Best Places to Buy Bitcoin in 2023 | The Motley Fool (2024)

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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. If you're interested in buying Bitcoin, you'll first need to open an exchange or platform that allows Bitcoin trading. Below we cover our top picks for the best place to buy Bitcoin, along with why we're fans.

Crypto regulation

The SEC advises investor caution when it comes to crypto and has filed charges against several crypto platforms in 2023. It says that a number of popular cryptocurrencies -- including Solana, Cardano, and Polygon are unregistered securities. This could impact the way these and other cryptos are traded in the U.S. As a crypto investor, make sure you understand how the SEC cases and other proposed regulatory changes could impact your portfolio.

The Ascent's best places to buy Bitcoin:

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Investing simplicity and and high interest rates:Gemini Exchange
Diversified investing needs:Robinhood
Trading platform and crypto selection:Coinbase
User-friendly trading platform:Cash App Investing

Ratings Methodology

Our Rating:

Rating image, 4.50 out of 5 stars.

4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

Bottom Line

Offers a nice range of cryptocurrencies and a simple-to-use app experience. Popular with beginner investors, Gemini prides itself on its security and is available in all 50 U.S. states.

Fees:

$0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader)

Account Minimum:

Read Review

Our Rating:

Rating image, 4.50 out of 5 stars.

Bottom Line

You can buy and sell Bitcoin, other cryptocurrencies, stocks, and options with no transaction fee. Plus, Robinhood has one of the best cryptocurrency selections of any platform that isn't an exchange platform specifically made for cryptocurrency.

Read Full Review

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?

Safety is a relative term when it comes to cryptocurrency. This is still a fairly new and unregulated industry, and there are limited consumer protections in place. As we saw with the high profile collapse of FTX and other cryptocurrency platforms, crypto assets are not covered by SIPC insurance or FDIC insurance. If you keep your Bitcoin in a custodial wallet, it could be at risk if the exchange fails.

Safety-wise, if you're looking for the best place to buy Bitcoin, here are some factors to consider:

Cold storage: Reputable exchanges will store the bulk of a customer's crypto assets in "cold storage." This typically means on servers that are not connected to the internet, making it less susceptible to hackers.
Insurance: The best place to buy and store Bitcoin will carry external insurance to protect against theft. Look into the details, such as what firm provides the insurance, how much is insured, and under what circ*mstances you'd be paid.
Third party audits: Before you deposit money or buy Bitcoin, see what assurances the platform offers in terms of its proof-of-reserves. This is the evidence that it holds enough assets to cover client deposits. Check whether your crypto platform has an independent board and carries out external audits of its accounts.

Finally, it's important to note that many exchanges don't provide any protection against unauthorized account access. Be sure to activate user-level security features such as two-factor authentication. And 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

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

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 decent 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.).

Security

We touched on safety above, but it bears repeating. There's no point in investing in Bitcoin only to lose your assets if the platform collapses or is hacked. Research the risks involved and look for crypto exchanges that are transparent about their security, assets, and insurance.

Feature	Exchanges	Brokerages	Apps
Great selection of cryptocurrencies	Yes	Not usually	Sometimes
Advanced cryptocurrency trading platforms	Yes	No	No
Ability to buy stocks and other investments	No	Yes	Sometimes
Lots of cryptocurrency educational resources	Yes	No	No
No-commission Bitcoin trading	No	Sometimes	Sometimes

How much does it cost to buy Bitcoin?

The cost to buy Bitcoin depends on the platform you're using. This should certainly be a major consideration for you when deciding where is the best place to buy Bitcoin.

Although there are different terms used by platforms, virtually all of them make money on the "spread." This is the difference between the price an exchange is willing to buy Bitcoin for and the price it is willing to sell it for. For example, a few popular platforms add 0.5% to their quoted price for buying transactions and subtract 0.5% for selling transactions to create a spread.

Additionally, some (but not all) platforms also charge a transaction fee. This often depends on the size of the purchase or sale, the method of payment, and the user's location.

