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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 8 cryptocurrency exchanges that offer the ability to buy Bitcoin (BTC) cryptocurrency with a credit card or debit card.

Bitstamp

Founded in 2011, Bitstamp is one of the oldest & most trusted exchanges in the world and are a popular choice in the USA. The exchange now has more than 4 million users worldwide and offers a wide range of cryptocurrencies to choose from including Bitcoin (BTC).

A highly experienced exchange, Bitstamp provides a thorough and user-friendly trading environment that is secure and with enough choice to satisfy most traders. The global nature of the company and the trusted regulation and licensing put in place is also a positive aspect for many new or experienced users.

They currently accept Canada, UK & USA residents excluding the states of Alabama, Hawaii, Idaho, Louisiana, Nevada, & New Jersey.

Read our Bitstamp Review or visit Bitstamp.

Uphold

Uphold – A top exchange in the United States, Uphold is an experienced and extremely innovative trading platform that should be able to meet your needs for trading across a number of cryptocurrencies including Bitcoin (BTC). Beyond the ease of use and innovative features within the trading platform, what stands out about Uphold is the credibility it has gained in the industry.

Uphold offers both a desktop and mobile app trading experience that is extremely intuitive. The trading view is completely customizable with the assets that you trade the most, and is very easy to navigate while providing a modern feel on both desktop and mobile. It is a very popular and suitable choice, particularly for new traders.

Besides being visibly appealing, the Uphold trading platform allows you to place your trades with great ease. Just a couple of clicks and you can make trades directly from your deposit method without even having to wait for funds to clear to your account. This one-step ordering is another innovation from a company which prides itself on the usability of its platform. Uphold also provides the ability to execute limit orders.

UK & European residents are prohibited.

Read our Uphold Review or visit Uphold.

Uphold Disclaimer: Assets available on Uphold are subject to region. All investments and trading are risky and may result in the loss of capital. Cryptoassets are largely unregulated and are therefore not subject to protection.

Binance

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

This exchange is best for investors residing in Australia, Canada, Singapore, UK & internationally.  USA residents are prohibited from purchasing most tokens.

Read our Binance Review or visit Binance.

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

KuCoin

KuCoin is a well-known name in the industry, and one of the most competitive when it comes to fees and trading costs. The exchange has grown exponentially from its early days of offering only crypto to crypto trading.  It now offers a varied range of services including a P2P exchange capability, and purchasing with credit or debit cards.

KuCoin currently offers Bitcoin (BTC) cryptocurrency trading as well as over 300 other popular tokens.  It is often the first to offer buying opportunities for new tokens.

This exchange currently accepts USA residents.

Read our KuCoin Review or visit KuCoin.

Nexo

Nexo is a cryptocurrency platform and service which describes itself as one of the worlds leading digital asset institutions offering an all-in-one solution to buying, borrowing, and managing cryptocurrencies.

The company has been around since 2017 and now operates in over 200 jurisdictions providing service to more than 4 million users around the world while  providing a wide range of innovative features to traders.

Overall, the company has a strong reputation for providing a top-tier service that operates with a  high level of accountability and works to ensure user assets are kept as safe as possible. 

What sets this platform apart is the ability to earn high interests from crypto that is held.

More than 35 popular cryptocurrencies can be purchased within 7 seconds using the Nexo buy function. This includes Bitcoin, Ethereum, USDC, USDT, and NEXO the native token of the company. Users users can trade in more than 300 market pairs including over 100 exotic pairs which may be more difficult to find elsewhere.

Read our Nexo Review or visit Nexo.

Huobi Global

Established in 2013, Huobi Global has since become one of the world’s largest digital asset exchanges, with an accumulated trading volume of US $1 trillion. Having once accounted for half of the world’s digital asset transactions, Huobi now serves more than 5 million users in over 130 countries around the globe. It should be noted that Huobi Global currently does not accept USA or Canadian residents.

Huobi Global is one of the top exchanges that currently offers Bitcoin (BTC) trading opportunities.

Read our Huobi Global Review or visit Huobi Global.

WazirX (INDIA Only)

WazirX is India’s biggest cryptocurrency exchange with over 400,000 users, and is expanding rapidly. It is one of the most reputable exchanges to currently offer Bitcoin (BTC) trading opportunities and currently accept clients from all over the world. This exchange is part of the Binance Group, which ensures a high standard of quality.

USA residents are prohibited.

Read our WazirX review or visit WazirX

Coinberry – Canadians Only

Coinberry is making it easy to purchase Bitcoin (BTC) in Canada with no fuss.  User can buy or sell this asset quickly through Coinberry’s easy to use platform. This exchange has been around since 2017 and has a number of highly-trusted partnerships which set it up with a solid reputation for cryptocurrency. Coinberry is also registered with FINTRAC as a Money Services Business, making it very trustworthy from that standpoint.  No USA customers.

Read our Coinberry Review, 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?


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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Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

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This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio.

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