ℹ️ Skipped - page is already crawled
| Filter | Status | Condition | Details |
|---|---|---|---|
| HTTP status | PASS | download_http_code = 200 | HTTP 200 |
| Age cutoff | PASS | download_stamp > now() - 6 MONTH | 0 months ago |
| History drop | PASS | isNull(history_drop_reason) | No drop reason |
| Spam/ban | PASS | fh_dont_index != 1 AND ml_spam_score = 0 | ml_spam_score=0 |
| Canonical | PASS | meta_canonical IS NULL OR = '' OR = src_unparsed | Not set |
| Property | Value | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| URL | https://moneywise.com/investing/cryptocurrency/how-to-buy-bitcoin | |||||||||
| Last Crawled | 2026-04-26 17:32:47 (22 hours ago) | |||||||||
| First Indexed | 2025-01-25 04:55:51 (1 year ago) | |||||||||
| HTTP Status Code | 200 | |||||||||
| Content | ||||||||||
| Meta Title | How to buy Bitcoin | |||||||||
| Meta Description | A beginner's guide to investing in bitcoin and other cryptocurrencies. | |||||||||
| Meta Canonical | null | |||||||||
| Boilerpipe Text | Bitcoin has exploded over the past several years. By 2025, estimates suggest 145,100 global Bitcoin holders crossed into millionaire territory. Most analysts believe that this cryptocurrency is here to stay. That said, investing in Bitcoin for the first time can be easy with the right steps and precautions.
Here’s how to safely buy Bitcoin in four easy steps.
1. Choose between a crypto exchange or a broker
2. Set up and fund your account
3. Decide where to store your Bitcoin
4. Purchase your Bitcoin
1. Choose between a crypto exchange or a broker
There are many ways to buy Bitcoin, but the two most popular are cryptocurrency exchanges and traditional brokers. Here’s an overview of all four methods:
Cryptocurrency Exchanges.
Online platforms where you can trade your assets, like fiat money, for digital currencies.
Traditional Brokers.
Some investment brokers offer the option to purchase cryptocurrencies directly through their platforms.
Bitcoin ATMs.
These machines allow you to insert cash to buy Bitcoin, which is then sent to a secure digital wallet.
Peer-to-Peer (P2P) Exchanges.
Platforms that enable you to buy Bitcoin directly from other holders who set their own prices.
Consider several important factors before choosing your platform. Ensure it is available in your state. Review the fees and minimum requirements to understand the cost of using the platform. Verify if your bank allows deposits to the exchange for seamless transactions. Explore the types of cryptocurrencies offered to ensure the exchange supports the coins you're interested in. Finally, evaluate the security measures in place to safeguard your investments.
There are plenty of different exchanges to choose from, but they’re not all created equal. As a beginner, your safest bet is to stick with well-known exchanges.
Our pick for a beginner friendly crypto exchange: Coinbase
Coinbase is a legacy cryptocurrency ecosystem. Founded in 2012 (around the same time as Bitcoin), Coinbase navigated the prestigious Y-Combinator to become a crypto goliath. Now a publicly traded company, it offers many creature comforts you’d find from a big bank. Beyond buying and selling cryptocurrency, notable features include a Visa debit card, a standalone wallet, and staking. It’s a one-stop shop.
Traditional brokers that offer crypto
To buy Bitcoin via a traditional broker, start by choosing a brokerage platform that offers cryptocurrency trading, such as Robinhood, eToro, or Webull. Create an account and complete any required identity verification. Once your account is set up, deposit funds using your preferred payment method, such as a bank transfer or credit card. Navigate to the cryptocurrency section of the platform, select Bitcoin, and specify the amount you want to purchase. Confirm the transaction, and your Bitcoin will be added to your account, where you can hold it or trade it further.
Our pick for a traditional broker that offers crypto: Robinhood
Robinhood is a popular brokerage for active and mobile traders, notable for being the first major brokerage to offer commission-free stock trades. In addition to their commission-free stock trades, Robinhood also offers ETF, options, and cryptocurrency trades and account options with no recurring fees.
Once you decide on an exchange, it’s time to open up an account.
2. Set up and fund your account
Each of the above recommended exchanges has a simple sign-up process: Just visit the exchange’s homepage and click “Get Started.”
From there, you will have to set up your account and verify your identity via KYC, Know Your Customer. This process varies based on where you live and the exchange you choose. Be prepared to provide copies of your driver’s license, social security card, employer information and documentation confirming your address.
After passing the verification process, it’s time to connect your payment method and fund your account. This can be done via Automated Clearing House (ACH) bank transfers, debit cards, credit cards, wire transfers and sometimes even PayPal.
