Where and How to Buy
Bitcoin & Cryptocurrencies?
The 3 Best Ways to Buy
So you want to become a bitcoiner?
On this website we will show you where and how to buy bitcoins the RIGHT way.
In fact, we will show you multiple ways how you can invest in cryptocurrencies.
So how does it work?
There are two ways to buy Bitcoin:
- physical coins
- derivatives (CFDs)
If you choose to buy physical coins, you will be the only owner of your private keys.
Basically you will become your own bank, but you will also be completely responsible for your money.
You can buy these coins for fiat money on a crypto exchange.
If you choose to buy bitcoin CFD contracts, you cannot withdraw them to your own wallet.
You will buy them via an online broker who will take care of the secure coin storage.
We recommend this investment method for the less techy readers or for people, who want to buy bitcoins with PayPal.
This is how it works
- Open an account on a crypto exchange.
A regulated Bitcoin broker is f.e. eToro
- Deposit fiat money via bank transfer, credit card or PayPal
- Buy and sell cryptocurrencies (ideally buy low and sell high)
- Withdraw your money or store your coins on a secure wallet
What’s in this guide?
Over the last few years cryptocurrencies became the new asset class of the digital age.
Slowly, funds, banks and family offices begin to integrate digital assets into their portfolio.
We are still at the early adoption stage though, which means that we can earn huge profits from the incoming waves of new money.
Where to Buy Bitcoin?
To make it easier for you to choose the best exchange, we prepared this infographic for you:
No matter if you end up with a Bitcoin broker or crypto exchange, our general recommendation is eToro, as it unites both, CFD trading and physical cryptocurrencies.
By the way, if you are German speaking, make sure to check out Coin-Ratgeber.de.
Especially their guide on how to buy Bitcoin with PayPal is on point.
How to Buy Bitcoin?
In general every broker or exchange accepts deposits via bank transfer or credit card.
If you want to buy bitcoins with PayPal though, it’s not that easy.
We found that the only safe exchange where you can buy cryptocurrencies with PayPal is eToro.
All other exchanges either don’t support PayPal or take incredibly high fees for the deposits and withdrawals.
Take a look at our comparison:
|Min. Deposit||200 USD / GBP / EUR|
|Trading Fees||Only Spreads|
|Regulation||FCA 7973792 + AFSL #491139 + CySEC 109/10, Great-Britain, Australia, Cyprus(EU)|
|Platforms||Web, Mobile App|
|Payment Methods||PayPal, SEPA, VISA, MasterCard, Skrill, Neteller, UnionPay, Yandex, WebMoney|
|# of Users||6.000.000+|
|Min. Deposit||Only cryptocurrencies|
|Platforms||Web, Mobile App|
|Coins||Over 300+ BTC trading pairs|
|Payment Methods||No fiat deposits, only crypto|
|# of Users||5.800.000+|
|Max. Leverage||1:1 (3:1 for accredited investors only)|
|Trading Fees||1.49% – 3.99%|
|Platforms||Web, Mobile App|
|Payment Methods||SEPA, VISA, MasterCard|
|# of Users||4.900.000+|
You can also find a full comparison of bitcoin exchanges here.
Buying Bitcoin with PayPal or Credit Card
Above we have listed the best exchanges where you can buy Bitcoin with credit or debit card or PayPal.
In the following we will describe the whole buying process on the eToro exchange.
On eToro you can be sure that the exchange is 100% legal and regulated.
They even offer you a depositor protection up to $20.000.
Since 2018 it is also possible to buy either, Bitcoin CFDs and physical coins.
So let’s start!
Step #1: Create an Account on eToro
Once you have created your account, eToro may ask you to upload a scan of ID.
The verification process is pretty simple and straightforward. It shouldn’t take you more than 5 minutes.
Step #2: Deposit fiat money
Alright, now to deposit money, click on the blue “Deposit Funds” button in the bottom left corner.
A new window will pop up where you can select your Payment Method.
Select PayPal or Credit / Debit card and enter the amount you want to deposit.
Step #3: Buy Bitcoins!
If you have chosen PayPal or credit card as payment method, your deposit should be displayed almost instantly.
Navigate to the eToro trading interface and filter for “Crypto”:
Besides Bitcoin you can also buy Ethereum, Ripple, IOTA and other crypto currencies on eToro.
Select the coin you want to buy and you should see the corresponding price chart.
Click on “Trade” in the top right corner.
You can now choose the amount you want to buy:
Finish the trade by clicking on “Open Trade”.
You have successfully used PayPal or Credit Card to buy Bitcoin! 🙂
How do I secure my Bitcoins?
So you have bought Bitcoins and want to store them as secure as possible.
If you have bought your coins on eToro, transferring your coins to your wallet is not mandatory.
eToro is a regulated exchange that is under the authority of multiple financial regulators. The depositor protection also provides you with insurance for the loss of your coins (up to $20.000).
The same holds for all regulated crypto CFD broker.
If you bought your coins on an unregulated exchange though, you should be cautious!
In the past there have been a lot of exchange hacks where hackers have been able to steal the funds of investors.
Hence you should withdraw the coins to your private wallet asap!
There are 3 ways to store your crypto currencies:
The safest way by far is storing your coins in a hardware wallet.
You could say that you save your Bitcoins on a USB stick.
Well, of course you cannot really do that.
What actually happens is that you connect your private key with your hardware wallet.
This means that only the owner of the physical hardware wallet will be able to access your bitcoins.
Both offer the best possible security for Bitcoin investors.
To date, none of those devices has ever been hacked.
Can I deposit Bitcoins on PayPal?
No, this is not possible.
If you want to withdraw your Bitcoin winnings to PayPal, you will have to sell them on an exchange like eToro in order to be able to withdraw them to PayPal or your bank account.
Can I also invest in other crypto currencies?
eToro offers more than 10 different bitcoin trading pairs. If you want to trade even more cryptocurrencies, we recommend the Binance altcoin exchange. Though you will have to buy bitcoins first, in order to be able to deposit on Binance.
Why do I need to buy Bitcoin in order to buy other cryptocurrencies?
Some exchanges like Binance are pure crypto exchanges. This means that the other cryptocurrencies can only be traded against Bitcoin. So it is easy to buy other currencies once you have Bitcoin, but not so easy to get other currencies before having bought bitcoins first.
Do other providers, such as Coinbase offer PayPal as payment method?
Unforunately they don’t.
Currently eToro is the only exchange where you can safely buy bitcoin and other crypto currencies without having to pay incredibly high fees.
If I buy Bitcoin CFDs, do I have to care about my wallet?
Especially if you are new to crypto, this is the advantage of Bitcoin CFDs.
The Bitcoin broker will take care for all security and insurance stuff. All you have to do is make sure you choose a secure password and don’t give it to anyone else.
Can I buy Bitcoins with PayPal without Verification?
Unfortunately this is not possible. All regulated (and therefore safe) exchanges demand your ID for verificatioin purpose.
Is it risky giving up my ID in order to buy?
This is dependant on the exchange you will sign up.
We recommend you choose a regulated exchange that is under the authority of financial regulators. With regulated exchanges you can be sure that they do not steal your personal or credit card information.
Can I leave my bitcoins on the exchange after I buy?
If you signed up on a regulated exchange, this shouldn’t be a problem, because of the depositors protection insurance.
On unregulated exchanges we strongly recommend you to withdraw your coins to your own wallet. Preferably a hardware wallet.