Last Updated: Dec. 14, 2025
Editor’s Note (December 2025): This article has been fully revised for YMYL compliance. All fee claims now link to primary sources (Coinbase, Binance, CoinATMRadar, mempool.space). We’ve added coverage of Bitcoin ETFs, removed unsourced volatility statistics, and replaced the Coinbase wallet link with a neutral resource. A new section on Kraken’s hidden fee structure links to our original investigation. Regulatory claims now cite FinCEN directly.
Bitcoin is the world’s first and largest cryptocurrency by market cap. Whether you’re looking to invest, use it for payments, or simply understand how it works, this guide walks you through buying, storing, and selling Bitcoin safely.
Important: Bitcoin is highly volatile. Prices can swing significantly in short periods. Only invest what you can afford to lose.
Ways to Buy Bitcoin
| Method | Best For | Typical Fees | Beginner-Friendly? |
|---|---|---|---|
| Crypto exchange | Most users | 0%–1.2% | Yes |
| Traditional broker | Existing brokerage customers | ~1% | Yes |
| Bitcoin ETF | Hands-off investors | 0.15%–1.5% annually | Yes |
| Peer-to-peer (P2P) | Privacy-focused buyers | 0%–0.6% + spread | Moderate |
| Bitcoin ATM | Cash buyers | 5%–25% | No |
Step 1: Set Up a Wallet
A Bitcoin wallet stores the private keys that give you access to your coins. You have two main options:
Hot wallets (software) stay connected to the internet for easy access. Examples include Coinbase Wallet, Exodus, and Trust Wallet. They’re convenient but more vulnerable to hacks.
Cold wallets (hardware) store your keys offline. Devices like Ledger and Trezor offer stronger security for long-term holdings.
For help choosing a wallet, see Bitcoin.org’s wallet selector, which recommends options based on your device and experience level.
Key terms:
- Private key: Your secret code that proves ownership. Never share it.
- Seed phrase: A 12–24 word backup that recovers your wallet if lost. Store it offline.
Step 2: Choose Where to Buy
Cryptocurrency Exchanges
Exchanges like Coinbase, Kraken, and Binance offer the widest selection of cryptocurrencies and payment methods. Most require identity verification (KYC) to comply with U.S. regulations, specifically, exchanges must register with FinCEN as Money Services Businesses.
Traditional Brokers
Fidelity, Robinhood, and Interactive Brokers now offer Bitcoin trading alongside stocks. Fees are often lower, and you can manage everything in one account. The tradeoff: you typically can’t withdraw Bitcoin to an external wallet.
Payment Apps
Cash App and PayPal let you buy Bitcoin directly. Convenient for small purchases, but withdrawal options vary. Cash App allows external transfers; PayPal added this feature for U.S. users in 2022.
Bitcoin ETFs
In January 2024, the SEC approved spot Bitcoin ETFs from providers including BlackRock, Fidelity, and Grayscale. These trade like stocks and charge annual expense ratios of 0.15%–1.5%. You don’t own actual Bitcoin, just shares that track its price.
Step 3: Make Your Purchase
Once your account is funded, buying takes just a few clicks:
- Log in to your exchange or broker
- Navigate to the Buy/Trade section
- Select Bitcoin (BTC)
- Enter your amount in USD or BTC
- Review fees before confirming
- Complete the purchase
Payment Methods
- Bank transfer (ACH): Lowest fees; takes 1–3 days to clear
- Debit card: Instant but higher fees (often 2%–4%)
- Wire transfer: Faster than ACH; may have flat fees
- PayPal/Apple Pay: Available on select platforms
After buying, consider transferring your Bitcoin to a personal wallet for added security, especially for larger amounts.
How to Sell Bitcoin
Selling works similarly to buying:
- Log in to your exchange or broker
- Go to Sell or Trade
- Select Bitcoin and enter the amount
- Choose your payout method (bank account, PayPal, etc.)
- Confirm the sale
Funds typically arrive in your bank within 1–5 business days, depending on the platform and method.
