🕷️ Crawler Inspector

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1. Shard Calculation

Query:

Response:

Calculated Shard: 148 (from laksa096)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa148.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp","crawl_time":1776335982,"first_indexed_time":1510563582,"http_code":200,"src_unparsed":"com,investopedia!www,\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp s443","src_root_hash":"7273739457760125548","history_drop_reason":null,"meta_title":"How to Buy Bitcoin","meta_descriptions":["Wondering how to buy Bitcoin? Here’s a comprehensive breakdown of how to make your first purchase or investment in the digital asset and diversify your portfolio."],"attrs_boilerpipe_text":"Key Takeaways\nBitcoin's value comes primarily from market speculation but also from its store of value, use as a payment method, and finite supply.\nBecause a\nBitcoin wallet\nor\ncrypto exchange\naccount can be compromised, it's vital to learn about safe storage and take the necessary crypto security measures.\nExchanges and service providers such as Coinbase, PayPal, Robinhood, and others sell Bitcoin.\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\nWith the price of Bitcoin reaching a new all-time high of $126,198.07 in October 2025, new investors may be seeking to research the digital asset to determine if it aligns with their investing style and financial goals.\n1\nInvesting in Bitcoin (BTCUSD) can seem complicated, but it isn't. It only requires an account with a service provider or a \ncryptocurrency exchange,\n as well as a secure way to store your purchases.\nBitcoin investors need a cryptocurrency exchange account, personal identification documents if they are using a Know Your Client (KYC) platform, a secure connection to the internet, a method of payment, and a personal\ndigital wallet\noutside the exchange account.\nValid Bitcoin payment methods include bank accounts,\ndebit cards\n, and credit cards. It's also possible to get Bitcoin at specialized ATMs and via peer-to-peer (P2P) exchanges.\nBefore You Buy Bitcoin\nPrivacy and security are important issues for Bitcoin users. Investors who gain the\nprivate key\nto a public address can authorize transactions. The private key is a cryptographic code similar to a password that allows a user to transfer cryptocurrencies from their wallet on the Bitcoin blockchain. Private keys should be kept secret, and investors must be aware that the balance of a public address is visible.\nIndividuals can create multiple public addresses and distribute their collection of Bitcoin over many addresses. A good strategy is to keep significant investments at public addresses that aren't directly connected to those used in transactions.\nLess Than 1 Bitcoin\nInvestors can buy less than a whole Bitcoin. Whether you own 1 Bitcoin, 15 Bitcoins, or 0.01 Bitcoin, you're equally exposed to the cryptocurrency's ups and downs.\nThe history of transactions made on the blockchain is transparent, but identifying user information isn't. On the Bitcoin blockchain, only a user's public key appears next to a transaction, making transactions confidential but not anonymous.\nYou Are Only Pseudo Anonymous\nBitcoin transactions are more traceable than cash transactions because they are available for public viewing. However, it is very difficult to determine who is transacting unless the address is associated with an exchange account, which is required if the user wants to convert their Bitcoin to fiat currency.\nThis is because when you create an account on a regulated exchange that can convert cryptocurrency, you must provide identification. This is called\nKnow Your Client (KYC)\nand is required by law in many countries to assist anti-money laundering and anti-terrorism financing efforts.\n2\nImportant\nBefore buying Bitcoin, be sure to check out the legal, regulatory, and tax status of purchasing it where you live.\nBitcoin Returns\n1-Day\n1-Week\n1-Month\n1-Year\n-1.53%\n1.67%\n-13.66%\n-4.10%\nAs of 3:20 p.m. EST, Dec. 4, 2025\nSource:\nTradingView\nHow to Buy Bitcoin \nStep 1: Choose a Crypto-Trading Service or Venue\nExchanges are a convenient option because they offer a breadth of features and more cryptocurrencies for trading. Exchanges also enable investors to buy, sell, and hold cryptocurrency and allow users to transfer crypto to their online wallet for safekeeping.\nThere are many cryptocurrency exchanges, but there are only two types: centralized and decentralized. Decentralized exchanges allow users to remain pseudo-anonymous and generally don't require personal information.\nFor certain demographics, including refugees or those living in countries with little to no infrastructure for government credit or banking, decentralized exchanges allow access to the global economy.\nPopular exchanges in the U.S. and many other countries are centralized and follow laws that require users to submit identifying documentation. These exchanges include Coinbase, Kraken, Gemini, and Binance; they offer Bitcoin, a growing number of\naltcoins\n, and fiat exchange services.\nFast Fact\nWhen creating a cryptocurrency exchange account, use two-factor authentication and a long, unique password that includes a variety of lowercase and capital letters, special characters, and numbers.\nStep 2: Connect Your Exchange to a Payment Option\nDepending on the exchange, personal identification can be required, which may mean that you have to include a picture of a driver's license or Social Security card, as well as information about your employer and source of funds. The process is largely the same as setting up a typical\nbrokerage account\n.\nAt most centralized exchanges, you can connect your bank account directly or link it to a debit or credit card. Although you can use a credit card to purchase cryptocurrency, cryptocurrency price volatility could inflate the overall cost of purchasing a token when combined with a credit card's interest charges.\nBitcoin is legal in the U.S., but some banks may question or even stop deposits to crypto-related sites or exchanges without being notified of the activity by a customer.\nFees vary for deposits via a bank account, debit, or credit card, and exchanges also charge fees per transaction.\nStep 3: Place an Order\nCryptocurrency exchanges have evolved and now mimic the same features as their traditional brokerage counterparts. Crypto exchanges offer several order types and ways to invest or trade. Almost all crypto exchanges offer both\nmarket\nand\nlimit orders\n, and some also provide stop-loss orders.\nKraken offers the most order types, including market, limit, stop-loss, stop-limit, take-profit, and take-profit limit orders.\n3\nExchanges also offer ways to set up recurring investments, allowing clients to dollar-cost average their investments of choice. Coinbase, for example, lets users set weekly, biweekly, or monthly recurring purchases.\n4\nStep 4: Safe Storage\nCryptocurrency wallets are a place to store digital asset keys. Keeping crypto keys off an exchange and in a non-connected wallet (cold wallet) ensures that users have control over the keys. Investors can use the wallets offered by exchanges, but it's not recommended for large or long-term cryptocurrency holdings.\nHot Wallets vs. Cold Wallets\nHot Wallets\nOnline wallets, also known as\nhot wallets\n, are apps on devices such as computers, phones, or tablets. These wallets generate the private keys to your coins on Internet-connected devices.\nHot wallet holders who haven't created enough security run the risk of losing funds to theft. Strong passwords, two-factor authentication, anti-virus programs, and safe Internet browsing should be considered minimum requirements.\nHot wallets are best for small amounts of cryptocurrency or cryptocurrency that is actively trading on an exchange. Another use is like a checking account, only placing what you need for certain transactions in your hot wallet.\nCold Wallets\nA\ncold wallet\nisn't connected to the Internet and is less likely to be compromised. These wallets store a user's private keys on a device or item without a connection.\nSome come with software that allows investors to view their portfolios without putting their private keys at risk. Types of cold wallets are paper, hardware, or even metal stamped with private keys.\nA paper wallet is simply a piece of paper with private keys written on it. Some people laminate these paper wallets and store them in safe deposit boxes at their bank or even in a safe in their home.\nThere are websites and programs that can generate nifty, printable versions with quick response codes, but these should be avoided as they expose the private keys unnecessarily.\nCold wallets are the most secure way to store your Bitcoin or other cryptocurrencies.\nHow to Buy Bitcoin With PayPal\nYou can buy Bitcoin through a payment processor like PayPal Holdings Inc. There are two ways to purchase Bitcoin using PayPal: You can connect your account to a debit card or bank account, or use the balance of the PayPal account to buy cryptocurrencies from a third-party provider.\nYou may also use PayPal to directly buy seven cryptocurrencies: Bitcoin, Ethereum,\nLitecoin\n, Solana, Chainlink,\nBitcoin Cash\n, and PayPal's own stablecoin, PayPal USD. U.S. residents can use their existing PayPal accounts or set up a new one to buy Bitcoin. You can also use your cryptocurrencies to buy products and services.\n5\n6\nWhen you buy Bitcoin directly from PayPal, it earns money from the crypto spread, or \"the difference between the highest buy order and the lowest sell order on any exchange.\"\n7\nPayPal also charges a transaction fee for each purchase, which depends on the dollar amount purchased.\n8\nYou can send crypto, including Bitcoin, from PayPal to an external digital asset wallet that you own and control, or to one owned and controlled by another person, like a friend or family member. To send your Bitcoin outside of PayPal, you must provide the wallet address where you want to send the assets. If you send Bitcoin, you must use a wallet that accepts it.\n9\nThe social trading and multi-asset investment company eToro is among the few online traders that allow Bitcoin purchases using PayPal.\n10\nPayPal and CC are not available to users in the UK.\nHow to Buy Bitcoin With a Credit Card\nUsing credit cards to buy Bitcoin is similar to using debit cards or\nautomated clearing house (ACH)\ntransfers. However, not all exchanges allow you to buy Bitcoin with credit cards due to associated processing fees and the risk of fraud.\nCredit card processing can add extra charges to these transactions. In addition to paying blockchain transaction fees, the exchange may pass on processing fees to the buyer. Credit card issuers treat Bitcoin purchases like cash advances and charge hefty fees and interest rates on them.\n11\nAlternative Ways to Buy Bitcoin\nBitcoin ATMs\nBitcoin ATMs\nact like in-person Bitcoin exchanges. Individuals can insert cash into a machine and use it to purchase Bitcoin, which gets transferred to their wallet. Bitcoin ATMs have become increasingly popular in recent years and are even available at the retail giant Walmart Inc. (WMT), among other places.\nNote\nBitcoin ATM use requires government-issued IDs.\n12\nTwo charges are associated with ATM Bitcoin purchases: a purchase fee and a conversion fee for converting a fiat currency to Bitcoin. Both fees are fairly steep compared with those of other options. For example, CoinHub charges a markup of 12.5% and a retailer fee of $4.95 above the Bitstamp spot rate.\n13\nP2P Exchanges\nSome P2P exchange services provide a more direct connection between users, such as Binance P2P.\nAlthough P2P exchanges don't offer the same anonymity as decentralized exchanges, they give users the chance to shop around for the best deal. Many of these exchanges also provide rating systems so that users can evaluate potential trade partners before transacting.\nMainstream Brokerages  \nRobinhood Markets is an exchange that offers crypto trading. It charges a 0.03% to 0.85% fee for crypto trades and purchases. The fees are based on the trailing 30-day trading volume of crypto orders executed with smart exchange routing.\n14\nIf investors use market maker routing, then the fee is $0.85 for every $100 notional crypto order.\n15\nRobinhood has enabled trading on its platform for these assets, which include Bitcoin, Bitcoin Cash, Litecoin, Ethereum,\nDogecoin\n, and Ethereum Classic.\n16\nYou can also trade thousands of cryptocurrencies on Coinbase. As of 2022, traditional\nbrokers\nlike Fidelity Investments began to include Bitcoin in 401(k) accounts.\n17\n18\nWarning\nBitcoin and other crypto investments aren't protected by insurance from the\nSecurities Investor Protection Corp. (SIPC)\n. At regular\nbrokerages\n, the agency protects against the loss of securities and cash in brokerage accounts containing up to $500,000, with a $250,000 cash limit.\n19\nCrypto exchanges\nlike Coinbase have crime insurance to protect their infrastructure against hacks. But it doesn't protect individual customers from password theft.\n20\nHow to Sell Bitcoin\nYou can sell Bitcoin at the same venues where you purchased the cryptocurrency, such as cryptocurrency exchanges and P2P platforms. Typically, the process of selling Bitcoin on these platforms is similar to the process of buying it.\nMost crypto exchanges charge a percentage of the sale amount as fees. For example, Coinbase says it may charge a fee when a customer cashes out their crypto, depending on the payment method selected.\n21\nExchanges generally have daily and monthly withdrawal limits. Therefore, cash from a large sale may not be immediately available to the trader. But with Coinbase, for example, there is no limit on the amount of cryptocurrency you can sell.\n22\nHow Do Beginners Buy Bitcoin?\nThe best way for a beginner to purchase Bitcoin is to create an account on a reputable and regulated exchange, fund it, and make a purchase.\nHow Can I Buy $100 Worth of Bitcoin?\nRegulated exchanges are the safest way to purchase Bitcoin, but you can also buy some at Bitcoin ATMs or through PayPal.\nWhat If I Invest $100 in Bitcoin Today?\nIt is possible that $100 in Bitcoin today might turn into $200 or more in the future, but it is just as likely that it will turn into $1. Bitcoin is very volatile, so you should consider your financial circumstances before investing to determine if you can afford to lose the money you invest.\nThe Bottom Line\nBuying Bitcoin can seem complicated if you haven't done it, but it's relatively simple. It just requires an account at a service or an exchange and a way to store your purchases safely.\nTo buy Bitcoin, you must select an appropriate service or venue, connect with a payment method, place an order, and ensure stable storage for purchased cryptocurrency.\nEach of these steps requires research and a careful assessment of the pros and cons of the relevant service. Bitcoin is available at Bitcoin ATMs or from payment services like PayPal and\nmainstream brokerage firms\nlike Robinhood or Coinbase.","attrs_markdown":"\n\n[Skip to content](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#main)\n\n[Investopedia](https:\/\/www.investopedia.com\/)\n\n[Live](https:\/\/www.investopedia.com\/stock-market-today-dow-jones-s-and-p-500-04162026-11951125)\n\n- Please fill out this field.\n- [Newsletters](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp)\n\nPlease fill out this field.