Best Places to Buy Bitcoin in 2023

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Bitcoin is a type of virtual currency that you can use for digital purchases or trade, like stocks or bonds. It produced another payment method that could operate without a centralized government. Bitcoin relies on a digital network called the blockchain, where all cryptocurrency is recorded. You need to use a Bitcoin exchange to buy and sell cryptocurrency, including Bitcoin.

Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.

Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by The Balance or the writer to invest in cryptocurrencies, nor can the accuracy or timeliness of the information be guaranteed.

Best Places to Buy Bitcoin in 2023

Best for Beginners: eToro
Best Instant: CoinMama
Best for Privacy: Bisq

Best for Beginners : eToro

The Balance's Rating

4.4

Currencies: 30+
Transaction Fees: 1% for buying or selling crypto in addition to the spread price
Wallet Included: Yes

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This review promotes virtual cryptocurrency investing within the European Union (by eToro Europe Ltd.), United Kingdom (eToro UK Ltd.), and the United States. (by eToro USA LLC). Virtual cryptocurrency investing is highly volatile and unregulated in some European countries and the UK. There are no consumer protections in Europe or the UK, and trading activities in the virtual crypto trading sector are not regulated by any European or UK governing body. Investments are subject to market risk, including the loss of principal.

Why We Chose It

eToro is our choice for beginners thanks to an easy-to-use platform and practice accounts that let you test out buying Bitcoin without risking real funds. If you’re looking for a simple and focused platform that allows you to buy Bitcoin while learning more about the cryptocurrency ecosystem, eToro could be right for you. Those new to bitcoin will appreciate the straightforward platform and CopyTrader system that allows you to mimic trades from others on the platform.

Pros & Cons

Pros

Easy-to-use platform
Free practice accounts with virtual money
Copy-trading system to learn the ropes

Cons

Pricing involves a flat fee as well as a spread
May not be the right fit for experience Bitcoin traders

Overview

EToro was founded in January 2007 as an online trading platform. It contained simple and fun graphics and information to help beginners learn about trading. The company continued adding features to its platform and pioneered Bitcoin trading in 2013. Four years later, the company expanded its digital asset offerings to allow clients to trade and invest in digital coins such as ether, XRP, litecoin, and other forms of cryptocurrency.

When you sign up on eToro, you can test the waters with a $100,000 virtual account with no risk to your actual money. Once you're comfortable, you can enter a live trade with real dollars. Just take note of the 1% fee per buy or sell transaction and a separate spread for each cryptocurrency.

Best Instant : CoinMama

The Balance's Rating

3.5

Currencies: 16
Transaction Fees: Up to 3.9% commission fee plus a spread added to the market price
Wallet Included: No

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Why We Chose It

We picked Coinmama because it offers instant Bitcoin purchases with many payment options and high limits.

Pros & Cons

Pros

Instant order delivery
Transfer to any crypto wallet
Numerous funding options

Cons

Slightly complex and often pricey fee structure
No ACH bank transfer support

Overview

If you want to own Bitcoin as quickly as possible and already have a Bitcoin wallet, Coinmama may be your best choice. Coinmama features fast account setup and verification. Once you’re logged in, you can buy bitcoin instantly using several payment methods, though there may be a fairly high price tag for those instant purchase privileges.

You can use a credit or debit card to buy one of 16 different currencies. Americans can also pay with wire transfer or SWIFT, but not ACH. When you place an order, the funds are instantly verified with your connected card by Coinmama, then the cryptocurrency you chose is deposited into your crypto wallet. Those in the U.K. and EU have additional instant funding options not available in the U.S.

Hopefully, it will add U.S.-based ACH payments as a funding method, though electronic transfers in the U.S. wouldn’t allow for instant purchases with this funding method. But if you have a credit or debit card and don’t mind the fees, Coinmama allows you to instantly buy coins with any Bitcoin wallet.

Best for Privacy : Bisq

The Balance's Rating

3.2

Currencies: Dozens
Transaction Fees: 0.12% for maker and 0.88% for taker
Wallet Included: Yes

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Why We Chose It

We like Bisq’s decentralized features that improve privacy and anonymity when buying and selling Bitcoin through an open-source desktop app.

Pros & Cons

Pros

Decentralized network improves privacy
Software is open source
No registration required
No identity verification required

Cons

Potential for slow transactions
Not ideal for active traders

Overview

For those drawn to the anonymity provided by Bitcoin, Bisq may offer what you’re looking for. Bisq is a decentralized exchange that doesn’t require any signup or account. That means you can use Bisq to buy and sell with nearly complete privacy. The required Bisq desktop app is open-source and free to use.

Bisq supports various payment methods, including bank transfers, Popmoney, Zelle, and Western Union. On Bisq, one side of every transaction must be in Bitcoin. For these Bitcoin-based transactions, the maker fee is 0.12% and the taker fee is 0.88%.

