Where to Buy Bitcoin in 2023
Just a few years ago Bitcoin was a fun novelty that was of interest to a small group of tech geeks. Now, it’s a multi-billion dollar cryptocurrency accepted as legal tender in many different countries, industries, and businesses.
In this article, we’ll talk about where to buy Bitcoin safely and what makes different exchanges unique. Choosing which exchange to use depends on how much Bitcoin you plan to buy and what kind of additional features you’re looking for. Small-time investors are especially on the lookout for exchanges with low fees and allow small account minimums.
eToro – The Most Popular Platform
eToro is considered to be the best platform for buying and selling Bitcoin. It has a rather small initial deposit policy- you can start with just $10. The setup is simple enough and anyone who has signed up for any digital service would be up and running in a few minutes.
The platform supports the most popular e-wallets such as Skrill, PayPal, and Neteller. The fees that the users pay for transactions on the platform are lower than with any other. They are set at about 0.5 percent, while other platforms charge as much as 3.5 percent.
eToro also uses an algorithm to suggest potential trades to its users. This allows the investors to create a diverse portfolio that goes beyond Bitcoin itself. Users can invest passively simply by paying into the portfolio and allowing the team of experts behind the platform to do the rest.
The biggest downside of the eToro platform is that it doesn’t offer a non-custodial wallet. It’s available in many countries but not globally since there are still governments that don’t allow Bitcoin trading.
Binance – A Platform with the Lowest Commission
Binance has been around since 2017 and it’s now the biggest platform out there when measured in the overall volume of trading. It supports over 300 cryptocurrencies including Bitcoin and other big ones. Setting up an account on the platform is easy enough but it does require the users to upload a government-issued ID.
The commission charged by Binance is the lowest one in the business. It’s set at 0.1 percent. The deposits made to the platform also come with a fee and the size depends on the payment method you’re using. It’s lower for bank transfers and higher for debit cards.
The withdrawals made from the platform are faster than with almost any other platform. You can have Bitcoin on your e-wallet, in about ten minutes.
One of the biggest downsides of the platform is that it was hacked in 2022 and $350 million was stolen in the process. Since then Binance has stepped up its security systems and it uses a two-step authentication system now.
It’s not a platform for beginners, since it doesn’t use too many automated trading techniques. Instead, it’s best suited to experts who want to trade the most advanced crypto products and make real profits in the process.
Coinbase- The Most User-Friendly Exchange
Coinbase is a crypto exchange that’s best suited to beginners in the field. The initial investment can be as low as $2 and the sign-up process is straightforward. The payments can be made with debit cards or e-wallets such as PayPal.
The fees depend on what kind of payment method you’re using. It’s set to be the highest for those who purchase Bitcoin using fiat money – it’s set at 3.9 percent. The fees are the lowest when you buy crypto with other crypto. Coinbase isn’t upfront about these fees and many users figure out that there are fees to pay when it’s time to pay them.
The commission for trades is set at 1.49 percent. This is rather steep when compared to other exchanges. It can therefore be said that payments and fees as well as its hidden structure are the worst features of Coinbase.
Coinbase has a wide base of users, numbering at millions. The platform is straightforward and easy to use even if you’re new to the world of cryptocurrency trading. The high fees we mentioned are a price to pay for simplicity of use. It’s upon the user to choose if that’s a fair deal.
Crypto.com – No Deposit Fees
Crypto.com is a popular exchange and it has over 80 million users. It’s often advertised as a platform that’s the easiest to use on a mobile device. Crypto.com allows instant purchases with a fee of 2.8 percent. However, the least expensive way to purchase Bitcoin on Crypto.com is to use a bank transfer.
The deposits made this way take about 30 minutes to clear which is pretty long compared to others. The platform allows for trading in 250 different cryptocurrencies including Ethereum and Bitcoin. It can also be used to make loans and create savings accounts using crypto.
For some banks, there are no fees to pay at all. That’s the case with the funds deposited via ACH if you make the deposit from the US, the UK, or Australia. Users making payments from other countries are charged a regular fee.
The biggest con of the platform is that deposits can only be made with an app. It’s their niche and for some, it’s a good thing, but for others, it’s boxing users into a corner. Debit and credit card payments are charged with a 3.9 percent fee.
Bitstamp – One of the Oldest Exchanges
Bitstamp has a good reputation since it’s an exchange operating since 2011. It’s a platform used by both beginners and experienced traders. Bitstamp allows payments with most of the widely used payment methods such as e-wallets, banks, and cards. However, it also charges 4 percent for its service.
There is no commission on buying Bitcoin using Bitstamp as long as you don’t buy more than $1.000 during one month. When you go beyond that amount the commission increases to 0.4 percent. The cheapest option for transferring funds is still via bank transfer and, ACH, SEPA, and UK Faster Payments are processed free of charge.
Bitstamp can be used on both mobile devices and on desktops and its apps is one of the best out there. This is true not only in terms of usability but also in terms of the information it has about the different cryptocurrencies the exchange has to offer.
The biggest downside to using this platform is the fees. They are a bit steep when compared to others working in the field. However, the reputation you’re paying for is hard to beat in such a new and expanding market as the world of crypto trading.
To Sum Up
There are plenty of exchanges out there in which you can trade in crypto and buy Bitcoin. They offer a variety of different features and fee structures. Not every exchange is suited for every user and it pays off to learn about the platform and compare their angles to your own needs and requirements.
Platforms offer different fees based on how the crypto is bought. The least expensive way to go is to use other cryptocurrencies and the most expensive one is to buy with credit and debit cards. Some platforms allow small payments while others are better suited to high-end traders. Choosing the platform is mostly about knowing how you plan to use it.