Different exchanges charge varying fees based on the payment method you choose, so do your research.
3. Decide where to store your Bitcoin
You could store your Bitcoin on the exchange itself, but that puts you at risk of counterparty-related security issues (e.g. fund mismanagement or bankruptcies) and direct attacks on the trading platform.
For safekeeping, you need a digital wallet. You can store your cryptocurrency in two different types of wallets: a hot wallet or a cold wallet. A hot wallet runs directly on your smartphone, tablet or computer. Your private keys — used to access your cryptocurrency — are generated on your internet-connected device.
This easy access makes it convenient for active trading, but also convenient for hackers. A cold wallet, also known as a hardware wallet, is a physical device that stores your private keys offline. Think of it as a glorified USB drive. Whenever you want to buy or sell Bitcoin, you’ll need to connect your wallet.
This protects you from hackers but is slightly less convenient for regular trading.
If you plan to trade cryptocurrency frequently, you can use a hot wallet for the funds you’re actively trading and a cold wallet to securely store the rest.
If you plan to buy and hold, a cold wallet is all you need.
4. Buy your Bitcoin
Now for the fun part. The purchase process for each exchange is slightly different, but most include the following steps:
Choose which type of cryptocurrency you’d like to buy (in this case, BTC).
Enter how much you’d like to purchase.
Select your payment method.
Preview and confirm your order.
Once done, you now own crypto. You will want to transfer your crypto to a wallet at this point for safekeeping.
Benefits to buying Bitcoin
There are many reasons people add Bitcoin to their portfolios, but the main one is its potential for price appreciation. Although past performance doesn’t guarantee future results, the price per BTC has grown from pennies in 2009 to over $100,000 in 2024, and some analysts believe this massive price surge isn’t over. Given Bitcoin’s growing institutional adoption, there’s a chance it could continue climbing if more businesses, governments, and individuals adopt it.Â
But why is Bitcoin worth so much? Mostly, it has to do with its unique design elements. Bitcoin has a set supply of just 21 million, so there isn’t much to go around when you consider all of the billions of people on this planet. Beyond its scarcity, Bitcoin uses a revolutionary peer-to-peer (P2P) technology called “blockchain” that gives users complete sovereignty over their coins (provided they put them in a self-custodial wallet!). Unlike many other assets, you can literally take control of your Bitcoin, and it isn’t correlated with financial institutions or governments. All of these features make Bitcoin a unique and new asset that has the potential for outsized gains if people can stomach the extra volatility.Â
What are the risks of buying Bitcoin?
RISKS. All investments have some element of risk, but there are a few unique Bitcoin risks you’ll want to be aware of before buying. The most obvious is Bitcoin’s inherent volatility.
For example, on Dec. 31, 2024, one Bitcoin was worth $92,643.25 when the market opened. One week after that, on Jan. 7, 2025, it soared to $102,248.85. Three days later, it fell back to an opening price of $92,494.49. These giant swings are not for the faint of heart, and there’s no telling if (or when) the
bubble will burst
. Bitcoin investing also comes with fewer protections than other types of investments and is
not insured by the government
.
Apart from volatility, there are also security risks. If you don’t take proper precautions (which we’ll cover shortly), hackers will be looking for ways to sneak in and drain your accounts. Lastly, as Bitcoin exploded, so has Bitcoin-related fraud. Before investing, make sure to familiarize yourself with all the popular Bitcoin scams.
Before throwing your hard-earned money at Bitcoin, let’s make sure you understand what you’re investing in.
Bitcoin
(BTC) was created in 2009 and is considered the original cryptocurrency. You can think of it as virtual cash that you store in digital wallets. Bitcoin is powered by blockchain — essentially a database spread across many computers requiring no centralized oversight. In other words, it’s a technology that can operate independently of banks and governments.
How to avoid Bitcoin nightmares
It’s one thing to know how to buy Bitcoin. It’s another to know how to buy Bitcoin more safely.
Let’s go over some safety ground rules.
1
Don’t invest money you can’t afford to lose
. Whether you believe in Bitcoin or not, the truth is nobody knows what its future holds. Expect the worst, hope for the best, and don’t invest money you depend on.Â
2
Â
Understand the process
. When investing in cryptocurrency, don’t buy a cryptocurrency just because everyone else is doing it. Do your own research. Verify it with multiple sources, and don’t invest in anything you don’t understand.
3
Keep everything secure
. Protect your funds with a complicated password, two-factor authentication and a hard wallet. Print out multiple copies of your private keys and store them in different secure locations. That way if you ever lose your hard wallet, you can recover your funds.