In addition to the trading fee, you may also be charged a withdrawal fee to take your crypto or traditional money off the platform. It's also worth watching out for any charges to deposit money.

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How to buy Bitcoin

It has never been easier to buy Bitcoin. Just follow these five steps:

Decide which cryptocurrency platform you want to use. As you can see from this page, there are a number of different crypto exchanges that trade Bitcoin. The right one for you depends on the type of investor you are and which features matter most to you.
Create an account. Once you've picked an exchange or brokerage, the next step is to open an account. To do this, you'll need to fill in some personal information, such as your name and contact information. You'll often also have to provide proof of address and upload a copy of your ID. This usually only takes a few minutes and helps exchanges comply with anti–money laundering regulations.
Deposit money. Most cryptocurrency platforms offer a few different ways to deposit fiat currency (traditional money, like dollars). You'll find the fees vary, though the cheapest way to fund your account is usually through a bank transfer. Credit card or debit card deposits often come with a charge of 2% to 5%.
Buy your Bitcoin. Remember, you don't have to buy a whole Bitcoin -- you can choose the dollar amount you want to spend. Some exchanges have an instant convert function, but on other exchanges, you may have to place an order. Once that's done, you'll have bought Bitcoin. Congratulations!
Consider where you want to keep your Bitcoin. Many new investors opt to leave their cryptocurrency assets on the exchange where they bought them. This is frowned upon by long-term crypto enthusiasts, but it isn't a bad choice when you're getting started. You could also consider moving your Bitcoin to a separate crypto wallet, such as a hot wallet or a hardware wallet. A Bitcoin wallet will keep your coins extra secure but gives you additional responsibilities. For example, if you lose your account passwords, you may completely lose access to your funds.

Offer	Commissions	Next Steps
Gemini Exchange	Investing simplicity and and high interest rates	$0.99-$2.99 orders < $200, 1.49% for orders at least $200 (default), 0% - 0.40% (Gemini ActiveTrader)	Read Review
Robinhood	Diversified investing needs	$0 for stocks, ETFs, options, and cryptocurrencies	Open Account for Robinhood Limitations Apply
Coinbase	Trading platform and crypto selection	Variable fees (Coinbase), 0%-0.60% (Coinbase Advanced Trade)	Open Account for Coinbase
Cash App Investing	User-friendly trading platform	$0 for stocks, fees vary for cryptocurrencies	Read Review

FAQs

It depends what you mean by "safe." Many cryptocurrency exchanges maintain some insurance to protect against theft of crypto assets, and hacking is generally less of a threat than it once was. On the other hand, there is little in the way of protection if your crypto is deposited on a platform that fails. Plus, Bitcoin is still a speculative asset and its price can be rather volatile.
The fees to buy Bitcoin vary from platform to platform. Virtually all exchanges and brokers make money from the "spread," or the difference in price between what they'll buy and sell Bitcoin for. On the other hand, transaction fees are zero on some platforms but are significantly higher elsewhere and should definitely be a factor in deciding the best place to buy Bitcoin for you.
There are a few different options when it comes to buying Bitcoin. You can use a cryptocurrency exchange, an app that allows for Bitcoin purchases, or a brokerage that offers cryptocurrencies like Bitcoin as an investment option.
Yes. One of the attractions of cryptocurrency is that the transactions are stored on a blockchain ledger that's extremely difficult to hack. Difficult, but not impossible -- there's something called a 51% attack in which bad actors take control of more than half of a specific blockchain. Bitcoin has never had a 51% attack.
However, there are bigger risks associated with cryptocurrency transactions. For example, crypto exchanges can collapse. And if your crypto account gets compromised, someone could gain access to your assets. Unfortunately it can be incredibly hard to recover lost or stolen crypto funds. There's also been an uptick in crypto phishing attacks where users are tricked into revealing their personal information through fraudulent websites or emails.
A crypto exchange is a platform where people can buy, sell, and trade cryptocurrencies. Many crypto exchanges also let customers store their crypto assets on the platform, and some even offer ways to earn passive income from crypto investments. Crypto exchanges usually only allow cryptocurrency trading, unlike a crypto broker, which also trades in securities like stocks, bonds, and mutual funds.
There's no specific amount of money you need to buy Bitcoin. Depending on the transaction minimums on the platform you use, you can buy some Bitcoin for $1 or even less. Don't be put off by the misconception you have to buy a whole Bitcoin -- you can spend as much or as little as you choose.
A Bitcoin exchange is a place where you can buy and sell Bitcoin, though many exchanges also operate wallets as well. A wallet is a place where you can store your Bitcoin keys. Your cryptocurrency has a public and private key -- a bit like a bank account has an account number and PIN.
There are several different types of wallets. Crypto exchanges often manage custodial wallets on your behalf, which means you don't have direct control over your crypto keys. If you want more control, you can move your assets to a hardware wallet. This is usually around the size of a USB or flash drive and kept offline for security. You can also open a hot wallet online, which is an account you control that's connected to the internet for convenience.

