How To Buy Bitcoin – Buy Bitcoin (BTC) Online in 2021
Bitcoin was the first cryptocurrency to hit the market. We can call it the ‘ancestor of cryptos.’ Experts say that Bitcoin is the best place to start for anyone who wants to learn how to invest in cryptocurrencies. First, you need to learn how to buy Bitcoin USA for beginners before you can start pumping in your funds. Whether you have bought Bitcoin in the past or not, you don’t want to miss reading this article. We will teach you the best ways to get started with buying Bitcoin and where to buy Bitcoin in the USA. You will also find out the pros and cons of investing in Bitcoin. Stick around and acquaint yourself with enough knowledge before you can invest in Bitcoin USA.
How To Buy Bitcoin – #1 Broker: eToro
Four Simple Steps to Buy Bitcoin for Beginners
There are a lot of myths surrounding buying Bitcoin. Many people make the process of purchasing bitcoin for amateurs look like going to the moon. This might be discouraging for beginners. Forget every negative thing you have heard about how difficult it can be to buy Bitcoin. Here are the only four steps you need to follow and start investing in Bitcoin today.
- Signup for an Account with eToro: Signup with our recommended broker to get started.
- Verify your Trading Account: Submit your identification documents to confirm your details.
- Fund your Trading Account: Deposit funds in your trading wallet using a method of your choice.
- Buy Bitcoin: Search for Bitcoin and buy now
Buy Bitcoin in the USA – Find the Right Broker
1. eToro – Best Platform to Buy Bitcoin USA
eToro is multiple award-winning broker that has been around since 2006. The broker has a client base of more than 19 million investors globally. Traders are intelligent people, and they only invest where their funds are secure. The large community of investors that eToro serves indicates that we are dealing with one of the best brokers in the world. To facilitate business among its customers, eToro has gone ahead to acquire multiple licenses globally. They now operate legally in about 150 nations globally. In the US, this broker complies with CFTC and NFA regulations. We recommend eToro as the best platform to buy Bitcoin for beginners USA. You need to find a broker that has won the hearts of many investors and follows the regulations of the country where it operates. All the 19 million investors using eToro can’t be wrong; you might want to join them.
Deposits and withdrawals are seamless when using eToro. The broker supports multiple payment methods like e-wallets, debit/credit cards, and even bank wire transfers. When it comes to cryptos, eToro presents to you a portfolio of tier 1 cryptos for free. Many platforms charge exorbitant trading fees when an investor purchases Bitcoin. We don’t think beginners should start their trading career with that kind of an expensive broker. eToro cares about your growth, so it charges you zero commissions on your trades. No hidden fees. Beginners can take advantage of a $100,000 virtual trading portfolio to learn how to buy Bitcoin until they are confident.
If you’re a busy person or a beginner who wants to start earning immediately, eToro has something for you. You will find the best copy trading technology in this broker. Simply pick any portfolio from the list of successful traders and copy it. Whenever the trader buys Bitcoin, the copy-trader will enter a trade-in your account too. Just like that, you start filling your pockets with bucks as you continue to learn how to buy Bitcoin. Your learning journey will not be a struggle because the broker’s platform is user-friendly and easy to manipulate.
Take advantage of the web and mobile trading platforms to monitor your trades from anywhere. You also get access to an extensive database of educational material that can help shorten your learning curve. Head to their website if you still need more reasons for why you should invest in Bitcoin USA using eToro.
|CFTC and NFA compliant||Charges 5% for withdrawals|
|Multi-award-winning broker||Lacks sophisticated trading tools for advanced traders|
|Zero commission trading|
|Wide portfolio of cryptos|
|Access to tier 1 cryptos|
|Best copy trading technologies|
67% of all retail investor accounts lose money when trading CFDs with this provider.
