How to Buy Bitcoin (BTC): Quick-Start Guide

Buying Bitcoin can feel like an unfamiliar landscape for someone used to traditional financial products. The good news: There are many ways to buy Bitcoin and other cryptocurrencies, from stockbrokers to dedicated exchanges and even in-app purchases in some crypto-linked applications.

Here's a more detailed overview of the various ways to buy Bitcoin:

1. Cryptocurrency exchanges

The most common way to buy Bitcoin, especially for beginners, is through a cryptocurrency exchange. Many offer hundreds of cryptocurrency choices, while others simply have Bitcoin and a few alternatives. However, as cryptocurrency has grown in popularity, dozens of crypto exchanges have emerged with varying degrees of consumer protection and customer service, security features and fee structures.

» View our list of the best crypto exchanges and platforms. We waded through all the fees, customer service complaints, staking features, withdrawal minimums and more to highlight the best exchanges out there.

2. Traditional stockbrokers

Traditional stockbrokers have also started rolling out offerings that give clients access to Bitcoin and other cryptocurrencies. Generally, these offerings are more limited in every way than what's offered by the pure-play cryptocurrency exchanges referenced above, with fewer coins available, few (if any) trading pairs and limited withdrawal accessibility. Basically, these platforms let you buy Bitcoin with the U.S. dollar, then sell Bitcoin for USD.

However, these platforms do have a lot going for them. Fees are generally low and easy to understand, whereas crypto exchange fees can sometimes be high and confusing for users. Moreover, using a traditional broker may mean you can start investing in Bitcoin in the brokerage account you already have.

Of the crypto platforms on our list, Robinhood, Interactive Brokers and Fidelity are all traditional brokers that offer Bitcoin.

3. Bitcoin wallets and wallet software

Technically, a bitcoin wallet is not a way to buy Bitcoin; it's a method of storing Bitcoin. But most Bitcoin wallets these days let users purchase Bitcoin within the app that controls the wallet, typically through third-parties that facilitate the transaction. Some common names you may see when buying Bitcoin via a wallet's purchase function are MoonPay, Ramp or Paxos.

» See our list of the best Bitcoin wallets

Some crypto apps, such as games, crypto wallets or other online services that use blockchain technology, allow users to buy and sell digital assets directly within their app. Such services can cost a bit more than regular exchanges, but offer some advantages in the form of quick, relatively painless transactions.

When using a Bitcoin wallet, it's also common to transact on a cryptocurrency exchange (like those listed above), then move your Bitcoin off the platform and onto a wallet for long-term storage.

4. Bitcoin exchange-traded funds

In early 2024, the Securities and Exchange Commission approved spot Bitcoin ETFs, which track the price of Bitcoin and trade over major exchanges. This was a long-awaited approval from the SEC, and one that makes it even easier for traditional investors to gain access to Bitcoin.

Bitcoin ETFs are an excellent choice for investors who believe Bitcoin will continue to rise in value, but don't want to deal with actually owning any Bitcoin. If this is what you're looking for, the first step is to open a brokerage account, which only takes about 10 minutes. Then, look through all the spot Bitcoin ETFs available to decide which one you'd like to buy.

The costs associated with Bitcoin ETFs are a little different. While the aforementioned ways to buy Bitcoin typically charge fees to purchase, you most likely won't pay a fee to buy an ETF. (That's called a commission, and most brokerages no longer charge them.) However, you will pay an "expense ratio" to own the ETF. Basically, that means you'll pay a percentage of the ETF's value to the company that runs the ETF, expressed annually. Currently, expense ratios for Bitcoin ETFs range from around 0.15% to 1.5%. So if you spend $1,000 on a Bitcoin ETF with an expense ratio of 0.2%, you'll pay $20 per year to own it.

5. Peer-to-peer money transfer apps

Cash transfer services like PayPal, Venmo, or Cash App allow their users to purchase Bitcoin using the apps. You can purchase, store, send and sell Bitcoin directly through the apps, which is convenient if you're used to those interfaces. Fees on these platforms are generally comparable to the fees you'll pay to buy Bitcoin on an exchange, however these apps are better suited for quick transactions, such as paying someone for a good or service.

