The Best Places To Invest In Bitcoin Revealed

Bitcoin has evolved from an obscure digital token used by a small group of people into a payment method and store of value that millions believe is the currency of the future. If you're interested in buying Bitcoin, you'll first need to open an exchange or platform that allows Bitcoin trading.

There are thousands of financial products and services out there, and it can be challenging to navigate your finances. Some of the best places to buy Bitcoin include Coinbase, Gemini, Robinhood, eToro, Uphold, Bitstamp, Kraken, Crypto.com, and Cash App.

Before buying Bitcoin, it's important to consider the cost, investment selection, educational resources, user interface, and safety. Additionally, it's crucial to understand the risks and potential rewards of investing in Bitcoin and other cryptocurrencies.

Crypto exchanges

There are hundreds of crypto exchanges to choose from, each with its own unique features and drawbacks. Here are some of the best crypto exchanges in various categories:

Best Overall Crypto Exchange

Coinbase is one of the most popular and best overall cryptocurrency exchanges. It is available in over 100 countries and offers an easy-to-use platform for buying, selling, and trading Bitcoin, Ethereum, Litecoin, and 30+ other coins and tokens. Coinbase also provides high security and allows users to earn interest on their USDT. However, it charges high fees unless using Coinbase Pro.

Best for Trading

Kraken is one of the original crypto trading platforms and is a good option for those seeking a large selection of coins and tokens to trade and invest in. It also allows margin trading and has a professional platform, Kraken Pro, which offers advanced order types and supports margin and futures trading. Kraken Pro provides highly customizable chart analysis tools and detailed insight into the order books. However, it is not as easy to use as some other platforms and is not available in all U.S. states.

Best to Earn Interest

Crypto.com is one of the largest and fastest-growing crypto exchanges, offering access to over 90 tokens and coins worldwide and 50 in the United States. It provides solid rates on its crypto savings accounts and allows users to get a debit card linked to their account. However, it is only available as an app and does not have desktop support.

Best for Altcoins

Uphold is a good option for those seeking a simple solution for trading multiple assets. It allows users to trade multiple assets directly without having to go back to cash, and it is one of the few exchanges that allow trading of XRP, DOGE, and more. However, Uphold has been criticised for its poor customer service and not being as easy to use as some other platforms.

Best for Beginners

Gemini is a good option for beginners as it offers a simple, intuitive user interface and a wealth of educational materials on cryptocurrency in its Cryptopedia library. It also provides strong security measures, including an integrated hot wallet. However, it has a convoluted fee structure and limited customer service options.

Best for Low Fees

Bisq is a decentralized exchange that allows users to buy and sell Bitcoin and a range of other cryptocurrencies securely and privately. It does not require users to complete a Know Your Customer (KYC) identity verification process and is not limited to specific jurisdictions. However, it is not very beginner-friendly and has lower trading volumes than centralized exchanges.

Traditional stockbrokers

Traditional brokers typically offer Bitcoin futures, but not direct trading in Bitcoin. However, they provide access to a wide selection of other securities, and some allow commission-free trading in Bitcoin ETFs.

Robinhood

Robinhood was the first mainstream investment broker to offer Bitcoin trading. It charges no fees for Bitcoin trades, just like its stock-trading platform. However, there is a built-in spread markup on any trades. Robinhood also offers stock and ETF trades. Its app is slick and easy to use, but it may not satisfy more experienced traders looking for a full-featured trading experience.

Interactive Brokers

Interactive Brokers offers trading in four cryptocurrencies, including Bitcoin and Ethereum, through Paxos Trust Company and Zero Hash. It charges commissions of 0.12-0.18% of the trade value, with a $5 fee per Bitcoin futures contract. Customers can also access 24/7 crypto trading through an associated app with Paxos.

Webull

Webull is a lesser-known commission-free trading app that provides trading in several cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin. While it does not charge commissions, it has a built-in spread markup of 1% on either side of a trade. Webull offers charting tools and an impressive mobile app.

TradeStation

TradeStation offers direct cryptocurrency trading via TradeStation Crypto, with a built-in spread markup of up to 1% of the trade value. It also provides the option to buy and sell Bitcoin futures.

Charles Schwab

Charles Schwab offers trading in Bitcoin futures with an attractive commission of $2.25 per contract. There is no account minimum, but any futures contracts held will require a minimum margin.

Tastytrade

Tastytrade offers trading in four cryptocurrencies with a commission of 1% of the trade value on the buy and sell, up to $10 per side of the trade. It also offers crypto futures at $1.25 per contract on the open and close.

When choosing a traditional stockbroker for Bitcoin trading, it is important to consider your specific needs and investment strategy. Evaluate factors such as fees, available cryptocurrencies, trading platforms, and customer support. Additionally, ensure that the broker is well-regulated and provides a secure platform to protect your investments.

Bitcoin ATMs

The process of buying Bitcoin from a Bitcoin ATM typically involves the following steps:

• Choosing the "Buy Bitcoin" option
• Scanning the QR code of your Bitcoin address
• Providing identification, depending on the ATM and jurisdiction
• Entering the amount you want to purchase
• Inserting cash into the ATM
• Waiting for the transaction to be processed
• Checking your Bitcoin wallet for the transaction confirmation

Some Bitcoin ATMs also allow users to sell Bitcoin and receive cash in return. The fees charged by Bitcoin ATMs vary, with an average of 15%, but it's important to read the instructions and fees on the machine before initiating a transaction.

