How to buy Bitcoin?

Buying Bitcoin is straightforward, especially in Europe. There are several ways to buy Bitcoin, each suited for different needs.

Bitcoin Exchanges vs. Brokerages: What’s the Difference?

Bitcoin Exchanges

Exchanges match buyers and sellers, mostly for active traders. They don’t hold any assets themselves, so liquidity depends on traders. This can make short-term trades tricky. Exchanges earn by charging transaction fees.

Bitcoin Brokerages

Brokerages handle one side of the trade, either buying or selling the Bitcoin. They control the price and liquidity, making it easier to execute quick trades. Brokerages make money by charging a spread. They’re perfect for those looking for a simple way to buy Bitcoin as an investment.

Bittr is an example of a brokerage where you can buy Bitcoin quickly and securely.

OTC Desks

Over-the-counter (OTC) desks are for large-scale Bitcoin trades. Buyers usually need to receive their Bitcoin within 24-48 hours. OTC desks are ideal for institutions or individuals looking to buy huge amounts.

Peer-to-Peer Bitcoin Trading

You can also trade Bitcoin directly with others, either in person or online. Platforms for peer-to-peer trades function like an order book. One user makes an offer (the “maker”) while another completes the trade (the “taker”). Volumes here are smaller compared to exchanges or brokerages, but some prefer this method.

Reputable Peer-to-Peer Platforms:

• Bisq
• Peach Bitcoin This method was more common in Bitcoin’s early days but is less popular now due to fraud risks and the convenience of other options.

Bitcoin ATMs

Bitcoin ATMs let you buy Bitcoin at physical kiosks, usually located in stores or gas stations. You scan an ID, insert cash, and provide a Bitcoin address. They charge higher fees than online brokerages.

Bitcoin ATM in Europe:

• Kurant
• Zeus ATM

Bitcoin Derivatives

Derivatives are financial contracts tied to the value of Bitcoin. Common types include futures and options. While they allow traders to hedge against price changes, they also come with more counterparty risk. These products are traded outside the Bitcoin network.

Opening an Account at a Brokerage or Exchange

Before opening an account, check factors like verification requirements, fees, and withdrawal times. Most brokerages provide custodial wallets, but you don’t have full control of your Bitcoin until you transfer it to a personal wallet.

For large purchases, consider a hardware wallet or cold storage for added security.

Choosing the Best Purchase Method

The ideal method depends on how much Bitcoin you’re buying and how quickly you need it. For most people, using an exchange or brokerage for spot buying, connecting a bank account or card—is the best option.

Final Thoughts

• Most people buy Bitcoin through brokerages.
• Financial institutions offering Bitcoin include brokerages, exchanges, and OTC desks.
• Consider the size of your order and payment method when deciding how to buy.