Where and how to buy Bitcoin (BTC)?

[no_toc] If you’re looking to get your hands on some Bitcoin and want to find the best exchanges to buy it from, our guide can help. But before you jump in, it’s important to remember that choosing an exchange involves a range of considerations, from fees and security measures to the overall user experience. We’ve scoured the market and eToro turned out to be the top platform for buying Bitcoin.

How to invest in Bitcoin?

If you want to start investing in bitcoin and cryptocurrencies in the [year], you must first ask yourself an important question: how to buy bitcoin? Buying bitcoin (BTC) does not necessarily mean owning bitcoin. We hear this misconception more and more often, so we want to briefly and concisely explain the two possible options. Keep in mind that both solutions have advantages and disadvantages, which we would now like to explain: CFDs on bitcoin: With bitcoin derivatives, you can invest indirectly in bitcoin and bet on a fall or rise in price. This means that you do not own the actual bitcoin, but CFDs on bitcoin. In this way you are betting against the broker, to put it simply. CFDs on bitcoin can only be bought from brokers. The most well-known bitcoin derivatives are:

  • CFD (contract for difference)
  • Futures
  • Options

Real/physical Bitcoins: These can only be bought on cryptocurrency exchanges. As the name suggests, real Bitcoins are bought here. This means that Btcoins really belong to you! Bitcoins can be traded, stored or given away. The only thing you have to take care of is storage. Unlike derivatives, with real Bitcoins you are a potential target for hackers. Therefore, always store your Bitcoins in hardware wallets and apply all security measures to your exchange. Here we have tested and evaluated the best bitcoin derivatives and real bitcoin providers.

How can I buy real/physical bitcoins from a cryptocurrency exchange?

Users can choose from more than a dozen cryptocurrency exchanges in Italy. Therefore, we have selected three particularly recommended providers. In particular, eToro is a long-standing, reputable and extremely reliable provider. For this reason, this provider is also the winner of our test.

Both eToro and Binance are highly recommended cryptocurrency exchanges where you can buy Bitcoin. Here we will show you step-by-step how you can buy Bitcoin right now. For our guide, we will use eToro – which was the winner of our comparison of the best cryptocurrency exchanges you can access from Italy. Registering, depositing and buying cryptocurrencies with this provider is a relatively simple process. Let’s see together how to complete these steps, from registration to buying your first Bitcoin.

Step 1

Open an account to buy Bitcoin

To buy Bitcoin, you need to create an account here. Registration takes 3 minutes. First – enter your details in the fields as shown in the image:You will immediately receive an email asking you to confirm your account with one click. Then click on ‘Complete Profile (1)’ and follow the steps that are part of the KYC security system. When you reach “Profile 100% complete” – you are ready to deposit.

Step 2

Deposit Funds

In the bottom left corner you will see a blue Deposit Funds button that will take you to the payment method selection: You must then select the amount to be deposited and the payment method. The most popular deposit methods are PayPal, debit and credit card, and SEPA bank transfer. After the first deposit you will be added several other payment methods, such as UnionPay, Skrill, Neteller, etc.

Step 3

Buy Bitcoin (BTC)

Once you have made your deposit, you can start buying Bitcoin immediately. To find your favourite cryptocurrency, add it to your list of favourites.You will go to the search box to type in Bitcoin, then “Done” to move on.Now think about the amount you want to buy Bitcoin for. And if you want to use leverage up to 2:1. Enter the desired amount and… Congratulations, you have bought your first Bitcoin tokens after clicking the “Open position” button (5)!

How can I sell Bitcoin on a cryptocurrency exchange?

Of course, you can also sell BTC and other cryptocurrencies on a cryptocurrency exchange. We will show you how:

  1. Now return to the list of favourites, but this time click on ‘Sell’.
  2. Enter the desired amount and click the “Open position” button.
  3. So you have sold Bitcoin or bet on a price drop

Fees for buying and selling cryptocurrencies on a cryptocurrency exchange

Deposito Free
Buying cryptocurrencies 1% spread
Transfer BTC to the etoro wallet 0,5%, minimum commission USD 1, maximum commission USD 50
Withdrawal $5
Fee after 12 months of inactivity 10 USD per month

How to buy CFDs on Bitcoin – quickly and easily

Cryptocurrency brokers are particularly suitable for those who like to bet on price rises and falls. Unlike a bitcoin exchange, here you do not own the physical bitcoin, but trade certificates, options, characteristics or CFDs. If you prefer this type of cryptocurrency trading, a bitcoin CFD broker is the right place for you. Buying CFDs (contracts for difference) on bitcoin is particularly suitable for beginners. First of all, because it is very easy to do and also has a high level of security – bitcoins are bought from regulated and reliable providers.

