoins
Bitcoin exchanges can, in certain circumstances, serve the role of a broker or middleman by connecting buyers and sellers of Bitcoin. When you purchase Bitcoin with a Bitcoin wallet, the transaction is recorded on the Bitcoin Blockchain, which is a public ledger that keeps track of transactions based on Bitcoin. An exchange may carry out a transaction on your behalf even if Bitcoin is not sent to an external digital wallet.
Are Bitcoin Exchanges Allowed Under the Law?
In the United States, Bitcoin exchanges are usually deemed to be operating within the law. On the other hand, it is your duty to disclose any gains from the sale of assets to ensure that your annual tax return complies with the law.
What are some of the critical distinctions between Bitcoin Wallets and Bitcoin Exchanges?
Exchanges for Bitcoin are locations where users can purchase and sell the digital currency. The wallet is the account that stores your Bitcoin; in many instances, the exchange will also provide you with one of these wallets. When you utilize a centralized exchange, such as one that is accessible via the internet or a mobile application, the exchange will, in effect, store the Bitcoins on your behalf.
When you purchase Bitcoin from most exchanges, you will be allowed to move your coins to any Bitcoin wallet of your choosing. Additionally, you are able to use external wallets in addition to exchange when working with Bitcoin. "Hot wallets" are those hosted on a computer or the internet, whereas "cold wallets" are hosted offline and operate in a manner similar to that of a USB security key.
What are some of the critical differences between mining software and Bitcoin exchanges?
Software designed to mine Bitcoins contributes to the upkeep of the blockchain. Every single transaction which takes place on the blockchain is visible to the public and is stored on a multitude of computers all around the world. When a transaction takes place, a group of computers known as miners competes with one another to record it and receive a small charge. This price is paid by the individuals who carry out the transaction.
Mining Bitcoin is best suited to individuals who are proficient with computers. When you operate a Bitcoin miner, you have the potential to generate your very own Bitcoin if you come out on top of the competition and are awarded the transaction fee. You can increase your chances of winning by joining a mining pool and other individuals. However, you should be aware that mining requires a lot of power and may end up costing you more money than it brings in.
Is it Risk-Free to Invest in Bitcoin?
When you utilize a well-known and well-known platform that has been thoroughly investigated, purchasing Bitcoin is a risk-free activity. It is crucial to research any platform where you are considering getting Bitcoin before deciding to dive headfirst into the market. The value of Bitcoin experiences more frequent shifts than many other traditional assets, which calls into question its status as a secure investment. Bitcoin is an excellent asset to have if you are interested in promoting the use of decentralized payment processing methods. On the other hand, neither a guarantee nor an insurance policy will be provided to safeguard your purchasing value.
What is the process of purchasing Bitcoin?
If you are interested in purchasing Bitcoin, one may break down the process into the following steps:
- Choose a provider for both your exchange and your wallet: You first need to select a location where you may buy and keep your Bitcoin. Choosing an exchange that also provides safe storage for Bitcoins is the quickest and easiest method to get started with cryptocurrency.
- Establish a new account: When you have decided on the cryptocurrency exchange that best suits your needs, the next step is to register an account with them and provide some basic information about yourself. There are other decentralized exchanges that do not require an account. Still, to utilize these types of exchanges, you will need an existing wallet and additional technical knowledge.
- Put some funds into your account: Before you can place an order, you will most likely be required to fund your account if you choose a supplier that lets you deposit fiat currency (such as dollars, euros, or pounds, amongst others). You might be able to make an immediate purchase if you have a debit or credit card, but you should watch out for any additional fees.
- Now is the time to place your order, since the big moment has finally arrived. Put in your order, then wait for it to be finished being executed. You might not complete your purchase immediately since processing blockchain data takes some time. There are a lot of different variables at play here, and as a result, the amount of time needed to do this could range anywhere from a few minutes to more than an hour.
When your order is complete, you should check your Bitcoin wallet or account to find that you now have additional Bitcoin. Congratulations! You now have some cryptocurrency in your possession.
Our methodology to determine the best online sites to buy Bitcoin in 2023
After analyzing more than a dozen of the most reputable online marketplaces where Bitcoin may be purchased and sold, we narrowed our list down to the top six locations based on a variety of criteria. The length of time an exchange has been in business, feedback from previous customers, the fees and features offered by various digital wallets, and the rate at which one can purchase Bitcoin were all considered.
