Bitcoin (BTC) has recorded new All-Time Highs multiple times this year after a lengthy consolidation phase. The largest cryptocurrency currently have a market capitalization of $1.8 trillion. The surge in the Bitcoin market has aroused rising interest from traders and investors.
However, navigating the crypto market to buy Bitcoin (BTC) is quite complex for those who need help understanding it. While many novice traders are interested in buying Bitcoin, they must learn the first step. This article is a beginner-friendly guide for those who wish to buy Bitcoin on a secure platform.
The popular way to buy Bitcoin is through centralized crypto exchanges. These platforms serve as intermediaries between buyers and sellers and make money via transaction fees. Centralized exchanges are operated by companies responsible for their customers’ holdings. For beginners, choosing the best exchange to buy Bitcoin is very important because there are risks of these companies failing and even being attacked by hackers.
One notable example is the reported theft of 850,000 Bitcoin from the now-defunct Mt.Gox exchange. Other examples include the collapse of FTX and Alameda Research, bankruptcies of hedge fund Three Arrows Capital, crypto lenders Celsius Network, and Voyager Digital.
We’ll review the top 10 exchanges in the world and highlight their unique features. These include Coinbase, Binance.US, Bitfinex, Kraken, KuCoin, Gemini, Coincheck, BingX, Bitstamp, and Bybit.
Coinbase
Coinbase is one of the most reliable and secure exchanges for buying Bitcoin. It is available in over 100 countries and has a vast user base of 110 million verified users. The platform’s intuitive and friendly user interface is ideal for newbies.
The exchange is a crucial custodian for most spot Bitcoin Exchange-Traded Funds (ETFs). It serves as the custodian for nine of the eleven new Bitcoin ETFs in the US. These include BlackRock iShares Bitcoin Trust (IBIT), ARK 21Shares Bitcoin ETF (ARKB), and Bitwise Bitcoin ETF (BITB).
Coinbase is also the custodian for Valkyrie Bitcoin Fund (BRRR), Grayscale Bitcoin ETF (GBTC), and the VanEck Bitcoin Trust ETF (HODL). As a custodian, Coinbase helps to keep and manage clients’ assets while providing technological, security, and storage requirements specific to Bitcoin.
Additionally, nine of 10 Ethereum ETFs in the US, including BlackRock, Invesco, and Franklin Templeton, use Coinbase as their custodian. Reputable firms’ decision to choose Coinbase as their Bitcoin and Ethereum ETF custodian validates the exchange as the safest, easiest, and most trusted bridge to the crypto economy.
Coinbase has over 12 years of experience in safekeeping digital assets at scale and has developed the leading institutional-grade custody solution. As of Q4 2023, the exchange had safeguarded $193 billion in digital assets, including $101 billion in institutional assets under custody.
Coinbase may require users to pay a deposit fee. Fees differ based on how you add your funds and what type of asset you’re transferring. Also, Coinbase deposit fees may apply depending on the fiat currency and how you’re paying.
Coinbase implements a tiered structure where charges decrease as your trading volume increases. The general trading fees are 0.15%. This is a competitive rate and one that won’t significantly dent your investment profits.
How To Buy Bitcoin on Coinbase
Before exploring Coinbase, it is essential to note that the exchange requires all users to complete a verification process known as “Know Your Customer KYC” This process usually involves submitting a government-issued ID, like a national ID card, to protect against illegal activity and ensure safety for all.
You can buy Bitcoin from Coinbase through the web page or mobile app. To buy on the web,
- Sign up on Coinbase.com.
- Select Buy/Sell.
- Select Bitcoin from the Buy tab.
- Enter the amount you want to buy dominated in Bitcoin or your local currency.
- To enable recurring purchases, select One-time order, then choose Recurring buy, and select the time available for repeat purchases.
- Choose your payment method.
- Click Preview Buy to confirm your purchase.
- If all details are correct, click Buy Now to complete your purchase.
Binance.US
Binance is the largest and most popular exchange globally, trusted by tens of millions of users worldwide. Binance.US provides secure and reliable access to Bitcoin, with some of the lowest fees in the industry.
Buying Bitcoin on Binance.US is easy. You can do it on the exchange’s website or via the mobile app, which is available on iOS and Android. The first thing you will need to do is create an account. The next thing is to verify your identity and pass KYC verification, which can take anywhere from a few minutes to 13 days.
Binance.US has several payment options available for buying Bitcoin. You can use your debit/credit card, bank account, wire transfer, swapping crypto, P2P, or via third parties. Note that the easiest way to buy Bitcoin is directly with your card. However, card purchases can come with fees depending on the currency selected.
