Despite the dramatic ups and downs of the crypto market, interest in crypto is growing. This growth has helped increase the diversity of investment options in the market.
Retail investors looking to enter the market can now choose between buying crypto outright or buying a crypto-related asset. Those interested in the full experience of crypto ownership may opt for the former, while others may prefer indirect exposure through the latter.
In both cases, the market now offers multiple ways to get in on the emerging crypto markets. Lets discuss the basics of how they work.
In a nutshell, cryptocurrencies are digital assets that can be bought and sold. Unlike stocks, however, owning crypto does not give you legal ownership of a company. Instead, you are buying a digital asset you are betting will rise in value. Some cryptocurrencies may also offer some practical utility, like the ability to exchange them for goods and services.
In general, crypto is highly volatile, so make sure you understand the implications of a potential investment before jumping in. Note that crypto may be more susceptible to market manipulation than securities, and direct investments in crypto do not benefit from the same regulatory protections applicable to registered securities. Also, the future regulatory environment for crypto is currently uncertain.
Direct investments in crypto are also not insured by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation, meaning you should only buy crypto with an amount youre willing to lose.
Are you curious about Bitcoin but feeling overwhelmed about where to start? Trust me, I was in your shoes not long ago. The world of cryptocurrency can seem like a maze of technical jargon and complicated processes. But don’t worry – investing in Bitcoin is actually more accessible than you might think, and I’ve created this guide to walk you through the entire process.
What is Bitcoin and Why Consider Investing?
Bitcoin is a digital currency created in 2009 that operates without a central authority or banks. It’s basically digital money that lets people send payments directly to each other without going through financial institutions.
As of November 2025, Bitcoin has seen some impressive price action ranging from $75000 to $124,000 this year alone. This volatility is both an opportunity and a risk – which is why the golden rule of Bitcoin investing is only invest what you can afford to lose.
6 Ways to Buy Bitcoin in 2025
There are several methods to invest in Bitcoin, each with its own pros and cons. Let’s break them down
1. Cryptocurrency Exchanges (Most Popular for Beginners)
Crypto exchanges are platforms specifically designed for buying, selling, and sometimes storing cryptocurrencies They’re typically the most straightforward option for beginners
Pros:
- User-friendly interfaces designed for newcomers
- Wide selection of cryptocurrencies beyond just Bitcoin
- Educational resources often available
- Mobile apps for convenient trading
Cons:
- Fees can reach up to 4% per transaction
- Security varies between platforms
Popular exchanges include:
- Coinbase
- Robinhood Crypto
2. Traditional Stockbrokers
Many established brokerages now offer cryptocurrency trading alongside stocks and other investments.
Pros:
- Lower fees (around 1%)
- Ability to manage Bitcoin alongside traditional investments
- Often more regulated than pure crypto platforms
- Familiar interface if you already use the platform
Cons:
- More limited cryptocurrency selection
- May not allow withdrawals to external wallets
Brokers offering Bitcoin include:
- Fidelity
- Charles Schwab
- Robinhood
- Webull
- Public
- Interactive Brokers
3. Bitcoin ETFs
In early 2024, the SEC approved spot Bitcoin ETFs, making it easier for traditional investors to gain Bitcoin exposure without owning actual coins.
Pros:
- No need to manage Bitcoin keys or wallets
- Trade just like regular stocks
- Low expense ratios (0.15% to 1.5%)
- No transaction fees at most brokerages
Cons:
- Don’t actually own Bitcoin directly
- Can’t use for transactions or payments
4. P2P Money Apps
Apps like PayPal, Venmo, and Cash App now allow Bitcoin purchases directly within their platforms.
Pros:
- Convenient if you already use these apps
- Simple, familiar interfaces
- Quick transactions
Cons:
- Fees of 1-4% (higher for small amounts)
- Limited functionality compared to dedicated exchanges
- May not allow transfers to external wallets
5. Bitcoin Wallets
Bitcoin wallets are primarily for storing Bitcoin, but many now offer in-app purchasing options.
Pros:
- Better security than leaving funds on an exchange
- Direct control of your Bitcoin
- Many include educational resources
Cons:
- Less beginner-friendly
- May have higher fees through third-party providers
- Requires more technical knowledge
6. Bitcoin ATMs
Physical kiosks that allow you to buy Bitcoin with cash.
Pros:
- Cash transactions
- No need for bank accounts
- Some privacy advantages
Cons:
- Extremely high fees (around 15%)
- Limited availability
- Typically require a Bitcoin wallet setup beforehand
Comparison Table: Bitcoin Investment Methods
| Method | Fees | Beginner-Friendly? | Can Withdraw Bitcoin? | Best For |
|---|---|---|---|---|
| Crypto Exchange | Medium (up to 4%) | Yes | Yes | Most beginners |
| Traditional Broker | Low (around 1%) | Depends on broker | Not always | Those who already have brokerage accounts |
| Bitcoin ETFs | Low (0.15-1.5%) | Yes | No | Traditional investors |
| P2P Apps | Medium (1-4%) | Yes | Not always | Quick, small purchases |
| Bitcoin Wallets | Variable | No | Yes | Security-conscious investors |
| Bitcoin ATMs | High (around 15%) | No | Yes | Cash-only buyers |
Step-by-Step Guide: How I Invested in Bitcoin
When I first decided to invest in Bitcoin, I went with a cryptocurrency exchange because it seemed most straightforward. Here’s the process I followed:
1. Choose Your Investment Method
After researching the options, I decided to go with a crypto exchange since I wanted to actually own my Bitcoin and potentially move it to a personal wallet.
