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Investing in bitcoin has never been more popular, and while there are hundreds of places that let you buy bitcoin, not all of them are created equal.
Some charge high fees, while others, sadly, are at risk of bankruptcy, or worse.
Finding a time-tested, secure place to buy bitcoin is more important than ever, especially with the recent news of several crypto exchanges and investing platforms freezing customer assets.
Best Places To Buy Bitcoin in 2023
GOBankingRates has reviewed dozens of the top crypto exchanges and investing platforms to find the best places to buy bitcoin in 2023. Here are the top picks:
- Coinbase — Best place for security
- Binance.US — Best place for low fees
- Robinhood — Best for beginners
- eToro — Best for bitcoin social trading
- Cash App — Best payment app for buying bitcoin
1. Coinbase
Coinbase is the most popular crypto exchange in the U.S., and it boasts over 100 million users globally. Coinbase has been around since 2012 and is one of the longest-standing crypto exchanges available.
Coinbase allows you to quickly buy bitcoin with its super simple mobile app design, quickly connecting your bank account and letting you begin trading right away. The fees can be high (up to 0.60% plus a spread fee), but the platform is one of the safest places to buy bitcoin.
Plus, you can transfer your bitcoin off the Coinbase platform into a hardware wallet of your choosing, further securing your digital assets.
2. Binance.US
Binance is the largest crypto exchange in the world, and Binance.US is the U.S.-regulated arm of this massive exchange. With access to rock-bottom trading fees and even the ability to buy bitcoin without any fees, Binance.US is one of the cheapest ways to buy bitcoin.
Investing for Everyone
Binance.US also carries over 150 other cryptocurrencies for trading, including ethereum, solana and dogecoin. With robust security and a built-in educational platform, Binance.US is ideal for new crypto traders who want access to the best low-fee crypto exchange around.
As with Coinbase, Binance.US also allows you to withdraw your crypto to your own hardware wallet for safekeeping.
3. Robinhood
Robinhood is a stock trading platform that offers commission-free trading and a slick mobile app. But it also offers access to bitcoin and a few other cryptocurrencies, and it does not charge any commissions on crypto trades.
Robinhood became popular with traders as it doesn’t charge fees for most trades, and beginners are able to quickly get set up and start trading without the complicated charting and trading tools of other brokerages. Once it added crypto, Robinhood became a one-stop shop for beginners investors.
Robinhood is regulated by the Financial Industry Regulatory Authority and offers FDIC insurance on cash balances. However, Robinhood Crypto does not insure cryptocurrencies and is not regulated by FINRA.
Robinhood has had its share of controversy surrounding halting stock trading and the way it gets paid (order routing), but it is still a solid way to buy crypto for beginners. And it recently became one of the first U.S. brokers to offer a digital crypto wallet, allowing you to actually take custody of your bitcoin.
4. eToro
EToro is another popular trading app that offers access to stocks, options, ETFs and cryptocurrencies. Users can also sign up for its CopyTrader feature, allowing them to automatically copy the trades of popular investors on the website.
Investing for Everyone
EToro lets you invest in bitcoin and a handful of other cryptocurrencies with a flat 1% trading fee for buying and selling. Its mobile app is easy to use, but for more experienced traders, eToro offers a desktop platform with charting tools and advanced order types.
EToro also allows you to transfer bitcoin off its platform, but it is a bit of a cumbersome process, requiring an interim eToro digital wallet.
5. Cash App
Cash App is a popular payment app that now allows you to buy bitcoin and other cryptocurrencies directly within the app. Purchases can be made with your Cash App balance or linked bank account, and you can even send bitcoin to other Cash App users for free.
Cash App fees vary when buying bitcoin and include a spread fee as well. It may not be the most economical way to buy large amounts of bitcoin, but it is a very convenient way for Cash App users to invest in crypto.
And unlike Venmo, Cash App lets you transfer your bitcoin off the platform to your own digital wallet, with no network fees unless you pay for an expedited transfer.
Where Can You Safely Buy Bitcoin in 2023?
There are several ways to buy bitcoin, but not all of them are safe. Here are the three safest ways to buy bitcoin online:
- Crypto exchange: While some crypto exchanges, such as FTX, have been shut down in recent years, there are several U.S.-regulated exchanges that offer a safe and secure way to buy bitcoin. These exchanges typically offer easy-to-use mobile apps, great liquidity (usually low spread fees), and an easy way to exchange U.S. dollars for crypto.