\n\n- [News](https:\/\/www.investopedia.com\/news-4427706)\n  News\n  \n  - [Markets](https:\/\/www.investopedia.com\/markets-news-4427704)\n  - [Companies](https:\/\/www.investopedia.com\/company-news-4427705)\n  - [Earnings](https:\/\/www.investopedia.com\/earnings-reports-5218419)\n  - [CD Rates](https:\/\/www.investopedia.com\/certificates-deposit-news-7111770)\n  - [Mortgage Rates](https:\/\/www.investopedia.com\/mortgage-rates-5184598)\n  - 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[Best Life Insurance](https:\/\/www.investopedia.com\/the-best-life-insurance-companies-8763666)\n  - [Best Mortgage Rates](https:\/\/www.investopedia.com\/mortgage-rates-5094943)\n  - [Best Robo-Advisors](https:\/\/www.investopedia.com\/the-best-robo-advisors-8764849)\n  - [Best Personal Loans](https:\/\/www.investopedia.com\/the-best-personal-loans-8761582)\n  - [Best Debt Relief Companies](https:\/\/www.investopedia.com\/the-best-debt-relief-companies-8763179)\n  - [View All](https:\/\/www.investopedia.com\/financial-product-reviews-7110783)\n\nTable of Contents\n\nExpand\n\nTable of Contents\n\n- [Before You Buy Bitcoin](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-before-you-buy-bitcoin)\n- [How to Buy Bitcoin](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-how-to-buy-bitcoin)\n- [Hot Wallets vs. Cold Wallets](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-hot-wallets-vs-cold-wallets)\n- [How to Buy Bitcoin With PayPal](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-how-to-buy-bitcoin-with-paypal)\n- [Buy Bitcoin With a Credit Card](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-how-to-buy-bitcoin-with-a-credit-card)\n- [Alternative Ways to Buy Bitcoin](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-alternative-ways-to-buy-bitcoin)\n- [How to Sell Bitcoin](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-how-to-sell-bitcoin)\n- [FAQs](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-how-do-beginners-buy-bitcoin)\n- [The Bottom Line](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp#toc-the-bottom-line)\n\n# How to Buy Bitcoin\nBy\n\n[Adam Hayes](https:\/\/www.investopedia.com\/contributors\/53677\/)\n\n![]()\n\n![](https:\/\/www.investopedia.com\/thmb\/VjCy-aSbHESoB0F95ExxZrgXxZA=\/200x200\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/adam_hayes-5bfc262a46e0fb005118b414.jpg)\n\n[Full Bio](https:\/\/www.investopedia.com\/contributors\/53677\/)\n\nAdam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the University of Lucerne in Switzerland.Adam's new book, \"Irrational Together: The Social Forces That Invisibly Shape Our Economic Behavior\" (University of Chicago Press) is a must-read at the intersection of behavioral economics and sociology that reshapes how we think about the social underpinnings of our financial choices.\n\nLearn about our  [editorial policies](https:\/\/www.investopedia.com\/legal-4768893#editorial-policy)\n\nUpdated December 04, 2025\n\nReviewed by\n\n[JeFreda R. Brown](https:\/\/www.investopedia.com\/jefreda-brown-5188074)\n\n![Dr. Brown]()\n\n![Dr. Brown](https:\/\/www.investopedia.com\/thmb\/4h0l6rpZs0PO1z6tj2Z2Okq5NuM=\/200x200\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/Dr.JeFredaR.Brownheadshot-JeFredaBrown-1e8af368a1ea4533a21868d8a951895a.jpg)\n\nReviewed by JeFreda R. Brown\n\n[Full Bio](https:\/\/www.investopedia.com\/jefreda-brown-5188074)\n\nDr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University.\n\nLearn about our  [Financial Review Board](https:\/\/www.investopedia.com\/investopedia-financial-review-board-5076269)\n\nFact checked by\n\n[Vikki Velasquez](https:\/\/www.investopedia.com\/vikki-velasquez-5198872)\n\n![Vikkie Velasquez]()\n\n![Vikkie Velasquez](https:\/\/www.investopedia.com\/thmb\/qsiqwN4603qvBBcEmwBBFAZ7h-8=\/200x200\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/vikki-velasquez-investopedia-portrait-1-18b989d75f1f4d6d9b5b3a47cb3ffc5f.jpg)\n\nFact checked by Vikki Velasquez\n\n[Full Bio](https:\/\/www.investopedia.com\/vikki-velasquez-5198872)\n\nVikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area.\n\nLearn about our  [editorial policies](https:\/\/www.investopedia.com\/legal-4768893#editorial-policy)\n\nPart of the Series\n\nBitcoin Basics\n\n[What Is Bitcoin? How to Buy, Mine, and Use It](https:\/\/www.investopedia.com\/terms\/b\/bitcoin.asp)\n\nHow To Get and Store It\n\n1. [How Bitcoin Works](https:\/\/www.investopedia.com\/news\/how-bitcoin-works\/)\n2. [How To Buy Bitcoin](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp)\n   CURRENT ARTICLE\n3. [How to Store Bitcoin](https:\/\/www.investopedia.com\/news\/bitcoin-safe-storage-cold-wallet\/)\n4. [How Does Bitcoin Mining Work?](https:\/\/www.investopedia.com\/tech\/how-does-bitcoin-mining-work\/)\n\nHow to Use it\n\n1. [Advantages of Paying with Bitcoin](https:\/\/www.investopedia.com\/ask\/answers\/100314\/what-are-advantages-paying-bitcoin.asp)\n2. [Benefits & Risks of Trading Forex with Bitcoin](https:\/\/www.investopedia.com\/articles\/forex\/081815\/benefits-risks-trading-forex-bitcoin.asp)\n3. [Pros and Cons of Investing in Bitcoin IRAs](https:\/\/www.investopedia.com\/tech\/pros-and-cons-investing-bitcoin-iras\/)\n4. [Should You Buy Gold Or Bitcoin?](https:\/\/www.investopedia.com\/news\/should-you-buy-gold-or-bitcoin\/)\n5. [How Much of the World's Money is in Bitcoin?](https:\/\/www.investopedia.com\/tech\/how-much-worlds-money-bitcoin\/)\n\n![Bitcoin coin in front of a financial market chart cryptocurrency concept](https:\/\/www.investopedia.com\/thmb\/wgzQGmIiCkqLKs0_TFusy2TRXR4=\/1500x0\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-2194779803-33a8726c2066486ab511fb171723d4e7.jpg)\n\n![Bitcoin coin in front of a financial market chart cryptocurrency concept](https:\/\/www.investopedia.com\/thmb\/wgzQGmIiCkqLKs0_TFusy2TRXR4=\/1500x0\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-2194779803-33a8726c2066486ab511fb171723d4e7.jpg)\n\nBitcoin was created in 2008 by Satoshi Nakamoto. It is the most popular and largest cryptocurrency by market capitalization.\n\nVertigo3d \/ Getty Images\n\nClose\n\n### Key Takeaways\n- Bitcoin's value comes primarily from market speculation but also from its store of value, use as a payment method, and finite supply.\n- Because a [Bitcoin wallet](https:\/\/www.investopedia.com\/the-best-bitcoin-wallets-11688646) or [crypto exchange](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855) account can be compromised, it's vital to learn about safe storage and take the necessary crypto security measures.\n- Exchanges and service providers such as Coinbase, PayPal, Robinhood, and others sell Bitcoin.\n\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\n\nASK\n\nWith the price of Bitcoin reaching a new all-time high of \\$126,198.07 in October 2025, new investors may be seeking to research the digital asset to determine if it aligns with their investing style and financial goals.1\n\nInvesting in Bitcoin (BTCUSD) can seem complicated, but it isn't. It only requires an account with a service provider or a [cryptocurrency exchange,](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855) as well as a secure way to store your purchases.\n\nBitcoin investors need a cryptocurrency exchange account, personal identification documents if they are using a Know Your Client (KYC) platform, a secure connection to the internet, a method of payment, and a personal [digital wallet](https:\/\/www.investopedia.com\/the-best-bitcoin-wallets-11688646) outside the exchange account.\n\nValid Bitcoin payment methods include bank accounts, [debit cards](https:\/\/www.investopedia.com\/the-best-bitcoin-debit-cards-8782795), and credit cards. It's also possible to get Bitcoin at specialized ATMs and via peer-to-peer (P2P) exchanges.\n\n## Before You Buy Bitcoin\nPrivacy and security are important issues for Bitcoin users. Investors who gain the [private key](https:\/\/www.investopedia.com\/terms\/p\/private-key.asp) to a public address can authorize transactions. The private key is a cryptographic code similar to a password that allows a user to transfer cryptocurrencies from their wallet on the Bitcoin blockchain. Private keys should be kept secret, and investors must be aware that the balance of a public address is visible.\n\nIndividuals can create multiple public addresses and distribute their collection of Bitcoin over many addresses. A good strategy is to keep significant investments at public addresses that aren't directly connected to those used in transactions.\n\nTake the Next Step to Invest\n\nAdvertiser Disclosure\n\n×\n\nThe offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.\n\n### Less Than 1 Bitcoin\nInvestors can buy less than a whole Bitcoin. Whether you own 1 Bitcoin, 15 Bitcoins, or 0.01 Bitcoin, you're equally exposed to the cryptocurrency's ups and downs.\n\nThe history of transactions made on the blockchain is transparent, but identifying user information isn't. On the Bitcoin blockchain, only a user's public key appears next to a transaction, making transactions confidential but not anonymous.\n\n### You Are Only Pseudo Anonymous\nBitcoin transactions are more traceable than cash transactions because they are available for public viewing. However, it is very difficult to determine who is transacting unless the address is associated with an exchange account, which is required if the user wants to convert their Bitcoin to fiat currency.\n\nThis is because when you create an account on a regulated exchange that can convert cryptocurrency, you must provide identification. This is called [Know Your Client (KYC)](https:\/\/www.investopedia.com\/terms\/k\/knowyourclient.asp) and is required by law in many countries to assist anti-money laundering and anti-terrorism financing efforts.2\n\n### Important\nBefore buying Bitcoin, be sure to check out the legal, regulatory, and tax status of purchasing it where you live.\n\n| Bitcoin Returns |   |   |   |\n|---|---|---|---|\n| 1-Day | 1-Week | 1-Month | 1-Year |\n| \\-1.53% | 1\\.67% | \\-13.66% | \\-4.10% |\n\nAs of 3:20 p.m. EST, Dec. 4, 2025\n\nSource: [TradingView](https:\/\/www.tradingview.com\/symbols\/BTCUSD\/)\n\n## How to Buy Bitcoin\n### Step 1: Choose a Crypto-Trading Service or Venue\nExchanges are a convenient option because they offer a breadth of features and more cryptocurrencies for trading. Exchanges also enable investors to buy, sell, and hold cryptocurrency and allow users to transfer crypto to their online wallet for safekeeping.\n\nThere are many cryptocurrency exchanges, but there are only two types: centralized and decentralized. Decentralized exchanges allow users to remain pseudo-anonymous and generally don't require personal information.\n\nFor certain demographics, including refugees or those living in countries with little to no infrastructure for government credit or banking, decentralized exchanges allow access to the global economy.\n\nPopular exchanges in the U.S. and many other countries are centralized and follow laws that require users to submit identifying documentation. These exchanges include Coinbase, Kraken, Gemini, and Binance; they offer Bitcoin, a growing number of [altcoins](https:\/\/www.investopedia.com\/terms\/a\/altcoin.asp), and fiat exchange services.\n\n### Fast Fact\nWhen creating a cryptocurrency exchange account, use two-factor authentication and a long, unique password that includes a variety of lowercase and capital letters, special characters, and numbers.\n### Step 2: Connect Your Exchange to a Payment Option\nDepending on the exchange, personal identification can be required, which may mean that you have to include a picture of a driver's license or Social Security card, as well as information about your employer and source of funds. The process is largely the same as setting up a typical [brokerage account](https:\/\/www.investopedia.com\/terms\/b\/brokerageaccount.asp).\n\nAt most centralized exchanges, you can connect your bank account directly or link it to a debit or credit card. Although you can use a credit card to purchase cryptocurrency, cryptocurrency price volatility could inflate the overall cost of purchasing a token when combined with a credit card's interest charges.\n\nBitcoin is legal in the U.S., but some banks may question or even stop deposits to crypto-related sites or exchanges without being notified of the activity by a customer.\n\nFees vary for deposits via a bank account, debit, or credit card, and exchanges also charge fees per transaction.\n\n### Step 3: Place an Order\nCryptocurrency exchanges have evolved and now mimic the same features as their traditional brokerage counterparts. Crypto exchanges offer several order types and ways to invest or trade. Almost all crypto exchanges offer both [market](https:\/\/www.investopedia.com\/terms\/m\/marketorder.asp) and [limit orders](https:\/\/www.investopedia.com\/terms\/l\/limitorder.asp), and some also provide stop-loss orders.\n\nKraken offers the most order types, including market, limit, stop-loss, stop-limit, take-profit, and take-profit limit orders.3\n\nExchanges also offer ways to set up recurring investments, allowing clients to dollar-cost average their investments of choice. Coinbase, for example, lets users set weekly, biweekly, or monthly recurring purchases.4\n\n### Step 4: Safe Storage\nCryptocurrency wallets are a place to store digital asset keys. Keeping crypto keys off an exchange and in a non-connected wallet (cold wallet) ensures that users have control over the keys. Investors can use the wallets offered by exchanges, but it's not recommended for large or long-term cryptocurrency holdings.\n\n## Hot Wallets vs. Cold Wallets\n### Hot Wallets\nOnline wallets, also known as [hot wallets](https:\/\/www.investopedia.com\/terms\/h\/hot-wallet.asp), are apps on devices such as computers, phones, or tablets. These wallets generate the private keys to your coins on Internet-connected devices.\n\nHot wallet holders who haven't created enough security run the risk of losing funds to theft. Strong passwords, two-factor authentication, anti-virus programs, and safe Internet browsing should be considered minimum requirements.\n\nHot wallets are best for small amounts of cryptocurrency or cryptocurrency that is actively trading on an exchange. Another use is like a checking account, only placing what you need for certain transactions in your hot wallet.\n\n### Cold Wallets\nA [cold wallet](https:\/\/www.investopedia.com\/terms\/c\/cold-storage.asp) isn't connected to the Internet and is less likely to be compromised. These wallets store a user's private keys on a device or item without a connection.\n\nSome come with software that allows investors to view their portfolios without putting their private keys at risk. Types of cold wallets are paper, hardware, or even metal stamped with private keys.\n\nA paper wallet is simply a piece of paper with private keys written on it. Some people laminate these paper wallets and store them in safe deposit boxes at their bank or even in a safe in their home.\n\nThere are websites and programs that can generate nifty, printable versions with quick response codes, but these should be avoided as they expose the private keys unnecessarily.\n\nCold wallets are the most secure way to store your Bitcoin or other cryptocurrencies.\n\n## How to Buy Bitcoin With PayPal\nYou can buy Bitcoin through a payment processor like PayPal Holdings Inc. There are two ways to purchase Bitcoin using PayPal: You can connect your account to a debit card or bank account, or use the balance of the PayPal account to buy cryptocurrencies from a third-party provider.\n\nYou may also use PayPal to directly buy seven cryptocurrencies: Bitcoin, Ethereum, [Litecoin](https:\/\/www.investopedia.com\/terms\/l\/litecoin.asp), Solana, Chainlink, [Bitcoin Cash](https:\/\/www.investopedia.com\/terms\/b\/bitcoin-cash.asp), and PayPal's own stablecoin, PayPal USD. U.S. residents can use their existing PayPal accounts or set up a new one to buy Bitcoin. You can also use your cryptocurrencies to buy products and services.56\n\nWhen you buy Bitcoin directly from PayPal, it earns money from the crypto spread, or \"the difference between the highest buy order and the lowest sell order on any exchange.