Coinbase was one of the earliest platforms to offer crypto exchange services in the US. Just like eToro, millions of traders prefer to buy Bitcoin with Coinbase. It boasts 30 million users as of 2021. The company holds a license to facilitate money transmission in each US jurisdiction where it operates. It also has offices in Australia and the UK. We trust this broker because it has stood the taste of time providing first-class services to crypto investors. You will find more than 2500 digital assets in Coinbase, including altcoins. The company officially started facilitating buying and selling of Bitcoins in the year 2012 in the US. By 2013, it had transacted over $5 million worth of Bitcoin.
Today Coinbases ranks top among Bitcoin exchanges and brokers, having raised about $560 million. It servers investors in 100+ countries as of 2021. What you will love about Coinbase is the speed of execution. Your orders fill almost instantly, with no delays, because the broker is highly liquid. The considerable amount of volumes that go through the hands of this platform makes it resist unnecessary slippage.
Coinbase has a user-friendly platform in terms of usability, making it one of our preferred choices for beginners who want to trade Bitcoin in the US. Registration is straightforward; anyone can sign up in a matter of minutes and purchase Bitcoin USA with Coinbase. You will not get zero commission trading when using Coinbase. The broker charges high commissions of about 1.49% for every transaction. You will pay a 1.49% commission when you buy Bitcoin with Coinbase and pay a similar value when cashing out. This means you will spend a total of about 2.98% by the time you are done with your trade. Unless you have a significant investment, such a high commission will reduce your profits significantly.
The costs become higher when you fund your trading wallet using credit/debit cards. Coinbase deducts a 3.99% transaction fee for every card deposit. You don’t want to be over-trading so that you can cover your transaction costs before you pocket profits. Such kind of pressure could push you to make wrong decisions. You can use bank wire transfer to fund your Coinbase trading wallet to avoid paying card deposit fees. The broker does not support e-wallets like PayPal. If all these sound complicated, eToro is waiting for you.
Maybe you’re wondering whether your funds will be safe in Coinbase. The short answer is “yes.” First, the strong regulation and location of Coinbase (San Francisco) are enough to prove its legitimacy. It is unlikely that this broker can take off with your money. Second, Coinbase has a strong cyber-security team for preventing hacks. Despite handling massive transactions, they have never experienced a successful hack. However, if privacy is key to you, Coinbase might disappoint you. They are not good at staying away from your private space, just like many Silicon Valley Companies.
|Used by over 30 million traders||High cost of trading|
|User friendly||Your privacy may not be guaranteed|
|Over 2500 digital assets|
|Compliant in the US|
|Little slippage due to high liquidity|
|Straightforward registration for beginners|
67% of all retail investor accounts lose money when trading CFDs with this provider.
Coinmama is a popular crypto exchange where you can buy Bitcoin using multiple methods, including Visa/ Mastercards and even Apple Pay. It boasts of a 2.8 million client base in 188 countries. The platform gives users access to ten tier-1 cryptocurrencies. Unlike eToro and Coinbase, Coinmama doesn’t facilitate trading among buyers and sellers. Instead, when you buy or sell Bitcoin on Coinmama, you are transacting with the company. The company has its own inventory for trading with buyers and sellers.
Also, this platform does not have a digital wallet for the storage of your cryptos. You will therefore need first to own a wallet before you can buy or sell Bitcoin on Coinmama. The company has partnered with Zeno, a crypto wallet prover, which it recommends to beginners. If you are a Coinmama user, you can purchase Bitcoin, Ripple, Litecoin, Qtum, Ethereum, Bitcoin Cash, Ethereum Classic, EOS, Cardano, and Tezos. Coinmama does not support crypto to crypto trading. Users can only transact crypto for fiat currency like the US dollar.
Coinmama lacks a mobile or desktop application, but it has an appealing web interface that you can use on your mobile phone browser. Purchasing Bitcoin on this platform is pretty straightforward. First, you specify how much you want to buy. You can express this in Bitcoin or an amount of US dollars that you wish to spend. We recommend this exchange because it supports fractional trading. Remember, you don’t want to start investing much money before thoroughly learning how to buy Bitcoin. Coinmama allows you to start with as little as $200 when purchasing Bitcoin in the US.