4
Track everything you do
. Just like
traditional investments
, you must pay taxes on cryptocurrency-related income. You must report all capital gains and losses on your crypto investments. This includes the gains and losses that are realized when you purchase a product or service directly with Bitcoin, so make sure to keep a detailed record
for tax time
.
Mitchell is a freelance contributor to Moneywise.com.
Latest Articles
Disclaimer
The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply. | |||||||||
| Markdown | 
[Skip to main content](https://moneywise.com/investing/cryptocurrency/how-to-buy-bitcoin#main)
[Live a richer life.](https://moneywise.com/)
- [News](https://moneywise.com/news)
- [Investing](https://moneywise.com/investing)
- [Retirement](https://moneywise.com/retirement)
- [Banking](https://moneywise.com/banking)
- [Mortgages](https://moneywise.com/mortgages)
- [Loans](https://moneywise.com/loans)
- [Insurance](https://moneywise.com/insurance)
- [Taxes](https://moneywise.com/taxes)
Back
###
Back
###
### Unlock exclusive content
By signing up, you accept Moneywise [Terms of Use](https://moneywise.com/terms), [Subscription Agreement](https://moneywise.com/subscription-agreement), and [Privacy Policy](https://moneywise.com/privacy).
- [News](https://moneywise.com/news)
- [Investing](https://moneywise.com/investing)
- [Retirement](https://moneywise.com/retirement)
- [Banking](https://moneywise.com/banking)
- [Mortgages](https://moneywise.com/mortgages)
- [Loans](https://moneywise.com/loans)
- [Insurance](https://moneywise.com/insurance)
- [Taxes](https://moneywise.com/taxes)
Subscribe
### On this page
- How to buy Bitcoin
- Benefits to buying Bitcoin
- What are the risks of buying Bitcoin?
- How to avoid Bitcoin nightmares
- Latest Articles
###
### This is an exclusive story from our newsletter — subscribe for more
- Discounts and special offers
- Subscriber-only articles and interviews
- Breaking news and trending topics
Join 200K subscribers
Already a subscriber? Sign in.
By signing up, you accept Moneywise's [Terms of Use](https://moneywise.com/terms), [Subscription Agreement](https://moneywise.com/subscription-agreement), and [Privacy Policy](https://moneywise.com/privacy).
Not interested ? Continue reading
[Homepage](https://moneywise.com/ "Homepage")
[Investing](https://moneywise.com/investing/ "Investing")
[Cryptocurrency](https://moneywise.com/investing/cryptocurrency/ "Cryptocurrency")
How to buy Bitcoin
# How to buy Bitcoin — 4 steps to invest
[Mitchell Glass](https://moneywise.com/author/mitchell-glass)
Updated Feb 13, 2026
Partners on this page may provide us earnings.
Updated Feb 13, 2026
Why you can trust Moneywise
At Moneywise, we provide clear, unbiased insights to help you make confident financial decisions. Our experts break down complex topics through independent and transparent research. While we partner with trusted financial brands, our reviews remain independent and focused on what’s best for you, not our partners.
55M+
Readers
300+
Reviews
3,000+
Metrics
Partners on this page may provide us earnings.
Bitcoin has exploded over the past several years. By 2025, estimates suggest 145,100 global Bitcoin holders crossed into millionaire territory. Most analysts believe that this cryptocurrency is here to stay. That said, investing in Bitcoin for the first time can be easy with the right steps and precautions.
## How to buy Bitcoin
Here’s how to safely buy Bitcoin in four easy steps.
**1\. Choose between a crypto exchange or a broker 2\. Set up and fund your account 3\. Decide where to store your Bitcoin 4\. Purchase your Bitcoin**
### 1\. Choose between a crypto exchange or a broker
There are many ways to buy Bitcoin, but the two most popular are cryptocurrency exchanges and traditional brokers. Here’s an overview of all four methods:
**Cryptocurrency Exchanges.** Online platforms where you can trade your assets, like fiat money, for digital currencies.
**Traditional Brokers.** Some investment brokers offer the option to purchase cryptocurrencies directly through their platforms.
**Bitcoin ATMs.** These machines allow you to insert cash to buy Bitcoin, which is then sent to a secure digital wallet.
**Peer-to-Peer (P2P) Exchanges.** Platforms that enable you to buy Bitcoin directly from other holders who set their own prices.
Consider several important factors before choosing your platform. Ensure it is available in your state. Review the fees and minimum requirements to understand the cost of using the platform. Verify if your bank allows deposits to the exchange for seamless transactions. Explore the types of cryptocurrencies offered to ensure the exchange supports the coins you're interested in. Finally, evaluate the security measures in place to safeguard your investments.