\"7 PayPal also charges a transaction fee for each purchase, which depends on the dollar amount purchased.8\n\nYou can send crypto, including Bitcoin, from PayPal to an external digital asset wallet that you own and control, or to one owned and controlled by another person, like a friend or family member. To send your Bitcoin outside of PayPal, you must provide the wallet address where you want to send the assets. If you send Bitcoin, you must use a wallet that accepts it.9\n\nThe social trading and multi-asset investment company eToro is among the few online traders that allow Bitcoin purchases using PayPal.10  \n  \n*PayPal and CC are not available to users in the UK.*\n\n## How to Buy Bitcoin With a Credit Card\nUsing credit cards to buy Bitcoin is similar to using debit cards or [automated clearing house (ACH)](https:\/\/www.investopedia.com\/terms\/a\/ach.asp) transfers. However, not all exchanges allow you to buy Bitcoin with credit cards due to associated processing fees and the risk of fraud.\n\nCredit card processing can add extra charges to these transactions. In addition to paying blockchain transaction fees, the exchange may pass on processing fees to the buyer. Credit card issuers treat Bitcoin purchases like cash advances and charge hefty fees and interest rates on them.11\n\n## Alternative Ways to Buy Bitcoin\n### Bitcoin ATMs\n[Bitcoin ATMs](https:\/\/www.investopedia.com\/terms\/b\/bitcoin-atm.asp) act like in-person Bitcoin exchanges. Individuals can insert cash into a machine and use it to purchase Bitcoin, which gets transferred to their wallet. Bitcoin ATMs have become increasingly popular in recent years and are even available at the retail giant Walmart Inc. (WMT), among other places.\n\n### Note\nBitcoin ATM use requires government-issued IDs.12\n\nTwo charges are associated with ATM Bitcoin purchases: a purchase fee and a conversion fee for converting a fiat currency to Bitcoin. Both fees are fairly steep compared with those of other options. For example, CoinHub charges a markup of 12.5% and a retailer fee of \\$4.95 above the Bitstamp spot rate.13\n\n### P2P Exchanges\nSome P2P exchange services provide a more direct connection between users, such as Binance P2P.\n\nAlthough P2P exchanges don't offer the same anonymity as decentralized exchanges, they give users the chance to shop around for the best deal. Many of these exchanges also provide rating systems so that users can evaluate potential trade partners before transacting.\n\n### Mainstream Brokerages\nRobinhood Markets is an exchange that offers crypto trading. It charges a 0.03% to 0.85% fee for crypto trades and purchases. The fees are based on the trailing 30-day trading volume of crypto orders executed with smart exchange routing.14 If investors use market maker routing, then the fee is \\$0.85 for every \\$100 notional crypto order.15 Robinhood has enabled trading on its platform for these assets, which include Bitcoin, Bitcoin Cash, Litecoin, Ethereum, [Dogecoin](https:\/\/www.investopedia.com\/terms\/d\/dogecoin.asp), and Ethereum Classic.16\n\nYou can also trade thousands of cryptocurrencies on Coinbase. As of 2022, traditional [brokers](https:\/\/www.investopedia.com\/best-online-brokers-4587872) like Fidelity Investments began to include Bitcoin in 401(k) accounts.1718\n\n### Warning\nBitcoin and other crypto investments aren't protected by insurance from the [Securities Investor Protection Corp. (SIPC)](https:\/\/www.investopedia.com\/terms\/s\/sipc.asp). At regular [brokerages](https:\/\/www.investopedia.com\/best-online-brokers-4587872), the agency protects against the loss of securities and cash in brokerage accounts containing up to \\$500,000, with a \\$250,000 cash limit.19\n\n[Crypto exchanges](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855) like Coinbase have crime insurance to protect their infrastructure against hacks. But it doesn't protect individual customers from password theft.20\n## How to Sell Bitcoin\nYou can sell Bitcoin at the same venues where you purchased the cryptocurrency, such as cryptocurrency exchanges and P2P platforms. Typically, the process of selling Bitcoin on these platforms is similar to the process of buying it.\n\nMost crypto exchanges charge a percentage of the sale amount as fees. For example, Coinbase says it may charge a fee when a customer cashes out their crypto, depending on the payment method selected.21\n\nExchanges generally have daily and monthly withdrawal limits. Therefore, cash from a large sale may not be immediately available to the trader. But with Coinbase, for example, there is no limit on the amount of cryptocurrency you can sell.22\n\n## How Do Beginners Buy Bitcoin?\nThe best way for a beginner to purchase Bitcoin is to create an account on a reputable and regulated exchange, fund it, and make a purchase.\n\n## How Can I Buy \\$100 Worth of Bitcoin?\nRegulated exchanges are the safest way to purchase Bitcoin, but you can also buy some at Bitcoin ATMs or through PayPal.\n\n## What If I Invest \\$100 in Bitcoin Today?\nIt is possible that \\$100 in Bitcoin today might turn into \\$200 or more in the future, but it is just as likely that it will turn into \\$1. Bitcoin is very volatile, so you should consider your financial circumstances before investing to determine if you can afford to lose the money you invest.\n## The Bottom Line\nBuying Bitcoin can seem complicated if you haven't done it, but it's relatively simple. It just requires an account at a service or an exchange and a way to store your purchases safely.\n\nTo buy Bitcoin, you must select an appropriate service or venue, connect with a payment method, place an order, and ensure stable storage for purchased cryptocurrency.\n\nEach of these steps requires research and a careful assessment of the pros and cons of the relevant service. Bitcoin is available at Bitcoin ATMs or from payment services like PayPal and [mainstream brokerage firms](https:\/\/www.investopedia.com\/the-best-online-brokers-for-crypto-trading-8765274) like Robinhood or Coinbase.\n\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\n\n- [How can I evaluate the trustworthiness and underlying technology of a cryptocurrency?](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp)\n- [How can I manage my investments in a volatile crypto market?](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp)\n- [What are alternative ways to gain exposure to the crypto market without directly buying coins?](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp)\n\nASK\n\nArticle Sources\n\nInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https:\/\/www.investopedia.com\/legal-4768893#EditorialPolicy)\n\n1. CoinMarketCap. \"[Bitcoin](https:\/\/coinmarketcap.com\/currencies\/bitcoin\/).\"\n2. KYC Hub. \"[What are Global KYC Regulations in 2025?](https:\/\/www.kychub.com\/blog\/global-kyc-regulations\/)\"\n3. Kraken Support. \"[Order Types](https:\/\/support.kraken.com\/hc\/en-us\/sections\/200577136-Order-types).\"\n4. Coinbase Help. \"[Recurring Buys](https:\/\/help.coinbase.com\/en\/coinbase\/trading-and-funding\/buying-selling-or-converting-crypto\/how-can-i-create-or-cancel-a-recurring-transaction).\"\n5. PayPal Help. \"[How Do I Buy Cryptocurrency on PayPal?](https:\/\/www.paypal.com\/us\/cshelp\/article\/how-do-i-buy-cryptocurrency-on-paypal-help567)\"\n6. PayPal Help. \"[What Can I Do with Crypto on PayPal?](https:\/\/www.paypal.com\/us\/cshelp\/article\/what-can-i-do-with-crypto-on-paypal-help893)\"\n7. PayPal Help. \"[PayPal Cryptocurrency FAQ's](https:\/\/www.paypal.com\/us\/cshelp\/article\/paypal-cryptocurrency-faqs-help565).\"\n8. PayPal. \"[PayPal Consumer Fees](https:\/\/www.paypal.com\/us\/digital-wallet\/paypal-consumer-fees#cryptocurrencies).\"\n9. PayPal. \"[PayPal Cryptocurrency Terms and Conditions](https:\/\/www.paypal.com\/us\/webapps\/mpp\/ua\/cryptocurrencies-tnc).\"\n10. eToro. \"[A Step by Step Guide on How to Buy Bitcoin with PayPal](https:\/\/www.etoro.com\/crypto\/how-to-buy-bitcoin-with-paypal\/).\"\n11. Coinbase. \"[Coinbase Product Update — February 5, 2018](https:\/\/www.coinbase.com\/blog\/coinbase-product-update-february-5-2018).\"\n12. Coinme. \"[What Type Of Identification Do I Need To Use A Bitcoin ATM?](https:\/\/coinme.com\/blog\/bitcoin-atms\/what-id-does-a-bitcoin-atm-require)\"\n13. CoinHub. \"[LGST Services LLC DBA Coinhub User Agreement, Terms & Conditions – Privacy & Identity Verification Policy](https:\/\/coinhubatm.com\/terms-condition).\"\n14. Robinhood Help Center. \"[Crypto Fee Tiers](https:\/\/robinhood.com\/us\/en\/support\/articles\/crypto-fee-tiers\/).\"\n15. Robinhood Help Center. \"[Crypto Order Routing](https:\/\/robinhood.com\/us\/en\/support\/articles\/crypto-order-routing\/).\"\n16. Robinhood Help Center. \"[Crypto Availability](https:\/\/robinhood.com\/us\/en\/support\/articles\/coin-availability\/).\"\n17. Coinbase Help. \"[Supported Cryptocurrencies](https:\/\/help.coinbase.com\/en\/coinbase\/supported-crypto.html).\"\n18. BusinessWire. \"[Fidelity Investments Advances Leading Position as Digital Assets Provider With Launch of Industry’s First-of-Its-Kind Bitcoin Offering for 401(k) Core Investment Lineup](https:\/\/www.businesswire.com\/news\/home\/20220426005525\/en\/Fidelity-Investments-Advances-Leading-Position-as-Digital-Assets-Provider-With-Launch-of-Industrys-First-of-Its-Kind-Bitcoin-Offering-for-401k-Core-Investment-Lineup).\"\n19. Securities Investor Protection Corporation. \"[What SIPC Protects](https:\/\/www.sipc.org\/for-investors\/what-sipc-protects).\"\n20. Coinbase Help. \"[How Is Coinbase Insured?](https:\/\/help.coinbase.com\/en\/coinbase\/other-topics\/legal-policies\/how-is-coinbase-insured)\"\n21. Coinbase Help. \"[Coinbase Pricing and Fees Disclosures](https:\/\/help.coinbase.com\/en\/coinbase\/trading-and-funding\/pricing-and-fees\/fees).\"\n22. Coinbase Help. \"[Account Limits](https:\/\/help.coinbase.com\/en\/coinbase\/trading-and-funding\/buying-selling-or-converting-crypto\/limits-and-account-levels).\"\n\nCompare Accounts\n\nAdvertiser Disclosure\n\n×\n\nThe offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.\n\nPart of the Series\n\nBitcoin Basics\n\n[What Is Bitcoin? How to Buy, Mine, and Use It](https:\/\/www.investopedia.com\/terms\/b\/bitcoin.asp)\n\nHow To Get and Store It\n\n1. [How Bitcoin Works](https:\/\/www.investopedia.com\/news\/how-bitcoin-works\/)\n2. [How To Buy Bitcoin](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp)\n   CURRENT ARTICLE\n3. [How to Store Bitcoin](https:\/\/www.investopedia.com\/news\/bitcoin-safe-storage-cold-wallet\/)\n4. [How Does Bitcoin Mining Work?](https:\/\/www.investopedia.com\/tech\/how-does-bitcoin-mining-work\/)\n\nHow to Use it\n\n1. [Advantages of Paying with Bitcoin](https:\/\/www.investopedia.com\/ask\/answers\/100314\/what-are-advantages-paying-bitcoin.asp)\n2. [Benefits & Risks of Trading Forex with Bitcoin](https:\/\/www.investopedia.com\/articles\/forex\/081815\/benefits-risks-trading-forex-bitcoin.asp)\n3. [Pros and Cons of Investing in Bitcoin IRAs](https:\/\/www.investopedia.com\/tech\/pros-and-cons-investing-bitcoin-iras\/)\n4. [Should You Buy Gold Or Bitcoin?](https:\/\/www.investopedia.com\/news\/should-you-buy-gold-or-bitcoin\/)\n5. [How Much of the World's Money is in Bitcoin?](https:\/\/www.investopedia.com\/tech\/how-much-worlds-money-bitcoin\/)\n\nRead more\n\n- [Cryptocurrency](https:\/\/www.investopedia.com\/cryptocurrency-4427699)\n- [Bitcoin](https:\/\/www.investopedia.com\/bitcoin-4689766)\n\nPartner Links\n\n## Related Articles\n[![Bitcoin House in Paris, devoted to crypto currency. ](https:\/\/www.investopedia.com\/thmb\/JyBpERO82ruHMqvYm6_GjTWqli0=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-1041976786-a078126a20a6410d9a4fba7d439b4ae1.jpg) ![Bitcoin House in Paris, devoted to crypto currency. ](https:\/\/www.investopedia.com\/thmb\/JyBpERO82ruHMqvYm6_GjTWqli0=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-1041976786-a078126a20a6410d9a4fba7d439b4ae1.jpg) A Beginner's Guide to Paying With Cryptocurrency](https:\/\/www.investopedia.com\/ask\/answers\/100314\/what-are-advantages-paying-bitcoin.asp)\n\n[![Woman sitting on couch looking at smartphone](https:\/\/www.investopedia.com\/thmb\/PMRE9YEh-kQwsOTg4pXTuwnOjnw=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-1467526225-947ba148c1b440dc803b31fabd1f9b23.jpg) ![Woman sitting on couch looking at smartphone](https:\/\/www.investopedia.com\/thmb\/PMRE9YEh-kQwsOTg4pXTuwnOjnw=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-1467526225-947ba148c1b440dc803b31fabd1f9b23.jpg) Bitcoin vs. XRP: Understanding the Key Differences](https:\/\/www.investopedia.com\/tech\/whats-difference-between-bitcoin-and-ripple\/)\n\n[![The Best Bitcoin Wallets](https:\/\/www.investopedia.com\/thmb\/u7Fqt4koLcFCPV9QPtdOKvGgXTI=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/FPM-best-bitcoin-wallets-5070283-FINAL-1-e434e324e2f04041a93676eda7481dc8.png) ![The Best Bitcoin Wallets](https:\/\/www.investopedia.com\/thmb\/u7Fqt4koLcFCPV9QPtdOKvGgXTI=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/FPM-best-bitcoin-wallets-5070283-FINAL-1-e434e324e2f04041a93676eda7481dc8.png) Best Bitcoin Wallets for April 2026](https:\/\/www.investopedia.com\/the-best-bitcoin-wallets-11688646)\n\n[![Young trader using smartphone to monitor cryptocurrency prices for Bitcoin IRA investment.](https:\/\/www.investopedia.com\/thmb\/5izNZBcRxiU5D-vWtwGy_WJagMM=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BestBitcoinIRACompaniesforJanuary2025-037413ed188046ff88de591b836346dd.jpg) ![Young trader using smartphone to monitor cryptocurrency prices for Bitcoin IRA investment.](https:\/\/www.investopedia.com\/thmb\/5izNZBcRxiU5D-vWtwGy_WJagMM=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BestBitcoinIRACompaniesforJanuary2025-037413ed188046ff88de591b836346dd.jpg) Best Bitcoin IRA Companies for April 2026](https:\/\/www.investopedia.com\/the-best-bitcoin-ira-companies-8781317)\n\n[![A woman sits at the kitchen counter and researches for information about the best bitcoin debit cards.](https:\/\/www.investopedia.com\/thmb\/qFsrXCaSuUgtpmk1bFuqm-86Ebg=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BestBitcoinDebitCardsforFebruary2025-0740cd4282644baca91590b8828c2280.jpg) ![A woman sits at the kitchen counter and researches for information about the best bitcoin debit cards.](https:\/\/www.investopedia.com\/thmb\/qFsrXCaSuUgtpmk1bFuqm-86Ebg=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BestBitcoinDebitCardsforFebruary2025-0740cd4282644baca91590b8828c2280.jpg) Best Bitcoin Debit Cards for April 2026](https:\/\/www.investopedia.com\/the-best-bitcoin-debit-cards-8782795)\n\n[![A woman holding a smartphone that is being reflected in her glasses with green charts and\/or words](https:\/\/www.investopedia.com\/thmb\/9AhQDm-gqqVh0iHMyiT8XkRlFx8=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-1827741441-55a529dfde964fc9bf2f57820b0528db.jpg) ![A woman holding a smartphone that is being reflected in her glasses with green charts and\/or words](https:\/\/www.investopedia.com\/thmb\/9AhQDm-gqqVh0iHMyiT8XkRlFx8=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-1827741441-55a529dfde964fc9bf2f57820b0528db.jpg) Bitcoin vs. Ethereum: Key Differences Explained](https:\/\/www.investopedia.com\/articles\/investing\/031416\/bitcoin-vs-ethereum-driven-different-purposes.asp)\n\n[![]() ![](https:\/\/www.investopedia.com\/thmb\/JNXYPpcAP8jBweamns9DOlM2t5Y=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/safe_3-5bfc3e3c46e0fb00260fbd82.jpg) Bitcoin Storage: Top Safe Methods to Protect Your Cryptocurrency](https:\/\/www.investopedia.com\/news\/bitcoin-safe-storage-cold-wallet\/)\n\n[![Physical version of Bitcoin coin, aka virtual money.]