- Brokerage: Some traditional brokerage accounts now offer access to bitcoin investing. While these investing apps are designed for stock trading, some have added in popular cryptocurrencies, such as bitcoin and ethereum. Most brokerage firms are FDIC insured and can be found through the FDIC’s BankFind Suite, making them a safe place to use your cash to invest in crypto.
- Payment app: There are several payment apps that offer direct access to investing in bitcoin, making it easy to buy bitcoin with just a few taps.
Investing for Everyone
You can also invest in bitcoin in other ways, such as cryptocurrency stocks or a bitcoin futures ETF, but if you want to buy the real thing, you will want to use one of the options listed above.
Bottom Line
Contrary to popular headlines, bitcoin is not dead, and it is still one of the fastest-growing assets on the planet. But with so many crypto platforms going bankrupt and pausing customer withdrawals, it is more important than ever to find a quality place to buy and sell bitcoin.
And of course, if you want to further secure your cryptocurrency, it is recommended that you transfer your crypto assets off any platform and onto a secure hardware wallet. This gives you complete custody of your coins and takes away the risk of any platform disappearing with your crypto.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Reuters. 2023. "Robinhood must face customers' lawsuit alleging it hid trading costs."
- The New York Times. 2022. "Why Did FTX Collapse? Here’s What to Know."
- Newsweek. 2021. "Robinhood's 'Let the People Trade' Tweet Resurfaces After Platform Halts GameStop Trading."
I'm a seasoned cryptocurrency enthusiast with a wealth of knowledge and hands-on experience in the field of blockchain technology and digital assets. Over the years, I've closely followed the evolution of various cryptocurrencies, market trends, and the development of crypto exchanges and platforms. My expertise is rooted in practical understanding, allowing me to provide insights into the nuances of investing in digital assets.
Now, let's delve into the concepts mentioned in the article about the best places to buy Bitcoin in 2023:
Cryptocurrency Exchanges:
-
Coinbase:
- Security: Highlighted as the best place for security, Coinbase has a strong reputation for providing a secure environment for trading cryptocurrencies.
- Fees: Acknowledged for high fees (up to 0.60% plus a spread fee) but considered one of the safest platforms.
-
Binance.US:
- Low Fees: Recognized as the best place for low fees, Binance.US is an extension of the world's largest crypto exchange, offering cost-effective trading options.
- Security: Emphasized robust security and the ability to withdraw crypto to a hardware wallet for added security.
Trading Platforms:
-
Robinhood:
- Commission-Free Trading: Known for commission-free trading, Robinhood has gained popularity for its user-friendly interface, particularly among beginners.
- Regulation: Regulated by the Financial Industry Regulatory Authority (FINRA), with FDIC insurance on cash balances.
-
eToro:
- CopyTrading: Introduced as a trading app with a unique CopyTrader feature, enabling users to mimic the trades of popular investors.
- Fees: Applies a flat 1% trading fee for buying and selling Bitcoin and other cryptocurrencies.
-
Cash App:
- Convenience: Described as a popular payment app that offers a convenient way to buy Bitcoin directly within the app.
- Transferability: Allows users to transfer Bitcoin off the platform to their own digital wallet.
Safest Ways to Buy Bitcoin:
The article emphasizes three safe methods to buy Bitcoin in 2023:
-
Crypto Exchange:
- Regulation: Recommends U.S.-regulated exchanges for safe and secure transactions.
- Liquidity: Highlights easy-to-use mobile apps, great liquidity, and low spread fees.
-
Brokerage:
- FDIC Insured: Points out that some traditional brokerage accounts now offer access to Bitcoin investing, with FDIC insurance for added safety.
-
Payment App:
- Accessibility: Mentions several payment apps that provide direct access to investing in Bitcoin with just a few taps.
General Advice:
The article concludes by stressing the importance of finding a quality place to buy and sell Bitcoin, especially in light of recent incidents of crypto platforms facing issues. It recommends transferring crypto assets to secure hardware wallets for complete custody and risk mitigation.
The inclusion of references to real-world events, such as the Robinhood lawsuit and the FTX collapse, adds credibility to the article, emphasizing the need for due diligence in selecting a platform for cryptocurrency transactions.