After verification, follow the following steps to buy Bitcoin on Binance.US:
- Select “Buy with cash” from the home screen.
- Choose Credit/Debit Card.
- Click “USD” to open the list of supported fiat currencies available.
- Scroll through the list to select your local fiat currency or type the name of your fiat currency in the search bar.
- Enter the amount of the selected fiat currency you wish to spend and tap “BTC.”
- Add a new card or select the card you wish to use for the purchase and then tap Buy.
- Verify the amount before clicking confirm at the bottom.
Bitfinex
The Bitfinex trading platform offers state-of-the-art services for digital traders seeking to invest in Bitcoin. It is important to optimize your security settings after creating your account with Bitfinex.
The platform offers an advanced set of security settings that you can use to strengthen the security of your account. Bitfinex requires users to create a strong, unique password for their account and combine it with Google Two-factor Authentication (2FA).
On Bitfinex, you can purchase Bitcoin using a credit or debit card, digital tokens, or a wire deposit. The new payment option has reasonable fees, which depend on the selected payment processors.
Here are the steps to buy Bitcoin on Bitfinex Mobile App:
- Download the Bitfinex app on Playstore or iOS.
- Create an account.
- Log in to your account.
- Select the Buy Crypto option in the Wallets page or the Buy Crypto tab in Deposit.
- Choose Payment Cards. Deposits using payment cards are made through third-party companies OWNR, Mercuryo, and Simplex. The options available depend on your verification level.
- Choose BTC and enter the amount.
- Select the destination wallet and proceed to payment.
Kraken
For newbies, Kraken is a popular crypto exchange that checks many boxes in terms of security, functionality, and available cryptocurrencies. The platform has a highly-rated mobile app open to residents of all U.S. states except Washington, New York, and Maine. Kraken offers a beginner and a pro platform.
The basic platform is super easy to use but charges higher fees. On the other hand, the Pro platform is aimed at more advanced traders, and the fees are lower. Kraken’s Instant Buy feature lets you buy Bitcoin, well, instantly. However, pay attention to the high fee and spread that display when you buy or sell.
Kraken ranks highly in several lists of most secure crypto exchanges. The exchange works with external auditors to demonstrate that the assets you deposit on the platform are fully backed. Kraken keeps crypto offline in cold storage, which makes it harder to hack. At a user level, the platform has two-factor authentication and requires additional confirmation if you want to withdraw to a new address. Kraken offers flexible payment methods to buy Bitcoin with a credit card, debit card, bank transfer, etc.
Follow the steps below to buy Bitcoin on Kraken:
- Create your free Kraken account. This process requires your email address and country of residence.
- Fund your account using your preferred payment method.
- Complete your Bitcoin purchase. You can buy Bitcoin for as little as $10.
KuCoin
Since its launch in 2017, KuCoin has grown to become one of the largest global exchanges by trade volume. The platform now has over 30 million users and a presence in more than 200 countries. US users can sign up for a KuCoin account, but access to features is limited because the exchange is not licensed to operate in the United States.
As a result, signing up for an account could present some risks. For instance, you might not be able to withdraw your assets if US regulators decide to crack down on KuCoin. The exchange has also had regulatory issues in countries like The Netherlands and Canada.
KuCoin users can access their accounts through an online portal or mobile apps, available for Android and iOS. Both its desktop site and mobile apps offer an abundance of features and tools. KuCoin offers KYC verification and industry-standard security features to ensure users’ funds are safe.
However, Kraken encountered a major hack in 2020, in which hackers stole over $280 million worth of crypto from users’ hot wallets. Fortunately, the assets were covered by an insurance fund. Still, a security breach of this magnitude is concerning. Kraken fees are relatively low compared to competitors, which may charge up to 0.50% per trade.
Follow these simple steps to buy Bitcoin on KuCoin:
- Create your KuCoin account. Sign up on KuCoin with your email address/mobile phone number and country of residence, and create a strong password to secure your account.
- Verify your account. Enter your personal information and uploading a valid Photo ID.
- Link your credit or debit card to your account.
- Buy Bitcoin
Gemini
Gemini provides a regulated crypto exchange that allows customers to buy Bitcoin. The platform is well suited for beginners and highly regarded for its security. Gemini has never been hacked. It is one of the few exchanges available in all US states. However, Gemini’s fee structure is likely a downside for users. You can end up paying fees as high as 1.49% for web orders. Additionally, debit card fees may also apply.
Follow these steps to buy Bitcoin on Gemini:
- Download the App available on the App Store, Google Play, and Galaxy Store.