() ![Physical version of Bitcoin coin, aka virtual money.](https:\/\/www.investopedia.com\/thmb\/VGThB5QUX_ptdpqeDQ4FLdpDTrU=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-876199432-f69ab426405a4bd296ec0bc18feba074.jpg) Discover the Richest Bitcoin Billionaires in Cryptocurrency](https:\/\/www.investopedia.com\/articles\/people\/083016\/who-are-top-5-bitcoin-millionaires.asp)\n\n[![A neon sign advertises a Bitcoin and Ethereum crypto currency exchange in Warsaw, Poland, on Jan. 4, 2025.]() ![A neon sign advertises a Bitcoin and Ethereum crypto currency exchange in Warsaw, Poland, on Jan. 4, 2025.](https:\/\/www.investopedia.com\/thmb\/-gvvJkO9r71y2ortplCe3ZAVtEo=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-2191923711-de63d5576849466bbd1c7ebae2fa65b7.jpg) Does Ethereum Have More Upside Potential Than Bitcoin?](https:\/\/www.investopedia.com\/ethereum-or-bitcoin-11832006)\n\n[![Person using a smartphone with Bitcoin symbols displayed in the foreground]() ![Person using a smartphone with Bitcoin symbols displayed in the foreground](https:\/\/www.investopedia.com\/thmb\/pLD_2EZ0h1DlNLHEklJi4QA2s4Q=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-1366240594-e736efe64d374e749677725d469b2e24.jpg) Cryptocurrency Exchanges: What They Are and How To Choose](https:\/\/www.investopedia.com\/tech\/190-cryptocurrency-exchanges-so-how-choose\/)\n\n[![A man walks past a bitcoin monument on a pedestal in El Salvador.]() ![A man walks past a bitcoin monument on a pedestal in El Salvador.](https:\/\/www.investopedia.com\/thmb\/Y25LgURkePbBSOEj_05Mba2mbjs=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/GettyImages-2169861965-fbfe9dcf49334661b84c2e09b2a652f5.jpg) Bitcoin Record High: Portfolio Strategies for Navigating Volatility](https:\/\/www.investopedia.com\/bitcoin-record-high-portfolio-strategy-8756170)\n\n[![Crypto trader checking currency market on phone, buying bitcoin]() ![Crypto trader checking currency market on phone, buying bitcoin](https:\/\/www.investopedia.com\/thmb\/PbtGGN1M4Mz7_OL0Ookx026Ey_o=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/Primary-Image-how-to-buy-and-sell-bitcoin-options-7378233-bd2a484188b6473eb92cdc890bfd5673.jpg) How Do Cryptocurrency Exchange-Traded Funds (ETFs) Work?](https:\/\/www.investopedia.com\/investing\/understanding-cryptocurrency-etfs\/)\n\n[![Golden Bitcoins]() ![Golden Bitcoins](https:\/\/www.investopedia.com\/thmb\/2AoOOQjDJI6OfhiX6Yds69D8uhQ=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/golden-bitcoins-991448988-7f254d7a2e0b408895d784b82dd58950.jpg) What Is Bitcoin Maximalism? Beliefs and Future Impact](https:\/\/www.investopedia.com\/terms\/b\/bitcoin-maximalism.asp)\n\n[![Financial advisor talking to two clients at a table]() ![Financial advisor talking to two clients at a table](https:\/\/www.investopedia.com\/thmb\/X5bTTmQ4j40QnOUFiFtwQOjYhuw=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/INV_WhereNottoGetCryptoAdvice_GettyImages-824716812-717f136cd82b4832abcf7ca11c94364e.jpg) Where to Find Crypto Investment Advice](https:\/\/www.investopedia.com\/where-not-to-get-crypto-advice-6499675)\n\n[![Two people discussing crypto trading while looking at computer screens]() ![Two people discussing crypto trading while looking at computer screens](https:\/\/www.investopedia.com\/thmb\/RF5iMfl4MjVneoIq6mAnd3mSGRY=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/INV_Crypto_FOMO_GettyImages-1308419971-f41ca43688ec4cefb8253580ef16cf13.jpg) How to Deal With Crypto FOMO](https:\/\/www.investopedia.com\/deal-with-crypto-fomo-6455103)\n\n[![Two people discussing crypto trading while looking at computer screens]() ![Two people discussing crypto trading while looking at computer screens](https:\/\/www.investopedia.com\/thmb\/RF5iMfl4MjVneoIq6mAnd3mSGRY=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/INV_Crypto_FOMO_GettyImages-1308419971-f41ca43688ec4cefb8253580ef16cf13.jpg) How to Find New Cryptocurrencies for Investment](https:\/\/www.investopedia.com\/news\/how-find-your-next-cryptocurrency-investment\/)\n\n[Investopedia](https:\/\/www.investopedia.com\/)\n\n[Newsletter Sign Up](https:\/\/www.investopedia.com\/articles\/investing\/082914\/basics-buying-and-investing-bitcoin.asp)\n\nFollow Us\n\n- [News](https:\/\/www.investopedia.com\/news-4427706)\n- [Investing](https:\/\/www.investopedia.com\/investing-4427685)\n- [Simulator](https:\/\/www.investopedia.com\/simulator\/?inv_to_sim=global_nav)\n- 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[B](https:\/\/www.investopedia.com\/terms-beginning-with-b-4769352)\n- [C](https:\/\/www.investopedia.com\/terms-beginning-with-c-4769353)\n- [D](https:\/\/www.investopedia.com\/terms-beginning-with-d-4769354)\n- [E](https:\/\/www.investopedia.com\/terms-beginning-with-e-4769355)\n- [F](https:\/\/www.investopedia.com\/terms-beginning-with-f-4769356)\n- [G](https:\/\/www.investopedia.com\/terms-beginning-with-g-4769357)\n- [H](https:\/\/www.investopedia.com\/terms-beginning-with-h-4769358)\n- [I](https:\/\/www.investopedia.com\/terms-beginning-with-i-4769359)\n- [J](https:\/\/www.investopedia.com\/terms-beginning-with-j-4769360)\n- [K](https:\/\/www.investopedia.com\/terms-beginning-with-k-4769361)\n- [L](https:\/\/www.investopedia.com\/terms-beginning-with-l-4769362)\n- [M](https:\/\/www.investopedia.com\/terms-beginning-with-m-4769363)\n- [N](https:\/\/www.investopedia.com\/terms-beginning-with-n-4769364)\n- [O](https:\/\/www.investopedia.com\/terms-beginning-with-o-4769365)\n- [P](https:\/\/www.investopedia.com\/terms-beginning-with-p-4769366)\n- [Q](https:\/\/www.investopedia.com\/terms-beginning-with-q-4769367)\n- [R](https:\/\/www.investopedia.com\/terms-beginning-with-r-4769368)\n- [S](https:\/\/www.investopedia.com\/terms-beginning-with-s-4769369)\n- [T](https:\/\/www.investopedia.com\/terms-beginning-with-t-4769370)\n- [U](https:\/\/www.investopedia.com\/terms-beginning-with-u-4769371)\n- [V](https:\/\/www.investopedia.com\/terms-beginning-with-v-4769372)\n- [W](https:\/\/www.investopedia.com\/terms-beginning-with-w-4769373)\n- [X](https:\/\/www.investopedia.com\/terms-beginning-with-x-4769374)\n- [Y](https:\/\/www.investopedia.com\/terms-beginning-with-y-4769375)\n- [Z](https:\/\/www.investopedia.com\/terms-beginning-with-z-4769376)\n\nInvestopedia is part of the [People Inc.](https:\/\/www.people.inc\/) publishing family.\n\nNewsletter Sign Up\n\nNewsletter Sign Up","attrs_readable_markdown":"### Key Takeaways\n- Bitcoin's value comes primarily from market speculation but also from its store of value, use as a payment method, and finite supply.\n- Because a [Bitcoin wallet](https:\/\/www.investopedia.com\/the-best-bitcoin-wallets-11688646) or [crypto exchange](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855) account can be compromised, it's vital to learn about safe storage and take the necessary crypto security measures.\n- Exchanges and service providers such as Coinbase, PayPal, Robinhood, and others sell Bitcoin.\n\nGet personalized, AI-powered answers built on 27+ years of trusted expertise.\n\nWith the price of Bitcoin reaching a new all-time high of \\$126,198.07 in October 2025, new investors may be seeking to research the digital asset to determine if it aligns with their investing style and financial goals.1\n\nInvesting in Bitcoin (BTCUSD) can seem complicated, but it isn't. It only requires an account with a service provider or a [cryptocurrency exchange,](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855) as well as a secure way to store your purchases.\n\nBitcoin investors need a cryptocurrency exchange account, personal identification documents if they are using a Know Your Client (KYC) platform, a secure connection to the internet, a method of payment, and a personal [digital wallet](https:\/\/www.investopedia.com\/the-best-bitcoin-wallets-11688646) outside the exchange account.\n\nValid Bitcoin payment methods include bank accounts, [debit cards](https:\/\/www.investopedia.com\/the-best-bitcoin-debit-cards-8782795), and credit cards. It's also possible to get Bitcoin at specialized ATMs and via peer-to-peer (P2P) exchanges.\n\n## Before You Buy Bitcoin\nPrivacy and security are important issues for Bitcoin users. Investors who gain the [private key](https:\/\/www.investopedia.com\/terms\/p\/private-key.asp) to a public address can authorize transactions. The private key is a cryptographic code similar to a password that allows a user to transfer cryptocurrencies from their wallet on the Bitcoin blockchain. Private keys should be kept secret, and investors must be aware that the balance of a public address is visible.\n\nIndividuals can create multiple public addresses and distribute their collection of Bitcoin over many addresses. A good strategy is to keep significant investments at public addresses that aren't directly connected to those used in transactions.\n\n### Less Than 1 Bitcoin\nInvestors can buy less than a whole Bitcoin. Whether you own 1 Bitcoin, 15 Bitcoins, or 0.01 Bitcoin, you're equally exposed to the cryptocurrency's ups and downs.\n\nThe history of transactions made on the blockchain is transparent, but identifying user information isn't. On the Bitcoin blockchain, only a user's public key appears next to a transaction, making transactions confidential but not anonymous.\n\n### You Are Only Pseudo Anonymous\nBitcoin transactions are more traceable than cash transactions because they are available for public viewing. However, it is very difficult to determine who is transacting unless the address is associated with an exchange account, which is required if the user wants to convert their Bitcoin to fiat currency.\n\nThis is because when you create an account on a regulated exchange that can convert cryptocurrency, you must provide identification. This is called [Know Your Client (KYC)](https:\/\/www.investopedia.com\/terms\/k\/knowyourclient.asp) and is required by law in many countries to assist anti-money laundering and anti-terrorism financing efforts.2\n\n### Important\nBefore buying Bitcoin, be sure to check out the legal, regulatory, and tax status of purchasing it where you live.\n\n| Bitcoin Returns |   |   |   |\n|---|---|---|---|\n| 1-Day | 1-Week | 1-Month | 1-Year |\n| \\-1.53% | 1\\.67% | \\-13.66% | \\-4.10% |\n\nAs of 3:20 p.m. EST, Dec. 4, 2025\n\nSource: [TradingView](https:\/\/www.tradingview.com\/symbols\/BTCUSD\/)\n\n## How to Buy Bitcoin\n### Step 1: Choose a Crypto-Trading Service or Venue\nExchanges are a convenient option because they offer a breadth of features and more cryptocurrencies for trading. Exchanges also enable investors to buy, sell, and hold cryptocurrency and allow users to transfer crypto to their online wallet for safekeeping.\n\nThere are many cryptocurrency exchanges, but there are only two types: centralized and decentralized. Decentralized exchanges allow users to remain pseudo-anonymous and generally don't require personal information.\n\nFor certain demographics, including refugees or those living in countries with little to no infrastructure for government credit or banking, decentralized exchanges allow access to the global economy.\n\nPopular exchanges in the U.S. and many other countries are centralized and follow laws that require users to submit identifying documentation. These exchanges include Coinbase, Kraken, Gemini, and Binance; they offer Bitcoin, a growing number of [altcoins](https:\/\/www.investopedia.com\/terms\/a\/altcoin.asp), and fiat exchange services.\n\n### Fast Fact\nWhen creating a cryptocurrency exchange account, use two-factor authentication and a long, unique password that includes a variety of lowercase and capital letters, special characters, and numbers.\n### Step 2: Connect Your Exchange to a Payment Option\nDepending on the exchange, personal identification can be required, which may mean that you have to include a picture of a driver's license or Social Security card, as well as information about your employer and source of funds. The process is largely the same as setting up a typical [brokerage account](https:\/\/www.investopedia.com\/terms\/b\/brokerageaccount.asp).\n\nAt most centralized exchanges, you can connect your bank account directly or link it to a debit or credit card. Although you can use a credit card to purchase cryptocurrency, cryptocurrency price volatility could inflate the overall cost of purchasing a token when combined with a credit card's interest charges.\n\nBitcoin is legal in the U.S., but some banks may question or even stop deposits to crypto-related sites or exchanges without being notified of the activity by a customer.\n\nFees vary for deposits via a bank account, debit, or credit card, and exchanges also charge fees per transaction.\n\n### Step 3: Place an Order\nCryptocurrency exchanges have evolved and now mimic the same features as their traditional brokerage counterparts. Crypto exchanges offer several order types and ways to invest or trade. Almost all crypto exchanges offer both [market](https:\/\/www.investopedia.com\/terms\/m\/marketorder.asp) and [limit orders](https:\/\/www.investopedia.com\/terms\/l\/limitorder.asp), and some also provide stop-loss orders.\n\nKraken offers the most order types, including market, limit, stop-loss, stop-limit, take-profit, and take-profit limit orders.3\n\nExchanges also offer ways to set up recurring investments, allowing clients to dollar-cost average their investments of choice. Coinbase, for example, lets users set weekly, biweekly, or monthly recurring purchases.4\n\n### Step 4: Safe Storage\nCryptocurrency wallets are a place to store digital asset keys. Keeping crypto keys off an exchange and in a non-connected wallet (cold wallet) ensures that users have control over the keys. Investors can use the wallets offered by exchanges, but it's not recommended for large or long-term cryptocurrency holdings.\n\n## Hot Wallets vs. Cold Wallets\n### Hot Wallets\nOnline wallets, also known as [hot wallets](https:\/\/www.investopedia.com\/terms\/h\/hot-wallet.asp), are apps on devices such as computers, phones, or tablets. These wallets generate the private keys to your coins on Internet-connected devices.\n\nHot wallet holders who haven't created enough security run the risk of losing funds to theft. Strong passwords, two-factor authentication, anti-virus programs, and safe Internet browsing should be considered minimum requirements.\n\nHot wallets are best for small amounts of cryptocurrency or cryptocurrency that is actively trading on an exchange. Another use is like a checking account, only placing what you need for certain transactions in your hot wallet.\n\n### Cold Wallets\nA [cold wallet](https:\/\/www.investopedia.com\/terms\/c\/cold-storage.asp) isn't connected to the Internet and is less likely to be compromised. These wallets store a user's private keys on a device or item without a connection.\n\nSome come with software that allows investors to view their portfolios without putting their private keys at risk. Types of cold wallets are paper, hardware, or even metal stamped with private keys.\n\nA paper wallet is simply a piece of paper with private keys written on it. Some people laminate these paper wallets and store them in safe deposit boxes at their bank or even in a safe in their home.\n\nThere are websites and programs that can generate nifty, printable versions with quick response codes, but these should be avoided as they expose the private keys unnecessarily.\n\nCold wallets are the most secure way to store your Bitcoin or other cryptocurrencies.