• Coinhub Bitcoin ATMs: With over 2,000 locations nationwide, Coinhub offers instant Bitcoin purchases with daily cash limits of $25,000. No prior account is needed, and purchases can be made in under 2 minutes.
• Lowest Fee Bitcoin ATMs: Offering the highest daily cash limits of $50,000 per day and instant registration, these ATMs can be found in over 40 states and most major cities in the US.
• Byte Federal: Focused on security, privacy, and financial freedom, Byte Federal offers Bitcoin ATMs, POS systems, and a non-custodial wallet.
• Coinme: As the first licensed Bitcoin ATM operator in the US, Coinme has thousands of locations across the country, providing a trusted and convenient way to buy and sell crypto with cash.
• Cash2Bitcoin: With locations nationwide, many of which are open 24/7, Cash2Bitcoin makes it convenient for anyone to buy cryptocurrencies.
• Bitstop: One of the oldest and largest Bitcoin ATM networks, Bitstop has over 2,500 locations across the United States. It offers competitive exchange rates and an easy onboarding experience.
• Bitcoin Depot: With over 8,000 Bitcoin ATMs across the US and Canada, Bitcoin Depot is the largest Bitcoin ATM network in North America. Their machines are easy to use and provide live customer support.

When using a Bitcoin ATM, it is important to be aware of the fees and have a plan for where to send the Bitcoin once purchased. Additionally, always prioritize your safety and privacy when conducting financial transactions online.

Bitcoin exchange-traded funds

How Bitcoin ETFs Work

Bitcoin ETFs are investment funds that hold a collection of Bitcoin-related assets, such as futures contracts, and sell shares of the fund to investors. These shares are then traded on mainstream exchanges.

The goal of Bitcoin ETFs is to provide investors with a way to invest in Bitcoin without the need to purchase and store the cryptocurrency directly. This eliminates the need for investors to worry about the security and storage of their Bitcoin, as well as the high costs associated with buying and selling the asset.

Advantages of Bitcoin ETFs

One of the main advantages of Bitcoin ETFs is that they provide investors with exposure to Bitcoin without the need for direct ownership. This means that investors can gain access to the price movements of Bitcoin without the hassle and expenses associated with buying and storing the cryptocurrency.

Another advantage is that Bitcoin ETFs are traded on regulated exchanges, providing a level of security and transparency that is often lacking in the cryptocurrency markets. Additionally, ETFs are a more familiar investment type for many investors, making them a more comfortable option for those who are new to the world of cryptocurrency.

Disadvantages of Bitcoin ETFs

While Bitcoin ETFs offer a number of benefits, there are also some drawbacks to consider. One of the main disadvantages is the risk of tracking error. Bitcoin ETFs do not always perfectly mirror the price movements of Bitcoin, especially for funds that rely on futures contracts, which may incur additional costs as they roll over their positions.

Another disadvantage is the regulatory uncertainty surrounding the cryptocurrency industry. The regulatory landscape for cryptocurrencies is still evolving, and changes in regulations can impact the legality, trading, and valuation of Bitcoin futures, introducing uncertainty for investors.

Examples of Bitcoin ETFs

Some examples of Bitcoin ETFs include:

• ProShares Bitcoin Strategy ETF (BITO)
• Valkyrie Bitcoin and Ether Strategy ETF (BTF)
• VanEck Bitcoin Strategy ETF (XBTF)
• Global X Blockchain & Bitcoin Strategy ETF (BITS)

Bitcoin ETFs offer a convenient and accessible way for investors to gain exposure to Bitcoin without the need for direct ownership. However, it is important for investors to carefully consider the advantages and disadvantages of this investment option before deciding whether to include it in their portfolio.

Peer-to-peer money transfer apps

There are several peer-to-peer money transfer apps that allow users to buy, sell, and store Bitcoin. Here are some of the most popular ones:

Cash App

Cash App is a money transfer app created by Block Inc. that allows users to send money via their Cash App balance, linked bank account, credit card, or debit card. The app also offers an optional debit card, which allows users to spend their Cash App balance and receive "offers" or savings at various vendors. Cash App charges a 3% fee for credit card transactions and a 0.5%-1.75% fee for instant deposits.

Venmo

Venmo is an app that allows users to send money via a linked bank account, Venmo balance, or credit card. The service is owned by PayPal and offers a free, optional debit card. However, there is a 3% fee for sending money via credit card and a 1.75% fee for instant cash-out transfers to a bank account.

PayPal

PayPal is a payment service that facilitates personal money transfers, online purchases, and e-commerce. It offers peer-to-peer money transfers, allowing users to send money via a linked bank account, debit or credit card, PayPal balance, or PayPal Credit. However, there is a 2.9% transaction fee for using credit cards, debit cards, or PayPal Credit.

Zelle

Zelle is a service offered by most major banks in the US, allowing users to send money to other Zelle users through their bank account or the Zelle app. Money transfers to enrolled Zelle users are typically quick, but the service only works with domestic banks.

Google Pay

Google Pay is a digital payment app that allows users to make purchases and money transfers. It can be used at checkout with many retailers and enables users to split costs for rent, utilities, and meals. However, Google Pay doesn't allow users to link credit cards for payment.

Apple Cash

Apple Cash allows Apple users to send and receive money through the Messages or Wallet apps on compatible devices. It is convenient for Apple users but is limited to Apple devices and cannot be used on Android.

Social Media Money Transfers

Some social media and communication networks, such as Meta Pay, allow users to send, request, and receive money via a linked bank account, debit card, or PayPal account. These transfers usually happen quickly, but the apps generally offer limited transfer features and may not support credit card payments. It's important to be cautious of scams when using these platforms.

Frequently asked questions