A major turn-off for beginners looking to buy Bitcoin in the US will be the costs of transacting on Coinmama. The broker charges a markup of 2% on the market rate of Bitcoin. In addition to that, you will part with a commission of 3.99% every time you buy Bitcoin and another 0.99% when you sell it. The charges are not over yet. Users who opt to buy Bitcoin using Apple Pay or debit/credit cards pay 5% deposit fees. Do not forget that Visa and Mastercard may also charge you for using their services. We find this incredibly for beginners.
|Extra fees||2% markup on BTC|
|User friendly interface||High transaction fees|
|$0 account minimum||Lacks a crypto wallet|
|Offers tier 1 cryptos||No mobile or desktop app|
|Wide payment options||It doesn’t support crypto to crypto trading|
|No fees for deposits through cryptos||Customer support is by email only|
67% of all retail investor accounts lose money when trading CFDs with this provider.
Why Buy Bitcoin in the US?
Has a first to market advantage
None of us had an idea about crypto until Bitcoin showed up. Anything that becomes the first of its kind to appeal to the masses has typically a huge advantage. Facebook was a big deal because we had never seen anything like that before. People who started using Snapchat or Instagram when these apps were new to the market never bother about competing products. Apple was the first company to develop a smartphone back in 2007. Since then, we have had many newer phone companies offering better features than iPhone, but consumers still believe that iPhone is the best phone. iPhone controls over 40% of the US market.
Netflix dominates the streaming services industry, with over 50% of adults in America using it. We have other streaming companies that may offer better and cheaper services, but Netflix dominates it has a first market advantage. Anyone who wants to buy an EV would naturally think of Tesla. That is why the company already controls 20% of the EV market share, three times more than the closest competitor. The first to market advantage is a big deal, especially in the tech sector.
Although cryptos have been around a while now, there are still many people who have never invested in them. However, they have heard about them, especially Bitcoin. As more investors continue learning about the advantages of investing in cryptos, they pick Bitcoin for their first attempt. We also recommend beginners first to learn how to buy Bitcoin before they can diversify into other cryptos. All the other coins are being built on the technology of Bitcoin. As more individuals invest in Bitcoin, demand rising and consequently its price. Without argument, traders who had taken an early buy will be celebrating all the way to the bank when prices rise. You probably missed buying Bitcoin at $200, but you don’t want to regret it again.
It is the gold of cryptos.
Sometimes investors refer to Bitcoin as the gold of cryptos. When you look at it keenly, you’ll realize that it actually shares numerous properties with gold. First, it is limited, just like gold, and you can mine it. There are only 21 million Bitcoins in the world. Already, 18,748,000 Bitcoins have been mined in just 12 years. Supply will soon be run out! Experts project that all the coins will be mined by 2140. The limited amount of Bitcoins gives them a high value as demand increases. Bitcoin might be better than gold because it’s traceable and has a specific production rate. No one knows how much gold is yet to be mined. Investors are rushing to put their money in Bitcoin because they know that we only have about 5 million Bitcoins to mine.
Gold has played a significant role in backing the world’s financial system since the 15th century. Bitcoin is showing a similar trend. We are witnessing Bitcoin-backed economic systems come up. These include banks like BlockFi that are fully backed by this digital coin. There are many platforms such as eToro, Coinbase, and Coinmama, where investors can buy Bitcoins in the US now. You can also buy Bitcoin from PayPal, Square’s Cash App. It is becoming an open fact that financial systems that do not incorporate Bitcoin in their business will lose out in the future. Early investors will gain the most, considering the massive future potential in Bitcoin.
We all know that everyone who is investing in Bitcoin is doing so because it can turn them into overnight millionaires. You can make money from Bitcoin by either mining or buying it and selling it at a higher price.
