How to buy Bitcoin in an easy way?

Bitcoin is a cryptocurrency that was invented in 2008 by a group of anonymous people (or a single individual) by the name of Satoshi Nakamoto. It took until 2017 to see the digital currency become more democratic. Since then, the enthusiasm of the general public has grown stronger every year.

In USA, more than 2 million people have already invested in Bitcoin. If 78% of French people know crypto-currencies, they are 14% to want to invest in it in the years to come . This represents a potential of 10 million people in USA. You are one of them but you don’t know how to simply buy some?

To help you with your first steps, we have prepared a complete guide that will allow you to buy Bitcoin. We are going to review several well-known and reputable players in the ecosystem. It is better to favor long-standing platforms that have proven their resilience over time – and which are regulated.

Partners

At eToro, 68% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

Once we have explained how to buy Bitcoin, we will also come back to the risk (inherent to Bitcoin and those related to CFD trading), the tax declaration of the capital gain and many other parameters to take into account. If it is already at an all-time high today, financiers anticipate a bright future for Bitcoin. Some even claim that it could reach 1 million dollars. But watch out for volatility. The falls that happen from time to time are proof that you have to invest moderately.

1) eToro and crypto trading

eToro is a regulated trading platform in Europe that has existed since 2007. If it was created even before Bitcoin, it is because it has long favored other asset classes: stocks, commodities and forex. For a few years, it has been one of the great references for Bitcoin trading. An advantage is that you can therefore have a portfolio It is registered with the ACPR Banque de USAand has all the rights to practice in USA.

eToro platform
© eToro

Once the registration is complete, you will be able to invest in more than twenty different crypto-currencies including Bitcoin. You can also buy crypto from Ethereum, for example. With over 20 million users, eToro is one of the biggest players in the market. We appreciate its simplicity and its service. To help newbies get started, there’s a helpful social networking system.

Even better, eToro offers what is called copy trading. As its name suggests, this feature allows you to copy the best traders on the platform. If you don’t know exactly how to invest in cryptocurrencies, this is a good solution. Over time, you will then become more independent.

eToro is also renowned for its ease of use. Whether you use its website or its mobile application (on Android or iOS), all interfaces are easy to understand and use. Even as a beginner, at no time will you feel lost. It is very easy to trade, to consult the state of its portfolio, or to exchange with other investors.

Here, you will therefore buy CFDs on Bitcoin. It is a financial product that strictly replicates the performance of Bitcoin. This comes without the difficulties around storing and securing real Bitcoin. Note that eToro also gives you leverage up to x5. In other words, you will be able to increase your position on the market (your risk too, be careful).

To trade Bitcoin, it’s here:

Open an eToro account

At eToro, 68% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

2) ZenGo, a good mobile application

If you want to buy Bitcoin quickly and easily from your mobile, ZenGo is the solution to choose. The free mobile app (on iOS and Android) allows you to create an account in 19 seconds . It will be necessary to secure the account by making a “mask” (scan) of your face with the facial recognition technology of your device. This is the first thing to do before you even buy any so that your funds are 100% safe.

From the app, you can then buy all the most popular cryptocurrencies, including Bitcoin. Of course, you can also sell these assets. Everything is done intuitively, the app allows you to follow the course of electronic currencies and check the evolution of your balance. You can see the screenshots below, everything is clear and simple.

Payment is made by default by credit card. The operation is instantaneous and in a few minutes you will own Bitcoin. For those who want to save, it is possible to make bank transfers, longer but cheaper. Note that you can buy your first Bitcoins without having to provide proof.

ZenGo
ZenGo is exclusively on mobile © Journal du Geek

For those who are new to cryptocurrencies, ZenGo is a preferred partner. In terms of user experience, it is the simplest and most accessible. In terms of security, it is also the most advanced on the market. Knowing that it only takes 19 seconds to create an account, it is worth testing it. Again, the first step is to create a mask of your face that will secure your access to your donations.

Buy Bitcoin on ZenGo

Like all serious and reliable services for the purchase/sale/storage of crypto-currencies online, you will be asked for proof of identity from a certain level of investment. Again, the procedure is simplified and everything is done from the screen of your smartphone. You can then keep your funds on the app or transfer them to external crypto wallets, like the ones shown here.

3) Revolut, la néobanque crypto-friendly

Revolut is a very successful English neobank. It provides access to a current account and a payment card free of charge. In addition to this service, it has diversified its range with investment products. From its mobile application, you can buy shares, commodities or even crypto-currencies.