Our Cryptocurrency Experts

By:Emma Newbery

Emma lives in Bogota, Colombia, where she owns the English-language newspaper The Bogota Post. She began her editorial career at a financial website in the U.K. over 20 years ago and has been contributing to The Ascent since the summer of 2019.

Fact CheckedNathan Alderman

Fact checker

Nathan Alderman has worked with The Motley Fool since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As The Ascent's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

I'm an enthusiast with extensive knowledge in the field of cryptocurrencies, particularly Bitcoin. I've been closely following the evolution of Bitcoin over the past decade and have a deep understanding of its role as both a payment method and a store of value. My expertise extends to various aspects, including trading platforms, regulatory developments, and the factors influencing the cryptocurrency market.

Now, let's delve into the key concepts mentioned in the article you provided:

Bitcoin Evolution: The article highlights the transformation of Bitcoin from an obscure digital token to a widely accepted payment method and store of value. This reflects the growing recognition and adoption of Bitcoin in mainstream finance.
Top Places to Buy Bitcoin: The article recommends several platforms for buying Bitcoin, each catering to different needs:
- Gemini Exchange: Known for investing simplicity and high-interest rates.
- Robinhood: Ideal for diversified investing needs, offering a range of investment options.
- Coinbase: A trading platform with a diverse selection of cryptocurrencies, though not the cheapest.
- Cash App Investing: User-friendly for beginners, especially those already using Cash App for transactions.
Crypto Regulation: The article mentions the SEC's caution regarding crypto investments and charges against platforms in 2023. It emphasizes the need for investors to understand regulatory changes and their potential impact on crypto portfolios.
Safety Concerns: Safety considerations include factors like cold storage, insurance against theft, third-party audits, and user-level security features. The collapse of platforms like FTX underscores the importance of secure practices in the cryptocurrency industry.
Where to Buy Bitcoin: The article categorizes places to buy Bitcoin into three types: cryptocurrency exchanges, brokerages, and apps. Each has its advantages, and safety considerations vary among them.
Factors to Consider When Buying Bitcoin:
- Fees: The cost of buying and selling Bitcoin varies across platforms.
- Investment Selection: Platforms differ in the variety of cryptocurrencies offered.
- Educational Resources: Some platforms provide extensive resources for users to learn about cryptocurrencies.
- Bonuses: Some platforms offer sign-up bonuses, though they shouldn't be the sole deciding factor.
- User-Friendliness: Platforms cater to both beginners and experienced traders, with varying levels of complexity.
- Security: Emphasizes the importance of platform transparency, security features, and user diligence.
Cost of Buying Bitcoin: The cost depends on the platform, considering factors like the spread, transaction fees, and withdrawal fees.
How to Buy Bitcoin: The article outlines a simple five-step process for buying Bitcoin, from choosing a platform to deciding where to keep your Bitcoin after purchase.
Cryptocurrency Experts: The article introduces cryptocurrency experts Emma Newbery and Nathan Alderman, providing assurance of fact-checking and reliable information.

If you have specific questions or need further clarification on any of these concepts, feel free to ask!