How to buy CFDs on Bitcoin with a broker – step by step?

We have created detailed step-by-step instructions to enable you to easily trade Bitcoin. Below we describe the complete process of buying and selling Bitcoin on Libertex, a cryptocurrency trading platform suitable for beginners. If you prefer to use another platform, take a look at our comparison of the best regulated cryptocurrency trading platforms in the EU.

Libertex convinces mainly due to its user-friendliness and the broker’s widest selection of cryptocurrencies. Besides cryptocurrencies such as Bitcoin, stocks, precious metals and commodities can also be traded on Libertex. The company behind Libertex, ForexClub, has a long history. Founded in 1997, the company is regulated in the UK and Europe with the Libertex platform and is authorised for financial transactions.

In our opinion, the security of the platform deserves special attention. While other cryptocurrency trading systems are often in the spotlight due to security problems, no security holes have yet been found in Libertex. As a result, hackers have not yet been able to steal or appropriate customer deposits or financial information. A big advantage of Libertex is the possibility to deposit money via various methods, as well as the possibility to buy Bitcoin via PayPal.

Step 1

Open an account to buy Bitcoin CFDs

To start registration – Use the ‘START TRADING’ button. All you need is an e-mail address and a secure password. To protect your capital, please use upper and lower case letters, numbers and special characters in your password. In Libertex, once registration is complete, you will be taken directly to the dashboard. Confirmation by e-mail is not required.

The account is already open and you can log in with your e-mail address and password. In the account, you can choose between a real money deposit and a virtual deposit. The virtual account will give you the amount of $50,000 as a demo account. Use this money and familiarise yourself with the various functions. After all, you want to invest real money later and this way you can avoid potential mistakes.

Once you feel comfortable using the platform, you can buy Bitcoin with real money. To do so, you have to switch to your real account to buy DOT. Before you can take any action, you need to confirm your account. To do so, click on your name in the top right-hand corner and then on ‘Manage Profile’. For your security, you can also confirm your e-mail address here. As long as it is not confirmed, hackers can change it and steal your cryptocurrencies! You must also confirm your basic data and enter your phone number. This is the only way to be sure that your money is really safe. [br]

Step 2

Depositing funds to buy Bitcoin CFDs

You can now deposit funds into your account to start trading. With some payment methods you can start depositing within seconds.

You will find the Deposit funds button directly above it in the navigation. The company must confirm your identity within 15 days of your first deposit. For this purpose, you will need to provide a copy of your passport or identity card. Libertex also requires an invoice from your service or telecommunications provider to guarantee the authenticity of your identity documents.

On the one hand, this is obviously an effort, but investing money should be an effort.  

When depositing money by bank transfer, no minimum investment amount is required. For all other payment methods, you must deposit at least EUR 100.

Deposits via PayPal, Skrill and credit card are extremely fast. The money is available here immediately after completion of the payment process. For other payment methods, the waiting time is 48 hours. Transfers can take between 2 and 5 days. After selecting the desired amount and payment method, you can complete the process by clicking on ‘Deposit’.

The funds will be transferred to your account according to the payment method used. The safest way to make a deposit is via PayPal. Simply enter the amount and your e-mail address. You will then be redirected to the PayPal page where you can continue the process.  

Step 3

Buy Bitcoin CFD

Deposited funds are now available and you can start trading Bitcoin immediately. You can select BTC from the list of available cryptocurrencies or simply type ‘Bitcoin’ into the search engine. As a result, you will receive a certificate for the BTCUSD – Bitcoin dollar exchange rate. Currently, no other broker offers more cryptocurrencies to trade than Libertex. You can invest directly in Bitcoin using the ‘Buy’ button.

You should also decide in advance whether you want to bet on rising or falling prices.   Once you have selected your strategy, you can choose your position size and multiplier (leverage). On Libertex you can use a maximum leverage of 1:2. Once you have made your selection, press the ‘Buy’ button. If you click the Buy or Sell button, Libertex will open your position for trading. 

Step 4

Buying and selling Bitcoin (BTC)

Once you have opened a trade, you can sell Bitcoin again at any time. Especially if you have not entered a Stop Loss or Take Profit, you should regularly check if the trade is still in line with your strategy. When you click on a trading position, Libertex displays the action options. Here you can easily increase your position, open or close another position.