It's also important to note that while fees are generally in the medium-range, they can rise higher (as a percentage) if you're buying smaller amounts. On PayPal, for example, you'd pay a $1.99 fee to buy $25 worth of Bitcoin - that's a fee of about 8%. But the fee to buy $1,000 is 1.8%^[0]

6. Bitcoin ATMs

These work like normal ATMs, only you can use them to buy and sell Bitcoin. They are often placed in locations where you might find normal ATMs, such as convenience stores and grocery stores. Before you carry out a transaction, make sure you look at the fees you'll be charged, and have a plan for where to send the Bitcoin once you buy it. Fees on Bitcoin ATMs are typically much higher than any fee you'd pay using a crypto exchange or traditional stockbroker. You'll also need to set up a Bitcoin wallet before you use the ATM, which, generally, is less beginner-friendly than just using a crypto exchange, as we outlined above.

Using data from CoinATMRadar, we analyzed the Bitcoin ATM fees of 7,520 ATMs around the U.S., and found the average fee came out to 14.39% on March 6, 2025^[0]

Between the high fees, knowledge required to use a Bitcoin wallet and the lack of customer support for Bitcoin ATM transactions, this is one of the more cumbersome and costly ways to buy Bitcoin.

When a Bitcoin transaction happens (such as an investor buying or selling Bitcoin), computers on the Bitcoin network have to validate the transaction and add it to the blockchain (the permanent online ledger of all Bitcoin transactions). They collect transaction fees for this work, which can fluctuate based on how many people are trying to execute Bitcoin transactions at a given time.

Bitcoin's transaction fees can be volatile. In the last year, they've varied between less than 50 cents per transaction and more than $100 per transaction during periods of exceptionally low or high transaction activity^[0]

Many crypto apps and exchanges will estimate transaction fees for you while you're setting up an order. Make sure you take note of these fees — plus any additional fees charged by the app or exchange itself — before buying Bitcoin.

If you're purchasing Bitcoin, you'll need a place to keep it.

Bitcoin can be stored in two kinds of digital wallets: a hot wallet or a cold wallet. With a hot wallet, transactions generally are faster, while a cold wallet often incorporates extra security steps that help to keep your assets safe but also make transactions take longer.

Hot wallet

With a hot wallet, Bitcoin is stored by a trusted exchange or provider in the cloud and accessed through an app or computer browser on the internet. Any trading exchange you join will offer a free Bitcoin hot wallet where your purchases will automatically be stored. But many users prefer to transfer and store their Bitcoin with a third-party hot wallet provider, also typically free to download and use.

Why choose a wallet from a provider other than an exchange? While advocates say the blockchain technology behind Bitcoin is even more secure than traditional electronic money transfers, Bitcoin hot wallets are an attractive target for hackers. As Bitcoin.org warns: “Many exchanges and online wallets suffered from security breaches in the past and such services generally still do not provide enough insurance and security to be used to store money like a bank.”

Cold wallet

A cold wallet is a small, encrypted portable device that allows you to download and carry your Bitcoin. Cold wallets can cost less than $100 and are considered much more secure than hot wallets.

When creating accounts for your digital wallets and crypto exchange, use a strong password and two-factor authentication.

» Get started: Our list of the best Bitcoin wallets

Bitcoin can function either as an investment or a medium of exchange. So you can either spend it, trade it or hold it. If you're spending Bitcoin, there are a handful of retailers and digital services that allow you to use crypto as payment.

If you're investing, it's good to think about what kind of investor you want to be. Investors who day trade — a risky investment strategy that involves frequent buying and selling — try to buy Bitcoin low and sell it if and when its value moves higher.

But if you see a future for Bitcoin as a digital currency, perhaps your investment plan is to buy and hold for the long haul. Whatever your plan, know that owning Bitcoin may create a complex tax situation.

» Interested in other alternative investments? Learn how to buy gold.