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How to Buy Bitcoin (BTC)

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Bitcoin is an “electric peer-to-peer cash system” according to its anonymous creator, Satoshi Nakamoto. The goal behind Bitcoin’s creation was to create “a system for electronic transactions without relying on trust“. Bitcoin succeeded in this task through a combination of ingenuity, determination, and technological prowess.

It’s hard to imagine a world without Bitcoin. Today, the world’s first and most successful cryptocurrency is a household name. There have been countless TV shows, songs, tributes, artwork, and books dedicated to this revolutionary invention. To learn more visit our Investing in Bitcoin guide.

We list the top 5 cryptocurrency exchanges that offer the ability to buy Bitcoin (BTC) cryptocurrency with a credit card or debit card.

Binance

Binance is one of the largest and most well-known cryptocurrency exchanges in the world. The benefits of purchasing BTC (BTC) here is that you benefit from the lower exchange fees than competing exchanges, and the increased liquidity enables you to buy and sell quickly to take advantage of market moving news.

This exchange is best for Australia, Canada, Singapore, UK & international users. USA residents are prohibited.

Read our Binance Review or visit Binance.

Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

Paybis

Paybis operate a very well-trusted Bitcoin and cryptocurrency purchase platform where you can buy Bitcoin (BTC) and a range of other crypto using nothing more than your credit or debit card. They have been around since 2014 and have helped hundreds of thousands of people to make Bitcoin purchases.

If you simply want to buy Bitcoin (BTC) and hold then this is one of the easiest ways to buy Bitcoin (BTC) with a credit card or debit card.

USA residents are welcome excluding the states of Hawaii & New York.

Read our Paybis Review or visit Paybis.

BitPanda

Launched in 2014 BitPanda quickly established a positive name and reputation for being a great place to easily buy and sell bitcoin in the UK and all over Europe. Since that time they have built on their stellar reputation to expand rapidly to where they now offer trading in a broad range of cryptocurrencies alongside the ability to purchase precious metals and a host of other services.

In total, they offer close to 50 cryptocurrencies you can choose from. This positions them well within the sector particularly among those brokers that facilitate an instant crypto purchase. Included in this range is BEST, a native token that BitPanda themselves has launched.

Best exchange for Europe, they do not accept residents from outside of this region.

Read our BitPanda Review or visit BitPanda.

Kraken

Kraken is one of the longstanding names when it comes to cryptocurrency exchanges operating in the industry.

From humble beginnings, they have now gone on to become one of the most recognizable names in the space offering an extensive selection of assets to trade including Bitcoin (BTC).

The trading costs are competitive with other exchanges and they have continued to evolve now offering both futures and margin trading.

This is the best overall exchange for USA residents.

Read our Kraken Review or visit Kraken.

Coinberry – Canadians Only

Coinberry is making it easy to purchase Bitcoin (BTC) in Canada with no fuss and buy or sell the asset quickly through their easy to use platform. They have been around since 2017 and have a number of highly-trusted partnerships that set them up with a solid reputation for cryptocurrency. They are also registered with FINTRAC as a Money Services Business, so very trustworthy from that standpoint. No USA customers.

Visit Coinberry or visit our How to Buy Bitcoin in Canada guide.

iTrustCapital – USA Only: IRA Product

iTrustCapital – While US investors have historically only had access to stocks and bonds within their retirement accounts, a new industry has emerged under the name Bitcoin IRA or a Crypto IRA. These are self-directed IRA platforms that allow clients to invest in Bitcoin, Ethereum and other digital assets while still keeping the tax benefits and flexibility of their retirement accounts. These platform allow for both Traditional IRA accounts and Roth IRA accounts, which are specifically designed for long term investments.

Visit iTrustCapital or learn What is a Bitcoin IRA?


Best for

Advanced Users

Best for

USA Traders

Best for

European Traders

Account Minimum

None

Account Minimum

$1.00

Account Minimum

€35

Promotions

10% Cashback

Discount Code: EE59L0QP

Promotions

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Promotions

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What is Bitcoin (BTC)?

Bitcoin is a decentralized network that allows for the transfer of value between parties.  It does this through use of a secure network, comprised of ‘miners,’ which host nodes (computers which store copies of the BTC ledger).

As a digital asset, participation in the Bitcoin network simply requires access to an internet connection.  The asset itself can be used as either a means of payment, or a store of value.

How does it work?

