Bitcoin released in 2009 was invented by an unknown person or group under the pseudonym Satoshi Nakamoto. It is one of the first decentralized digital currencies and also a digital payment system. The cryptocurrency phenomenon still remains one of the most popular currencies of its type worldwide. For instance the value per coin in 2017 was almost $20,000. Thus, many people strongly believe that Bitcoin will be the currency of the future. Below you will be able to find more about how Bitcoin works as well as the best places you can find to buy Bitcoin.
Firstly, you’ll need to know more regarding Bitcoin. As a digital currency, it is mainly used for buying things online or as an investment. It is crucial to know that bitcoin crypto is not sponsored by any government. It is rather a system where people can earn coins from “mining” or by completing calculations through their computers. One can buy bitcoin with dollars or any other kind of currency.
Reminder: You shouldn’t risk it and invest the funds that you cannot lose. You should be able to see the two sides of the coin. Since, people sometimes lost a lot of money when it fell from its peak.
However, if you still want to invest in Bitcoin, we will show you the steps you should take. First of all, you need a place to store them. Moreover, you can either use an online digital wallet that is attached to the account where you buy and sell, a program on your computer or a physical device that you plug into your computer.
Then, you can also transfer Bitcoin and use them for purchases at a few stores on and offline. However, you should keep in mind the large transfer fees while transacting in Bitcoin.
Now let’s get back to the main point: Where can you buy Bitcoin?
The complete list of the best places to buy Bitcoin 2020
- Square Cash
- Coinbase Pro
Coinbase, one of the largest and highly respected Bitcoin platforms in the U.S. Coinbase is an easy way to start with Bitcoin crypto since it offers an exchange and wallet at the same time. It is quite important to mention that Coinbase supports Bitcoin Cash, Ethereum, as well as Litecoin.
After having signed up and connected to your bank account, it is easy to transfer funds from your account. You can also convert Bitcoins back to dollars. The fee for U.S. transactions from a bank account or Coinbase USD wallet is 1.49%. Whereas purchases with a credit or debit card come with 3.99% fee.
Another important factor to mention is that the Coinbase wallet is safe. For instance, you can access via the Web app or mobile app. Then, it also utilizes two-factor authentication, and it also keeps redundant digital and paper backups of data “ in secure deposit boxes and vaults worldwide”. Additionally, cash balances are insured up to $250,000 against theft or a breach in online storage. In order to keep the customer currencies safe from hackers, Coinbase keeps 98% of currencies offline.
All of the above mentioned facts prove why Coinbase is a leader in digital currencies in the U.S.
What started as a fee-free stock brokerage turned into the world of digital currencies. One of the best things about Robinhood is that “NO FEES” are added. Therefore, you have the opportunity to purchase and sell Bitcoin as well as other digital currencies with no fees added on this platform. Robinhood’s mobile app supports crypto trades and market data. Your coins will be stored in the exactly same account that you use for your stocks and share the same login. Robinhood is mainly for the mobile devices, but it is also possible to trade on desktop. Robinhood is the perfect choice to manage money from your phone or tablet.
However, Robinhood also has downgrades. For instance, the platform doesn’t work in each state for cryptocurrency trends since May 2020. However, if you are lucky enough to live in one of the states that Robinhood works, it is one of the best options to start trading in Bitcoin.
In addition to Robinhood, Square Cash is a mobile app where you can trade Bitcoin with no fees. This Cash app is highly valued as the best option to send money to family members and friends for free. This makes this app one of the best places where you can purchase Bitcoin.
Square Cash is an enormous financial technology company that comprises plenty of other services. In comparison to what they do, Bitcoin still remains a tiny part of the company.
It differs from other digital wallets for the fact that you don’t keep your Bitcoin outside of Square. It is kept in your Square Cash account to sell or withdraw at will. However, if you wish to send your coins to another wallet, Square offers that as well. However, Square limits purchases at $10,000 within a week. As for selling there is no limit from Square.
Binance is known as a supporter of a variety of digital currencies such as Bitcoin, Ethereum, as well as its own Binance Coin(BNB). Binance charges fees only 0.10% for trades.
Via Binance you have also the option to trade coins into a variety of currencies and it supports digital currencies, such as EOS, Skycoin, TRON, ICON, Ethereum Classic, Litecoin, Ripple, Stellar Lumens, Bitcoin Cash, and so on. In other words if you wish to surpass the most popular coins, look no further than Binance.
However, people must be aware that Binance is not insured, which may be a problem to certain people. Otherwise, Binance platform is a great choice since it offers a wide variety of currencies at a low cost.
Another serious trading platform is Coinbase Pro(known as GDAX) that charges very low fees from 0.04% to 0.50% depending on your trading volume. If you plan to try Coinbase but at a higher volume, look no more than this platform.
For the fact that GDAX is now Coinbase Pro, funds are safe and insured. Cash here is insured up to $250,000 and most of the coins are stored in physical form offline in order to prevent theft.
Coinmama is the place for exchange and a digital wallet, which makes it easy to buy Bitcoin and a limited list of extra currencies in U.S. Dollars or Euros. This platform has around 2 million customers in 188 countries. Since Coinmama is a registered money business in the U.S., it sort of has additional legitimacy and recognition above some competitors.
It’s easy to buy Bitcoin. For instance just a few steps from the homepage you can buy Bitcoin. Even though the exchange offers great real time transactions, it charges way higher fees than the other platforms on this list. For example, there’s a 3.90% commission fee on buy transactions and 0.90% on sell transactions. Moreover, you’ll have to pay an additional 5% when using a credit or debit card.
However, in comparison to the open market, Coinmama funds user trades from its own holdings, which adds extra security.
Unfortunately there is no mobile app yet, however, the website is of high quality.