In just a few years, Revolut has won over 15 million customers across Europe. In USA, it can boast of having exceeded one million active users. It allows its customers to expose themselves to the volatility of cryptocurrencies from its application. That said, you won’t own your cryptocurrencies: they will have to stay in the app, nor can you transfer them to your friends on Revolut.

Revolut
Buy Bitcoin on Revolut © Journal du Geek

That said, it’s a small detail that does not change much for novices. You have to see Revolut as a solution to buy Bitcoin easily, while using the service to manage your daily budget. While ZenGo is exclusively focused on cryptocurrencies, Revolut is a more traditional player. You can store fiduciary currencies (euros, etc.) and use them with the associated bank card.

In terms of fees, Revolut distinguishes its freemium users from its paying customers. If you have the Revolut Premium or Metal plan, you will be charged a 1.50% fee for each purchase of Bitcoin (or any other cryptocurrency). If you use the free account, you will have to pay a 2.50% fee for each transaction. Depending on the volume you want to achieve, you will therefore have to think about one formula rather than another.

Among the most popular neobanks in France, Revolut is in direct competition with N26. However, the latter does not allow you to buy or sell Bitcoin. This is therefore a real advantage that Revolut has for all cryptocurrency enthusiasts.

If you really want to get into cryptocurrencies, we won’t necessarily recommend Revolut. ZenGo or Binance are pure-players and you officially own your Bitcoins. On Revolut, it’s more about having fun and getting some kind of exposure to crypto-assets. If you have a real crypto-currency plan, then we won’t recommend it.


Why choose Bitcoin CFD trading?

Libertex or eToro are platforms that do not allow you to “own” Bitcoin. On the other hand, they make it possible to buy financial products that will replicate the performance of Bitcoin (or other crypto-currencies). They are called CFDs or Contract for Difference. This has its advantages but also its disadvantages.

Admittedly, therefore, you do not have Bitcoin in your name. This does not prevent you from having a portfolio that directly replicates the performance of Bitcoin. Same if you have Ether, Ripple or Litecoin. For the advantages, we can already remember that these platforms have been designed for the general public. They are much easier to access than crypto exchanges – sometimes difficult to understand.

Then, we appreciate the fact that we can find several asset classes on the same platform. On eToro for example, you will have crypto-currencies, stocks or even commodities and forex. In other words, you can manage your entire portfolio on a single interface. This is either desktop or mobile.

In addition, these CFD platforms offer more security than a simple cryptocurrency exchange. On the latter, once you have purchased Bitcoin, you will then need to transfer it to an external wallet (which involves a risk). If the exchange itself gets hacked, you also have a risk. In recent years, many people have been victims of a hack. Binance was hacked in 2019 ($42 million in crypto was stolen). The fact that all crypto transactions are irreversible and untraceable, hackers can act with the utmost discretion. On a CFD platform, you don’t have that risk.

Open an eToro account

At eToro, 68% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

Strategy to adopt with Bitcoin

Only invest what you are prepared to lose . This is the most important principle to keep in mind at all times. This applies to cryptocurrencies as well as any other financial asset. Whatever the evolution of the price of this asset, you must always keep a cool head and never be overwhelmed by emotions.

In order not to get carried away, you must always set rules: an objective to be achieved (which you must stick to) and protections in the event of a drop. You have to know how to set an investment plan to secure your profit, step by step. Bitcoin will not rise to infinity, so you have to know how to set reasonable goals so as not to exit too late.

At the beginning of 2021, the American bank JP Morgan also gave advice to its customers: invest 1% of their funds in Bitcoin . This is a way to not risk too much capital while having a certain exposure to crypto-currencies. With the price of the currency rising, this percentage may represent a larger percentage in the overall portfolio.

Should we focus on Bitcoin? Should we choose other cryptocurrencies that have even more potential? If you are just starting out and decided to buy Bitcoin a short time ago, it is better to focus on the most important cryptocurrencies . Bitcoin and Ether are the two most popular. They are also less volatile than others (although they are very volatile compared to more traditional financial assets).

In the world of cryptocurrencies, there are always fads. In 2017, there was the ICO ( Initial Coin Offering ) bubble. This way of raising funds completely disappeared in 2018, leaving many investors with significant losses. Since the end of 2020, decentralized finance (and DeFi tokens) have been immensely successful. Until when ? Same for NFTs? No one knows.