Other Ways to Cash Out
- Peer-to-peer platforms: Sell directly to another person via Bisq or Paxful
- Bitcoin ATMs: Some ATMs let you sell Bitcoin for cash, though fees are steep
- Crypto debit cards: Spend Bitcoin directly; the card converts it to USD at checkout
Fees You’ll Pay
Bitcoin transactions involve several fee layers. Here’s what to expect:
Exchange Trading Fees
Fees vary by platform and volume:
- Coinbase Advanced: 0.00%–0.60% maker / 0.05%–1.20% taker [^1]
- Binance: 0.10% base for spot trades [^2]
- Kraken Pro: 0.00%–0.26% maker / 0.10%–0.40% taker
Watch out for “convenience” fees: Some platforms charge dramatically more for beginner-friendly interfaces. Our investigation into Kraken’s fee structure found that their standard mobile app charges 3.5% total (a 2.5% hidden spread plus 1% explicit fee), up to 14 times more than the same trade on Kraken Pro. The catch? Only the expensive app supports automated recurring purchases. Always compare fees across a platform’s different interfaces before buying.
Bitcoin ATM Fees
Bitcoin ATM fees typically range from 5%–25%, with most charging 15%–20%. [^3] Convenient but costly.
Network Fees
Every Bitcoin transaction pays a fee to miners who process it. These fluctuate based on network congestion:
- Low activity: ~$0.50–$2
- High congestion: $10–$80+
Check current fees at mempool.space before transacting. [^4]
Keeping Your Bitcoin Safe
Security is critical. Follow these best practices:
- Enable two-factor authentication (2FA) on all accounts
- Use a hardware wallet for amounts you’re not actively trading
- Never share your seed phrase, no legitimate service will ask for it
- Beware of phishing: Always verify URLs before logging in
- Consider multisig wallets for large holdings (requires multiple keys to authorize transactions)
Remember: If you keep Bitcoin on an exchange, you’re trusting that company with your funds. Exchanges can be hacked or go bankrupt. For long-term storage, self-custody is safer.
Frequently Asked Questions
How much Bitcoin can I buy?
You don’t need to buy a whole Bitcoin. Most platforms let you purchase as little as $1 worth. Bitcoin is divisible to eight decimal places, the smallest unit (0.00000001 BTC) is called a “satoshi.”
Is Bitcoin legal?
Bitcoin is legal to buy, sell, and hold in the United States. However, it’s regulated as property for tax purposes. You’ll owe capital gains tax when you sell for a profit.
When should I buy?
Timing the market is difficult, and the answer depends on your personal circumstances. Our guide on whether to buy Bitcoin now provides a decision framework covering the key factors to consider. Many investors use dollar-cost averaging (DCA), buying a fixed amount on a regular schedule regardless of price, to reduce the impact of volatility.
Next Steps
Ready to go deeper? Learn more about how to invest in crypto or explore what Bitcoin actually is and how the technology works. If you’re interested in using your Bitcoin in Ethereum’s DeFi ecosystem, our guide to Wrapped Bitcoin (WBTC) explains how it works and what risks to consider.
Change Log
- Dec. 14, 2025 – Adjusted article schema
- Dec. 13, 2025 – Added internal links to “Should I Buy Bitcoin Now?”, “What is a Bitcoin ATM?” and “What is Wrapped Bitcoin (WBTC)?” guides.
- Dec. 5, 2025 – This article has been fully revised for YMYL compliance. All fee claims now link to primary sources (Coinbase, Binance, CoinATMRadar, mempool.space). We’ve added coverage of Bitcoin ETFs, removed unsourced volatility statistics, and replaced the Coinbase wallet link with a neutral resource. A new section on Kraken’s hidden fee structure links to our original investigation. Regulatory claims now cite FinCEN directly.
- April 23, 2025 – This article was originally published.
Sources
[^1]: Coinbase Exchange Fee Schedule. https://help.coinbase.com/en/exchange/trading-and-funding/exchange-fees
[^2]: Binance Fee Schedule. https://www.binance.com/en/fee/schedule
[^3]: CoinATMRadar Buy Fee Data. https://coinatmradar.com/charts/buy-fees/
[^4]: Mempool.space (live Bitcoin network fee tracker). https://mempool.space/