Bisq is best for those with at least a little crypto experience.

Final Verdict

The right cryptocurrency exchange will strike an ideal balance between fees, security, and trading options. That’s why it’s important to determine what you want out of an exchange before you dive in as each exchange has its strengths. For example, CoinMama is our pick for the best place for instant purchases of Bitcoin, while Bisq offers the most privacy.

However, our top choice, especially for beginners, is eToro. With a user-friendly platform that allows you to practice Bitcoin purchases before you make the leap into real money, eToro stands out among the other exchanges.

Compare the Best Places to Buy Bitcoin

Company	Currencies	Fees	Security	Transactions	Max Trading Amount (in USD)
eToro Best for Beginners	30+	1% for buying or selling crypto in addition to the spread price	Two-factor authentication	Buy, Sell, Transfer	Customized trading limit. $40,000 per debit card transaction
Coinmama Best Instant	16	Up to 3.90% commission fee plus Coinmama's spread added to market price	Two-factor authentication	Buy, Sell, Transfer	Max order and deposit limit of $15,000
Bisq Best for Privacy	Dozens	0.12% for maker and 0.88% for taker	Multi-signature address	Buy, Sell, Transfer	No trading limits

Guide to Buying Bitcoin

If you’re looking to buy bitcoin, follow these steps to get started:

Pick an exchange and wallet provider: The first step is to pick a place to buy and store your bitcoin. The easiest and fastest way to start is to choose an exchange that also offers secure bitcoin storage.
Open an account: Once you’ve picked your favorite exchange, you most likely will need to open an account and supply basic personal information. Some decentralized exchanges don’t require an account, but you’ll need an existing wallet and more technical know-how to use this type of exchange.
Fund your account: If you choose a provider that allows you to deposit fiat currency (dollars, euros, pounds, etc.), you’ll probably have to fund your account before making an order. You may be able to buy right away with a debit or credit card but beware of extra fees.
Place an order: Now it’s time for the big moment. Place your order and wait for it to execute fully. Because blockchain processing takes some time, your purchase may not be instant. There are many factors that can lead this to take anywhere from a few minutes to longer than an hour to complete.

Once your order is done, you should see your new bitcoin in your bitcoin wallet or account.

Frequently Asked Questions

What Is a Bitcoin Exchange?

A bitcoin exchange is a digital marketplace where you can convert currency like U.S. dollars into bitcoin, and it usually supports other cryptocurrencies, as well. Bitcoin exchanges may act as a middleman or a broker by connecting buyers and sellers, and every bitcoin exchange uses its own pricing and platform, which may instantly draw you to one exchange over another.

When you buy bitcoin using a bitcoin wallet, the transaction is recorded on the Bitcoin Blockchain, which publicly tracks bitcoin-based transactions. In some cases, exchanges may transact on your behalf and not deliver bitcoin to an external digital wallet.

Are Bitcoin Exchanges Legal?

Bitcoin exchanges are generally considered legal in the United States. However, it is your responsibility to report capital gains to stay on the right side of the law for your annual tax filing.

What Are Some Differences Between Bitcoin Exchanges and Wallets?

Bitcoin exchanges are a place you can buy and sell bitcoin, and in many cases, the exchange also includes a wallet, which is the account that holds your cryptocurrency. When you use a centralized exchange online or through a mobile app, the exchange will effectively hold the bitcoin on your behalf.

Bitcoin also enables you to use external wallets outside of an exchange and includes computer-based and web-based “hot wallets” and offline “cold wallets” that work like a USB security fob. If you buy bitcoin at most exchanges, you have the option to transfer your coins to any bitcoin wallet.

What Are Some Differences Between Bitcoin Exchanges and Mining Software?

Bitcoin mining software helps maintain the Bitcoin Blockchain. Every transaction on the blockchain is public and recorded on countless computers around the world. When a transaction occurs, computers called miners race to record the transaction and get a small fee paid by those who make the transaction.

When you run a bitcoin miner, you can effectively create your own bitcoin if you win the race and get paid the transaction fee. However, be aware that mining is power-intensive and could cost you more than it makes you, and Bitcoin mining is best for those who are computer savvy.

Is Buying Bitcoin Safe?

Buying Bitcoin is safe whenever you use a vetted and respected platform. It’s important to research any platform where you’re considering purchasing Bitcoin before you decide to take the plunge. In terms of Bitcoin being a safe investment, the value fluctuates more frequently than many other traditional investments, meaning it's usually considered to be riskier, often much riskier. If you’re looking to support a decentralized method of making payments, Bitcoin can be valuable. However, there’s no guarantee or insurance protecting the value of what you're purchasing.

Methodology

We looked at more than a dozen of the best places to buy and sell Bitcoin online and settled on the top three based on a number of factors. These included the history of the exchange, customer reviews, the fees each charges, the strength of features for each digital wallet, and the speed at which you can buy Bitcoin.