Home » Invest » Invest in Cryptocurrency » Buy Bitcoin

How to Buy Bitcoin in 2020

Buying bitcoin can be both daunting and complex. We’ll show you the easiest way to purchase your first bitcoin.

The desire to buy Bitcoin needs no introduction. The original cryptocurrency barged its way onto the financial landscape over a decade ago and went on to inspire a mixture of bafflement, scepticism and excitement. Famously, its astronomic rise in value against fiat currencies made early adopters a lot of money. Over 10 years later, it remains an intriguing commodity to many investors considering buying bitcoin. Skip ahead to our step-by-step buyers guide if you’re up to speed and ready to invest.

Here’s a list of the safest places to buy bitcoins

We have rounded up, researched and rated the top websites, apps and brokers to buy bitcoin with. Click below to begin buying bitcoin, or read on to find out more about Bitcoin in 2020.

eToro
Key Features
Access the world’s most popular Crypto assets including Bitcoin
Automatically copy the trades of top Crypto traders
Deposit using PayPal + 9 other deposit options
Min Deposit
€200
Germany
Key Features
Access the world’s most popular Crypto assets including Bitcoin
Automatically copy the trades of top Crypto traders
Deposit using PayPal + 9 other deposit options
Top Coins
  • Ripple
  • Litecoin
  • EOS
  • Ethereum Classic
  • Bitcoin Cash
Payment Methods
Credit Card, Debit Card, Wire Transfer, PayPal, Skrill, Neteller, Yandex, WebMoney, UnionPay, MoneyGram
eToro is a multi-asset investment platform with more than 2000 assets, including FX, stocks, Crypto, ETF’s, indices and commodities. eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
eToro is a multi-asset platform which offers CFD and non CFD products. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Skilling
Key Features
Licensed and regulated by CySEC and FCA authorised UK Branch
Multi-platform broker: Skilling Trader proprietary trading platform and cTrader
Offers 800+ instruments
Min Deposit
€100
Germany
Key Features
Licensed and regulated by CySEC and FCA authorised UK Branch
Multi-platform broker: Skilling Trader proprietary trading platform and cTrader
Offers 800+ instruments
Top Coins
  • Ethereum
  • Ripple
  • Litecoin
  • Bitcoin Cash
  • Bitcoin
Payment Methods
Credit Card, Neteller, Skrill, Trustly, Bank Transfer
Skilling is a CFD trading platform that offers instruments from markets around the world (Cryptos, Forex, Commodities, Indices, Stocks). Our proprietary platform has been designed to be both intuitive and user-friendly to ensure that anybody who wants to start trading the world’s markets, can feel confident and secure enough to trade without being apprehensive or intimidated when confronted by numbers, graphs and acronyms.
69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500
Key Features
Crypto CFD Trading – Available 24/7 *
No need to open a crypto exchange account or use a special wallet
Fully regulated – FCA, ASIC, CySec
Min Deposit
€100
Germany
Key Features
Crypto CFD Trading – Available 24/7 *
No need to open a crypto exchange account or use a special wallet
Fully regulated – FCA, ASIC, CySec
Top Coins
  • Ethereum
  • Bitcoin
Payment Methods
Credit Card, PayPal, Skrill, Bank Transfer
Plus500 is a leading provider of Contracts for Difference (CFDs), delivering Leveraged trading on +2,700 financial instruments, including Forex, Commodities, Indices, Shares, Options and Cryptocurrencies.
76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. * Except for 1 hour on Sunday.
Investous
Key Features
Daily market updates and news
Cysec regulated
Online webinars
Min Deposit
€250
Germany
Key Features
Daily market updates and news
Cysec regulated
Online webinars
Top Coins
  • Litecoin
  • Bitcoin Gold
  • Ethereum Classic
  • Dash
  • Ethereum
Payment Methods
Credit Card, Skrill, Wire Transfer
Investous even new platform has already established a solid reputation as a portal that's built around the evolving needs of its members. It provides a smooth simple and streamlined interface that supports intelligent and intuitive trading, with a wide range of popular assets, superb educational tools and responsive customer service.
79.86% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Libertex
Key Features
Authorised and CySEC regulated broker
50% commission discount for new traders
200+ instruments including all major cryptocurrencies
Min Deposit
€100
Germany
Key Features
Authorised and CySEC regulated broker
50% commission discount for new traders
200+ instruments including all major cryptocurrencies
Top Coins
  • Bitcoin Cash
  • Bitcoin
  • Ripple
  • Litecoin
  • EOS
Payment Methods
Credit Card, Debit Card, Bank Wire, Neteller, Skrill, OrangePay, Bitcoin, Cash
Operating since 1997, Libertex is an international, trustworthy brand with more than 20 years of financial market and online-trading experience. Libertex is serving clients from more than 110 countries. As one of the international leaders of the industry, the company has won over 30 prestigious awards worldwide. Each year, the leading position strengthens both in the markets where it has established presence and in the new markets where the company is entering with its innovative products and services.
Trading leveraged products such as CFDs involves substantial risk of loss and may not be suitable for all investors. 83% of retail investor accounts lose money when trading CFDs with this provider. Trading such products is risky and you may lose all of your invested capital.

What is Bitcoin?

Created by a unknown group of developers going by the pseudonym Satoshi Nakamoto, Bitcoin emerged in 2009 as a radical electronic payment system designed to offer an open, decentralised alternative to traditional government-issued fiat currencies. A digital cash of the future, if you will.

How does Bitcoin work?

Bitcoin depends on a decentralised network of ‘miners’ who collectively grant the Bitcoin network its authority to verify online transactions. This means, the community both runs and approves transactions.

