Top 9 Ways to Buy Bitcoin: From a Few Dollars to Millions Worth of BTC

The bitcoin (BTC) rally this year has brought crowds of new buyers and, inevitably, sellers. However, cryptoasset exchanges are not the only way to buy or sell your BTC, as this ever-growing ecosystem offers a wide range of opportunities to add the top cryptocurrency to your wallet.

Read this guide to find the best way to buy bitcoin that suits your needs and abilities.

Buying Bitcoin on Centralized Exchanges

Pros: User friendliness, fees, price, regulated, support

Cons: Custodial, KYC, risks of a hack, centralized

This is probably the most popular way to buy BTC, as people often look for large, well-established, and secure platforms. Moreover, the larger the exchange, the better the price and security it can offer, alongside sufficient liquidity that allows you to quickly buy BTC and relatively lower fees. However, the size of the company is not a guarantee of security, as multiple collapses of large platforms, such as FTX, have shown.

Large platforms such as Binance, Coinbase, Bybit, Kraken, Bitstamp, and others offer a wide range of services that might be relevant if you’re interested in more than just buying BTC. However, to use these exchanges, you’ll need to register and pass strict KYC (know your customer) procedures to confirm your identity, giving up your privacy. Smaller exchanges may be easier to register on, but they might come with higher trading and withdrawal fees.

An important thing to remember when buying BTC on a centralized exchange: until you withdraw your bitcoin to your self-custody wallet, the BTC you just bought is still controlled by the exchange.

Buying Bitcoin on P2P Platforms

Pros: Privacy, self-custody

Cons: Price, fees, harder to use

Contrary to centralized exchanges, trades on P2P (peer-to-peer) platforms—also sometimes referred to as decentralized exchanges (DEXes)—happen directly between the buyer and seller. The platform merely helps them find each other. While buying BTC on a centralized exchange might be easier from a user-experience point of view and cheaper, with potentially better prices, P2P platforms have other advantages. For example, you can avoid KYC procedures and retain control of your BTC since P2P platforms do not hold users' assets. This also makes them less attractive to hackers. You can explore P2P BTC platforms such as Bisq, Robosats, or HodlHodl.

Buying Bitcoin via ATM

Pros: User-friendliness, privacyCons: Expensive to use, availability

This is one of the most expensive ways to buy BTC, as these automated teller machines (ATMs), similar to those offered by traditional banks, can charge fees of more than 10%. However, it is a relatively simple method that also offers strong anonymity. You can find the nearest BTC ATM using services such as coinatmradar.com

Buying Bitcoin via Traditional Fintech Apps

Pros: Familiarity, user-friendliness, fiat and BTC accounts in one app

Cons: KYC, custodial, and fees, might be other limitations to using BTC

If you’re using familiar fintech apps such as Revolut, Robinhood, Cash App, PayPal, or its Venmo service, you can also buy BTC or at least gain exposure to this asset. Usually, these apps are custodial, meaning they control the BTC you just bought, and you would need to transfer it to your own wallet if you want full control. Compared to centralized exchanges, these apps might have higher trading and withdrawal fees. However, in one app you might be able to manage your fiat money and BTC funds.

Buying Bitcoin via Cryptoasset Apps

Pros: User-friendliness, possible self-custody options

Cons: Fees

There are plenty of cryptoasset-native or even BTC-only apps that allow you to buy BTC and store it in the same wallet, which can be custodial or non-custodial. Options include Coinbase Wallet, Trust Wallet, Blockchain.com, Strike, and apps offered by BTC hardware wallets like Ledger and Trezor. Before purchasing, check the fees and double-check who controls the BTC on the app.

Buying Bitcoin in Person

Pros: Privacy, possibility to negotiate the price

Cons: Availability, risks of being robbed

You can buy BTC during an in-person trade, and some platforms offer services to help buyers find sellers. They can also be found on local BTC groups and forums. While there are no extra transaction fees in this method, you’ll need to negotiate the price on your own. Buying BTC in person provides a higher level of privacy but also introduces more physical security risks, as you might not know the seller. Therefore, exercise caution and trade in public places with other people around.

Buying Bitcoin via OTC

Pros: Great for large purchases, doesn’t affect the market immediately, privacy, ability to negotiate

Cons: Not for beginners, more complicated process

If you’re looking to spend hundreds of thousands or even millions to buy BTC, consider using over-the-counter (OTC) desks. They help find sellers and process large orders, where you can also negotiate the price. One advantage of OTC is that you won’t immediately impact the market as you would when buying huge amounts of BTC on centralized exchanges. Additionally, OTC can offer more privacy. Major centralized exchanges like Binance, Kraken, Coinbase, and others provide their own OTC desks.

Buying Bitcoin via Brokers

Pros: User friendliness, extra support, custody options

Cons: KYC, centralization

For those willing to use a middleman and get more support and guidance when buying larger amounts, BTC brokerages such as River, Relai, Swan Bitcoin, Unchained, and others offer personalized services. These might include a dedicated point of contact for guidance, better prices for larger orders, and various custody solutions, including unique in-house multi-signature solutions for enhanced BTC protection.

Buying Confiscated Bitcoin

Pros: “Government-approved” BTC source, price

Cons: Limited availability, deposits in advance, not private

This method might be more relevant for those looking to acquire large amounts of cryptocurrency. Law enforcement and other state institutions, such as tax authorities, sometimes sell confiscated BTC. These sales are often arranged via centralized exchanges, but you might be also lucky to find an auction. For example, at the time of writing, the US Marshals Service has nearly 4,042 BTC ($392 million) forfeited in various federal criminal, civil, and administrative cases for sale. Buying BTC via such auctions can also ease concerns about the origin of your BTC. However, auctions may not be straightforward for casual investors and often require advance deposits. In the case of the US Marshals Service, this deposit stands at $200,000.

As these nine ways to buy BTC demonstrate, you can choose the best option depending on your needs, such as privacy, control of BTC, fees, additional support, technical knowledge, purchase size, and more. Meanwhile, exposure to this asset class can also be achieved via various indirect investments and vehicles, such as exchange-traded funds. However, these do not give you control over your BTC or the ability to use it for payments. Therefore, buying BTC through the methods listed above is the most straightforward way to get bitcoin into your wallet.