When interest in Bitcoin increases, many newcomers wonder where it is convenient to buy it.
In reality, there cannot be a single definitive answer to this question, because several factors need to be considered that vary from person to person.
The best purchasing method: where is it convenient to buy Bitcoin?
The first factor to consider is the payment method you wish to use for the purchase.
The most used method seems to be credit/debit card, even though there are no clear statistics about it.
To tell the truth, this is definitely the easiest payment method to use to buy BTC, but it is not necessarily the best.
In fact, on purchases with a card, sellers often apply higher fees compared to other payment methods.
However, if you still want to purchase Bitcoin using a card, then the best place to buy it is the crypto exchanges, which are platforms specialized in the trading of cryptocurrencies.
The most convenient alternative, however, is the bank transfer. Moreover, with payment cards, the payable amounts are lower, while with bank transfers, it is also possible to move considerable amounts.
Although even in the case of using a bank transfer the best platforms where it is convenient to buy Bitcoin are the crypto exchanges, this is only true for relatively small amounts. When the amounts become very significant, it would be better to use an OTC desk, because in this way you avoid increasing the purchase price by buying large sums all at once.
If, on the other hand, you want to use paper banknotes, it is better to avoid the classic and “historic” method of purchasing in person from other users, and to prefer the so-called crypto ATMs.
The ideal purchase price: how to choose?
Another factor to consider, of course, is the purchase price.
This depends in particular on the moment in which one decides to purchase, but not only.
First of all, it must be said that not all platforms where it is convenient to buy Bitcoin have the same prices. For this reason, it is advisable to register in advance on different platforms, so that you can choose the one with the best prices when needed. In fact, there is no platform where prices are always lower, while there are some with high spreads that ensure purchase prices are always above average.
Furthermore, it is necessary to pay attention to the market price.
When you want to buy low, or very low, amounts of BTC, buying at market price does not make a significant difference.
If, on the other hand, you want to buy already somewhat significant amounts, it is advisable to pay close attention to the difference between the market price at a given precise moment and what might be there even just an instant later.
In fact, prices change very quickly, and often by setting a maximum purchase price lower than the current market price, it is still possible to buy at a better price. This is especially true when purchasing large amounts, because large and very fast purchases can increase the purchase price if a maximum purchase price is not set.
The commission factor: where to find the lowest
One of the factors that, however, make the most difference in the choice of where it is convenient to buy Bitcoin are the fees imposed by the platform on which the purchase is made.
There are indeed some platforms, such as crypto ATMs, where the fees tend to be higher.
This factor must also be added to the potential spread, which in fact acts as a commission even though it is not one (the spread is technically just a markup).
The fees not only vary from platform to platform, but they also vary within the platform itself, especially depending on the amount of Bitcoin one intends to purchase, the volume already moved by the user on that given platform, and their level of verification.
The resulting picture is so complex that it is not even possible to summarize it in a few lines.
So, in essence, before making a purchase on a platform, it would be advisable to check the percentage of fees that the platform itself applies to customer purchases. However, make sure to carefully check what percentages will be applied in your specific case, which will certainly be different from those of other dissimilar cases of other users.
The rendimento atteso
There is yet another factor to consider.
Sometimes those who purchase Bitcoin do so with the desire to obtain a return simply by holding it in their portfolio.
This adds to the possible gains from reselling at a higher price, even though as long as the purchased BTC are put to yield, they cannot be sold.
Not all platforms offer the possibility to earn a return from merely holding BTC and keeping it on the platform itself.
With Ethereum, for example, it is different, because staking (which is a native functionality of ETH and simply does not exist on BTC) makes it possible to generate a yield simply by holding your tokens on a validator node.
So if a bit all Ethereum custody platforms offer returns through staking, for Bitcoin there are not many platforms that offer returns.
Therefore, those who want to also obtain a return will have to choose a platform that offers this service, but always keeping in mind that earning a return on Bitcoin means taking on additional risks.
It should still be added that nothing prevents you from purchasing them on one platform and then moving them to another to put them to yield, always keeping in mind that each movement has a cost.
Where is it convenient to keep your Bitcoin?
Finally, after describing the criteria to use for choosing where to buy them, it is also worth adding what the criteria are for choosing how to store them.
In theory, the best place to store your BTC is in non-custodial wallets, such as the so-called hardware wallets.
In this case, it is the user who assumes all the risks of custody, thus eliminating all the risks arising from the use of a counterparty. However, if the user is not experienced in cryptocurrency custody, this choice can easily turn out to be a double-edged sword.
In the case where one chooses to have them held by an external custodian, it is necessary to be very careful in choosing the custodian.
Indeed, in these cases it is not advisable to entrust them all to the same custodian, but it is advisable to store them on different custodial wallets, all provided by reliable companies.
Many, for example, keep them on the same platform where they purchased them, also to be able to sell them more easily, but if the platform closes (as has already happened several times), there is a risk of losing them all forever.
Unfortunately, it is not easy to accurately judge the level of reliability of a platform, so often to cut the bull’s head, self-custody is preferred.