There are plenty of different exchanges to choose from, but they’re not all created equal. As a beginner, your safest bet is to stick with well-known exchanges.
#### Our pick for a beginner friendly crypto exchange: Coinbase
[Open an account on Coinbase](https://moneywise.com/c/1/250/1289)
3\.7
[Read our Coinbase review](https://moneywise.com/investing/reviews/coinbase)
Coinbase is a legacy cryptocurrency ecosystem. Founded in 2012 (around the same time as Bitcoin), Coinbase navigated the prestigious Y-Combinator to become a crypto goliath. Now a publicly traded company, it offers many creature comforts you’d find from a big bank. Beyond buying and selling cryptocurrency, notable features include a Visa debit card, a standalone wallet, and staking. It’s a one-stop shop.
### Traditional brokers that offer crypto
To buy Bitcoin via a traditional broker, start by choosing a brokerage platform that offers cryptocurrency trading, such as Robinhood, eToro, or Webull. Create an account and complete any required identity verification. Once your account is set up, deposit funds using your preferred payment method, such as a bank transfer or credit card. Navigate to the cryptocurrency section of the platform, select Bitcoin, and specify the amount you want to purchase. Confirm the transaction, and your Bitcoin will be added to your account, where you can hold it or trade it further.
#### Our pick for a traditional broker that offers crypto: Robinhood
[Open a Robinhood account](https://ribn.com/c/1/94/773)
4\.3
[Read our Robinhood review](https://moneywise.com/investing/reviews/robinhood)
Robinhood is a popular brokerage for active and mobile traders, notable for being the first major brokerage to offer commission-free stock trades. In addition to their commission-free stock trades, Robinhood also offers ETF, options, and cryptocurrency trades and account options with no recurring fees.
Once you decide on an exchange, it’s time to open up an account.
### 2\. Set up and fund your account
Each of the above recommended exchanges has a simple sign-up process: Just visit the exchange’s homepage and click “Get Started.”
From there, you will have to set up your account and verify your identity via KYC, Know Your Customer. This process varies based on where you live and the exchange you choose. Be prepared to provide copies of your driver’s license, social security card, employer information and documentation confirming your address.
After passing the verification process, it’s time to connect your payment method and fund your account. This can be done via Automated Clearing House (ACH) bank transfers, debit cards, credit cards, wire transfers and sometimes even PayPal.
Different exchanges charge varying fees based on the payment method you choose, so do your research.
### 3\. Decide where to store your Bitcoin
You could store your Bitcoin on the exchange itself, but that puts you at risk of counterparty-related security issues (e.g. fund mismanagement or bankruptcies) and direct attacks on the trading platform.
For safekeeping, you need a digital wallet. You can store your cryptocurrency in two different types of wallets: a hot wallet or a cold wallet. A hot wallet runs directly on your smartphone, tablet or computer. Your private keys — used to access your cryptocurrency — are generated on your internet-connected device.
This easy access makes it convenient for active trading, but also convenient for hackers. A cold wallet, also known as a hardware wallet, is a physical device that stores your private keys offline. Think of it as a glorified USB drive. Whenever you want to buy or sell Bitcoin, you’ll need to connect your wallet.
This protects you from hackers but is slightly less convenient for regular trading.
If you plan to trade cryptocurrency frequently, you can use a hot wallet for the funds you’re actively trading and a cold wallet to securely store the rest.
If you plan to buy and hold, a cold wallet is all you need.
### 4\. Buy your Bitcoin
Now for the fun part. The purchase process for each exchange is slightly different, but most include the following steps:
Choose which type of cryptocurrency you’d like to buy (in this case, BTC).
Enter how much you’d like to purchase.
Select your payment method.
Preview and confirm your order.
Once done, you now own crypto. You will want to transfer your crypto to a wallet at this point for safekeeping.
## Benefits to buying Bitcoin
There are many reasons people add Bitcoin to their portfolios, but the main one is its potential for price appreciation. Although past performance doesn’t guarantee future results, the price per BTC has grown from pennies in 2009 to over \$100,000 in 2024, and some analysts believe this massive price surge isn’t over. Given Bitcoin’s growing institutional adoption, there’s a chance it could continue climbing if more businesses, governments, and individuals adopt it.
But why is Bitcoin worth so much? Mostly, it has to do with its unique design elements. Bitcoin has a set supply of just 21 million, so there isn’t much to go around when you consider all of the billions of people on this planet. Beyond its scarcity, Bitcoin uses a revolutionary peer-to-peer (P2P) technology called “blockchain” that gives users complete sovereignty over their coins (provided they put them in a self-custodial wallet!). Unlike many other assets, you can literally take control of your Bitcoin, and it isn’t correlated with financial institutions or governments. All of these features make Bitcoin a unique and new asset that has the potential for outsized gains if people can stomach the extra volatility.