- Create an account on Gemini.
- Verify account. Go to the “My Account” tab and follow the instructions in the “Verify your identity” section.
- Link your funding source either via Wire and Bank Transfers, ACH Transfers, Apple Pay and Google Pay, Debit Card Purchases, and Crypto Transfers.
- Select the Buy option. You can choose whether you want to place a one-time purchase or a recurring buy.
- Enter buy amount and click continue.
- Select your preferred method of payment, review your trade details, and swipe to confirm your order.
Coincheck
Coincheck is one of Asia’s biggest crypto exchanges. The platform has processed the highest volumes of Bitcoin trading in Japan. More users also make use of Coincheck’s Android and iOS apps than those of any other Asian exchange. Coincheck holds a digital exchange license to operate in Japan and is audited by the Japan Blockchain Association.
Coincheck is designed with intuitive usability that appeal to new users and those with little or no experience of crypto exchanges. Users can fund their Coincheck accounts by either bank transfer or debit and credit card if adding fiat currency.
The exchange do not charge Yen bank transfer deposits, but deposits made in USD are charged a flat fee of $25 or ¥2500 from bank accounts not located in Japan. To ensure security, Coincheck has two tiers of accounts that come with two levels of personal identity verification requirements. To buy Bitcoin Coincheck,
- Register for an account by filling out the sign-up form with email and other details.
- Submit the form to receive an email from the Coincheck and click on the website link attached to the email.
- Ensure getting your phone number verified along with proof of your identity.
- Now, you can move on to depositing Yen and purchase Bitcoin with it.
BingX
Established in 2018, BingX crypto exchange caters to a user base of over 10 million individuals worldwide. BingX boasts tools and features aimed at enhancing users’ trading proficiency. The exchange prioritizes security and transparency, evidenced by its 100% margin reserves verified by reputable organizations like Mazars.
BingX adheres to Know Your Customers regulations put in place to fight money laundering and terrorist financing. Verified users have higher withdrawal limits compared to unverified users. The exchange has maintained an impeccable security record, with zero instances of crypto or wallet theft since its inception. To buy Bitcoin with a credit card, check if your card issuer supports third-party payments in that country.
Here are the steps to buy Bitcoin with your card on BingX;
- Download the BingX app from Apple Store of Google play store.
- Complete a KYC verification.
- Open the Buy Crypto section on the app.
- Select the fiat currency and enter the amount you want to transfer, follow the instructions to transfer the fiat currency to your BingX fiat account
- You can now buy Bitcoin with fiat.
Bitstamp
Bitstamp is among the oldest crypto exchanges, offering a user-friendly platform and very reasonable trading fees. Users can choose to buy Bitcoin Bitstamp’s simple online trading platform or mobile app. Trading fees are the same on all platforms. Bitstamp ensures customer accounts are kept secure while providing a user-friendly crypto trading and investing experience.
Trading fees at Bitstamp start at 0.30% for regular trades for all pairs. While Bitstamp’s fees aren’t the cheapest around but are certainly not the most expensive. Bitstamp stores the bulk of client funds offline in cold storage. When signing up for a new account, the platform allows you to set up and use multi-factor authentication for additional security.
These are the following steps to initiate a card purchase on Bistamp:
- Open the Bitstamp app.
- Click on the Buy button.
- Enter the amount you wish to buy.
- Choose BTC as your crypto of choice.
- Select your linked card as the payment method for the purchase.
- Review the preview of your purchase. If everything is correct, select Confirm Buy.
- A new screen will appear, requesting your security code. This is typically the CVV code associated with your payment card. Enter the security code in the box and then select Buy Now.
Bybit
Bybit provides a professional platform with an ultra-fast matching engine, quality customer service, and multilingual community support for traders of all levels. The exchange operates a safe, secure, transparent, and efficient trading platform with over 20 million users worldwide. To ensure security, Bybit uses 2FA, cold Storage solutions, Multi-Sig wallets, and anti-phishing codes.
Despite its popularity, Bybit is restricted in certain jurisdictions, such as the United States, Syria, and Quebec. Bybit’s trading fees vary for non-VIP and VIP users. The latter are eligible for enhanced fee discounts based on their levels.
First, to Buy Bitcoin on Bybit, download the Bybit App via the App Store or Google Play Store. Once down, follow these steps;
- Register and verify your account.
- Click on Buy Crypto, then select the Express button.
- Enter the desired amount of Bitcoin to be purchased with your preferred fiat currency.
- Proceed with the payment.
- Complete the KYC process and fill in the order by entering your card information.