Bitcoin works by utilizing a ‘Proof-of-work’ protocol.  This structuring sees miners in the Bitcoin network vie for a reward of Bitcoin, which is released every 10 minutes.  During this 10 minute increment, miners validate transactions completed between network participants.  These transactions are then recorded on a data block.  Blocks are permanently recorded in sequential order, linked similar to a chain.  The nature of this process led to the technology being dubbed ‘blockchain’.

Due to popularity, and growth of the network, mining Bitcoin has largely become unprofitable for the average person due to computational requirements.  While mining was possible on a laptop, early in Bitcoin’s lifecycle, today, miners are typically large companies operating massive outfits with thousands of specialized machinery.

Projected Developments?

Growth surrounding Bitcoin is a controversial subject.  It is widely believed that, in the long-run, Bitcoin will not exist in the manner it does today; Bitcoin will either ‘boom’ or ‘bust’.

Much of the growth expected to occur revolves around the idea that Bitcoin will replace gold as the ‘go-to’ store of value.  With the current capabilities of the Bitcoin network, this is a real possibility.  If treated as a store of value, less priority will be placed on transaction speed and cost – reducing the impact of current network limitations.

Aside from becoming a store of value, second-layer solutions, such as the Lightning Network, hold the potential to transform Bitcoin into a legitimate candidate for micro-transactions and everyday spending.  Development of the lightning network has made leaps and bounds in the past two years, with various companies dedicating themselves to its maturation.

A best case scenario would see a fully developed lightning network implemented, providing speed, security, and cost savings.  In this scenario, not only would micro-transactions be possible, but the inherent traits of Bitcoin would allow for it to act as a store of value, as well.

Underlying Ideology?

While many cryptocurrencies have lofty goals, few are founded on a strong ideology; Bitcoin is one of these few.

With Satoshi Nakamoto being anonymous, his/her intentions remain unknown, to an extent.  What is clear is that the goal of Bitcoin was to provide a means for an inclusive, secure, stable, means of value transfer.  Most importantly, this would be free of government manipulation.

These attributes, built into Bitcoin, are largely believed to be due to past examples of fraud, manipulation, and self-serving decisions made continuously by participants in the traditional banking system.

If successful, Bitcoin would provide a once in a lifetime opportunity to hit the ‘reset’ button on the world stores of wealth. It would provide the unbanked the opportunity to gain access to modern services.  It would bring democracy to finance.

Acceptance and Controversies?

Of the cryptocurrencies created, to date, all pale in comparison to Bitcoin with regards to adoption.  While much of this is due to a first-movers advantage, Bitcoin has managed to establish itself as the industry leader, simply through its inherent traits (decentralization, anti-inflationary, etc.)

While mainstream adoption has yet to occur, signs of this have been increasingly apparent in recent years.  An asset that was once a fringe technology is now a household name, with a growing number of ways to buy and spend.

On an institutional level, Bitcoin has seen a string of successes and failures over the past few years.  While failure has been seen surrounding the development of a Bitcoin ETF, successes have been numerous, with the following being only a few examples.

Bitcoin futures:  CME, Bakkt,

Bitcoin Fund: 3iQ

Custodial Services: Gemini

Throughout the lifecycle of Bitcoin, there have been various squabbles among developers (SegWit, etc.), and controversies that plagued Bitcoin.  The two most commonly recurring controversies surrounding the digital asset are,

Illicit activity – A perception that criminals utilize BTC, with the asset supporting black market activity

Power consumption – Growth of the network, and a reliance on proof-of-work, has resulted in increasing power consumption by computers powering the network.

Regulation?

Due to its decentralized nature, and no central authority, Bitcoin is not viewed as a security in most of the world.

While BTC may not be viewed as a security, there are discrepancies around the world surrounding classification.  Is it a currency? Is it a commodity? Is it a collectible? Etc.

With regards to North America, Bitcoin is widely viewed as a currency, and treated as such.  Jay Clayton, Chairman of the SEC, has gone on record stating this.

“Cryptocurrencies: These are replacements for sovereign currencies, replace the Dollar, the Euro, the yen with Bitcoin…That type of currency is not a security.”

Who made it?

Bitcoin might have the most interesting origin story of all.  This is due to a shroud of mystery surrounding its founder – Satoshi Nakamoto.

The mystery surrounding Satoshi is that no one knows who he/she/they are.  Furthermore, as the identity of Satoshi is unknown, this person may not even be alive today.

What is known is that wallets associated with Satoshi contain nearly 1 million BTC, with the vast majority remaining untouched since their creation.

Daniel is a big proponent of how blockchain will eventually disrupt big finance. He breathes technology and lives to try new gadgets.

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