How to buy Bitcoin (BTC) from the USA

By   |   Verified by Andrew Boyd   |   Updated 29th August 2022

  • Bitcoin is the first cryptocurrency and largest by market capitalization.
  • Bitcoin is an open-source platform that issues cryptocurrency and manages transactions.
  • Bitcoin can be traded peer-to-peer or on a crypto exchange.

If you want to know where and how you can buy Bitcoin today, this is the guide for you.

Where to buy Bitcoin

eToro Crypto

On eToro's website

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."

eToro Crypto

Highlights

  • Buy $100 worth of crypto and get a bonus of $10.
  • Trade and stake a range of crypto assets with low fees.
  • Copy successful traders. Practice with a demo account.
  • eToro is regulated by CySec, FCA and ASIC.

Pros

  • The user-friendly website and app make it easy to trade from anywhere.
  • Trade Bitcoin, Ethereum, and 60+ other crypto assets.
  • With its CopyTrader feature, you can replicate the moves of other investors.
  • Start trading with just $10.

Cons

  • There is a 1% fee that is added to the market price.
  • Other exchanges have more selections of crypto coins and tokens.
Coinmama

On Coinmama's website

Coinmama

Highlights

  • Buy Bitcoin and Ethereum with a credit card, debit card, Apple Pay, or bank transfer.
  • Place your order and get your coins instantly.
  • Fast-track verification with excellent customer service.

Pros

  • Start with as little as $50.
  • Accepts multiple types of payment options.
  • High spending limits.

Cons

  • Fees are higher compared to other providers.
  • Limited cryptocurrency selection.
Crypto.com

On Crypto.com's website

Crypto.com

Highlights

  • Earn up to 8.5% p.a. on your crypto, and up to 14% p.a. for stablecoins.
  • Spend with the Crypto.com Visa Card and get up to 8% back.
  • Shop with Crypto.com Pay and receive up to 10% back, paid in CRO.

Pros

  • Get access to additional features including lending, borrowing, debit cards, and more.
  • Start trading with just $1.
  • Interest-earning deposits are available.
  • There is a USD 2,000 referral bonus.

Cons

  • Lack of educational resources.
Gemini Exchange

On Gemini's website

Gemini Exchange

Highlights

  • Gemini Exchange makes it simple to research the crypto market, buy bitcoin and other cryptos, and build a portfolio for the future of money.
  • Set recurring buys and dynamic price alerts.
  • All crypto held online in Gemini's exchange wallet is insured and it uses the best-in-industry cold storage coverage with leading insurance providers.

Pros

  • Suitable for both beginner and advanced traders.
  • Supports multiple fiats and cryptocurrencies.
  • You can earn interest on your cryptocurrency balances.
  • Its mobile apps are highly rated.

Cons

  • The fee structure can be expensive for both small trades and higher volume trades.
Coinbase

On Coinbase's website

Finty may be compensated when you click on the link.

Highlights

  • Get $5 in Bitcoin after your first trade on Coinbase.
  • Buy and sell popular digital currencies, keep track of them in the one place.
  • Invest in cryptocurrency slowly over time by scheduling buys daily, weekly, or monthly.
  • Maintains crypto-insurance and all USD cash balances are covered by FDIC insurance, up to a maximum of $250,000.

Pros

  • Get access to a wide variety of altcoins.
  • Start trading with as little as $2.
  • Offers Coinbase card which allows you to spend crypto anywhere.

Cons

  • Fees are higher compared to other exchanges.
KuCoin

On KuCoin's website

KuCoin

Highlights

  • Safe and rapid way to trade crypto.
  • Multiple order types for all kinds of risk appetite.
  • Sign up and get a welcome gift.

Pros

  • Invest or trade 700+ coins.
  • Low trading and withdrawal fees.
  • Get 24/7 customer service from KuCoin.
  • Has over 20 million users worldwide.

Cons

  • Not suitable for beginners.

Step 1: Choose an exchange that sells Bitcoin

Bitcoin is the most famous cryptocurrency and is available on practically every cryptocurrency exchange in existence.

Before deciding which exchange to use, check what their fees are for depositing and withdrawing funds as well as their maker / taker fees. These can vary considerably between exchanges. We have a variety of side-by-side exchange comparisons to make it easier to narrow down your decision or you can just compare Bitcoin exchanges here.

Step 2: Sign up and get verified

Once you have chosen an exchange, you have to open an account and then confirm your identity. This usually takes just a few minutes to complete. Among the details you'll need to provide include your name, date of birth, and address. Some exchanges may require a phone number to enable 2FA and secure your account. Further proof of your identity may be required before you can buy. A copy of a government-issued ID like a driver's license is typically acceptable. You may need to provide an image of yourself while holding the ID.

Step 3: Set your budget

Decide how much you want to put into Bitcoin and avoid the temptation to spend more than you can afford to lose. Bitcoin is a very volatile asset that can experience sudden and extreme swings in valuation as the market, much more so than with stocks.

Step 4: Transfer funds

You can transfer funds to your exchange account in a number of ways. You can transfer fiat currency (USD) from your bank account, but exchanges may support payments from credit or debit cards, Payoneer, PayPal, Skrill, Venmo, etc. Note that it may take several days before cash is cleared into your account. If you already own some crypto, you could transfer that to your exchange account. Some exchanges require a minimum deposit.

Step 5: Buy Bitcoin

Once your account has been verified and funds cleared, you can buy Bitcoin. Optionally, you may be able to set up a recurring buy — if available at the exchange — so you can automatically buy on a regular basis and dollar cost average your position. You may also be able to set up an order to buy when the price hits a certain price, so, for example, any time Bitcoin's value drops to a certain price, your trade would execute automatically.

Where to store your Bitcoin

Just the way you store cash in a physical wallet, you can store Bitcoin in a digital wallet. Digital wallets can be either software-based or hardware-based.

These wallets store the information you need to make transactions. Though these wallets are described as a place to store crypto assets like Bitcoin, they are essentially inextricable from the blockchain.

Digital wallets are primarily of two types, i.e., hot wallets and cold wallets. While hot wallets are accessible online, cold wallets are intentionally kept offline to keep hackers from gaining access. Hardware wallets are also considered cold wallets because they have no direct connection to the internet and are the most secure way to store Bitcoin.