Bitcoin is the most valuable cryptocurrency, and it’s often the first digital coin that new investors buy. Entering the world of cryptocurrencies can be difficult, especially for newcomers that aren’t familiar with financial solutions. There are several ways to add Bitcoin to your portfolio, and we discuss them below.

Crypto Exchanges

Crypto exchanges facilitate the movement of cryptocurrencies, including the purchasing of Bitcoin with fiat currency. There are countless different exchanges out there and they all have different offerings when it comes to crypto availability, features, and security. One of the most well-known crypto exchanges is Coinbase, and it’s extremely user-friendly.

Wallet Software

Before you start buying cryptocurrency, you’re going to need a digital wallet to hold your assets. In many cases, digital wallet apps allow users to purchase Bitcoin internally. To facilitate this, wallet providers like MetaMask partner with on-ramp services like Topper by Uphold, which allow users to buy crypto using their debit/credit card. Purchasing Bitcoin in-app is often cheaper, as there’s no need to pay network fees to send crypto off-exchange.

Peer-to-Peer Apps

There are countless peer-to-peer apps out there including Venmo, Cash App, and PayPal, and many of them have begun facilitating Bitcoin purchases. Once you’ve bought Bitcoin using one of these wallets, you can send your funds to other users with the click of a button. When you’re using a centralized p2p app like PayPal, you should be aware that security isn’t as tight as transferring your assets on-chain.

Trusts and ETFs

Exchange-traded funds used to be reserved for fiat currency investments, but that has all changed over the last few years. Back in 2021, ProShares broke ground when they introduced the very first Bitcoin-focused ETF. Using this service doesn’t invest your money directly in Bitcoin; it’s involved with future contracts for Bitcoin.

If an ETF doesn’t sound right for you, you can access Bitcoin funds through Grayscale Investments. These funds are available publicly, which means you’ll find various prices across several different brokers. However, you need to be aware that investing in an ETF or trust involves fees.

Traditional Brokers

Traditional brokers are typically involved in other markets, but they’re beginning to realize the importance of supporting Bitcoin and other cryptocurrencies. However, adoption is slow and there aren’t too many traditional brokers that support Bitcoin purchasing. The very first mainstream broker to adopt Bitcoin was Robinhood, and it’s still an excellent gateway to the crypto world.

Bitcoin ATMs

Depending on where you live in the world, you will find Bitcoin ATMs that allow users to buy and sell Bitcoin. These machines work just like ordinary ATMs, but you’ll need to know your wallet number before getting started. If you choose to add Bitcoin to your portfolio this way, make sure you read the small print to avoid hidden fees. As with pay-to-use cash machines, you’ll likely be charged to cover the upkeep of the service.

Buying Bitcoin is relatively easy these days, you just need to know where to look. Whichever method you choose, make sure you remain vigilant and read the small print.