## What are the risks of buying Bitcoin?
RISKS. All investments have some element of risk, but there are a few unique Bitcoin risks you’ll want to be aware of before buying. The most obvious is Bitcoin’s inherent volatility.
For example, on Dec. 31, 2024, one Bitcoin was worth \$92,643.25 when the market opened. One week after that, on Jan. 7, 2025, it soared to \$102,248.85. Three days later, it fell back to an opening price of \$92,494.49. These giant swings are not for the faint of heart, and there’s no telling if (or when) the [bubble will burst](https://moneywise.com/investing). Bitcoin investing also comes with fewer protections than other types of investments and is [not insured by the government](https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams#:~:text=Cryptocurrency%20held%20in%20accounts%20is,an%20FDIC%20insured%20bank%20account.).
Apart from volatility, there are also security risks. If you don’t take proper precautions (which we’ll cover shortly), hackers will be looking for ways to sneak in and drain your accounts. Lastly, as Bitcoin exploded, so has Bitcoin-related fraud. Before investing, make sure to familiarize yourself with all the popular Bitcoin scams.
### What is Bitcoin?
Before throwing your hard-earned money at Bitcoin, let’s make sure you understand what you’re investing in. [Bitcoin](https://bitcoin.org/en/) (BTC) was created in 2009 and is considered the original cryptocurrency. You can think of it as virtual cash that you store in digital wallets. Bitcoin is powered by blockchain — essentially a database spread across many computers requiring no centralized oversight. In other words, it’s a technology that can operate independently of banks and governments.
## How to avoid Bitcoin nightmares
It’s one thing to know how to buy Bitcoin. It’s another to know how to buy Bitcoin more safely.
Let’s go over some safety ground rules.
1. 1 **Don’t invest money you can’t afford to lose**. Whether you believe in Bitcoin or not, the truth is nobody knows what its future holds. Expect the worst, hope for the best, and don’t invest money you depend on.
2. 2 **Understand the process**. When investing in cryptocurrency, don’t buy a cryptocurrency just because everyone else is doing it. Do your own research. Verify it with multiple sources, and don’t invest in anything you don’t understand.
3. 3 **Keep everything secure**. Protect your funds with a complicated password, two-factor authentication and a hard wallet. Print out multiple copies of your private keys and store them in different secure locations. That way if you ever lose your hard wallet, you can recover your funds.
4. 4 **Track everything you do**. Just like [traditional investments](https://moneywise.com/investing/stocks/how-to-invest-in-stocks), you must pay taxes on cryptocurrency-related income. You must report all capital gains and losses on your crypto investments. This includes the gains and losses that are realized when you purchase a product or service directly with Bitcoin, so make sure to keep a detailed record [for tax time](https://moneywise.com/taxes/how-cryptocurrency-gets-taxed-whether-youre-buying-selling-earning-or-mining).
- ### Sources
[\+](https://moneywise.com/investing/cryptocurrency/how-to-buy-bitcoin)
1\. Henley & Partners: [Explosive Growth of Crypto Millionaires in 2024](https://www.henleyglobal.com/newsroom/press-releases/crypto-wealth-report-2024)
[Mitchell Glass](https://moneywise.com/author/mitchell-glass) Contributor
[Mitchell Glass](https://moneywise.com/author/mitchell-glass) Contributor
Mitchell is a freelance contributor to Moneywise.com.
## Latest Articles
[ Bill C-3: Americans' path to Canada citizenship](https://moneywise.com/news/top-stories/canada-dual-citizenship-americans-bill-c3-lost-canadians)
[By Vawn Himmelsbach 16m ago](https://moneywise.com/author/vawn-himmelsbach)
[ Trump's gambling 'sin tax' hits poker pros](https://moneywise.com/taxes/taxes/trump-gambling-sin-tax-poker-pros-retirement)
[By Jessica Wong 27m ago](https://moneywise.com/author/jessica-wong)
[ Hospice fraud has authorities raising alarms](https://moneywise.com/news/top-stories/california-hospice-fraud-medicare-enrollment)
[By Monique Danao 1h ago](https://moneywise.com/author/monique-danao)
[ How 'ghost bookings' are driving up airfares](https://moneywise.com/life/travel/air-miles-ghost-bookings-travel-chaos)
[By Vawn Himmelsbach 1h ago](https://moneywise.com/author/vawn-himmelsbach)
[ Florida woman's Silverado rolled over a \$250K Lambo](https://moneywise.com/news/top-stories/florida-woman-silverado-250k-lamborghini-crunch-fitness-parking-lot)
[By Rudro Chakrabarti 1h ago](https://moneywise.com/author/rudro-chakrabarti)
[ Mobile home rents double after buyout](https://moneywise.com/news/real-estate-news/mobile-home-park-rent-hike-corporate-buyout)
[By Mike Crisolago 1h ago](https://moneywise.com/author/mike-crisolago)
Prev
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Next
#### Disclaimer
The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply.