Bitcoin is too good to miss. It is the typical grass to grace story. Investing in Bitcoin could be much better than real estate or any other traditional investment opportunity. It actually feels too good to be true. Consider an individual who bought Bitcoin at $333 in 2015. Within a few years, the return would have been over $63,000 per coin. The value of Bitcoin hit a high of $63,729 in April 2021. In just a record six years, you would have earned a profit of 19,000%. Analysts predict that the price of Bitcoin is likely to hit a ceiling of $300,000 in the next ten years. If this is something to go by, we all would want to be part of it. The price of BTC is under $35,000 at the time of writing this article. It would be best if you started thinking of Buying BTC before it goes back to 2021 high.
Assuming you bought Bitcoin a year ago, July 2020, when it was $11,000, you would still have made a profit of 400% in 2021. This is only possible when trading Bitcoin. If you were looking for good high-return investment opportunities, you have found one. The value of Bitcoin will continue to go up. With the current market cap of about 600 billion US dollars, we can only expect to gain more value as the year progresses. You don’t have to find the money to buy an entire coin before you can start. eToro offers fractional investing. With that, you can buy Bitcoin in the US today for as little as $200. The best strategy would be to get a habit of investing a certain amount of your monthly income in Bitcoins. You will be surprised to experience the power of compound interest.
Bitcoin has grown widely acceptable in the past five years. It is dawning to us that it is here to stay, and we had better join it before it’s too late. In the US, Gen Z and Millennials are in the vanguard of investing in Bitcoin. In fact, more than 52% of this population are likely to invest in Bitcoin more than equities and other traditional assets. Multinationals and Governments are beginning to accept Bitcoin. Even though no government controls Bitcoin, most of them allow their citizens to deal in Bitcoin. If you have been doing your taxes, you had to answer a question on whether you held cryptos. Once anything starts to have a regulation, it becomes legitimate and more recognized. Now that Bitcoin is the strongest crypto, the sky is the limit.
Billionaires like Mark Cuban and Raol Pal are buying Bitcoin. These are institutional investors who only put their money where they see real value. In June 2021, the congress in El Salvador approved the president’s proposal to make Bitcoin legal tender. 62 out of 84 congress members voted yes. This means that every business in El Salvador must accept Bitcoin as legal tender. Elon Musk, Tesla’s CEO, said that Tesla would accept Bitcoin payments. The only condition is to prove that you use 50% clean energy and pay Tesla in Bitcoins. The demand for Bitcoin will never reduce because it is becoming more acceptable by day. Eventually, both small and big institutions will accept Bitcoin. We would be dumb to take such widespread accessibility for granted. The safest way decision is to invest in Bitcoin today.
The idea of safety was among the main drivers behind the popularization of Bitcoin in its early days. It promised to offer the world a secure means of storage and transacting. The safety feature shook a lot of financial regulators who thought that Bitcoin provided anonymity to criminals and money launders. How much do we trust our banks to keep our money or banking information safely when their systems are centralized? Our safety with the banks can only go as far as protecting our data and acting in good faith.
If hackers get access to a bank’s database, they can clear all the money in people’s bank accounts. That cannot happen to Bitcoin because of blockchain technology. Blockchains are distributed ledgers. We mean is that instead of having your money in a central database, it is scattered everywhere. Transaction records are spread among multiple independent entities. You may not like this, but it is not a bad thing.
A hacker would have to mobilize resources beyond the world’s superpowers to hijack a Bitcoin transaction successfully. The only time you can lose your money is by being careless with the credentials for your crypto wallet. You can invest in Bitcoin comfortably, knowing that your coins will be safe and secure as a beginner. You only need to protect you are password, and you’re good to go. The other aspect of safety is that you don’t need to walk around carrying physical coins. All you need is a wallet and a password. You can own Bitcoins worth millions of dollars, and no one will ever know unless you tell them.
Safest Ways to Buy Bitcoin in the US
As a newbie, you need to learn the safest ways to buy Bitcoin in the US. You have probably come across stories of people who lost their money in shady crypto deals. The first step before you invest in Bitcoin in the US is to find a good broker. eToro is our broker of choice to buy Bitcoin for beginners in the US. You will need to open an account with eToro before you can buy Bitcoin. Here are the safest methods to buy Bitcoin in the US; PayPal, Bank Wire Transfer, and Debit/Credit Cards. We will look at each of these methods in detail.
