Bitcoin’s journey through 2024 has been nothing short of historic. Reaching a new all-time high of $99,500 on November 22, it demonstrated a year-to-date growth of over 150%, reflecting its powerful appeal among both institutional and retail investors. This surge has cemented Bitcoin’s role not just as a leading financial asset, but as a transformative force in the global digital economy.
The approval and explosive growth of Bitcoin Exchange-Traded Funds (ETFs) further highlight this shift. With assets under management (AUM) surpassing $100 billion within a year of their introduction in January 2024, these regulated investment vehicles have opened the doors for traditional investors to gain exposure to Bitcoin without directly holding the asset.
Beyond ETFs, nation-states like Bhutan and El Salvador have continued to accumulate Bitcoin as part of their national reserves, signaling growing sovereign acceptance of Bitcoin as "digital gold." This institutional and national adoption, combined with Bitcoin’s inherent scarcity—only 21 million BTC will ever exist—strengthens its case as a durable store of value and a hedge against inflation.
With predictions even pointing toward a potential $1 million valuation in the long term, Bitcoin’s relevance has never been greater. This guide explores the most effective and accessible ways to buy Bitcoin in 2024, whether you're new to crypto or looking to expand your strategy.
How to Invest in Bitcoin (BTC)
The avenues for acquiring Bitcoin have expanded significantly, making it easier than ever to begin investing. From intuitive payment apps and peer-to-peer (P2P) platforms to sophisticated trading tools and ETFs, there’s an option for every level of experience and preference.
This guide breaks down the top methods for buying Bitcoin, offering a clear look at how each option works, who it’s best suited for, and the pros and cons involved. Whether you're drawn to Bitcoin as a potential store of value, an inflation hedge, or a decentralized investment, you’ll find a method that aligns with your goals.
1. Cryptocurrency Exchanges
Cryptocurrency exchanges are centralized platforms that allow users to buy, sell, and trade Bitcoin and other digital assets. They serve as a secure and user-friendly gateway into the crypto markets. Users can create an account, deposit funds via bank transfer, credit card, or other cryptocurrencies, and place an order to buy Bitcoin.
Leading exchanges offer high liquidity, competitive pricing, and a range of trading tools. They often include educational resources and customer support, making them ideal for those new to cryptocurrency.
Pros and Cons of Buying Bitcoin on an Exchange
Exchanges are particularly well-suited for beginners and intermediate users due to their ease of use and security features. High liquidity ensures that users can execute trades quickly, even during periods of high market volatility. Additionally, most exchanges offer access to a wide range of cryptocurrencies, making it easy to diversify a portfolio.
On the downside, many platforms require Know Your Customer (KYC) verification, which involves submitting identification documents. While this adds a layer of security and regulatory compliance, it may be a drawback for those prioritizing privacy. Users should also be mindful of trading and withdrawal fees, which can vary depending on the platform and payment method.
Despite these considerations, cryptocurrency exchanges remain one of the most reliable and convenient ways to buy Bitcoin in 2024.
2. Brokerage Accounts
Traditional brokerage firms have integrated Bitcoin trading into their offerings, allowing investors to buy and sell Bitcoin alongside stocks, bonds, and ETFs. Platforms like Fidelity and Charles Schwab provide a familiar, regulated environment for adding Bitcoin exposure to an investment portfolio.
This integration simplifies the process for those who already use these services for traditional investing, offering a seamless way to diversify into digital assets without learning a new platform.
Advantages and Disadvantages of Brokerage Accounts
Brokerage accounts are an excellent option for traditional investors who want Bitcoin exposure without venturing into dedicated crypto exchanges. They offer the convenience of managing both traditional and digital investments in one place, under a regulated framework that emphasizes security and compliance.
However, these platforms typically support a smaller selection of cryptocurrencies, often limited to Bitcoin and a few other major assets. Fees for crypto transactions may also be higher than on specialized exchanges. Despite these limitations, brokerage accounts are a strong choice for those who value simplicity and integration with traditional finance.
3. Payment Applications
Payment apps like PayPal, Venmo, and Cash App have integrated Bitcoin purchasing into their services, making it incredibly simple to buy, sell, and hold Bitcoin. These platforms are designed for accessibility, allowing users to fund purchases through linked bank accounts, cards, or digital wallets.
Their user-friendly interfaces and minimal setup requirements make them ideal for casual investors or those new to cryptocurrency.