[](https://moneywise.com/)
#### Don't miss the latest money moves.
By signing up, you accept Moneywise [Terms of Use](https://moneywise.com/terms), [Subscription Agreement](https://moneywise.com/subscription-agreement), and [Privacy Policy](https://moneywise.com/privacy).
### Company
- [About Us](https://moneywise.com/about)
- [Advertise](https://moneywise.com/advertise)
- [Contact Us](https://moneywise.com/contact)
- [Editorial Guidelines](https://moneywise.com/editorial-ethics-and-guidelines)
- [Pitch Us a Story](https://moneywise.com/contact)
- [Ratings Methodologies](https://moneywise.com/review-methodology)
### Products
- [News](https://moneywise.com/news)
- [Investing](https://moneywise.com/investing)
- [Retirement](https://moneywise.com/retirement)
- [Alternative Investments](https://moneywise.com/investing/alternative-investments)
- [Banking](https://moneywise.com/banking)
- [Mortgages](https://moneywise.com/mortgages)
- [Loans](https://moneywise.com/loans)
### Wise Publishing Brands
- [Money.ca](https://money.ca/)
- [BestCards.com](https://www.bestcards.com/)
- [HalfBanked.com](https://halfbanked.com/)
Company
- [About Us](https://moneywise.com/about)
- [Advertise](https://moneywise.com/advertise)
- [Contact Us](https://moneywise.com/contact)
- [Editorial Guidelines](https://moneywise.com/editorial-ethics-and-guidelines)
- [Pitch Us a Story](https://moneywise.com/contact)
- [Ratings Methodologies](https://moneywise.com/review-methodology)
Products
- [News](https://moneywise.com/news)
- [Investing](https://moneywise.com/investing)
- [Retirement](https://moneywise.com/retirement)
- [Alternative Investments](https://moneywise.com/investing/alternative-investments)
- [Banking](https://moneywise.com/banking)
- [Mortgages](https://moneywise.com/mortgages)
- [Loans](https://moneywise.com/loans)
Wise Publishing Brands
- [Money.ca](https://money.ca/)
- [BestCards.com](https://www.bestcards.com/)
- [HalfBanked.com](https://halfbanked.com/)
- [Privacy Policy](https://moneywise.com/privacy)
- [Cookies](https://moneywise.com/cookies)
- [Terms of Use](https://moneywise.com/terms)
- [Subscription Agreement](https://moneywise.com/subscription-agreement)
- [Advertising Disclosure](https://moneywise.com/advertising)
- [Text to Speech](https://speechify.com/text-to-speech-online/?welcome=money-wise&landing_url=https%3A%2F%2Fspeechify.com%2Fpricing%2F)
- [Site Map](https://moneywise.com/site-map)
- [Community Guidelines](https://moneywise.com/community-guidelines)
©2026 Wise Publishing, Inc.
 | |||||||||
| Readable Markdown | Bitcoin has exploded over the past several years. By 2025, estimates suggest 145,100 global Bitcoin holders crossed into millionaire territory. Most analysts believe that this cryptocurrency is here to stay. That said, investing in Bitcoin for the first time can be easy with the right steps and precautions.
Here’s how to safely buy Bitcoin in four easy steps.
**1\. Choose between a crypto exchange or a broker 2\. Set up and fund your account 3\. Decide where to store your Bitcoin 4\. Purchase your Bitcoin**
### 1\. Choose between a crypto exchange or a broker
There are many ways to buy Bitcoin, but the two most popular are cryptocurrency exchanges and traditional brokers. Here’s an overview of all four methods:
**Cryptocurrency Exchanges.** Online platforms where you can trade your assets, like fiat money, for digital currencies.
**Traditional Brokers.** Some investment brokers offer the option to purchase cryptocurrencies directly through their platforms.
**Bitcoin ATMs.** These machines allow you to insert cash to buy Bitcoin, which is then sent to a secure digital wallet.
**Peer-to-Peer (P2P) Exchanges.** Platforms that enable you to buy Bitcoin directly from other holders who set their own prices.