If you are starting with cryptocurrencies, it is better to buy Bitcoin first. This is also what institutional investors do. However, you can afford to invest a small part of your crypto portfolio in (even) riskier projects. It will be necessary to adopt a shorter-term investment strategy because risky projects may disappear at some point.

In May 2021, the cryptocurrency market experienced a terrible correction. Bitcoin fell more than 50% to fall below $30,000 (from its high of 63,000 a few weeks before). This is proof that you should only invest a limited amount. It is also proof that you have to be patient and see this as a long-term bet. If you buy Bitcoin, you have to register for the long term.

Where will the Bitcoin price go?

At present, it is very difficult to know how far the price of Bitcoin will go. Several experts claim that it will lead nowhere. Since 2020, however, several banks have reviewed their position. For example, an analyst at JP Morgan anticipates a Bitcoin price around $146,000. For its part, Goldman Sachs claimed that cryptocurrencies had “reached a point of no return” and that they will endure.

The most optimistic anticipate a Bitcoin price above one million dollars. As for the most pessimistic, they seriously think that the price will fall to zero one day or another. Hence the importance of only investing what you are prepared to lose.

However, there is an important parameter to take into account with Bitcoin. The latter will be available in limited quantities (maximum 21 million units). The more it becomes more democratic (and therefore the more people want it), the more the price will tend to increase. The demand will be higher, but the supply will always remain the same. This is an important point that distinguishes Bitcoin from more traditional currencies such as the Euro or the Dollar. With the health crisis, central banks did not hesitate to use the printing press to print currencies.

Conclusion: where to buy Bitcoin?

To now conclude this page and tutorial on how to buy Bitcoins, all you have to do is choose the platform. For those who want the easiest, fastest and most secure experience, eToro and its Bitcoin CFDs are the most affordable. In a few clicks, you will be able to take advantage of the services of the regulated platform in Europe. For beginners, the platform is reassuring and comfortable. It also offers advanced features (such as copy trading which allows you to copy the best traders on eToro) which are very popular.

To learn more, it’s here :

Open an eToro account

At eToro, 68% of retail investor accounts lose money when trading CFDs. You need to know if you understand how CFDs work and if you can afford to lose your money. On eToro, cryptocurrency trading is done in CFDs.

For those who want to buy Bitcoin but also many other crypto-currencies to invest for the long term, Coinbase is a justified choice. It gives access to a much larger list of cryptocurrencies. If you want to place more technical orders, then Coinbase Pro will be the natural evolution. That said, this platform remains behind eToro (see our comparison between Coinbase and eToro).

Finally, for the most expert among you, Binance is an excellent choice. It is more complicated, it is less pleasant to master, but it is a successful product. The French translations are sometimes a little approximate, the consistency of the site is sometimes difficult to understand. But in the end, in terms of liquidity, prices and variety of currencies, it is an obvious choice.

Partners

1

FAQ: Understanding Bitcoin

Now that we are done with our tutorial for buying Bitcoin, you should have the basics to start investing. Below, we have added some more technical questions that could help you in the process. We remain at your disposal if you still have questions on this subject.

What is the best site to buy Bitcoin?

Today there are many platforms and applications on which to buy and trade Bitcoin. Among the world leaders, we have eToro or Binance. The first specializes in CFDs on cryptocurrency and is accessible even to beginners. The second is more technical but it is also very appreciated.

What commission when buying Bitcoin?

The fees charged during a transaction (purchase or sale) in Bitcoin depend on the platform. The largest regulated platforms have commissions that vary between 0.5% and 5%. If you deposit funds by credit card, the site may also charge you a fee.

What is a Bitcoin CFD?

Bitcoin trading platforms like eToro allow investing in cryptocurrency using CFDs. You are therefore not the owner of Bitcoin, but you are the owner of a synthetic financial product. If it can be scary, it’s actually much simpler. You don’t have the storage and security risk around crypto-assets. For beginners, eToro is a good choice.

How do cryptocurrency prices vary?

Whether it is Bitcoin or any other cryptocurrency, their price can vary from second to second. The market is open continuously, which makes it possible to have a quotation 7 days a week and 24 hours a day. The price of Bitcoin depends on supply and demand on the market. Note that each platform is independent, so there may be a slight difference in price from one to another.

Why does the Bitcoin price differ from site to site?

Bitcoin is not centralized, which means that there is no single price. Each cryptocurrency exchange has its own order book. In other words, the volumes and the price of Bitcoin are not the same from one to another. That said, the big players have prices that are almost identical thanks to the work of arbitrators.