Buy Bitcoin Safely with PayPal
PayPal is a secure e-wallet for sending and receiving money. The company once said that enabling safe and secure transactions for their users is their only job. To buy Bitcoin safely with PayPal, you need to go to your platform’s funding page and select PayPal as your deposit method. Some brokers do not support this method of payment. You should confirm whether PayPal your broker accepts PayPal as a funding method before opening your trading account. You can buy Bitcoin safely on eToro with PayPal at zero transaction fee.
Buy Bitcoin with Credit/Debit Card
You can safely purchase Bitcoin with Debit/Credit cards if your broker supports this method. It’s one of the most secure methods of investing in Bitcoin in the US today. However, be warned that some brokers charge outrageous fees for every transaction you make with credit/debit cards. eToro allows you to buy Bitcoins safely in the US with credit/debit cards for free.
Bank Wire Transfer
A bank wire transfer is a safe method of buying investing in Bitcoin in the US. Unlike PayPal and credit/debit cards, it can take two to three days for the money to reflect in your trading wallet if you use a bank wire transfer to acquire Bitcoins in the USA. Banks have different charges for bank wire transfers, so make sure to check with your bank early enough.
Risks of Buying Bitcoins in the US
Volatility and Fluctuation
Stability is a key determinant of a good investment. The price of Bitcoin never rests. It’s ever-fluctuating. If you happened to buy BTC in April 2021, you would have spent not less than $60,000. Today, you could not have been able to sell your Bitcoin for more than $35,000. The value of Bitcoin never ceases to ripple back and forth. You can hardly make a good profit in a market that is this unstable. To avoid huge losses, make small investments, and consider holding them for a long time. Bitcoin is always profitable in the long run.
Bitcoin has a first to market advantage. This doesn’t exclude it from the stiff competition being out up by newer cryptos. Some companies such as Stellar and Ripple have created cryptos that are quickly gaining acceptability among governments and financial institutions. Newer coins come at an affordable cost and greater promise for bigger profits than Bitcoin. So you may want to diversify your portfolio to spread your risks thin.
Exposure to Fraud
The security of Bitcoin transactions doesn’t mean you can’t be a victim of fraud. It’s almost impossible to hijack a Bitcoin transaction, but criminals use other ways to steal Bitcoins. The most common one is by creating fake exchanges. Be wary not to sell your deposit your coins into a fake exchange because you will not recover your coins if you lose them. If hackers steal your private key, you will lose all your Bitcoins.
Buy Bitcoin USA – eToro Guide
Step 1: Signup for an Account with eToro
We have made it easier for you. After researching hundreds of brokers, we established that eToro US is the best place to buy Bitcoin for beginners. You simply need to visit their website and click on signup to set up your trading account. Prepare yourself with the following before registration:
- Full Names
- Date of Birth
- Picture of your government-issued ID/Passport
- Picture of a recent utility bill containing your address
Step 2: Verify your Trading Account
Step 3: Fund your Trading Account
You are now ready to invest in Bitcoin. The only thing remaining is to deposit money in your trading wallet. We love eToro because all deposits are free. If you are using a credit/debit card or PayPal, your funds will reflect in your trading account instantly. You can also use Neteller, Skrill, or Bank Wire transfer to deposit money into your trading account.
Step 4: Buy Bitcoin
Hurray! You have done this! Now go ahead and search for Bitcoin. You can find it by typing “Bitcoin” or the ticket symbol “BTC.” Click on trade and purchase Bitcoin for the first time on eToro today. It’s that simple. Remember to specify the amount of money that you want to spend and your entry price. eToro will indicate that you are buying the underlying asset. This simply means that you’re going to own real Bitcoin. Open the trade and become the newest Bitcoin owner in town.
67% of all retail investor accounts lose money when trading CFDs with this provider.