\n\n## How to Buy Bitcoin With PayPal\nYou can buy Bitcoin through a payment processor like PayPal Holdings Inc. There are two ways to purchase Bitcoin using PayPal: You can connect your account to a debit card or bank account, or use the balance of the PayPal account to buy cryptocurrencies from a third-party provider.\n\nYou may also use PayPal to directly buy seven cryptocurrencies: Bitcoin, Ethereum, [Litecoin](https:\/\/www.investopedia.com\/terms\/l\/litecoin.asp), Solana, Chainlink, [Bitcoin Cash](https:\/\/www.investopedia.com\/terms\/b\/bitcoin-cash.asp), and PayPal's own stablecoin, PayPal USD. U.S. residents can use their existing PayPal accounts or set up a new one to buy Bitcoin. You can also use your cryptocurrencies to buy products and services.56\n\nWhen you buy Bitcoin directly from PayPal, it earns money from the crypto spread, or \"the difference between the highest buy order and the lowest sell order on any exchange.\"7 PayPal also charges a transaction fee for each purchase, which depends on the dollar amount purchased.8\n\nYou can send crypto, including Bitcoin, from PayPal to an external digital asset wallet that you own and control, or to one owned and controlled by another person, like a friend or family member. To send your Bitcoin outside of PayPal, you must provide the wallet address where you want to send the assets. If you send Bitcoin, you must use a wallet that accepts it.9\n\nThe social trading and multi-asset investment company eToro is among the few online traders that allow Bitcoin purchases using PayPal.10\n\n*PayPal and CC are not available to users in the UK.*\n## How to Buy Bitcoin With a Credit Card\nUsing credit cards to buy Bitcoin is similar to using debit cards or [automated clearing house (ACH)](https:\/\/www.investopedia.com\/terms\/a\/ach.asp) transfers. However, not all exchanges allow you to buy Bitcoin with credit cards due to associated processing fees and the risk of fraud.\n\nCredit card processing can add extra charges to these transactions. In addition to paying blockchain transaction fees, the exchange may pass on processing fees to the buyer. Credit card issuers treat Bitcoin purchases like cash advances and charge hefty fees and interest rates on them.11\n\n## Alternative Ways to Buy Bitcoin\n### Bitcoin ATMs\n[Bitcoin ATMs](https:\/\/www.investopedia.com\/terms\/b\/bitcoin-atm.asp) act like in-person Bitcoin exchanges. Individuals can insert cash into a machine and use it to purchase Bitcoin, which gets transferred to their wallet. Bitcoin ATMs have become increasingly popular in recent years and are even available at the retail giant Walmart Inc. (WMT), among other places.\n\n### Note\nBitcoin ATM use requires government-issued IDs.12\n\nTwo charges are associated with ATM Bitcoin purchases: a purchase fee and a conversion fee for converting a fiat currency to Bitcoin. Both fees are fairly steep compared with those of other options. For example, CoinHub charges a markup of 12.5% and a retailer fee of \\$4.95 above the Bitstamp spot rate.13\n\n### P2P Exchanges\nSome P2P exchange services provide a more direct connection between users, such as Binance P2P.\n\nAlthough P2P exchanges don't offer the same anonymity as decentralized exchanges, they give users the chance to shop around for the best deal. Many of these exchanges also provide rating systems so that users can evaluate potential trade partners before transacting.\n\n### Mainstream Brokerages\nRobinhood Markets is an exchange that offers crypto trading. It charges a 0.03% to 0.85% fee for crypto trades and purchases. The fees are based on the trailing 30-day trading volume of crypto orders executed with smart exchange routing.14 If investors use market maker routing, then the fee is \\$0.85 for every \\$100 notional crypto order.15 Robinhood has enabled trading on its platform for these assets, which include Bitcoin, Bitcoin Cash, Litecoin, Ethereum, [Dogecoin](https:\/\/www.investopedia.com\/terms\/d\/dogecoin.asp), and Ethereum Classic.16\n\nYou can also trade thousands of cryptocurrencies on Coinbase. As of 2022, traditional [brokers](https:\/\/www.investopedia.com\/best-online-brokers-4587872) like Fidelity Investments began to include Bitcoin in 401(k) accounts.1718\n\n### Warning\nBitcoin and other crypto investments aren't protected by insurance from the [Securities Investor Protection Corp. (SIPC)](https:\/\/www.investopedia.com\/terms\/s\/sipc.asp). At regular [brokerages](https:\/\/www.investopedia.com\/best-online-brokers-4587872), the agency protects against the loss of securities and cash in brokerage accounts containing up to \\$500,000, with a \\$250,000 cash limit.19\n\n[Crypto exchanges](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855) like Coinbase have crime insurance to protect their infrastructure against hacks. But it doesn't protect individual customers from password theft.20\n## How to Sell Bitcoin\nYou can sell Bitcoin at the same venues where you purchased the cryptocurrency, such as cryptocurrency exchanges and P2P platforms. Typically, the process of selling Bitcoin on these platforms is similar to the process of buying it.\n\nMost crypto exchanges charge a percentage of the sale amount as fees. For example, Coinbase says it may charge a fee when a customer cashes out their crypto, depending on the payment method selected.21\n\nExchanges generally have daily and monthly withdrawal limits. Therefore, cash from a large sale may not be immediately available to the trader. But with Coinbase, for example, there is no limit on the amount of cryptocurrency you can sell.22\n\n## How Do Beginners Buy Bitcoin?\nThe best way for a beginner to purchase Bitcoin is to create an account on a reputable and regulated exchange, fund it, and make a purchase.\n\n## How Can I Buy \\$100 Worth of Bitcoin?\nRegulated exchanges are the safest way to purchase Bitcoin, but you can also buy some at Bitcoin ATMs or through PayPal.\n\n## What If I Invest \\$100 in Bitcoin Today?\nIt is possible that \\$100 in Bitcoin today might turn into \\$200 or more in the future, but it is just as likely that it will turn into \\$1. Bitcoin is very volatile, so you should consider your financial circumstances before investing to determine if you can afford to lose the money you invest.\n## The Bottom Line\nBuying Bitcoin can seem complicated if you haven't done it, but it's relatively simple. It just requires an account at a service or an exchange and a way to store your purchases safely.\n\nTo buy Bitcoin, you must select an appropriate service or venue, connect with a payment method, place an order, and ensure stable storage for purchased cryptocurrency.\n\nEach of these steps requires research and a careful assessment of the pros and cons of the relevant service. Bitcoin is available at Bitcoin ATMs or from payment services like PayPal and [mainstream brokerage firms](https:\/\/www.investopedia.com\/the-best-online-brokers-for-crypto-trading-8765274) like Robinhood or Coinbase.","meta_canonical":null}

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URL	https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp
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Meta Title	How to Buy Bitcoin
Meta Description	Wondering how to buy Bitcoin? Here’s a comprehensive breakdown of how to make your first purchase or investment in the digital asset and diversify your portfolio.
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Boilerpipe Text	Key Takeaways Bitcoin's value comes primarily from market speculation but also from its store of value, use as a payment method, and finite supply. Because a Bitcoin wallet or crypto exchange account can be compromised, it's vital to learn about safe storage and take the necessary crypto security measures. Exchanges and service providers such as Coinbase, PayPal, Robinhood, and others sell Bitcoin. Get personalized, AI-powered answers built on 27+ years of trusted expertise. With the price of Bitcoin reaching a new all-time high of $126,198.07 in October 2025, new investors may be seeking to research the digital asset to determine if it aligns with their investing style and financial goals. 1 Investing in Bitcoin (BTCUSD) can seem complicated, but it isn't. It only requires an account with a service provider or a cryptocurrency exchange, as well as a secure way to store your purchases. Bitcoin investors need a cryptocurrency exchange account, personal identification documents if they are using a Know Your Client (KYC) platform, a secure connection to the internet, a method of payment, and a personal digital wallet outside the exchange account. Valid Bitcoin payment methods include bank accounts, debit cards , and credit cards. It's also possible to get Bitcoin at specialized ATMs and via peer-to-peer (P2P) exchanges. Before You Buy Bitcoin Privacy and security are important issues for Bitcoin users. Investors who gain the private key to a public address can authorize transactions. The private key is a cryptographic code similar to a password that allows a user to transfer cryptocurrencies from their wallet on the Bitcoin blockchain. Private keys should be kept secret, and investors must be aware that the balance of a public address is visible. Individuals can create multiple public addresses and distribute their collection of Bitcoin over many addresses. A good strategy is to keep significant investments at public addresses that aren't directly connected to those used in transactions. Less Than 1 Bitcoin Investors can buy less than a whole Bitcoin. Whether you own 1 Bitcoin, 15 Bitcoins, or 0.01 Bitcoin, you're equally exposed to the cryptocurrency's ups and downs. The history of transactions made on the blockchain is transparent, but identifying user information isn't. On the Bitcoin blockchain, only a user's public key appears next to a transaction, making transactions confidential but not anonymous. You Are Only Pseudo Anonymous Bitcoin transactions are more traceable than cash transactions because they are available for public viewing. However, it is very difficult to determine who is transacting unless the address is associated with an exchange account, which is required if the user wants to convert their Bitcoin to fiat currency. This is because when you create an account on a regulated exchange that can convert cryptocurrency, you must provide identification. This is called Know Your Client (KYC) and is required by law in many countries to assist anti-money laundering and anti-terrorism financing efforts. 2 Important Before buying Bitcoin, be sure to check out the legal, regulatory, and tax status of purchasing it where you live. Bitcoin Returns 1-Day 1-Week 1-Month 1-Year -1.53% 1.67% -13.66% -4.10% As of 3:20 p.m. EST, Dec. 4, 2025 Source: TradingView How to Buy Bitcoin Step 1: Choose a Crypto-Trading Service or Venue Exchanges are a convenient option because they offer a breadth of features and more cryptocurrencies for trading. Exchanges also enable investors to buy, sell, and hold cryptocurrency and allow users to transfer crypto to their online wallet for safekeeping. There are many cryptocurrency exchanges, but there are only two types: centralized and decentralized. Decentralized exchanges allow users to remain pseudo-anonymous and generally don't require personal information. For certain demographics, including refugees or those living in countries with little to no infrastructure for government credit or banking, decentralized exchanges allow access to the global economy. Popular exchanges in the U.S. and many other countries are centralized and follow laws that require users to submit identifying documentation. These exchanges include Coinbase, Kraken, Gemini, and Binance; they offer Bitcoin, a growing number of altcoins , and fiat exchange services. Fast Fact When creating a cryptocurrency exchange account, use two-factor authentication and a long, unique password that includes a variety of lowercase and capital letters, special characters, and numbers. Step 2: Connect Your Exchange to a Payment Option Depending on the exchange, personal identification can be required, which may mean that you have to include a picture of a driver's license or Social Security card, as well as information about your employer and source of funds. The process is largely the same as setting up a typical brokerage account . At most centralized exchanges, you can connect your bank account directly or link it to a debit or credit card. Although you can use a credit card to purchase cryptocurrency, cryptocurrency price volatility could inflate the overall cost of purchasing a token when combined with a credit card's interest charges. Bitcoin is legal in the U.S., but some banks may question or even stop deposits to crypto-related sites or exchanges without being notified of the activity by a customer. Fees vary for deposits via a bank account, debit, or credit card, and exchanges also charge fees per transaction. Step 3: Place an Order Cryptocurrency exchanges have evolved and now mimic the same features as their traditional brokerage counterparts. Crypto exchanges offer several order types and ways to invest or trade. Almost all crypto exchanges offer both market and limit orders , and some also provide stop-loss orders. Kraken offers the most order types, including market, limit, stop-loss, stop-limit, take-profit, and take-profit limit orders. 3 Exchanges also offer ways to set up recurring investments, allowing clients to dollar-cost average their investments of choice. Coinbase, for example, lets users set weekly, biweekly, or monthly recurring purchases. 4 Step 4: Safe Storage Cryptocurrency wallets are a place to store digital asset keys. Keeping crypto keys off an exchange and in a non-connected wallet (cold wallet) ensures that users have control over the keys. Investors can use the wallets offered by exchanges, but it's not recommended for large or long-term cryptocurrency holdings. Hot Wallets vs. Cold Wallets Hot Wallets Online wallets, also known as hot wallets , are apps on devices such as computers, phones, or tablets. These wallets generate the private keys to your coins on Internet-connected devices. Hot wallet holders who haven't created enough security run the risk of losing funds to theft. Strong passwords, two-factor authentication, anti-virus programs, and safe Internet browsing should be considered minimum requirements. Hot wallets are best for small amounts of cryptocurrency or cryptocurrency that is actively trading on an exchange. Another use is like a checking account, only placing what you need for certain transactions in your hot wallet. Cold Wallets A cold wallet isn't connected to the Internet and is less likely to be compromised. These wallets store a user's private keys on a device or item without a connection. Some come with software that allows investors to view their portfolios without putting their private keys at risk. Types of cold wallets are paper, hardware, or even metal stamped with private keys. A paper wallet is simply a piece of paper with private keys written on it. Some people laminate these paper wallets and store them in safe deposit boxes at their bank or even in a safe in their home. There are websites and programs that can generate nifty, printable versions with quick response codes, but these should be avoided as they expose the private keys unnecessarily. Cold wallets are the most secure way to store your Bitcoin or other cryptocurrencies. How to Buy Bitcoin With PayPal You can buy Bitcoin through a payment processor like PayPal Holdings Inc. There are two ways to purchase Bitcoin using PayPal: You can connect your account to a debit card or bank account, or use the balance of the PayPal account to buy cryptocurrencies from a third-party provider. You may also use PayPal to directly buy seven cryptocurrencies: Bitcoin, Ethereum, Litecoin , Solana, Chainlink, Bitcoin Cash , and PayPal's own stablecoin, PayPal USD. U.S. residents can use their existing PayPal accounts or set up a new one to buy Bitcoin. You can also use your cryptocurrencies to buy products and services. 