Bitcoin mining utilises high-powered computers to solve extremely complex mathematical problems and, in so doing, add blocks of transactions (in the form of digital information) to the ‘blockchain’, a distributed public ledger. 

This ingenious peer-to-peer network creates a payment system that functions without the need for centralised, authoritative oversight. 

How to buy Bitcoin online – step-by-step guide

Step 1. Get a suitable wallet

A wallet allows you to store your BTC securely. It’s a good idea to have one ready before you buy Bitcoin if you’re planning on sitting on the investment for a while – it’s a far safer way to store cryptocurrency than leaving it on the exchange. There are plenty of good options, including:

  • Ledger Nani X: Ledger Nano X is a hardware wallet, which means you can store your BTC (along with 30 other cryptocurrencies) offline on a super-secure wireless device. 
  • Exodus: Combining smart, feature-packed functionality with a stylish, intuitive interface, Exodus is a desktop wallet that should suit both newbies and experienced users.
  • Coinomi Wallet: If you want an BTC compatible wallet that will work on your phone, look no further than the Coinomi Wallet. This multi-coin wallet supports iOS, Andriod phones and there’s also a Mac/Windows/Linux desktop client. 

Step 2. Find a Bitcoin exchange or broker

There are plenty of exchanges on offer if you want to buy and sell Bitcoin. Each has advantages and disadvantages, so it’s a good idea to do a bit of research. To get you started, here are two of our favourite Bitcoin exchanges: 

  • Binance: Widely considered to be the best, most dependable place to buy bitcoin, Binance is the world’s biggest crypto exchange. It offers a huge crypto marketplace and fees that compare favourably with its main competitors, plus a well-designed mobile app.
  • Etoro: The worlds largest retail trading platform. These guys originally only offered CFDs, however today you can buy and own several cryptos too. This is a good option if you’re wanting to play with both investing and short-term trading.
  • Bittrex: Boasting a slick, easy to navigate interface and speedy transaction times, this US-based exchange supports over 200 currencies and direct BTC purchases using major fiat currencies. A Bittrex mobile app has recently been launched. 

Step 3. Withdraw your BTC

In the interests of securing your BTC, it’s a good idea to move your currency out of the exchange and into your wallet as soon as possible. To withdraw your bitcoins to your wallet you need to generate an address then paste it in the relevant field of your exchange account. 

How to trade Bitcoin– step-by-step guide

If you’re only interested in trading bitcoins you needn’t worry about getting a suitable wallet because trading involves taking a position on a currency rather than acquiring it. This means you can potentially make a profit from BTC without the hassle and security risk of owning it. 

Step 1. Find a broker

If a broker offers crypto trading, it’s bound to offer the purchasing of Bitcoin, which remains the most widely traded cryptocurrency on the planet. Plus500 and eToro are two of the most popular BTC trading platforms. 

Step 2. Deposit money

Most trading platforms will allow you to deposit fiat money (USD, GBP, EUR etc.) and most accept common payment methods such as PayPal or credit and debit card. It’s worth noting that trading platforms offer leveraged trading, which means you don’t have to put down the full value of a trade. Instead you can pay a deposit, known as a ‘margin’. This means you can potentially make bigger profits and, of course, bigger losses.

Step 3. Decide how you’d like to trade

There are two methods to trade cryptocurrencies: CFDs (contracts for difference) and Spread Betting. Both methods essentially entail speculating on the price movements of your chosen currency. If you aren’t sure which option to go for, we recommend researching the differences between spreads and CFDs.

Step 4. Start trading 

If you’re a complete novice we recommend starting with a demo account and familiarising yourself with the process and the platform. Cryptocurrency trading is extremely volatile, which means you can make and lose money very quickly. Bitcoin is prone to fluctuation, which makes it an intriguing prospect for traders who look to exploit volatility.

As a Bitcoin trader you’re speculating on the currency’s price movements by taking a short (sell) or long (buy) position. If you think Bitcoin will fall in value you should take a short position, if you think it will rise in value you should take a long position.

You may choose to incorporate leverage into your trading strategy. Leveraged trading allows you to put up a fraction of the trade’s value as a deposit or ‘margin’. This can be risky, though, so make sure you have a stop loss in place for damage limitation.

Still undecided?

Pros of Bitcoin
  • Bitcoin's enormous popularity means it has far greater liquidity than most other cryptos
  • It’s increasingly widely accepted as payment method
  • Built in scarcity gives Bitcoin intrinsic value
  • Its original advantages when compared to fiat currencies – lower international transaction fees, decentralisation, privacy – are still compelling
Cons of Bitcoin
  • Extreme volatility might appeal to traders but can make buyers nervous
  • Bitcoin has spawned lots of structurally similar successors, some of which improve on it in in significant ways. This could eventually have a lasting negative impact on Bitcoin’s value
  • Bitcoin has recently attracted significant criticism for the environmental impact of energy-intensive mining

FAQs

  • Overall info
  • Buying & selling
  • Using bitcoin
  • How bitcoin works
  • Bitcoin as an investment
Where did Bitcoin come from?
Who controls Bitcoin?
Should I buy other cryptocurrencies as well as Bitcoin?
Do I need a lot of knowledge before buying Bitcoin?
How do I store Bitcoin?
How much is Bitcoin worth?
Does Bitcoin physically exist?
Is Bitcoin legal?
Is Bitcoin a good way to make money?
By Harry Atkins
Harry joined us in 2019 to lead our Editorial Team. Drawing on more than a decade writing, editing and managing high-profile content for blue chip companies, Harry’s considerable experience in the finance sector encompasses work for high street and investment banks, insurance companies and trading platforms.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.