Table of Contents
Before you buy Bitcoin
5 steps to buying Bitcoin on a crypto exchange
Alternative ways to buy Bitcoin
The bottom line
Jun 21, 2022
6 min read
Novice crypto investors might not know where to buy Bitcoin, but there are now a variety of options to choose from and it doesn’t take a lot of expertise to get started.
Investors looking to make their first foray into the cryptocurrency world will likely have heard of Bitcoin—the most popular crypto and the largest by total market cap. After launching in 2009 to very little fanfare, this crypto has become a household name among many. While buying crypto might seem intimidating, it can be as straightforward as buying stocks and other types of investments online.
Before investing in Bitcoin, it helps to learn more about what Bitcoin is and how it works. Here are some key details:
Bitcoin’s inventor or group of inventors used a pseudonym, Satoshi Nakamoto, to keep their identity secret.
The price for a single Bitcoin has had huge swings, reaching an all-time high in November 2021 of almost $69,000 before dropping to nearly $35,000 over the next two months. In general, Bitcoin is considered a risky investment, in large part because of its volatile price.
It’s legal to buy and hold Bitcoin throughout the U.S., but some municipalities and states regulate organizations that sell Bitcoin.
Regulations and enforcement don’t keep hackers and scammers from stealing Bitcoin, and investors who get fleeced may not be able to recover their crypto.
Investors could have to pay capital gains taxes on the profits they earn from Bitcoin. Crypto tax rules are similar to those that apply to stocks, but they’re also still being finalized.
make buying Bitcoin feel familiar to anyone who has purchased stock online.
There are hundreds of crypto exchanges available to investors, but first-time Bitcoin investors may want to look for reviews and start with one of the well-known options. Before signing up, consider:
Some exchanges don’t operate in certain states, and some aren’t available in the U.S. For instance, Binance is one of the most popular exchanges globally, but it operates a separate Binance.us exchange for U.S.-based users.
The funding, trading, and withdrawal fees can vary depending on the funding source, amount, size of the trade, and the user’s total trading volume.
Investors need to check whether Bitcoin and other cryptos are available on the exchange.
Some exchanges have multiple interfaces, including advanced trading platforms with more in-depth charts, additional types of trades, and margin accounts.
Some exchanges, including Coinbase, Crypto.com, and Gemini, have insurance that can help reimburse users’ funds if the exchange is hacked. However, this won’t necessarily cover someone who is personally hacked or who falls victim to a scam.
Some Bitcoin exchanges offer new users an incentive to create an account and place their first trade. But focusing on the platform’s overall features, fees, and security could make more sense in the long run.
Creating an account often requires registering your full name, date of birth, mailing address, phone number, and Social Security number. Users may also need to upload a photo or use their webcam to take a picture of their driver’s license or passport to complete the verification process. Accounts that aren’t fully verified may have limitations on buying and selling crypto.
Connect a funding source after setting up an account. Debit cards, credit cards, bank accounts, digital wallets, and wire transfers are commonly accepted.
The fees, timing, and maximum funding amount vary depending on the funding source and platform. Generally, a wire transfer offers the fastest funding with a high limit, but banks may charge a fee to send the wire and the exchange could charge a fee to accept it. Debit cards and bank account transfers are often free. While the transfer limits may be lower, sometimes the funds are available instantly.
Investors might want to add dollars to their account before buying crypto. Or, once a funding source is linked, they may be able to use it to purchase Bitcoin without depositing dollars first. There may be several options to place an order including:
With a market order, the order will be fulfilled based on Bitcoin’s current price.
With a limit order, the order will only be fulfilled once Bitcoin is at, or below, the chosen limit price.
Bitcoin’s price can quickly swing, so limit orders can help protect investors from paying much more than they intended.
Investors may want to consider how Bitcoin fits into their overall investment strategy. Among other things, buying Bitcoin and other cryptos could help diversify a portfolio.
Some investors, rather than investing a large sum at once, set up recurring weekly or monthly investments. This strategy, called dollar-cost averaging, may mitigate some of the timing risk that comes with investing in volatile digital currencies like Bitcoin.
There are also investors who purchase cryptos as a long-term investment, which is sometimes referred to as “HODLing” (i.e., long-term holding). Others may create a plan to sell a portion of their investment if it increases by a certain amount. Still others take an active approach to buying and selling cryptos in an attempt to profit from the market’s ups and downs.
Buying Bitcoin on a crypto exchange is a simple option, but people can also purchase Bitcoin using other types of accounts and investments:
Some payment, savings, and investment apps, such as CashApp, Venmo, and PayPal, have added crypto to their platforms.
P2P Bitcoin marketplaces, such as Bisq, HodlHodl, and Paxful, are Bitcoin trading platforms that let people buy Bitcoin directly from an individual seller rather than on an exchange.
There are physical Bitcoin ATMs that sell Bitcoin, but they may have high transaction fees and poor exchange rates.
Individuals may have their own preferences for where and how they want to buy and hold their Bitcoin. Some prefer a well-known and trusted exchange that they believe will keep their Bitcoin safe and reimburse them if something happens. Others create a Bitcoin wallet to buy and store their Bitcoin independently.
Buying Bitcoin-related investments can also be a good fit for individual and institutional investors who might not want to—or be allowed to—purchase Bitcoin directly or hold Bitcoin in certain types of accounts.
Novice crypto investors might not know where to buy Bitcoin, but there are now a variety of options to choose from and it doesn’t take a lot of expertise to get started on a crypto exchange. For investors who want to take a deeper dive into crypto, learning about Bitcoin wallets could be a good next step. Alternatively, there are ways to hire professional advisors to manage crypto investments.
At Titan, we are value investors: we aim to manage our portfolios with a steady focus on fundamentals and an eye on massive long-term growth potential. Investing with Titan is easy, transparent, and effective.
Get started today.
Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Titan has not independently verified such information and makes no representations about the accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; Titan has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any strategy managed by Titan. Any investments referred to, or described are not representative of all investments in strategies managed by Titan, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see Titan’s Legal Page for additional important information.
You might also like
Who Is Satoshi Nakamoto? Exploring the Mystery Behind the Bitcoin’s Founder
Given the mystery around Nakamoto’s identity, people have speculated about who is behind the name. Some claims are more outlandish, while others are based on research.
How to Earn Bitcoin
While investors can buy Bitcoin or swap other cryptos into Bitcoin, there are also ways to earn a lot of Bitcoin, but they tend to require a larger up-front investment.
How to Store Bitcoin Safely
When someone buys Bitcoin, they’re linking the funds to a crypto wallet. Keeping the wallet secure is vital to storing Bitcoin safely and protecting the investment.
What Is Bitcoin Mining and How Does It Work?
Bitcoin mining is the process of using computer power to mint unique digital tokens that can be transmitted across the internet and used as currency to buy goods.
© Copyright 2023 Titan Global Capital Management USA LLC. All Rights Reserved.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan. Cryptocurrency trading is provided by Bakkt Crypto Solutions LLC ("Bakkt Crypto"). Bakkt Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Bakkt Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution services are provided by Bakkt Crypto (NMLS ID 1828849) through a software licensing agreement between Bakkt Crypto and Titan. Please ensure that you fully understand the risks involved before trading: bakkt.com/disclosures.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at firstname.lastname@example.org. 508 LaGuardia Place NY, NY 10012.