5 6 When you buy Bitcoin directly from PayPal, it earns money from the crypto spread, or "the difference between the highest buy order and the lowest sell order on any exchange." 7 PayPal also charges a transaction fee for each purchase, which depends on the dollar amount purchased. 8 You can send crypto, including Bitcoin, from PayPal to an external digital asset wallet that you own and control, or to one owned and controlled by another person, like a friend or family member. To send your Bitcoin outside of PayPal, you must provide the wallet address where you want to send the assets. If you send Bitcoin, you must use a wallet that accepts it. 9 The social trading and multi-asset investment company eToro is among the few online traders that allow Bitcoin purchases using PayPal. 10 PayPal and CC are not available to users in the UK. How to Buy Bitcoin With a Credit Card Using credit cards to buy Bitcoin is similar to using debit cards or automated clearing house (ACH) transfers. However, not all exchanges allow you to buy Bitcoin with credit cards due to associated processing fees and the risk of fraud. Credit card processing can add extra charges to these transactions. In addition to paying blockchain transaction fees, the exchange may pass on processing fees to the buyer. Credit card issuers treat Bitcoin purchases like cash advances and charge hefty fees and interest rates on them. 11 Alternative Ways to Buy Bitcoin Bitcoin ATMs Bitcoin ATMs act like in-person Bitcoin exchanges. Individuals can insert cash into a machine and use it to purchase Bitcoin, which gets transferred to their wallet. Bitcoin ATMs have become increasingly popular in recent years and are even available at the retail giant Walmart Inc. (WMT), among other places. Note Bitcoin ATM use requires government-issued IDs. 12 Two charges are associated with ATM Bitcoin purchases: a purchase fee and a conversion fee for converting a fiat currency to Bitcoin. Both fees are fairly steep compared with those of other options. For example, CoinHub charges a markup of 12.5% and a retailer fee of $4.95 above the Bitstamp spot rate. 13 P2P Exchanges Some P2P exchange services provide a more direct connection between users, such as Binance P2P. Although P2P exchanges don't offer the same anonymity as decentralized exchanges, they give users the chance to shop around for the best deal. Many of these exchanges also provide rating systems so that users can evaluate potential trade partners before transacting. Mainstream Brokerages Robinhood Markets is an exchange that offers crypto trading. It charges a 0.03% to 0.85% fee for crypto trades and purchases. The fees are based on the trailing 30-day trading volume of crypto orders executed with smart exchange routing. 14 If investors use market maker routing, then the fee is $0.85 for every $100 notional crypto order. 15 Robinhood has enabled trading on its platform for these assets, which include Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Dogecoin , and Ethereum Classic. 16 You can also trade thousands of cryptocurrencies on Coinbase. As of 2022, traditional brokers like Fidelity Investments began to include Bitcoin in 401(k) accounts. 17 18 Warning Bitcoin and other crypto investments aren't protected by insurance from the Securities Investor Protection Corp. (SIPC) . At regular brokerages , the agency protects against the loss of securities and cash in brokerage accounts containing up to $500,000, with a $250,000 cash limit. 19 Crypto exchanges like Coinbase have crime insurance to protect their infrastructure against hacks. But it doesn't protect individual customers from password theft. 20 How to Sell Bitcoin You can sell Bitcoin at the same venues where you purchased the cryptocurrency, such as cryptocurrency exchanges and P2P platforms. Typically, the process of selling Bitcoin on these platforms is similar to the process of buying it. Most crypto exchanges charge a percentage of the sale amount as fees. For example, Coinbase says it may charge a fee when a customer cashes out their crypto, depending on the payment method selected. 21 Exchanges generally have daily and monthly withdrawal limits. Therefore, cash from a large sale may not be immediately available to the trader. But with Coinbase, for example, there is no limit on the amount of cryptocurrency you can sell. 22 How Do Beginners Buy Bitcoin? The best way for a beginner to purchase Bitcoin is to create an account on a reputable and regulated exchange, fund it, and make a purchase. How Can I Buy $100 Worth of Bitcoin? Regulated exchanges are the safest way to purchase Bitcoin, but you can also buy some at Bitcoin ATMs or through PayPal. What If I Invest $100 in Bitcoin Today? It is possible that $100 in Bitcoin today might turn into $200 or more in the future, but it is just as likely that it will turn into $1. Bitcoin is very volatile, so you should consider your financial circumstances before investing to determine if you can afford to lose the money you invest. The Bottom Line Buying Bitcoin can seem complicated if you haven't done it, but it's relatively simple. It just requires an account at a service or an exchange and a way to store your purchases safely. To buy Bitcoin, you must select an appropriate service or venue, connect with a payment method, place an order, and ensure stable storage for purchased cryptocurrency. Each of these steps requires research and a careful assessment of the pros and cons of the relevant service. Bitcoin is available at Bitcoin ATMs or from payment services like PayPal and mainstream brokerage firms like Robinhood or Coinbase.
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[How to Buy Bitcoin With PayPal](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp#toc-how-to-buy-bitcoin-with-paypal) - [Buy Bitcoin With a Credit Card](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp#toc-how-to-buy-bitcoin-with-a-credit-card) - [Alternative Ways to Buy Bitcoin](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp#toc-alternative-ways-to-buy-bitcoin) - [How to Sell Bitcoin](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp#toc-how-to-sell-bitcoin) - [FAQs](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp#toc-how-do-beginners-buy-bitcoin) - [The Bottom Line](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp#toc-the-bottom-line) # How to Buy Bitcoin By [Adam Hayes](https://www.investopedia.com/contributors/53677/) ![]() ![](https://www.investopedia.com/thmb/VjCy-aSbHESoB0F95ExxZrgXxZA=/200x200/filters:no_upscale:max_bytes$150000$:strip_icc/adam_hayes-5bfc262a46e0fb005118b414.jpg) [Full Bio](https://www.investopedia.com/contributors/53677/) Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the University of Lucerne in Switzerland.Adam's new book, "Irrational Together: The Social Forces That Invisibly Shape Our Economic Behavior" (University of Chicago Press) is a must-read at the intersection of behavioral economics and sociology that reshapes how we think about the social underpinnings of our financial choices. Learn about our [editorial policies](https://www.investopedia.com/legal-4768893#editorial-policy) Updated December 04, 2025 Reviewed by [JeFreda R. Brown](https://www.investopedia.com/jefreda-brown-5188074) ![Dr. Brown]() ![Dr. Brown](https://www.investopedia.com/thmb/4h0l6rpZs0PO1z6tj2Z2Okq5NuM=/200x200/filters:no_upscale:max_bytes$150000$:strip_icc/Dr.JeFredaR.Brownheadshot-JeFredaBrown-1e8af368a1ea4533a21868d8a951895a.jpg) Reviewed by JeFreda R. Brown [Full Bio](https://www.investopedia.com/jefreda-brown-5188074) Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University. Learn about our [Financial Review Board](https://www.investopedia.com/investopedia-financial-review-board-5076269) Fact checked by [Vikki Velasquez](https://www.investopedia.com/vikki-velasquez-5198872) ![Vikkie Velasquez]() ![Vikkie Velasquez](https://www.investopedia.com/thmb/qsiqwN4603qvBBcEmwBBFAZ7h-8=/200x200/filters:no_upscale:max_bytes$150000$:strip_icc/vikki-velasquez-investopedia-portrait-1-18b989d75f1f4d6d9b5b3a47cb3ffc5f.jpg) Fact checked by Vikki Velasquez [Full Bio](https://www.investopedia.com/vikki-velasquez-5198872) Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and nonprofit organizations. She has conducted in-depth research on social and economic issues and has also revised and edited educational materials for the Greater Richmond area. Learn about our [editorial policies](https://www.investopedia.com/legal-4768893#editorial-policy) Part of the Series Bitcoin Basics [What Is Bitcoin? How to Buy, Mine, and Use It](https://www.investopedia.com/terms/b/bitcoin.asp) How To Get and Store It 1. [How Bitcoin Works](https://www.investopedia.com/news/how-bitcoin-works/) 2. [How To Buy Bitcoin](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp) CURRENT ARTICLE 3. [How to Store Bitcoin](https://www.investopedia.com/news/bitcoin-safe-storage-cold-wallet/) 4. [How Does Bitcoin Mining Work?](https://www.investopedia.com/tech/how-does-bitcoin-mining-work/) How to Use it 1. [Advantages of Paying with Bitcoin](https://www.investopedia.com/ask/answers/100314/what-are-advantages-paying-bitcoin.asp) 2. [Benefits & Risks of Trading Forex with Bitcoin](https://www.investopedia.com/articles/forex/081815/benefits-risks-trading-forex-bitcoin.asp) 3. [Pros and Cons of Investing in Bitcoin IRAs](https://www.investopedia.com/tech/pros-and-cons-investing-bitcoin-iras/) 4. [Should You Buy Gold Or Bitcoin?](https://www.investopedia.com/news/should-you-buy-gold-or-bitcoin/) 5. [How Much of the World's Money is in Bitcoin?](https://www.investopedia.com/tech/how-much-worlds-money-bitcoin/) ![Bitcoin coin in front of a financial market chart cryptocurrency concept](https://www.investopedia.com/thmb/wgzQGmIiCkqLKs0_TFusy2TRXR4=/1500x0/filters:no_upscale:max_bytes$150000$:strip_icc/GettyImages-2194779803-33a8726c2066486ab511fb171723d4e7.jpg) ![Bitcoin coin in front of a financial market chart cryptocurrency concept](https://www.investopedia.com/thmb/wgzQGmIiCkqLKs0_TFusy2TRXR4=/1500x0/filters:no_upscale:max_bytes$150000$:strip_icc/GettyImages-2194779803-33a8726c2066486ab511fb171723d4e7.jpg) Bitcoin was created in 2008 by Satoshi Nakamoto. It is the most popular and largest cryptocurrency by market capitalization. Vertigo3d / Getty Images Close ### Key Takeaways - Bitcoin's value comes primarily from market speculation but also from its store of value, use as a payment method, and finite supply. - Because a [Bitcoin wallet](https://www.investopedia.com/the-best-bitcoin-wallets-11688646) or [crypto exchange](https://www.investopedia.com/best-crypto-exchanges-5071855) account can be compromised, it's vital to learn about safe storage and take the necessary crypto security measures. - Exchanges and service providers such as Coinbase, PayPal, Robinhood, and others sell Bitcoin. Get personalized, AI-powered answers built on 27+ years of trusted expertise. ASK With the price of Bitcoin reaching a new all-time high of \$126,198.07 in October 2025, new investors may be seeking to research the digital asset to determine if it aligns with their investing style and financial goals.1 Investing in Bitcoin (BTCUSD) can seem complicated, but it isn't. It only requires an account with a service provider or a [cryptocurrency exchange,](https://www.investopedia.com/best-crypto-exchanges-5071855) as well as a secure way to store your purchases. Bitcoin investors need a cryptocurrency exchange account, personal identification documents if they are using a Know Your Client (KYC) platform, a secure connection to the internet, a method of payment, and a personal [digital wallet](https://www.investopedia.com/the-best-bitcoin-wallets-11688646) outside the exchange account. Valid Bitcoin payment methods include bank accounts, [debit cards](https://www.investopedia.com/the-best-bitcoin-debit-cards-8782795), and credit cards. It's also possible to get Bitcoin at specialized ATMs and via peer-to-peer (P2P) exchanges. ## Before You Buy Bitcoin Privacy and security are important issues for Bitcoin users. Investors who gain the [private key](https://www.investopedia.com/terms/p/private-key.asp) to a public address can authorize transactions. The private key is a cryptographic code similar to a password that allows a user to transfer cryptocurrencies from their wallet on the Bitcoin blockchain. Private keys should be kept secret, and investors must be aware that the balance of a public address is visible. Individuals can create multiple public addresses and distribute their collection of Bitcoin over many addresses. A good strategy is to keep significant investments at public addresses that aren't directly connected to those used in transactions. Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. ### Less Than 1 Bitcoin Investors can buy less than a whole Bitcoin. Whether you own 1 Bitcoin, 15 Bitcoins, or 0.01 Bitcoin, you're equally exposed to the cryptocurrency's ups and downs. The history of transactions made on the blockchain is transparent, but identifying user information isn't. On the Bitcoin blockchain, only a user's public key appears next to a transaction, making transactions confidential but not anonymous. ### You Are Only Pseudo Anonymous Bitcoin transactions are more traceable than cash transactions because they are available for public viewing. However, it is very difficult to determine who is transacting unless the address is associated with an exchange account, which is required if the user wants to convert their Bitcoin to fiat currency. This is because when you create an account on a regulated exchange that can convert cryptocurrency, you must provide identification. This is called [Know Your Client (KYC)](https://www.investopedia.com/terms/k/knowyourclient.asp) and is required by law in many countries to assist anti-money laundering and anti-terrorism financing efforts.2 ### Important Before buying Bitcoin, be sure to check out the legal, regulatory, and tax status of purchasing it where you live. \| Bitcoin Returns \| \| \| \| \|---\|---\|---\|---\| \| 1-Day \| 1-Week \| 1-Month \| 1-Year \| \| \-1.53% \| 1\.67% \| \-13.66% \| \-4.10% \| As of 3:20 p.m. EST, Dec. 4, 2025 Source: [TradingView](https://www.tradingview.com/symbols/BTCUSD/) ## How to Buy Bitcoin ### Step 1: Choose a Crypto-Trading Service or Venue Exchanges are a convenient option because they offer a breadth of features and more cryptocurrencies for trading. Exchanges also enable investors to buy, sell, and hold cryptocurrency and allow users to transfer crypto to their online wallet for safekeeping. There are many cryptocurrency exchanges, but there are only two types: centralized and decentralized. Decentralized exchanges allow users to remain pseudo-anonymous and generally don't require personal information. For certain demographics, including refugees or those living in countries with little to no infrastructure for government credit or banking, decentralized exchanges allow access to the global economy. Popular exchanges in the U.S. and many other countries are centralized and follow laws that require users to submit identifying documentation. These exchanges include Coinbase, Kraken, Gemini, and Binance; they offer Bitcoin, a growing number of [altcoins](https://www.investopedia.com/terms/a/altcoin.asp), and fiat exchange services. ### Fast Fact When creating a cryptocurrency exchange account, use two-factor