How to Buy Bitcoin (or Fractions) on an Exchange: The Complete Guide

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This guide covers everything you need to know about buying Bitcoin (or fractions of it) online.

If you've decided to take this step, you might be unsure about how or where to purchase Bitcoin. I know it wasn't straightforward for me to navigate the wealth of information available online. That's why I've created this guide to walk you through the entire process you can expect.

The procedures described here refer to regulated platforms, commonly known as exchanges, which allow you to acquire Bitcoin and other cryptocurrencies through their websites.

Let’s get started!

Where to Buy Bitcoin Online

It’s important to know that dozens of platforms enable you to buy fractions of Bitcoin. Each Bitcoin is divisible into 100 million units, each called a Satoshi.

The procedures for purchasing BTC online outlined in this guide apply to platforms that operate within legal frameworks. If a platform doesn’t follow the steps below, consider it a red flag.

Also, pay attention to what you’re buying:

Some trading platforms don’t sell you actual Bitcoin but rather CFDs (Contracts for Difference) on Bitcoin. These are agreements between you and the broker that allow you to speculate on Bitcoin’s price movements. In this case, you won’t own any Bitcoin—just a contract tied to its performance.

So, how can you choose a secure and reliable platform to buy Bitcoin online?

At the end of this guide, I’ve included a concise list of criteria for selecting the right exchange based on your needs.

For simplicity, I’ll use the term exchange throughout this article to refer to services that facilitate Bitcoin transactions, though these guidelines apply to any platform involved in cryptocurrency trading.

What Are Exchanges?

In the vast majority of cases, Bitcoin and other cryptocurrencies are purchased on websites known as _exchanges_.

Exchanges are platforms where you can buy or sell Bitcoin online using common payment methods like bank transfers, credit cards, and sometimes Revolut or PayPal. On exchanges, you can also buy other cryptocurrencies and use them, along with BTC, for _trading_.

There are also services that allow you to buy exclusively Bitcoin (though these are exceptions). Popular examples include the Italian-based Conio and Bittr.

Here’s a list of some well-known, regulated, and reliable exchanges where you can buy Bitcoin or fractions of BTC:

  1. Kraken
  2. Binance
  3. Coinbase
  4. Kriptomat

Of course, there are other equally secure and trustworthy options, but if you want to buy Bitcoin and perhaps dabble in crypto trading, one of these will work just fine.

How to Buy Bitcoin on Exchanges

As I explained in another article, buying bitcoin with or without documents is not the same thing. Each approach has pros and cons that are good to understand before making a purchase.

When buying Bitcoin on an exchange, the major difference concerns your privacy. Your identity is exposed because these platforms require verification.

All intermediaries operating legally in Europe must adhere to anti-money laundering rules and procedures. Therefore, before buying cryptocurrencies, you’ll need to undergo verification—specifically, KYC (Know Your Customer) procedures.

Read this article to learn more about the relationship (and risks) of KYC for Bitcoin and crypto.

What Documents Are Needed to Buy Bitcoin on Exchanges? Identity Verification

Regardless of the exchange you choose to buy BTC, the first step is to create an account.

The process is similar to signing up for Amazon or Facebook. You create a username, enter your email and password, verify the email you receive, and you’re registered.

However, even with a registered account, you won’t be able to buy Bitcoin just yet.

Identity verification is a necessary step to purchase BTC or other cryptocurrencies on exchanges.

To get verified, you must provide the exchange with a set of official documents that confirm your identity.

These typically include:

The verification process can take anywhere from a few hours to a couple of days. At the end, two scenarios are possible:

  1. Everything is in order; your account is verified, and you can proceed to deposit money and buy Bitcoin.
  2. Something doesn’t match; your identity isn’t confirmed, and your account isn’t verified. This can happen if the documents you provided aren’t acceptable (e.g., the passport photo isn’t clear).

In this case, you’ll need to correct the issue or provide new documents and repeat the verification process.

What Payment Methods Can You Use to Buy Bitcoin Online?

Great! Your identity has been verified, and your account is now active. Now comes the exciting part:

BUYING YOUR FIRST BITCOIN (or, more likely, fractions of it).

But what payment systems and methods can you use?

Generally, you can always buy Bitcoin with your credit card or via bank transfer. Obviously, the name on the exchange account must match the name on the bank account.

Each platform has its own specifics regarding payment methods, but broadly speaking:

Can You Buy Bitcoin Using Postepay, PayPal, or Similar Tools?

This is a nuanced topic that varies by exchange. What’s important to note is that some intermediaries accept incoming payments via Postepay, PayPal, and similar methods but don’t allow withdrawals through them. Others don’t accept them at all.

For example, several brokers allow you to buy Bitcoin with PayPal. Recently, an exchange joined the list: Bitflyer.

It works like other exchanges—requiring KYC verification, depositing money via PayPal, and then buying Bitcoin or other cryptocurrencies.

As you might guess, this unique service comes with hefty fees.

In any case, the golden rule for buying Bitcoin using methods like PayPal or Postepay is:

Check the exchange’s website to see if it accepts your preferred payment method.

Is Buying Bitcoin Online Difficult?

Regardless of the payment method used, an exchange provides a platform where you can swap your euros for BTC or other cryptocurrencies.

You can buy at market price or place buy/sell orders at your desired price and see if those orders are fulfilled.