Bitcoin Price Analysis
Bitcoin is one of the assets with the highest volatility in trading history. The best description of this asset’s prices would be Gartner’s hype cycle. The first dramatic price change took place in 2010 when Bitcoin prices jumped by 10,000%. In just a short time, its value had grown from $0.008 to $0.8. Bitcoin enthusiasts have had a bumpy ride since then. By April 2011, Bitcoin had hit an all-time high of $1.
Four months later, we saw the price of this asset skyrocket to $32. Just when investors thought they had found a cash cow, late buyers made a loss of 1600% by the end of the year, when Bitcoin prices plummeted to $2. In 2012, the price improved to $4.9 and closed the year at about $13. Bitcoin was still not acceptable at this time. The concept of having a digital currency that would take over fiat currency looked like an illusion. Only high-risk investors took a chance with Bitcoin. There was thin liquidity, meaning the actions of few investors could lead to massive price swings.
Bitcoin gave us a steady bullish trend in the first quarter of 2013, starting at $13, and closing at $220 in March. There was a 50% pullback in mid-April, leading to a long consolidation, before December when the value of Bitcoin jumped to $1150. Again, just when more investors were preparing to jump in, there was a sharp drop to $740. We mentioned earlier that it is not easy to make money from Bitcoin as a day trader. You can see how easy it is to lose money if your timings are not correct.
On the other hand, investors who buy and hold Bitcoin go home with a bucket full of money in the long run. By the end of 2020, Bitcoin prices had reached $24,000, and in less than one month, they had doubled. Bitcoin had surpassed $40,000 by the end of January 2021, again fell quickly to $30,000 within just three days. At the time of writing this, Bitcoin is at $33,762. It has locked in multiple investors who bought it in April for $60,000. It’s currently losing value, even though the 14 days and 21-day moving averages still point to a general bullish trend. Investors believe this weakness was promoted by the ongoing crackdown on Bitcoin traders in China. See the chart below.
Bitcoin Price Prediction
It is difficult to predict the future price of Bitcoin if you look at the trend it has had. However, the one clear thing is that there is a steady rise in price even in these fluctuations. The factors that influence the price of Bitcoin have shifted considerably. The coin is gaining popularity like wildfire and has already gone mainstream. Technical analysis of the daily chart shows prices converging just above the 400 days moving average. We can also see the formation of a falling wedge, which normally signals a reversal when it occurs on a declining trend. It might be impossible to tell how long the consolidation will last, but technically, there will be a bullish breakout soon.
Institutional traders are taking an interest in buying Bitcoin, and even governments are adopting it. Industry developments such as the launch of Bitcoin futures trading are also a significant force behind the price of Bitcoin. With such developments, the future of Bitcoin is in the skies. Billionaire Mark Cuban predicts that Bitcoin will hit $100,000 by the end of 2020. Another Billionaire, Tim Draper, is looking to sell his Bitcoin when it hits $250,000 in 2022, according to his analysis.
Winklevoss Twins thinks that Bitcoin will disrupt gold. He places his bet at $500,000 by 2030. We cannot give you an accurate prediction of where Bitcoin’s value will go next. Looking at some of the predictions above, it is just a matter of time before this coin makes a new high. Invest in Bitcoin today and celebrate with the billionaires when they will cashing out in the future.
Selling Bitcoin: A Quick Overview
Now that you know how to buy Bitcoin and where to buy it, we need to teach you how to sell Bitcoin. You can only sell Bitcoin once you own it. The procedure of selling is so short. You don’t need to open an account or verify your identity. In your eToro platform, just click on sell if you want to cash out your bitcoin. A window will pop up asking you to confirm that you want to sell your coins. Once you click okay, your trade will compete.
Conclusion – Buy Bitcoin USA
If you’re still thinking of whether Bitcoin is a good buy or not, you might lose out on the next upward price breakout. In the short run, this asset could easily wipe out all your money on earth. The short-term fluctuations of Bitcoin are unforgiving. We advise investors to buy Bitcoin and hold it for a long time if they want to be the next Tim Drapers. Without question, the current weakness in Bitcoin should not be a cause for alarm. The general trend is still bullish. So, open your account with eToro today and start buying Bitcoin before it gets late.