Should I buy bitcoin from a broker or on an exchange?

CFD brokers to buy bitcoin

Through cryptocurrency brokers, you can use CFDs (contracts for difference) to speculate on the rise or fall of cryptocurrency prices, but without actually owning them.

Instead of buying physical bitcoins, you buy ‘long’ or ‘short’ positions from a broker. This allows you to trade bitcoins with leverage.

For example: if you want to buy bitcoins for 1,000 zlotys, you will receive bitcoins worth exactly 1,000 zlotys.

If you instead buy contracts for difference 2:1, you will receive bitcoin CFDs worth 2,000 EUR. In this way, you can earn more with the same capital as a result of price fluctuations, but of course the risk increases. Another advantage of CFD trading with brokers is that they are strictly regulated by financial regulators. So you can be sure that your investments are protected and that everything is legal.

Also, you don’t have to worry about storing your cryptocurrencies, as you are only trading CFDs. The winner of our test among bitcoin brokers is Libertex. Libertex offers CFD-only trading and is one of the largest online brokers in the world.

When to choose Libertex?

  • You want to actively trade bitcoin and cryptocurrencies
  • You want to make a deposit via PayPal
  • You want to trade on a regulated trading platform
  • You want to trade not only cryptocurrencies, but also other asset classes
  • Don’t want to worry about the security of your cryptocurrencies

Ultimately, both options offer good opportunities to benefit from the coming cryptocurrency boom. The two test winners, eToro and Libertex, convince with low fees and very high security standards. We wish you the best of luck with your investments!

An exchange to buy bitcoin

On cryptocurrency exchanges, you can buy real bitcoins and actually own them. Unlike CFD brokers, on exchanges you do not trade contracts, but buy real coins and then transfer them to your wallet. With this option, you can ensure that you own your cryptocurrencies. Similarly, for example, you can send your bitcoins to altcoin exchanges such as Binance and then continue trading there.

However, the responsibility of storing cryptocurrencies passes to you. The recent Binance hack shows that large wallets on cryptocurrency exchanges are becoming a target for hacker attacks. Unfortunately, many cryptocurrency exchanges are still unregulated, so for security reasons, you should transfer purchased cryptocurrencies to your personal wallet as soon as possible. One exception is eToro, the only cryptocurrency platform that is subject to multiple financial supervision in the EU and offers deposit protection for depositors. Especially beginners are advised to invest in cryptocurrencies via eToro or to choose a CFD broker.

If you decide to buy cryptocurrencies on an unregulated bitcoin exchange, we recommend using your personal wallet and storing cryptocurrencies on it. For less experienced investors, we recommend a regulated exchange such as eToro or a cryptocurrency broker.

When should I choose eToro?

  • Want to buy real bitcoins using PayPal
  • Want to buy real bitcoins using a credit card
  • Want to trade on a regulated bitcoin exchange
  • You also want to be able to trade CFDs
  • You want to trade not only cryptocurrencies but also forex, commodities or indices
  • You are looking for a community-based trading platform
  • Want to trade other cryptocurrencies besides bitcoin

[FAQ] Where and how to buy Bitcoin – Frequently Asked Questions

Is it safe to buy bitcoin?

Security is paramount when it comes to where to buy your bitcoins. The exchange website must use SSL encryption and allow 2FA (two-factor authentication).

Are there financial regulations for bitcoin exchanges?

Unregulated exchanges are not subject to financial supervision. In other words, there is a constant risk that exchanges will refuse to pay you without giving a reason or even steal your money in the worst case. For exchanges accessed by Poles from Italy, the UK and the EU, FCA (of the UK) and CySEC (di Cipro)  certificates are the most suitable.

Where can I buy bitcoin cheaply?

In our experience, the provider with the lowest commissions for buying and selling bitcoin and other cryptocurrencies is Libertex. With this provider, you pay only 0.4% commission when buying bitcoin.

Where can I buy and sell bitcoin?

Customers can choose between cryptocurrency brokers and cryptocurrency exchanges. Both ways are good options when he wants to buy bitcoin. In particular, government-issued licences and regulations offer additional security when purchasing.

Should I buy 1 bitcoin?

No, you do not have to buy a whole bitcoin. Rather, you can currently buy fractions of bitcoin for a much smaller amount. For example, you can buy a small fraction of bitcoin for 100 zlotys and thus benefit from the price increase.