Consider several important factors before choosing your platform. Ensure it is available in your state. Review the fees and minimum requirements to understand the cost of using the platform. Verify if your bank allows deposits to the exchange for seamless transactions. Explore the types of cryptocurrencies offered to ensure the exchange supports the coins you're interested in. Finally, evaluate the security measures in place to safeguard your investments.
There are plenty of different exchanges to choose from, but they’re not all created equal. As a beginner, your safest bet is to stick with well-known exchanges.
#### Our pick for a beginner friendly crypto exchange: Coinbase
Coinbase is a legacy cryptocurrency ecosystem. Founded in 2012 (around the same time as Bitcoin), Coinbase navigated the prestigious Y-Combinator to become a crypto goliath. Now a publicly traded company, it offers many creature comforts you’d find from a big bank. Beyond buying and selling cryptocurrency, notable features include a Visa debit card, a standalone wallet, and staking. It’s a one-stop shop.
### Traditional brokers that offer crypto
To buy Bitcoin via a traditional broker, start by choosing a brokerage platform that offers cryptocurrency trading, such as Robinhood, eToro, or Webull. Create an account and complete any required identity verification. Once your account is set up, deposit funds using your preferred payment method, such as a bank transfer or credit card. Navigate to the cryptocurrency section of the platform, select Bitcoin, and specify the amount you want to purchase. Confirm the transaction, and your Bitcoin will be added to your account, where you can hold it or trade it further.
#### Our pick for a traditional broker that offers crypto: Robinhood
Robinhood is a popular brokerage for active and mobile traders, notable for being the first major brokerage to offer commission-free stock trades. In addition to their commission-free stock trades, Robinhood also offers ETF, options, and cryptocurrency trades and account options with no recurring fees.
Once you decide on an exchange, it’s time to open up an account.
### 2\. Set up and fund your account
Each of the above recommended exchanges has a simple sign-up process: Just visit the exchange’s homepage and click “Get Started.”
From there, you will have to set up your account and verify your identity via KYC, Know Your Customer. This process varies based on where you live and the exchange you choose. Be prepared to provide copies of your driver’s license, social security card, employer information and documentation confirming your address.
After passing the verification process, it’s time to connect your payment method and fund your account. This can be done via Automated Clearing House (ACH) bank transfers, debit cards, credit cards, wire transfers and sometimes even PayPal.
Different exchanges charge varying fees based on the payment method you choose, so do your research.
### 3\. Decide where to store your Bitcoin
You could store your Bitcoin on the exchange itself, but that puts you at risk of counterparty-related security issues (e.g. fund mismanagement or bankruptcies) and direct attacks on the trading platform.
For safekeeping, you need a digital wallet. You can store your cryptocurrency in two different types of wallets: a hot wallet or a cold wallet. A hot wallet runs directly on your smartphone, tablet or computer. Your private keys — used to access your cryptocurrency — are generated on your internet-connected device.
This easy access makes it convenient for active trading, but also convenient for hackers. A cold wallet, also known as a hardware wallet, is a physical device that stores your private keys offline. Think of it as a glorified USB drive. Whenever you want to buy or sell Bitcoin, you’ll need to connect your wallet.
This protects you from hackers but is slightly less convenient for regular trading.
If you plan to trade cryptocurrency frequently, you can use a hot wallet for the funds you’re actively trading and a cold wallet to securely store the rest.
If you plan to buy and hold, a cold wallet is all you need.
### 4\. Buy your Bitcoin
Now for the fun part. The purchase process for each exchange is slightly different, but most include the following steps:
Choose which type of cryptocurrency you’d like to buy (in this case, BTC).
Enter how much you’d like to purchase.
Select your payment method.
Preview and confirm your order.
Once done, you now own crypto. You will want to transfer your crypto to a wallet at this point for safekeeping.
## Benefits to buying Bitcoin
There are many reasons people add Bitcoin to their portfolios, but the main one is its potential for price appreciation. Although past performance doesn’t guarantee future results, the price per BTC has grown from pennies in 2009 to over \$100,000 in 2024, and some analysts believe this massive price surge isn’t over. Given Bitcoin’s growing institutional adoption, there’s a chance it could continue climbing if more businesses, governments, and individuals adopt it.
But why is Bitcoin worth so much? Mostly, it has to do with its unique design elements. Bitcoin has a set supply of just 21 million, so there isn’t much to go around when you consider all of the billions of people on this planet. Beyond its scarcity, Bitcoin uses a revolutionary peer-to-peer (P2P) technology called “blockchain” that gives users complete sovereignty over their coins (provided they put them in a self-custodial wallet!). Unlike many other assets, you can literally take control of your Bitcoin, and it isn’t correlated with financial institutions or governments. All of these features make Bitcoin a unique and new asset that has the potential for outsized gains if people can stomach the extra volatility.