Why Use Payment Apps to Buy Bitcoin?
Payment apps are best for users who want to incorporate Bitcoin into their everyday financial activities without dealing with complex trading interfaces. They support fractional purchases, enabling investments of any size, and streamline the entire process within a single, familiar app.
A significant limitation is that many of these platforms do not allow users to withdraw Bitcoin to external private wallets. This means you can’t transfer or use your Bitcoin outside the app’s ecosystem. Additionally, transaction fees are often higher than those on dedicated exchanges.
For those prioritizing ease of use and convenience, payment apps offer a straightforward entry point into Bitcoin ownership.
4. Trading and Investment Apps
Multi-asset trading apps like Robinhood and Revolut allow users to trade Bitcoin alongside stocks, ETFs, and other financial instruments. These platforms combine traditional and crypto investing in one application, often featuring low or zero commission fees for trades.
They are built for simplicity, offering an intuitive way for beginners to start investing in Bitcoin without previous experience.
Pros and Cons of Trading Apps
Trading apps attract users who value convenience and cost-efficiency. Their straightforward design and integrated financial services make managing a diversified portfolio simple and accessible.
However, these apps often lack advanced trading tools such as stop-loss orders or detailed charting capabilities. Most also restrict the withdrawal of crypto to external wallets, limiting users’ control over their assets. Supported cryptocurrencies may be limited due to regulatory considerations.
For investors who want a simple, all-in-one solution for traditional and crypto assets, trading apps are a solid option.
5. Bitcoin ATMs
Bitcoin ATMs are physical kiosks that allow users to purchase Bitcoin using cash or a debit card. They provide a quick, in-person method for buying cryptocurrency without needing an online account. Users can locate a machine, enter the amount they wish to purchase, and follow the on-screen instructions to complete the transaction.
Bitcoin ATMs are operated by companies like Bitcoin Depot and CoinFlip, with machines available in cities worldwide.
Benefits and Drawbacks of Bitcoin ATMs
Bitcoin ATMs are ideal for users who prioritize privacy or prefer using cash. They require no lengthy sign-up process or identity verification in many cases, offering a level of anonymity not found on most online platforms.
The trade-off is cost: transaction fees can range from 5% to 20%, making this one of the most expensive ways to buy Bitcoin. Availability may also be limited depending on your location. For those seeking speed and simplicity, however, Bitcoin ATMs provide a viable solution.
6. Peer-to-Peer (P2P) Trading Platforms
P2P platforms connect buyers and sellers directly, enabling them to trade Bitcoin without an intermediary. These marketplaces allow users to browse listings, compare prices, and choose from a variety of payment methods—including bank transfer, digital wallets, or even cash.
Escrow systems are commonly used to secure transactions, holding the seller’s Bitcoin until the buyer confirms payment.
Why Consider P2P Platforms for Bitcoin?
P2P trading is especially useful for those who value flexibility and privacy. Some platforms charge little to no transaction fees, and the range of payment options makes Bitcoin accessible even in regions with limited banking infrastructure.
However, trading on P2P platforms requires caution. Users must verify the reputation of their trading partners and be aware of potential delays in transaction processing. While escrow reduces fraud risk, users should still exercise diligence.
For those comfortable with a more hands-on approach, P2P platforms offer a customizable and often economical way to buy Bitcoin.
7. Bitcoin ETFs and Trusts
Bitcoin ETFs and investment trusts allow investors to gain exposure to Bitcoin’s price movements without owning the cryptocurrency directly. These funds hold Bitcoin as their underlying asset, and shares can be bought and sold through traditional brokerage accounts.
The introduction of spot Bitcoin ETFs in 2024 marked a major milestone, providing a regulated and accessible investment product for both retail and institutional investors.
Advantages and Limitations of Bitcoin ETFs
ETFs are an ideal choice for traditional investors who prefer a familiar, regulated framework. They eliminate the need to manage private keys or use cryptocurrency exchanges, reducing complexity and security concerns.
Potential drawbacks include management fees, which can eat into returns over time, and the possibility of tracking error—where the fund’s performance deviates slightly from the actual price of Bitcoin. Availability may also vary by region.
For a hands-off, compliant approach to Bitcoin investing, ETFs and trusts are an excellent option.