authentication and a long, unique password that includes a variety of lowercase and capital letters, special characters, and numbers. ### Step 2: Connect Your Exchange to a Payment Option Depending on the exchange, personal identification can be required, which may mean that you have to include a picture of a driver's license or Social Security card, as well as information about your employer and source of funds. The process is largely the same as setting up a typical [brokerage account](https://www.investopedia.com/terms/b/brokerageaccount.asp). At most centralized exchanges, you can connect your bank account directly or link it to a debit or credit card. Although you can use a credit card to purchase cryptocurrency, cryptocurrency price volatility could inflate the overall cost of purchasing a token when combined with a credit card's interest charges. Bitcoin is legal in the U.S., but some banks may question or even stop deposits to crypto-related sites or exchanges without being notified of the activity by a customer. Fees vary for deposits via a bank account, debit, or credit card, and exchanges also charge fees per transaction. ### Step 3: Place an Order Cryptocurrency exchanges have evolved and now mimic the same features as their traditional brokerage counterparts. Crypto exchanges offer several order types and ways to invest or trade. Almost all crypto exchanges offer both [market](https://www.investopedia.com/terms/m/marketorder.asp) and [limit orders](https://www.investopedia.com/terms/l/limitorder.asp), and some also provide stop-loss orders. Kraken offers the most order types, including market, limit, stop-loss, stop-limit, take-profit, and take-profit limit orders.3 Exchanges also offer ways to set up recurring investments, allowing clients to dollar-cost average their investments of choice. Coinbase, for example, lets users set weekly, biweekly, or monthly recurring purchases.4 ### Step 4: Safe Storage Cryptocurrency wallets are a place to store digital asset keys. Keeping crypto keys off an exchange and in a non-connected wallet (cold wallet) ensures that users have control over the keys. Investors can use the wallets offered by exchanges, but it's not recommended for large or long-term cryptocurrency holdings. ## Hot Wallets vs. Cold Wallets ### Hot Wallets Online wallets, also known as [hot wallets](https://www.investopedia.com/terms/h/hot-wallet.asp), are apps on devices such as computers, phones, or tablets. These wallets generate the private keys to your coins on Internet-connected devices. Hot wallet holders who haven't created enough security run the risk of losing funds to theft. Strong passwords, two-factor authentication, anti-virus programs, and safe Internet browsing should be considered minimum requirements. Hot wallets are best for small amounts of cryptocurrency or cryptocurrency that is actively trading on an exchange. Another use is like a checking account, only placing what you need for certain transactions in your hot wallet. ### Cold Wallets A [cold wallet](https://www.investopedia.com/terms/c/cold-storage.asp) isn't connected to the Internet and is less likely to be compromised. These wallets store a user's private keys on a device or item without a connection. Some come with software that allows investors to view their portfolios without putting their private keys at risk. Types of cold wallets are paper, hardware, or even metal stamped with private keys. A paper wallet is simply a piece of paper with private keys written on it. Some people laminate these paper wallets and store them in safe deposit boxes at their bank or even in a safe in their home. There are websites and programs that can generate nifty, printable versions with quick response codes, but these should be avoided as they expose the private keys unnecessarily. Cold wallets are the most secure way to store your Bitcoin or other cryptocurrencies. ## How to Buy Bitcoin With PayPal You can buy Bitcoin through a payment processor like PayPal Holdings Inc. There are two ways to purchase Bitcoin using PayPal: You can connect your account to a debit card or bank account, or use the balance of the PayPal account to buy cryptocurrencies from a third-party provider. You may also use PayPal to directly buy seven cryptocurrencies: Bitcoin, Ethereum, [Litecoin](https://www.investopedia.com/terms/l/litecoin.asp), Solana, Chainlink, [Bitcoin Cash](https://www.investopedia.com/terms/b/bitcoin-cash.asp), and PayPal's own stablecoin, PayPal USD. U.S. residents can use their existing PayPal accounts or set up a new one to buy Bitcoin. You can also use your cryptocurrencies to buy products and services.56 When you buy Bitcoin directly from PayPal, it earns money from the crypto spread, or "the difference between the highest buy order and the lowest sell order on any exchange."7 PayPal also charges a transaction fee for each purchase, which depends on the dollar amount purchased.8 You can send crypto, including Bitcoin, from PayPal to an external digital asset wallet that you own and control, or to one owned and controlled by another person, like a friend or family member. To send your Bitcoin outside of PayPal, you must provide the wallet address where you want to send the assets. If you send Bitcoin, you must use a wallet that accepts it.9 The social trading and multi-asset investment company eToro is among the few online traders that allow Bitcoin purchases using PayPal.10 PayPal and CC are not available to users in the UK. ## How to Buy Bitcoin With a Credit Card Using credit cards to buy Bitcoin is similar to using debit cards or [automated clearing house (ACH)](https://www.investopedia.com/terms/a/ach.asp) transfers. However, not all exchanges allow you to buy Bitcoin with credit cards due to associated processing fees and the risk of fraud. Credit card processing can add extra charges to these transactions. In addition to paying blockchain transaction fees, the exchange may pass on processing fees to the buyer. Credit card issuers treat Bitcoin purchases like cash advances and charge hefty fees and interest rates on them.11 ## Alternative Ways to Buy Bitcoin ### Bitcoin ATMs [Bitcoin ATMs](https://www.investopedia.com/terms/b/bitcoin-atm.asp) act like in-person Bitcoin exchanges. Individuals can insert cash into a machine and use it to purchase Bitcoin, which gets transferred to their wallet. Bitcoin ATMs have become increasingly popular in recent years and are even available at the retail giant Walmart Inc. (WMT), among other places. ### Note Bitcoin ATM use requires government-issued IDs.12 Two charges are associated with ATM Bitcoin purchases: a purchase fee and a conversion fee for converting a fiat currency to Bitcoin. Both fees are fairly steep compared with those of other options. For example, CoinHub charges a markup of 12.5% and a retailer fee of \$4.95 above the Bitstamp spot rate.13 ### P2P Exchanges Some P2P exchange services provide a more direct connection between users, such as Binance P2P. Although P2P exchanges don't offer the same anonymity as decentralized exchanges, they give users the chance to shop around for the best deal. Many of these exchanges also provide rating systems so that users can evaluate potential trade partners before transacting. ### Mainstream Brokerages Robinhood Markets is an exchange that offers crypto trading. It charges a 0.03% to 0.85% fee for crypto trades and purchases. The fees are based on the trailing 30-day trading volume of crypto orders executed with smart exchange routing.14 If investors use market maker routing, then the fee is \$0.85 for every \$100 notional crypto order.15 Robinhood has enabled trading on its platform for these assets, which include Bitcoin, Bitcoin Cash, Litecoin, Ethereum, [Dogecoin](https://www.investopedia.com/terms/d/dogecoin.asp), and Ethereum Classic.16 You can also trade thousands of cryptocurrencies on Coinbase. As of 2022, traditional [brokers](https://www.investopedia.com/best-online-brokers-4587872) like Fidelity Investments began to include Bitcoin in 401(k) accounts.1718 ### Warning Bitcoin and other crypto investments aren't protected by insurance from the [Securities Investor Protection Corp. (SIPC)](https://www.investopedia.com/terms/s/sipc.asp). At regular [brokerages](https://www.investopedia.com/best-online-brokers-4587872), the agency protects against the loss of securities and cash in brokerage accounts containing up to \$500,000, with a \$250,000 cash limit.19 [Crypto exchanges](https://www.investopedia.com/best-crypto-exchanges-5071855) like Coinbase have crime insurance to protect their infrastructure against hacks. But it doesn't protect individual customers from password theft.20 ## How to Sell Bitcoin You can sell Bitcoin at the same venues where you purchased the cryptocurrency, such as cryptocurrency exchanges and P2P platforms. Typically, the process of selling Bitcoin on these platforms is similar to the process of buying it. Most crypto exchanges charge a percentage of the sale amount as fees. For example, Coinbase says it may charge a fee when a customer cashes out their crypto, depending on the payment method selected.21 Exchanges generally have daily and monthly withdrawal limits. Therefore, cash from a large sale may not be immediately available to the trader. But with Coinbase, for example, there is no limit on the amount of cryptocurrency you can sell.22 ## How Do Beginners Buy Bitcoin? The best way for a beginner to purchase Bitcoin is to create an account on a reputable and regulated exchange, fund it, and make a purchase. ## How Can I Buy \$100 Worth of Bitcoin? Regulated exchanges are the safest way to purchase Bitcoin, but you can also buy some at Bitcoin ATMs or through PayPal. ## What If I Invest \$100 in Bitcoin Today? It is possible that \$100 in Bitcoin today might turn into \$200 or more in the future, but it is just as likely that it will turn into \$1. Bitcoin is very volatile, so you should consider your financial circumstances before investing to determine if you can afford to lose the money you invest. ## The Bottom Line Buying Bitcoin can seem complicated if you haven't done it, but it's relatively simple. It just requires an account at a service or an exchange and a way to store your purchases safely. To buy Bitcoin, you must select an appropriate service or venue, connect with a payment method, place an order, and ensure stable storage for purchased cryptocurrency. Each of these steps requires research and a careful assessment of the pros and cons of the relevant service. Bitcoin is available at Bitcoin ATMs or from payment services like PayPal and [mainstream brokerage firms](https://www.investopedia.com/the-best-online-brokers-for-crypto-trading-8765274) like Robinhood or Coinbase. Get personalized, AI-powered answers built on 27+ years of trusted expertise. - [How can I evaluate the trustworthiness and underlying technology of a cryptocurrency?](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp) - [How can I manage my investments in a volatile crypto market?](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp) - [What are alternative ways to gain exposure to the crypto market without directly buying coins?](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp) ASK Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https://www.investopedia.com/legal-4768893#EditorialPolicy) 1. CoinMarketCap. "[Bitcoin](https://coinmarketcap.com/currencies/bitcoin/)." 2. KYC Hub. "[What are Global KYC Regulations in 2025?](https://www.kychub.com/blog/global-kyc-regulations/)" 3. Kraken Support. "[Order Types](https://support.kraken.com/hc/en-us/sections/200577136-Order-types)." 4. Coinbase Help. "[Recurring Buys](https://help.coinbase.com/en/coinbase/trading-and-funding/buying-selling-or-converting-crypto/how-can-i-create-or-cancel-a-recurring-transaction)." 5. PayPal Help. "[How Do I Buy Cryptocurrency on PayPal?](https://www.paypal.com/us/cshelp/article/how-do-i-buy-cryptocurrency-on-paypal-help567)" 6. PayPal Help. "[What Can I Do with Crypto on PayPal?](https://www.paypal.com/us/cshelp/article/what-can-i-do-with-crypto-on-paypal-help893)" 7. PayPal Help. "[PayPal Cryptocurrency FAQ's](https://www.paypal.com/us/cshelp/article/paypal-cryptocurrency-faqs-help565)." 8. PayPal. "[PayPal Consumer Fees](https://www.paypal.com/us/digital-wallet/paypal-consumer-fees#cryptocurrencies)." 9. PayPal. "[PayPal Cryptocurrency Terms and Conditions](https://www.paypal.com/us/webapps/mpp/ua/cryptocurrencies-tnc)." 10. eToro. "[A Step by Step Guide on How to Buy Bitcoin with PayPal](https://www.etoro.com/crypto/how-to-buy-bitcoin-with-paypal/)." 11. Coinbase. "[Coinbase Product Update — February 5, 2018](https://www.coinbase.com/blog/coinbase-product-update-february-5-2018)." 12. Coinme. "[What Type Of Identification Do I Need To Use A Bitcoin ATM?](https://coinme.com/blog/bitcoin-atms/what-id-does-a-bitcoin-atm-require)" 13. CoinHub. "[LGST Services LLC DBA Coinhub User Agreement, Terms & Conditions – Privacy & Identity Verification Policy](https://coinhubatm.com/terms-condition)." 14. Robinhood Help Center. "[Crypto Fee Tiers](https://robinhood.com/us/en/support/articles/crypto-fee-tiers/)." 15. Robinhood Help Center. "[Crypto Order Routing](https://robinhood.com/us/en/support/articles/crypto-order-routing/)." 16. Robinhood Help Center. "[Crypto Availability](https://robinhood.com/us/en/support/articles/coin-availability/)." 17. Coinbase Help. "[Supported Cryptocurrencies](https://help.coinbase.com/en/coinbase/supported-crypto.html)." 18. BusinessWire. "[Fidelity Investments Advances Leading Position as Digital Assets Provider With Launch of Industry’s First-of-Its-Kind Bitcoin Offering for 401(k) Core Investment Lineup](https://www.businesswire.com/news/home/20220426005525/en/Fidelity-Investments-Advances-Leading-Position-as-Digital-Assets-Provider-With-Launch-of-Industrys-First-of-Its-Kind-Bitcoin-Offering-for-401k-Core-Investment-Lineup)." 19. Securities Investor Protection Corporation. "[What SIPC Protects](https://www.sipc.org/for-investors/what-sipc-protects)." 20. Coinbase Help. "[How Is Coinbase Insured?](https://help.coinbase.com/en/coinbase/other-topics/legal-policies/how-is-coinbase-insured)" 21. Coinbase Help. "[Coinbase Pricing and Fees Disclosures](https://help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees/fees)." 22. Coinbase Help. "[Account Limits](https://help.coinbase.com/en/coinbase/trading-and-funding/buying-selling-or-converting-crypto/limits-and-account-levels)." Compare Accounts Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Part of the Series Bitcoin Basics [What Is Bitcoin? How to Buy, Mine, and Use It](https://www.investopedia.com/terms/b/bitcoin.asp) How To Get and Store It 1. [How Bitcoin Works](https://www.investopedia.com/news/how-bitcoin-works/) 2. [How To Buy Bitcoin](https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp) CURRENT ARTICLE 3. [How to Store Bitcoin](https://www.investopedia.com/news/bitcoin-safe-storage-cold-wallet/) 4. [How Does Bitcoin Mining Work?](https://www.investopedia.com/tech/how-does-bitcoin-mining-work/) How to Use it 1. [Advantages of Paying with Bitcoin](https://www.investopedia.com/ask/answers/100314/what-are-advantages-paying-bitcoin.asp) 2. [Benefits & Risks of Trading Forex with Bitcoin](https://www.investopedia.com/articles/forex/081815/benefits-risks-trading-forex-bitcoin.asp) 3. [Pros and Cons of Investing in Bitcoin IRAs](https://www.investopedia.com/tech/pros-and-cons-investing-bitcoin-iras/) 4. [Should You Buy Gold Or Bitcoin?](https://www.investopedia.com/news/should-you-buy-gold-or-bitcoin/) 5. 