## What are the risks of buying Bitcoin?
RISKS. All investments have some element of risk, but there are a few unique Bitcoin risks you’ll want to be aware of before buying. The most obvious is Bitcoin’s inherent volatility.
For example, on Dec. 31, 2024, one Bitcoin was worth \$92,643.25 when the market opened. One week after that, on Jan. 7, 2025, it soared to \$102,248.85. Three days later, it fell back to an opening price of \$92,494.49. These giant swings are not for the faint of heart, and there’s no telling if (or when) the [bubble will burst](https://moneywise.com/investing). Bitcoin investing also comes with fewer protections than other types of investments and is [not insured by the government](https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams#:~:text=Cryptocurrency%20held%20in%20accounts%20is,an%20FDIC%20insured%20bank%20account.).
Apart from volatility, there are also security risks. If you don’t take proper precautions (which we’ll cover shortly), hackers will be looking for ways to sneak in and drain your accounts. Lastly, as Bitcoin exploded, so has Bitcoin-related fraud. Before investing, make sure to familiarize yourself with all the popular Bitcoin scams.
Before throwing your hard-earned money at Bitcoin, let’s make sure you understand what you’re investing in. [Bitcoin](https://bitcoin.org/en/) (BTC) was created in 2009 and is considered the original cryptocurrency. You can think of it as virtual cash that you store in digital wallets. Bitcoin is powered by blockchain — essentially a database spread across many computers requiring no centralized oversight. In other words, it’s a technology that can operate independently of banks and governments.
## How to avoid Bitcoin nightmares
It’s one thing to know how to buy Bitcoin. It’s another to know how to buy Bitcoin more safely.
Let’s go over some safety ground rules.
1. 1 **Don’t invest money you can’t afford to lose**. Whether you believe in Bitcoin or not, the truth is nobody knows what its future holds. Expect the worst, hope for the best, and don’t invest money you depend on.
2. 2 **Understand the process**. When investing in cryptocurrency, don’t buy a cryptocurrency just because everyone else is doing it. Do your own research. Verify it with multiple sources, and don’t invest in anything you don’t understand.
3. 3 **Keep everything secure**. Protect your funds with a complicated password, two-factor authentication and a hard wallet. Print out multiple copies of your private keys and store them in different secure locations. That way if you ever lose your hard wallet, you can recover your funds.
4. 4 **Track everything you do**. Just like [traditional investments](https://moneywise.com/investing/stocks/how-to-invest-in-stocks), you must pay taxes on cryptocurrency-related income. You must report all capital gains and losses on your crypto investments. This includes the gains and losses that are realized when you purchase a product or service directly with Bitcoin, so make sure to keep a detailed record [for tax time](https://moneywise.com/taxes/how-cryptocurrency-gets-taxed-whether-youre-buying-selling-earning-or-mining).
Mitchell is a freelance contributor to Moneywise.com.
## Latest Articles
#### Disclaimer
The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply. | |||||||||
| ML Classification | ||||||||||
| ML Categories |
Raw JSON{
"/Finance": 995,
"/Finance/Investing": 995,
"/Finance/Investing/Currencies_and_Foreign_Exchange": 493
} | |||||||||
| ML Page Types |
Raw JSON{
"/Article": 998,
"/Article/How_to": 596
} | |||||||||
| ML Intent Types |
Raw JSON{
"Informational": 990
} | |||||||||
| Content Metadata | ||||||||||
| Language | en | |||||||||
| Author | Mitchell Glass | |||||||||
| Publish Time | not set | |||||||||
| Original Publish Time | 2025-01-25 04:55:51 (1 year ago) | |||||||||
| Republished | No | |||||||||
| Word Count (Total) | 2,212 | |||||||||
| Word Count (Content) | 1,744 | |||||||||
| Links | ||||||||||
| External Links | 21 | |||||||||
| Internal Links | 49 | |||||||||
| Technical SEO | ||||||||||
| Meta Nofollow | No | |||||||||
| Meta Noarchive | No | |||||||||
| JS Rendered | Yes | |||||||||
| Redirect Target | null | |||||||||
| Performance | ||||||||||
| Download Time (ms) | 428 | |||||||||
| TTFB (ms) | 402 | |||||||||
| Download Size (bytes) | 75,681 | |||||||||
| Shard | 127 (laksa) | |||||||||
| Root Hash | 17552722006313878127 | |||||||||
| Unparsed URL | com,moneywise!/investing/cryptocurrency/how-to-buy-bitcoin s443 | |||||||||