8. Buying Bitcoin Through Crypto Wallets
Many cryptocurrency wallets now include built-in functionality to buy Bitcoin directly through the wallet interface. Popular options like Ledger Live, MetaMask, and Phantom allow users to purchase Bitcoin or Bitcoin-related assets using debit cards, bank transfers, or third-party payment services.
It’s important to note that some wallets—especially those designed for Ethereum or Solana—do not support native Bitcoin. Instead, they offer wrapped versions like WBTC (Wrapped Bitcoin), which represents Bitcoin on other blockchains and can be used in decentralized finance (DeFi) applications.
Is Buying Through a Wallet Right for You?
This method is ideal for users who want to manage and acquire Bitcoin in one place, with an emphasis on security and self-custody. By keeping funds in a personal wallet, users maintain control of their private keys.
Fees may be higher than on exchanges, and payment options can be limited. Still, for those prioritizing security and convenience, integrated wallet purchases are a compelling choice.
9. Buying Bitcoin on Decentralized Exchanges (DEXs)
Decentralized exchanges (DEXs) are non-custodial platforms that allow users to trade cryptocurrencies directly from their personal wallets. Using smart contracts, DEXs facilitate peer-to-peer trading without a central intermediary.
It’s important to understand that most DEXs do not support native Bitcoin. Instead, they list tokenized versions like WBTC, which are backed 1:1 by Bitcoin but exist on other blockchains like Ethereum or Avalanche.
Pros and Cons of Using DEXs
DEXs offer greater privacy and control since users never give up custody of their funds. They also provide access to a wide range of DeFi services, such as yield farming and liquidity pooling.
However, DEXs require a higher degree of technical knowledge. Users must manage their own wallets, navigate transaction fees (gas fees), and be mindful of liquidity constraints, which can lead to price slippage.
For advanced users interested in DeFi, DEXs are a powerful tool—but they are not the best method for acquiring actual Bitcoin.
10. Alternative Method: Bitcoin Mining
Bitcoin mining involves using specialized hardware to validate transactions and secure the Bitcoin network. Miners compete to solve complex mathematical problems, and successful miners are rewarded with newly minted Bitcoin and transaction fees.
Mining requires significant investment in high-performance equipment (ASIC miners) and access to affordable electricity to be profitable.
Should You Mine Bitcoin?
Mining is best suited for technically proficient users with access to cheap electricity and the capital to invest in hardware. It offers a way to earn Bitcoin without buying it on the open market.
However, the upfront and operational costs are high, and profitability can vary significantly with Bitcoin’s price and network difficulty. Environmental concerns related to energy consumption are also a consideration.
For most people, buying Bitcoin is simpler and more cost-effective than mining it.
Frequently Asked Questions
What is the easiest way to buy Bitcoin?
Using a payment app like PayPal or Cash App is often the easiest method. These platforms are designed for simplicity, with intuitive interfaces and quick setup processes.
Can I buy Bitcoin without ID verification?
Some methods, like Bitcoin ATMs and certain P2P platforms, allow you to buy Bitcoin with minimal or no identity verification. However, most regulated exchanges and brokers require KYC procedures.
What is the cheapest way to buy Bitcoin?
Peer-to-peer platforms and some exchanges offer competitive fees. If you’re looking for low-cost entry, 👉 compare real-time exchange rates and fees before making a decision.
Is it safe to buy Bitcoin through an app?
Reputable apps use strong security measures, including encryption and two-factor authentication. To maximize safety, use trusted platforms and enable all available security features.
Can I buy a fraction of a Bitcoin?
Yes. Bitcoin is divisible up to eight decimal places, so you can buy a very small fraction—known as satoshis—if you prefer.
What’s the difference between wrapped Bitcoin and real Bitcoin?
Wrapped Bitcoin (e.g., WBTC) is a token that represents Bitcoin on another blockchain. It has the same value as Bitcoin but is used primarily in DeFi applications. Native Bitcoin must be stored in a Bitcoin-compatible wallet.
Conclusion
The growing variety of methods for buying Bitcoin means there’s an option for every type of investor. Whether you prefer the ease of a cryptocurrency exchange, the familiarity of a brokerage account, or the flexibility of a P2P trade, you can find a approach that suits your goals and experience level.
As Bitcoin continues to reach new milestones and gain adoption, the opportunity to participate in this digital revolution has never been more compelling. 👉 Explore advanced purchasing strategies and tools to make informed decisions and confidently step into the future of finance.