5 Ways to buy Bitcoin

Today, there is no person who has not heard about Bitcoin, except for those who are completely disconnected from the digital sphere. Bitcoin gained even more popularity against the background of the growth of the exchange rate — in 2021 the coin managed to refresh it’s all-time high twice. It is not surprising that many newcomers who have not yet encountered the cryptosphere have thought about purchasing such a promising investment asset. Today’s guide will help you figure out how to buy Bitcoin conveniently and profitably.

Key Points

• Bitcoin is a decentralized digital asset, which is issued as a result of the process called “mining”.
• There are 5 ways to buy Bitcoin – cryptocurrency exchange, P2P exchange, Aggregator, cryptocurrency wallet, Bitcoin ATM.
• To avoid extra expenses one should always compare rates on different platforms or rely on an aggregator, which will do all the research for you.

What is Bitcoin?

Bitcoin is the world’s first decentralized digital cryptocurrency created by Satoshi Nakamoto in 2009, which uses peer-to-peer technologies to operate with no central authority or banks.

The Bitcoin network works due to mining, as a result of which BTC coins are issued. Transactions in the BTC network occur on the peer-to-peer principle, which means a direct transfer of funds from one user to another, without the participation of third parties and regulatory authorities in the form of banks, the state, etc.

Bitcoin cryptocurrency works on blockchain technology, which fundamentally distinguishes it from all previously created digital  currencies and payment systems. The Bitcoin blockchain is not tied to any physical assets or traditional fiat currencies, and the price of the BTC coin is regulated exclusively by market supply and demand, i.e. there is what value people themselves invest in it, similar to gold, for example. Bitcoin has another big similarity with gold — the limited emission. In the case of Bitcoin, its quantity is strictly limited to 21,000,000.

Distinctive features of BTC as a cryptocurrency:

• Peer-to-peer. Transactions in the Bitcoin network occur on a peer-to-peer basis, that is, the influence of third parties is excluded.
• Easy to use. It takes about 5 minutes to create a BTC wallet that will be ready for immediate use.
• Anonymity and transparency. Bitcoin is anonymous and at the same time completely transparent.
• Irreversible transactions. After sending Bitcoin to the addressee, it is impossible to return the amount if the recipient does not want to do it himself.

5 ways to buy Bitcoin (BTC)

To buy Bitcoin, you can use several different ways, each of which has its own strengths and weaknesses. When making a choice, you should pay attention to the size of commissions, convenience, speed, available payment methods, and other factors.

Cryptocurrency exchanges

Perhaps the most popular way to buy Bitcoin is cryptocurrency exchanges. In order to buy Bitcoin on a crypto exchange, you need to open an account, verify your identity, and top up your balance in one of the ways that are possible on this exchange. The purchased Bitcoin is credited to the exchange account. If you are not going to make other trading operations with it in the near future, then it is better to withdraw your funds to an external wallet, where BTC will be stored more securely. Even the best cryptocurrency exchanges are at risk of hacking, so you should not put your money in danger.

P2P exchanges

P2P exchanges serve as platforms for buyers and sellers of Bitcoin, where they conclude transactions directly. These exchanges have relatively low commissions. The spread depends on the liquidity of the cryptocurrency and the payment method. Unlike crypto exchanges, here the seller sets the price himself, and those who want to buy, contact him to complete the transaction. This method allows you to buy relatively large volumes of BTC at fairly low prices. All major payment methods are usually supported, even the most exotic ones. The key feature is an escrow account, when the cryptocurrency is temporarily delayed until the buyer transfers money. In case of disputes, participants can apply to arbitration and the exchange staff will resolve the conflict.

Aggregators

Purchasing BTC through such services is one of the easiest options for beginners. Aggregators provide a wide choice of directions between fiat and cryptocurrency, do not require verification, are simple and convenient to use. Usually such services cooperate with reliable fiat providers and provide the best exchange rates. One of such services is Fiatom. We support operations with almost 50 fiat and almost 100 cryptocurrencies. We compare and analyze many offers to provide our users with the best exchange rate. Our interface eliminates any difficulties and makes the process simple and intuitive, and the exchange profitable and fast. We do not charge service fees and do not store your funds. 

Cryptocurrency wallets

Such services combine the functionality of both storage and asset management — including their purchase. This is convenient as it allows you to manage your funds as quickly and flexibly as possible without leaving the familiar and secure interface for this. To purchase Bitcoin, it is usually suggested to use a Visa or Mastercard bank card, but the fee can range from 5% to 10%. One of the most popular representatives of such platforms are Matbea, Atomic, Trust Wallet, and others.

Bitcoin ATMs

For those who do not want to register on exchanges and make virtual transactions, there is an alternative way to buy cryptocurrency — a crypto ATM (BTM). According to the  Coin ATM Radar resource, more than 35 thousand ATMs have been installed worldwide to date. Finding the nearest ATM is not so difficult. There are special services for this: for example, Coin ATM Radar, Bitcoin ATM Map, Buy Bitcoin Worldwide. On them, you can see the nearest ATM right on the map, and at the same time clarify its functionality, manufacturer, purchase/sale limits and with which coins it works.

What to watch for

When choosing a service where you can buy Bitcoin, it is important to take into account a lot of different factors. Among the most important ones are:

• Amount of fees. Commissions on cryptocurrency exchanges, BTMs, aggregators, and other services may differ significantly. Namely, commissions eat up a significant part of profits, so this moment deserves attention.
• Usability. It is especially important to evaluate the usability of the platform, because one wrong step can lead to irreparable consequences. Always remember that the cryptocurrency transaction cannot be reversed so you should be very careful while sending your coins.
• Available payment methods. Different platforms have different payment options – some accept SEPA and some not, the same goes with Visa and Mastercard transactions. In addition, you should take into account the country of residency, while there might be some limitations for specific regions.
• Credibility. Unfortunately we have to admit that there are lots of scam projects in the cryptocurrency market. Therefore one has to be extra careful in choosing the platform for buying Bitcoin – pay attention to the reviews on Trustpilot and read the documentation before ensuring your assets to the third party.

The bottom line

To date, there are a lot of ways you can buy Bitcoin for fiat. However, often such platforms either charge fabulous fees, or are limited to a very small range of payment methods, or are prohibited on the territory of certain countries. This article has collected the fastest, most convenient, and safest ways to make a fiat-to-Bitcoin exchange. You can choose the service that seems to you the most convenient and less expensive.

By the way, if you want to swap tokens with the best rates and minimal gas fees, we recommend you to try DEX Aggregator Droidex.