2. Create and Verify Your Account
I needed to:
- Register with my email
- Create a strong password
- Set up two-factor authentication (super important!)
- Verify my identity by uploading my ID (this is required for legitimate exchanges)
3. Connect Payment Method
I connected my bank account, but you can usually use:
- Bank transfers (ACH)
- Debit cards
- Credit cards (though I don’t recommend this due to high interest rates)
- Wire transfers
4. Make Your First Purchase
When buying Bitcoin, you can either:
- Buy a whole Bitcoin (expensive!)
- Buy a fraction of Bitcoin (as little as $10 worth on most platforms)
I started small with just $100 to get comfortable with the process.
5. Secure Your Investment
After purchasing, I had two options:
- Leave my Bitcoin on the exchange (convenient but less secure)
- Transfer to a personal wallet (more secure)
For my small initial investment, I left it on the exchange, but as my holdings grew, I eventually moved to a cold wallet.
Storing Your Bitcoin Safely
There are two main types of Bitcoin wallets:
Hot Wallets
- Connected to the internet
- More convenient for frequent transactions
- Examples: exchange wallets, mobile apps
- Higher security risk
Cold Wallets
- Offline storage devices
- Much more secure
- Examples: hardware wallets like Ledger or Trezor
- Cost around $50-$150
- Better for larger investments
Important Considerations Before Investing
1. Start Small
I began with a small amount I was comfortable potentially losing. This let me learn the process without major risk.
2. Understand the Risks
Bitcoin is highly volatile – its value can change dramatically in short periods. In 2025 alone, it’s ranged from $75,000 to $124,000!
3. Have a Strategy
Decide if you’re:
- Investing long-term (HODLing)
- Trading actively
- Using Bitcoin for payments
4. Be Aware of Tax Implications
The IRS treats Bitcoin as property, not currency. This means:
- You’ll owe taxes when selling for a profit
- You need to track your cost basis
- Even trading one crypto for another is a taxable event
FAQ: Questions I Had When Starting
How much money do I need to invest in Bitcoin?
Most platforms let you start with as little as $10. There’s no need to buy a whole Bitcoin.
Is Bitcoin a safe investment?
Bitcoin is speculative and volatile. Only invest what you can afford to lose. Unlike bank accounts, there’s no FDIC insurance for crypto.
Can I get rich from Bitcoin?
Some people have made fortunes, but many have lost money too. Timing the market is extremely difficult, and past performance doesn’t guarantee future results.
Do I need technical knowledge to invest in Bitcoin?
Basic computer skills are enough to get started on mainstream platforms like Coinbase or through brokers like Charles Schwab.
What about other cryptocurrencies?
While Bitcoin is the most established crypto, there are thousands of others. Some, like Ethereum, have different use cases beyond currency. If you believe in crypto but aren’t convinced Bitcoin is the ultimate solution, consider a diversified portfolio.
My Personal Experience
When I first invested in Bitcoin in 2023, I made plenty of mistakes. I panic-sold during a dip and missed out on gains when the price rebounded. I’ve learned that for me, a long-term approach works best.
I now keep about 5% of my investment portfolio in crypto, with the majority in Bitcoin. I use Charles Schwab’s crypto offerings because I like having everything in one place with my other investments, and their fees are reasonable.
For those just starting out, I’d recommend using either a major exchange like Coinbase or a broker like Schwab if you already have an account there. Start with a small amount, get comfortable with the process, and increase your investment only if it aligns with your financial goals.
Remember, investing in Bitcoin isn’t a get-rich-quick scheme – it’s about understanding a new asset class that could play an important role in the future financial ecosystem.
Ways to invest in cryptocurrency
If you understand the fundamentals, know the risks involved with investing, and have decided to enter the market, there are a few ways to gain exposure.
Buying crypto outright
The most straightforward way to gain exposure to cryptocurrency is by investing in the coins youre interested in. This is most commonly done via a traditional investment platform or crypto exchange.
There are some unique aspects to this strategy. For example, buying crypto outright gives you exposure to the industry in as little as minutes. Entering an order on a traditional investment platform or an exchange can also provide hands-on experience on the buying process, which can be useful for better understanding how crypto works.
Buying crypto outright may give you complete custody over your coins, which allows you to transfer coins between wallets (i.e., personal crypto accounts). This may make it easier to understand how blockchain technology works. And because the markets are open 7 days a week, theres more flexibility to decide when you want to invest compared to traditional assets like stocks and ETFs.
However, there are also risks to be aware of. Before buying crypto outright, consider learning the basics of crypto cybersecurity first. Like any digital asset, crypto is vulnerable to online theft. Transferring coins is also a multi-step process where even small errors could mean losing access to investments forever. And remember crypto is highly volatile, and that theres a possibility that the value of any cryptocurrency can drop to zero.
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