How to Buy Bitcoin (BTC)

Understand how you can buy Bitcoins online in minutes through a regulated Bitcoin exchange or a CFD broker using your credit card, debit card or PayPal.

Buy shares outright or trade CFDs on shares, indices, Forex, cryptocurrencies and more*. Connect with over 6 million other investors, follow or copy their trades in real-time on eToro.com.

  • Currency pairs: 47
  • Markets: Commodities, Forex, Gold and metals, Indices, Oil, Shares
  • Platforms: Copy trading, Mirror trading
  • Regulators: Australia, CySEC, UK
  • Incorporated: 2007

$400
deposit

1:30
leverage

3 pips
EUR/USD

$1000
deposit

1:30
leverage

3 pips
EUR/USD

$20000
deposit

1:30
leverage

3 pips
EUR/USD

Risk warning ?

HYCM (HYCM.com), formerly HY Markets, is an award winning online broker authorised and regulated by the FCA and CySEC. Trade over 100 instruments on fixed or variable spreads over MetaTrader 4.

  • Currency pairs: 45
  • Markets: Commodities, Forex, Gold and metals, Indices, Oil, Shares
  • Platforms: MetaTrader 4, MetaTrader 5
  • Regulators: CySEC, UK
  • Incorporated: 1977

$100
deposit

1:30
leverage

1.8 pips
EUR/USD

$100
deposit

1:30
leverage

1.4 pips
EUR/USD

$200
deposit

1:30
leverage

0.2 pips
EUR/USD

Risk warning ?

To buy Bitcoin online, you can either turn to a Bitcoin exchange or a CFD broker. This article discusses the pros and cons of each approach in more detail.

Buy Bitcoin through a CFD broker

You can invest in Bitcoin through a CFD broker such as Plus500.com, HYCM.com as well as eToro.com. When you "buy" Bitcoin through a CFD broker, you won't actually own any Bitcoins. Instead, you are speculating on the price of Bitcoin against either the US Dollar or, in some cases, the Euro.

Pros

  • Go long or short: with a Bitcoin CFD, you may either go long or short. This enables you to profit in a rising market if you are "long", or profit in a falling market, if you are "short"
  • Fractional ownership: enables you to buy a fraction of a Bitcoin, rather than a set number of Bitcoins outright. This could be of interest if your budget is constrained.
  • Leverage: allows you to borrow money from your broker to finance your purchase. However, please note that leverage is a double-edged sword which can magnify your gains as well as your losses.

Cons

If you leverage your trades, you should expect to pay your broker interest on your borrowings. This form of interest is known as "swap fees" in the industry's jargon. They may be either positive or negative, depending on the direction of interest rates. You should enquire about these fees with your broker.

Leverage will increase both your potential gains and losses. This is true of all investments. However, this is acute in the case of crypto-currencies, whose prices are highly volatile.

Buy Bitcoin through an exchange

If owning Bitcoins is important to you, you should buy the crypto-currency through an exchange or directly from someone else. When you invest in Bitcoin through a crypto-currency exchange, you'll swap your account's base currency (typically US Dollars, Euros or Pounds) for Bitcoin. You can either store them with the exchange, or transfer them to a digital wallet.

Pros

You will find an updated list of the largest crypto-currency exchanges on Wikipedia. You may also buy Bitcoin directly from eToro.com, the world's largest social trading platform (except if you are an Australian resident, in which case you may only buy a CFD).

Cons

  • Go long: when you own Bitcoin, you can only profit from increases in the price of the crypto-currency. However, you stand to lose if Bitcoin's price falls, unless of course you are willing to hold on to your investment until you have turned a profit.
  • Theft: Bitcoin exchanges have often fallen prey to attacks. Mt. Gox, which was at one time the world's largest Bitcoin exchange, filed for bankruptcy after a large theft which resulted in the loss of 6% of Bitcoins in circulation at the time. Security practices remain lax across many Bitcoin exchanges and wallets.
  • Slow: it can take many days to open and fund an account with a Bitcoin exchange, unless you live in the USA. This can be a genuine problem if you are looking to make a quick trade to take advantage of price changes.

FxPro

MT4 Fixed - Instant Execution

Trade 70+ currency pairs, spot indices, energies, metals and shares on fixed spreads with instant ... More

  • $500 deposit
  • 1:500 leverage ?
Risk warning ?

AvaTrade

MT4 Account

Trade 55 currency pairs on fixed spreads, plus CFDs on crypto-currencies, stocks, indices, bonds and... More

  • $100 deposit
  • 1:30 leverage ?
Risk warning ?

HotForex

Premium Account

Trade Forex as well as CFDs on cryptocurrencies, shares, indices and metals on floating spreads ... More

  • $100 deposit
  • 1:400 leverage ?

eToro

Premium Account

Get direct access to the trading desk 24/5, unique promotional offers, a special deposit bonus, ... More

  • $20000 deposit
  • 1:30 leverage ?
Risk warning ?