5 Easy Ways You Can Buy Bitcoin

   Since 2009, Bitcoin, the first cryptocurrency ever created, has experienced a great deal of price turbulence.

Its path has been full of ups and downs over the years, but more so over the last few years, attracting different types of investors. Some have gained a lot, while others have lost in the process.

For those who want to engage in this decentralized form of e-currency, there are various ways they can acquire it. Some options include buying it directly or through some traditional brokers as well as emerging companies.

It is worth mentioning that buying Bitcoin has become even easier following approval by the Securities and Exchange Commission in the United States. Let’s discuss four easy ways one can buy bitcoin in 2024.

Bitcoin: Explained

Bitcoin is a form of digital money known as a cryptocurrency meant for virtual transactions. It was created in 2009 and went viral in 2017 because of its quick increase in value.

It is generated, or "mined," through computer algorithms performed by processors dedicated to facilitating and verifying transactions in the currency.

Bitcoin uses a decentralized peer-to-peer network that is powered by blockchain. This is a distributed ledger that records every transaction made using the currency.

Blockchain serves as an all-inclusive public ledger that thoroughly catalogs each exchange made within the currency system. Authority over the network ensures the integrity of the currency and validates Bitcoin ownership.

5 Methods of Procuring Bitcoin

The internet has opened up many ways to acquire bitcoin for those who are interested in trading. For instance, it is no longer necessary to set up a separate account through which the purchase of bitcoin would take place.

Prominent brokerage platforms allow access via exchange-traded funds (ETFs). Some unexpected players, such as PayPal and Cash App, have extended this option even to residents of the United States.

undefined Financial Apps

A few financial apps, like PayPal and Venmo, facilitate cryptocurrency trading. PayPal simplifies Bitcoin buying or selling directly through its popular app known for secure online payments. The transaction fee depends on the amount being traded.

Trades under $5 incur a 0.49 fee; trades from $200 to $1000 attract 1.8%; and anything about $1000 is levied at 1.5%. Trades also come with a spread markup, but there are no charges associated with just holding cryptocurrencies in the account.

One can trade as low as $1 with Ethereum, Litecoin, Bitcoin Cash, and the recently introduced PayPal Stablecoin, among others.

undefined Cryptocurrency Exchanges

Cryptocurrency exchanges are becoming a common way for people to buy Bitcoin. Traders benefit from this in a number of ways.

Firstly, at the topmost levels, many leading cryptocurrency exchanges have some of the most competitive overall costs for cryptocurrency trading, making them good to use for cost-conscious individuals.

Secondly, there are various exchanges that don’t spread markups, such as hidden fees contained within trading prices. Thirdly, merchants provide wallet services to allow safe storage of digital money.

Different pricing, variety of available cryptocurrencies, and quality of service should be taken into account while evaluating fee structures across various cryptocurrency exchanges. Notable selections include Binance, Crypto.com, or Coinbase.

undefined Trading Platforms

It is possible to get Bitcoin without paying direct commission fees through trading applications like Gemini or Voyager, but with a spread markup mechanism in play. Moreover, some of these platforms allow for the purchase of Bitcoin ETFs.

There are many trading platforms that have incorporated this feature into their cryptocurrency transactions, which are also not subjected to any hidden spread markups.

They typically allow customers to buy Bitcoin directly and also give access to other cryptos that aren't easily available elsewhere.

Furthermore, the user-friendly interface on such platforms can be used by traders who want to engage in purchasing stocks, options, or ETFs, including Bitcoin ETFs.

undefined Traditional brokerage firms

Traditional brokerage firms such as Interactive Brokers and TradeStation have expanded their services to include cryptocurrencies. Bitcoin ETFs are among the significant platforms that have allowed brokers to offer investment instruments that facilitate access to cryptocurrencies.

Interactive brokers facilitate Bitcoin futures trading as well as coin conversion. There is a fee of five dollars for each futures contract, which gives exposure to five bitcoins.

For actual Bitcoin trades, which depend on monthly trading volumes, competitive commissions range between 0.12 percent and 0.18 percent of the trade value.

Besides Bitcoin, Ethereum, Bitcoin Cash, and Litecoin are also available for trading. In addition, Interactive Brokers offers a wide range of securities traded globally.

undefined Bitcoin ATMs

There is also an alternative way to obtain Bitcoin: through the use of Bitcoin ATMs. However, they tend to have high transaction fees compared to other methods.

These automated teller machines enable one to directly purchase bitcoin in some selected areas. One can also sell their bitcoin for cash or use a debit card. However, in order to transact using these ATMs, it may require having a Bitcoin wallet.

The commission fees that are associated with Bitcoin ATMs are huge, with some machines charging about 7% per transaction. On the other hand, charges at other ATMs can reach up to more than 10%.

Cost efficiency should be a top priority when thinking about purchasing Bitcoin or other digital currencies for investment.

Unlike the regulated stock market, where trading fees have disappeared, the cryptocurrency market is still young, and this has made many brokers focus on commission charges as a way of raising revenue.

Though small in amount, these charges can significantly eat into expected profits, thus calling for a policy that seeks to reduce the costs of doing business.

Conclusion

Since its launch in 2009, Bitcoin has experienced remarkable fluctuations in value as well as captivating the attention of different investors.

However, the popularity of Bitcoin has been skyrocketing for the last five years. Through financial applications, cryptocurrency exchanges, traditional brokerages, trading platforms, and ATMs for bitcoin, there are various ways to obtain this digital currency.

However, among these options is the vital problem of cutting down on charges, which is essential, especially when placed against a backdrop of markets that still charge commissions.