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Readable Markdown	### Key Takeaways - Bitcoin's value comes primarily from market speculation but also from its store of value, use as a payment method, and finite supply. - Because a [Bitcoin wallet](https://www.investopedia.com/the-best-bitcoin-wallets-11688646) or [crypto exchange](https://www.investopedia.com/best-crypto-exchanges-5071855) account can be compromised, it's vital to learn about safe storage and take the necessary crypto security measures. - Exchanges and service providers such as Coinbase, PayPal, Robinhood, and others sell Bitcoin. Get personalized, AI-powered answers built on 27+ years of trusted expertise. With the price of Bitcoin reaching a new all-time high of \$126,198.07 in October 2025, new investors may be seeking to research the digital asset to determine if it aligns with their investing style and financial goals.1 Investing in Bitcoin (BTCUSD) can seem complicated, but it isn't. It only requires an account with a service provider or a [cryptocurrency exchange,](https://www.investopedia.com/best-crypto-exchanges-5071855) as well as a secure way to store your purchases. Bitcoin investors need a cryptocurrency exchange account, personal identification documents if they are using a Know Your Client (KYC) platform, a secure connection to the internet, a method of payment, and a personal [digital wallet](https://www.investopedia.com/the-best-bitcoin-wallets-11688646) outside the exchange account. Valid Bitcoin payment methods include bank accounts, [debit cards](https://www.investopedia.com/the-best-bitcoin-debit-cards-8782795), and credit cards. It's also possible to get Bitcoin at specialized ATMs and via peer-to-peer (P2P) exchanges. ## Before You Buy Bitcoin Privacy and security are important issues for Bitcoin users. Investors who gain the [private key](https://www.investopedia.com/terms/p/private-key.asp) to a public address can authorize transactions. The private key is a cryptographic code similar to a password that allows a user to transfer cryptocurrencies from their wallet on the Bitcoin blockchain. Private keys should be kept secret, and investors must be aware that the balance of a public address is visible. Individuals can create multiple public addresses and distribute their collection of Bitcoin over many addresses. A good strategy is to keep significant investments at public addresses that aren't directly connected to those used in transactions. ### Less Than 1 Bitcoin Investors can buy less than a whole Bitcoin. Whether you own 1 Bitcoin, 15 Bitcoins, or 0.01 Bitcoin, you're equally exposed to the cryptocurrency's ups and downs. The history of transactions made on the blockchain is transparent, but identifying user information isn't. On the Bitcoin blockchain, only a user's public key appears next to a transaction, making transactions confidential but not anonymous. ### You Are Only Pseudo Anonymous Bitcoin transactions are more traceable than cash transactions because they are available for public viewing. However, it is very difficult to determine who is transacting unless the address is associated with an exchange account, which is required if the user wants to convert their Bitcoin to fiat currency. This is because when you create an account on a regulated exchange that can convert cryptocurrency, you must provide identification. This is called [Know Your Client (KYC)](https://www.investopedia.com/terms/k/knowyourclient.asp) and is required by law in many countries to assist anti-money laundering and anti-terrorism financing efforts.2 ### Important Before buying Bitcoin, be sure to check out the legal, regulatory, and tax status of purchasing it where you live. \| Bitcoin Returns \| \| \| \| \|---\|---\|---\|---\| \| 1-Day \| 1-Week \| 1-Month \| 1-Year \| \| \-1.53% \| 1\.67% \| \-13.66% \| \-4.10% \| As of 3:20 p.m. EST, Dec. 4, 2025 Source: [TradingView](https://www.tradingview.com/symbols/BTCUSD/) ## How to Buy Bitcoin ### Step 1: Choose a Crypto-Trading Service or Venue Exchanges are a convenient option because they offer a breadth of features and more cryptocurrencies for trading. Exchanges also enable investors to buy, sell, and hold cryptocurrency and allow users to transfer crypto to their online wallet for safekeeping. There are many cryptocurrency exchanges, but there are only two types: centralized and decentralized. Decentralized exchanges allow users to remain pseudo-anonymous and generally don't require personal information. For certain demographics, including refugees or those living in countries with little to no infrastructure for government credit or banking, decentralized exchanges allow access to the global economy. Popular exchanges in the U.S. and many other countries are centralized and follow laws that require users to submit identifying documentation. These exchanges include Coinbase, Kraken, Gemini, and Binance; they offer Bitcoin, a growing number of [altcoins](https://www.investopedia.com/terms/a/altcoin.asp), and fiat exchange services. ### Fast Fact When creating a cryptocurrency exchange account, use two-factor authentication and a long, unique password that includes a variety of lowercase and capital letters, special characters, and numbers. ### Step 2: Connect Your Exchange to a Payment Option Depending on the exchange, personal identification can be required, which may mean that you have to include a picture of a driver's license or Social Security card, as well as information about your employer and source of funds. The process is largely the same as setting up a typical [brokerage account](https://www.investopedia.com/terms/b/brokerageaccount.asp). At most centralized exchanges, you can connect your bank account directly or link it to a debit or credit card. Although you can use a credit card to purchase cryptocurrency, cryptocurrency price volatility could inflate the overall cost of purchasing a token when combined with a credit card's interest charges. Bitcoin is legal in the U.S., but some banks may question or even stop deposits to crypto-related sites or exchanges without being notified of the activity by a customer. Fees vary for deposits via a bank account, debit, or credit card, and exchanges also charge fees per transaction. ### Step 3: Place an Order Cryptocurrency exchanges have evolved and now mimic the same features as their traditional brokerage counterparts. Crypto exchanges offer several order types and ways to invest or trade. Almost all crypto exchanges offer both [market](https://www.investopedia.com/terms/m/marketorder.asp) and [limit orders](https://www.investopedia.com/terms/l/limitorder.asp), and some also provide stop-loss orders. Kraken offers the most order types, including market, limit, stop-loss, stop-limit, take-profit, and take-profit limit orders.3 Exchanges also offer ways to set up recurring investments, allowing clients to dollar-cost average their investments of choice. Coinbase, for example, lets users set weekly, biweekly, or monthly recurring purchases.4 ### Step 4: Safe Storage Cryptocurrency wallets are a place to store digital asset keys. Keeping crypto keys off an exchange and in a non-connected wallet (cold wallet) ensures that users have control over the keys. Investors can use the wallets offered by exchanges, but it's not recommended for large or long-term cryptocurrency holdings. ## Hot Wallets vs. Cold Wallets ### Hot Wallets Online wallets, also known as [hot wallets](https://www.investopedia.com/terms/h/hot-wallet.asp), are apps on devices such as computers, phones, or tablets. These wallets generate the private keys to your coins on Internet-connected devices. Hot wallet holders who haven't created enough security run the risk of losing funds to theft. Strong passwords, two-factor authentication, anti-virus programs, and safe Internet browsing should be considered minimum requirements. Hot wallets are best for small amounts of cryptocurrency or cryptocurrency that is actively trading on an exchange. Another use is like a checking account, only placing what you need for certain transactions in your hot wallet. ### Cold Wallets A [cold wallet](https://www.investopedia.com/terms/c/cold-storage.asp) isn't connected to the Internet and is less likely to be compromised. These wallets store a user's private keys on a device or item without a connection. Some come with software that allows investors to view their portfolios without putting their private keys at risk. Types of cold wallets are paper, hardware, or even metal stamped with private keys. A paper wallet is simply a piece of paper with private keys written on it. Some people laminate these paper wallets and store them in safe deposit boxes at their bank or even in a safe in their home. There are websites and programs that can generate nifty, printable versions with quick response codes, but these should be avoided as they expose the private keys unnecessarily. Cold wallets are the most secure way to store your Bitcoin or other cryptocurrencies. ## How to Buy Bitcoin With PayPal You can buy Bitcoin through a payment processor like PayPal Holdings Inc. There are two ways to purchase Bitcoin using PayPal: You can connect your account to a debit card or bank account, or use the balance of the PayPal account to buy cryptocurrencies from a third-party provider. You may also use PayPal to directly buy seven cryptocurrencies: Bitcoin, Ethereum, [Litecoin](https://www.investopedia.com/terms/l/litecoin.asp), Solana, Chainlink, [Bitcoin Cash](https://www.investopedia.com/terms/b/bitcoin-cash.asp), and PayPal's own stablecoin, PayPal USD. U.S. residents can use their existing PayPal accounts or set up a new one to buy Bitcoin. You can also use your cryptocurrencies to buy products and services.56 When you buy Bitcoin directly from PayPal, it earns money from the crypto spread, or "the difference between the highest buy order and the lowest sell order on any exchange."7 PayPal also charges a transaction fee for each purchase, which depends on the dollar amount purchased.8 You can send crypto, including Bitcoin, from PayPal to an external digital asset wallet that you own and control, or to one owned and controlled by another person, like a friend or family member. To send your Bitcoin outside of PayPal, you must provide the wallet address where you want to send the assets. If you send Bitcoin, you must use a wallet that accepts it.9 The social trading and multi-asset investment company eToro is among the few online traders that allow Bitcoin purchases using PayPal.10 PayPal and CC are not available to users in the UK. ## How to Buy Bitcoin With a Credit Card Using credit cards to buy Bitcoin is similar to using debit cards or [automated clearing house (ACH)](https://www.investopedia.com/terms/a/ach.asp) transfers. However, not all exchanges allow you to buy Bitcoin with credit cards due to associated processing fees and the risk of fraud. Credit card processing can add extra charges to these transactions. In addition to paying blockchain transaction fees, the exchange may pass on processing fees to the buyer. Credit card issuers treat Bitcoin purchases like cash advances and charge hefty fees and interest rates on them.11 ## Alternative Ways to Buy Bitcoin ### Bitcoin ATMs [Bitcoin ATMs](https://www.investopedia.com/terms/b/bitcoin-atm.asp) act like in-person Bitcoin exchanges. Individuals can insert cash into a machine and use it to purchase Bitcoin, which gets transferred to their wallet. Bitcoin ATMs have become increasingly popular in recent years and are even available at the retail giant Walmart Inc. (WMT), among other places. ### Note Bitcoin ATM use requires government-issued IDs.12 Two charges are associated with ATM Bitcoin purchases: a purchase fee and a conversion fee for converting a fiat currency to Bitcoin. Both fees are fairly steep compared with those of other options. For example, CoinHub charges a markup of 12.5% and a retailer fee of \$4.95 above the Bitstamp spot rate.13 ### P2P Exchanges Some P2P exchange services provide a more direct connection between users, such as Binance P2P. Although P2P exchanges don't offer the same anonymity as decentralized exchanges, they give users the chance to shop around for the best deal. Many of these exchanges also provide rating systems so that users can evaluate potential trade partners before transacting. ### Mainstream Brokerages Robinhood Markets is an exchange that offers crypto trading. It charges a 0.03% to 0.85% fee for crypto trades and purchases. The fees are based on the trailing 30-day trading volume of crypto orders executed with smart exchange routing.14 If investors use market maker routing, then the fee is \$0.85 for every \$100 notional crypto order.15 Robinhood has enabled trading on its platform for these assets, which include Bitcoin, Bitcoin Cash, Litecoin, Ethereum, [Dogecoin](https://www.investopedia.com/terms/d/dogecoin.asp), and Ethereum Classic.16 You can also trade thousands of cryptocurrencies on Coinbase. As of 2022, traditional [brokers](https://www.investopedia.com/best-online-brokers-4587872) like Fidelity Investments began to include Bitcoin in 401(k) accounts.1718 ### Warning Bitcoin and other crypto investments aren't protected by insurance from the [Securities Investor Protection Corp. (SIPC)](https://www.investopedia.com/terms/s/sipc.asp). At regular [brokerages](https://www.investopedia.com/best-online-brokers-4587872), the agency protects against the loss of securities and cash in brokerage accounts containing up to \$500,000, with a \$250,000 cash limit.19 [Crypto exchanges](https://www.investopedia.com/best-crypto-exchanges-5071855) like Coinbase have crime insurance to protect their infrastructure against hacks. But it doesn't protect individual customers from password theft.20 ## How to Sell Bitcoin You can sell Bitcoin at the same venues where you purchased the cryptocurrency, such as cryptocurrency exchanges and P2P platforms. Typically, the process of selling Bitcoin on these platforms is similar to the process of buying it. Most crypto exchanges charge a percentage of the sale amount as fees. For example, Coinbase says it may charge a fee when a customer cashes out their crypto, depending on the payment method selected.21 Exchanges generally have daily and monthly withdrawal limits. Therefore, cash from a large sale may not be immediately available to the trader. But with Coinbase, for example, there is no limit on the amount of cryptocurrency you can sell.22 ## How Do Beginners Buy Bitcoin? The best way for a beginner to purchase Bitcoin is to create an account on a reputable and regulated exchange, fund it, and make a purchase. ## How Can I Buy \$100 Worth of Bitcoin? Regulated exchanges are the safest way to purchase Bitcoin, but you can also buy some at Bitcoin ATMs or through PayPal. ## What If I Invest \$100 in Bitcoin Today? It is possible that \$100 in Bitcoin today might turn into \$200 or more in the future, but it is just as likely that it will turn into \$1. Bitcoin is very volatile, so you should consider your financial circumstances before investing to determine if you can afford to lose the money you invest. ## The Bottom Line Buying Bitcoin can seem complicated if you haven't done it, but it's relatively simple. It just requires an account at a service or an exchange and a way to store your purchases safely. To buy Bitcoin, you must select an appropriate service or venue, connect with a payment method, place an order, and ensure stable storage for purchased cryptocurrency. Each of these steps requires research and a careful assessment of the pros and cons of the relevant service. Bitcoin is available at Bitcoin ATMs or from payment services like PayPal and [mainstream brokerage firms](https://www.investopedia.com/the-best-online-brokers-for-crypto-trading-8765274) like Robinhood or Coinbase.
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