If you have no prior experience with exchanges (e.g., forex, stocks, or similar markets), it might seem complex at first, but it doesn’t take long to get the hang of it.

Criteria for Choosing an Exchange to Buy Bitcoin

There are and always will be numerous services for buying Bitcoin. That’s why I’ve included some evergreen guidelines in this general guide to purchasing Bitcoin.

Below is a list of the most important factors to consider before signing up with an exchange:

When buying Bitcoin, you’ll pay a small commission to the exchange for its service. This is usually a percentage of the transaction. You might also incur fees when transferring funds from your account to the exchange.

Since this is a new world for many, you might have legitimate questions. Having the ability to interact quickly and easily with someone on the other side of the screen for any issue is something you’ll want to consider. Customer service is a decisive factor in choosing where to buy Bitcoin.

Some trading platforms don’t sell you Bitcoin but rather CFDs. These are contracts between you and the broker that allow you to profit or lose based on market movements. When buying CFDs, you don’t own any Bitcoin—they’re only for trading. Make sure you understand what you’re buying!

What payment methods does the exchange accept? They’re generally the most common ones, but verify. More importantly, can you buy Bitcoin directly? Or do you need to buy another cryptocurrency first and then convert it to Bitcoin? Ensure you understand these details.

Liquidity refers to how easily you can finalize your orders. This means that if you want to buy Bitcoin, you won’t have major issues completing your transactions. Obviously, more popular exchanges have higher liquidity because they have a larger user base. Liquidity is even more critical if you plan to trade and buy/sell cryptocurrencies with low trading volumes. Evaluate this to avoid getting stuck with orders and risking losses.

Another super important aspect. What security measures does the site implement? Does it offer two-factor authentication (2FA)? Has it been hacked before? And why? Generally, the more steps required to access the site, the more emphasis the exchange places on security. Unless you’re heavily into trading, you shouldn’t keep your Bitcoin on the exchange.

If you’ve never used trading sites or similar platforms, you might feel overwhelmed (as I did). While it ultimately comes down to learning how to use the platform, some sites aren’t user-friendly. That’s why you’ll want to understand which exchanges are more user-friendly than others. Some offer different interfaces for users to choose from (beginner, intermediate, advanced). Depending on the interface, you’ll have more or fewer commands and options.

If you want to trade (common among those new to Bitcoin and crypto), consider what tools the site provides to help you make decisions. In this case, some factors should carry even more weight in your choice (liquidity, trading volume, fees, security, interface).

These are the elements you absolutely shouldn’t overlook if you want to use an internet service to purchase fractions of BTC.

To wrap up this guide, let’s summarize the pros and cons of buying Bitcoin on exchanges.

Pros and Cons of Buying Bitcoin on Exchanges

Centralized services like exchanges offer key advantages, including the ease and speed with which you can buy and sell Bitcoin. They’re designed for this purpose, so user experience is central to their competitiveness.

Another factor in favor of exchanges is the price. You can often buy Bitcoin at a more advantageous rate on exchanges compared to decentralized exchanges or anonymous methods. Why?

It depends on perspective.

Just as with social networks—where ‘if it’s free, you’re the product’_—in the case of Bitcoin, _‘if it’s discounted, the difference is your data.’ Ultimately, privacy has a value, and if you want to preserve it, consider buying Bitcoin anonymously.

The total loss of privacy is the main drawback of exchanges.

Although Bitcoin transactions are _pseudonymous_, operations conducted through an exchange are tracked and linked to your real identity.

Even if you later transfer your BTC from the exchange to your wallet, there will be an inevitable connection between that blockchain transaction and your identity—one you can never fully erase.

That covers everything. For more insights, consider exploring additional resources or 👉 discover secure trading platforms.

Frequently Asked Questions

What is the minimum amount of Bitcoin I can buy?
You can buy very small fractions of Bitcoin, known as Satoshis. Since one Bitcoin is divisible into 100 million units, you can invest just a few dollars if you wish. Most exchanges allow you to purchase based on a fiat currency amount, so you can specify exactly how much you want to spend.

How long does it take to buy Bitcoin on an exchange?
The process can be very quick once your account is set up and verified. Verification might take a few hours to a couple of days. After that, depositing funds via bank transfer may take 1-3 business days, while card purchases are usually instant. Actual buying or trading on the platform happens in real-time.

Is it safe to leave my Bitcoin on an exchange?
For long-term storage, it is not recommended. While exchanges invest in security, they are attractive targets for hackers. It is much safer to withdraw your Bitcoin to a private wallet where you control the private keys. Use exchanges for trading and purchasing, but not for storing large amounts long-term.

Can I buy Bitcoin without verifying my identity?
It is very difficult on major, regulated exchanges due to legal KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements. Some decentralized platforms or peer-to-peer services might offer more privacy, but they often have higher fees, less liquidity, and may carry greater risks.

What are the typical fees when buying Bitcoin?
Fees vary by platform but generally include a transaction fee (a percentage of the trade, often between 0.1% and 1.5%) and sometimes a deposit or withdrawal fee. Using a credit/debit card usually incurs a higher fee than a bank transfer. Always check the fee structure of your chosen exchange before trading.

What is the difference between a market order and a limit order?
A market order buys Bitcoin immediately at the current best available market price. A limit order allows you to set a specific price at which you want to buy; the order will only execute if the market reaches that price. Limit orders give you more control but are not guaranteed to fill.