In a little over a decade, Bitcoin (BTC) has evolved from an obscure digital token used by a small group of people into a payment method and store of value that millions believe is the currency of the future. Each of the platforms in this article are on our list for the best place to buy Bitcoin along with why we're fans.
Where can you buy Bitcoin?
There are dozens, if not hundreds of different places you can buy Bitcoin, but they mostly fall into one of these three categories.
Cryptocurrency exchanges
Cryptocurrency exchanges are in the business of facilitating the purchase, sale, and storage of cryptocurrencies only. Coinbase and Gemini are examples of some of the best cryptocurrency exchanges.
Brokerages
Some stock brokers that allow users to buy stocks, bonds, mutual funds, and other investment vehicles also allow investors to buy and sell certain cryptocurrencies. Robinhood is a good example of a brokerage with cryptocurrency offerings.
Apps
Some of the platforms in the previous two categories certainly have apps. However, there are some apps that aren't official cryptocurrency exchanges or brokerages that facilitate the purchase and sale of Bitcoin. Cash App and Venmo fall into this category.
Where is the safest place to buy Bitcoin?
These days, pretty much every reputable crypto exchange that can be considered a best place to buy Bitcoin is a very safe option. There are three reasons for this:
In most cases, exchanges store the bulk of a customer's crypto assets in "cold storage." This typically means on servers that are not connected to the internet.
The best place to buy and store Bitcoin will keep a small percentage of your assets in a "hot wallet," meaning on servers connected to the internet. This is done for liquidity purposes, to handle customer withdrawals and transfers. But reputable exchanges maintain insurance policies to protect against theft.
Cash balances in most brokerages and cryptocurrency exchanges are stored in banks, and are therefore FDIC insured up to $250,000 per customer.
Each of the exchanges, apps, and brokerages on this list can be considered safe. But there isn't one that is necessarily safer than the other. And it's important to note that many don't provide any protection against unauthorized account access, so be sure to keep your passwords and other authentication methods secure.
RELATED: Check out The Ascent's guide to the best NFT wallets.
What to look for when buying Bitcoin
We have yet to find a perfect place to buy Bitcoin. But if you want to know the best place to buy Bitcoin for you, the answer will depend on the features that matter most to you. Here are a few that you should consider when evaluating the best cryptocurrency exchanges, brokers, and apps.
Fees
As we discussed, the cost of buying and selling Bitcoin can vary dramatically from one crypto exchange platform to another. While it shouldn't be the only thing you look at, it's important to know what you'll pay on each platform you're considering.
Investment selection
To be sure, all of the places on the above list will let you buy Bitcoin. But if you want to invest in other cryptocurrencies or begin crypto trading, you'll want to look for a platform that has a good selection. If you'd like to invest in Bitcoin and stocks in the same place, you'll need a platform that offers that.
Educational resources
Some of the biggest cryptocurrency exchanges have extensive libraries of articles, videos, and tutorials to help users learn about Bitcoin and other cryptocurrencies. This can be a big differentiator when looking for the best place to buy Bitcoin, even for people who already understand how Bitcoin works.
Bonuses
In addition to being the best place to buy Bitcoin fast, some of our favorite platforms are offering generous sign-up bonuses. And many have very low initial spending requirements. While a platform's bonus offer shouldn't be the deciding factor, it can certainly be a tiebreaker.
User-friendliness
Depending on the investor, this could mean different things. For example, someone who is looking to buy their first Bitcoin and only plans to occasionally buy and sell the digital currency may want as simple of a user interface as possible. On the other hand, an active and experienced Bitcoin trader might want a trading platform with many features (charting tools, order options, etc.).
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