How to Buy Bitcoin Online

How to Buy Bitcoin Online

You have heard the Bitcoin speech, you think it is a great idea and now you are ready to join the monetary revolution… but where exactly do you go? If this sounds like you have no fear! BitBarricade team has your back. All crypto investors (new or seasoned) have been in your position before and have wondered how to buy Bitcoin online. If you have been driving around a city near you looking for the Bitcoin store, stop and go back home; you can purchase Bitcoin and other cryptocurrencies using exchanges from the comfort of your personal computer or smart phone!

What is a Cryptocurrency Exchange?

What is an exchange, you ask? It is an internet based company/service that allows you to convert government issued fiat currency for cryptocurrency. Each exchange has its preferred methods of purchase, but speaking in generalities, one can deposit money into the exchange, authorize an ACH payment from a linked bank account or purchase using a credit card. Unlike the days of old, there are now a bunch of cryptocurrency exchanges you can use to purchase cryptocurrency for fiat so the phrase “how to buy Bitcoin online” will no longer be in your vocabulary after reading this post.

Here are the most reputable and respected services that we hold accounts with:

1.) Coinbase

Headquartered in San Francisco, California; Coinbase has been a leader in the Cryptocurrency space and is one of the largest crypto exchanges that allow fiat to crypto transactions. They have been in the crypto exchange arena since 2012; which makes them rather seasoned when compared to their competition and boast over 13.3 million users. To date, Coinbase allows the purchase of Bitcoin, Bitcoin Cash, Ethereum and Litecoin with many rumors circulating about new coins on the way.

Fiat to crypto transactions are allowed (via authorized bank account linking); however, the fees charged by Coinbase have been getting rather steep. Not only do they offer crypto storage with FDIC insurance up to $250,000.00 for each wallet; they have also recently been launched Coinbase custody, which is an approved custodial service for institutional investors.

Quick Note: If you are going to give Coinbase a try please use our affiliate link. The proceeds help support the site so we can continue to provide you with great reviews and educational information. Simply click here or on the Coinbase title!

2.) Gemini

Based out of New York, New York and founded in 2015 by the very popular Winklevoss twins; Gemini is regulated and compliant with the New York State Department of Financial Services (NYSDFS) standards. Being one of the largest and most respected crypto exchanges Gemini hangs its hat on unparalleled customer service. Gemini’s goal is to be the leader in the United States in establishing a world-class digital asset exchange and a compliant custodial service. They currently only offer Bitcoin, Ethereum and ZCash purchases; however, more coins are being evaluated to be made available for purchase.

Similar to Coinbase, fiat to crypto transactions are allowed using authorized bank account linking and they also charge fees for purchasing digital assets. The fiat money deposited onto your Gemini account are FDIC insured (up to $250,000 per wallet); however, the digital assets held on the exchange is not provided that insurance. Gemini is also one of the few approved and compliant custodian of digital assets for institutional investors.

3.) Abra

Founded in Saratoga California in 2014 and headquarter in Silicon Valley, Abra was brought to the United States in 2016. Being one of the newer exchanges to break out on the scene, Abra is turning heads by the simplicity and easy-of-use it offers to users. Abra is a smart phone App (offered for both Android and IOS) and allows its patrons to buy, store, sell and invest in 20 cryptocurrencies (see list here).

Abra allows users to convert up to 50 different government issued fiat currencies to cryptocurrencies and does not charge any fees for buys or sells; that is amazing! At this time they are not approved custodians for institutional funds but if you are reading this article chances are you aren’t a bank/hedge fund; so that isn’t really a problem. Abra is focusing on simplifying the individual investor’s user experience and has been successfully leading the industry in this aspect.

Cool, So Which One is the Best?

I hate it when people tell me this when I ask a question, but it really does “depend”. You can have accounts at each of these exchanges (we do); however, If you must choose one, here are the benefits:

Coinbase Break Down:

  • Cryptocurrency FDIC insured (250K per wallet)
  • Approved custodian of institutional funds
  • Charges trading fees
  • Has a mobile app
  • Allows fiat (USD only) to crypto transactions

Use Case: They are able to service both private and institutional investors as well as offer insurance on your crypto funds.

Gemini Break Down:

  • Fiat money deposited on Gemini is FDIC insured (250K per account)
  • Charges trading fees
  • Approved custodian of institutional funds
  • Allows fiat (USD only) to crypto transactions

Use Case:They are able to service both private and institutional investors and offer insurance on your fiat deposits.

Abra Break Down:

  • Does not charge trading fees
  • Allows users to convert 50 fiat currencies to cryptocurrencies
  • Has a mobile app

Use Case: They only service private investors (you) at this time. Abra is attractive to foreign investors (outside of the USA) due to the amount of available fiat to crypto trading pairs.

Buy On an Exchange, Store on a Hardware Wallet.

After you go and sign up and buy your cryptocurrency then you must solve the issue of storage. While the exchanges that are mentioned within this article have never experienced security breaches; please be warned that there have been numerous issues in the past where hackers were able to compromise other exchanges security and steal investor funds. For this reason, we at BitBarricade do not (and will not ever) suggest keeping your purchased cryptocurrency on any third party storage service that has access to your private keys.

The good news is you are at the right place! The most trusted and secure way of protecting your hard-earned cryptocurrency from hackers or counter-party risk is using a cold storage hardware wallet. If you want to get serious about your crypto wealth and provide your self with the peace of mind that you deserve, feel free to read the reviews of the of the KeepKey and Ledger Nano S hardware wallets. All are top products in their respective industry and will prevent your private key from ever being exposed to the internet; meaning, getting hacked is near to impossible. It is what we personally use to protect our crypto wealth!

Comments

  1. I heard Gemini before and one of my friends uses it constantly. I also think of using it. However I think of traveling a lot and I know some countries do not allow buying these. Is this a good option for someone like me?

    1. Author

      Hi Furkan,

      Gemini is currently operational in all U.S. states except Hawaii and Arizona. They are also operational in Canada, Hong Kong, Singapore, South Korea and the U.K. However, if there is currently a cryptocurrency ban in the country you are traveling to, I would stay on the side of caution and not transact until in a location that is more tolerant to crypto.

      Please find the source link below for more details:
      https://gemini24.zendesk.com/hc/en-us/articles/204072799-What-countries-and-U-S-states-are-currently-supported-for-Gemini-

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