Best Way to Invest in Bitcoin 2021

Samantha Forlow
2 August 2021 | Updated: 10 August 2021

Bitcoin now has a market capitalization higher than some of the biggest companies in the world – including Tesla and social media giant Facebook. It’s never been easier or more convenient to access cryptocurrencies – but it’s important to do so via a reputable source.

Looking for the best way to invest in Bitcoin in 2021? Stay right there!

Today we guide you through the end-to-end process and offer some food for thought when it comes to the best brokers to access this Bitcoin in a low-cost and safe manner.

 

Eightcap - Regulated Platform With Tight Spreads

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  • Minimum deposit of just $250
  • 100% commission-free platform with tight spreads
  • Fee-free payments via debit/credit cards and e-wallets
  • Thousands of CFD markets including Forex, Shares, Commodities, and Cryptocurrencies
Start your journey towards reaching all your financial goals right here.

 

Table of Content

     

    Best Way to Invest in Bitcoin 2021: Choose the Right Broker

    When learning about the best way to invest in Bitcoin, you will come across a sea of crypto brokers jostling for your business. With so much variety, it can be hard to tell a quality provider from a crook.

    After performing some intense research on dozens of brokers, below you will see a quick-view list of the top five in the market. This should help you pick the best place to buy Bitcoin – in safety:

    • 1. AvaTrade – Overall Best Platform to Invest in Bitcoin 2021
    • 2. Blueberry Markets – Best Broker to Invest in Bitcoin with MetaTrader 4 and 5
    • 3. Capital.com – Best Place to Invest in Bitcoin at 0% Commission
    • 4. LonghornFX – Best Platform to Invest in Bitcoin With High Leverage
    • 5. Currency.com – Best Broker to Invest in Bitcoin via a Tokenized Asset

    As we said, there is a huge disparity between the quality of online brokers. With this in mind – we offer a full assessment of each later, covering fees, features, accepted payment methods, and much more.

    Your capital is at risk when trading CFDs at this provider

    Best Ways to Invest in Bitcoin 2021

    The volatility and absence of a central authority can intimidate some investors. However, although Bitcoin has experienced highs and lows – the digital asset outperforms expectations time and time again.

    Furthermore, the price spikes experienced by this marketplace are what can lead to some great gains. This is, of course, provided you cash out your investment at the right time. You will find the best ways to invest in Bitcoin in 2021 below.

    Buy at a Decentralized Bitcoin Exchange

    If you decide that the best place to buy Bitcoin is at a crypto exchange – you will be buying and selling BTC coins with other users. Whilst it might sound good to cut out the middleman – this route doesn’t come without potential problems.

    You may have heard that most crypto exchanges have no overarching regulation. This presents the issue of the platform having no rules to follow in terms of market integrity. Furthermore, without financial organizations watching over a provider – you have no rights as a client.

    • Storage should be your top priority if investing in Bitcoin via a crypto exchange
    • Unregulated exchanges are vulnerable to cryptojackers – criminals who access your digital assets without your knowledge and take them for themselves
    • Instead of merely speculating on the price and having the convenience of not owning the asset – you will have to do some research and find a safe cold wallet for storage of your digital investment

    Not only that, but with this comes the responsibility of keeping your private keys safe, and regularly changing your passwords. The best Bitcoin exchange will offer super-fast transaction speeds, multi-factor authentication, and a transparent fee structure.

    With that said, you will likely have a safer and smoother experience by investing in cryptocurrencies at an online brokerage – which we talk about shortly. We also offer a review of the five best places to buy Bitcoin in 2021 – before explaining how to sign up.

    Find a Bitcoin ATM

    Another way to invest in Bitcoin that many people don’t consider is via an ATM. There are thought to be well over 20,000 machines like this dotted around the world – locations include the US, UK, Australia, Spain, Austria, Canada, Switzerland, and many more.

    • Unlike the automated teller machines we withdraw fiat money from – Bitcoin ATMs allow you to insert cash in exchange for digital currencies
    • The ATM then sends your BTC coins to your wallet using a QR code and corresponding wallet address. Notably, some allow you to create a temporary paper storage solution

    So, what’s the catch? Fees are notoriously high, with some Bitcoin ATMs charging a variable transaction fee. This can be anywhere from 7% to 20% in some cases. Moreover, minimum investment stipulations are commonplace and might sit between $5 and $20.

    Another risk of this way to invest in Bitcoin is that some ATMs impose hidden fees and can vary wildly when it comes to transaction speeds. Other horror stories include non-existent customer support – in the event that something goes wrong with your purchase.

    Invest in Bitcoin via an Online Broker

    The best way to invest in Bitcoin is via an online broker. This removes the burden of responsibility when it comes to storing your digital assets. Not only that, but as we said, by choosing a regulated platform you can rely on a certain code of conduct, care, and standards.

    Some of the biggest regulatory bodies tasked with keeping the brokerage space free from crime are as follows:

    • FCA – Financial Conduct Authority (the UK)
    • ASIC – Australian Securities and Investments Commission
    • CySEC – Cyprus Securities and Exchange Commission
    • CFTC – Commodities and Futures Trading Commission (the US)

    There are more, but these are the most reputable bodies in this space. With a regulated platform on your side, when you invest in Bitcoin you can also rely on a level of financial protection and fair trading conditions. Many authorities also enforce client fund segregation.

    This means that in the unlikely event of a regulated crypto platform going out of business – your money is safe in a separate bank account from the company. Regulated online brokers are also able to offer seamless transactions – thanks to credit and debit card compatibility.

    Importantly, there is a set of standards called KYC (Know Your Customer) which must be completed before your online broker account is considered verified. This means the platform must, by law, obtain your name, address, date of birth, and a little bit of background on your trading history.

    Finally, you will need to prove the information you have given by sending a copy of your passport and an official letter with your address, like a bank statement. We talk you through the step-by-step process after the following reviews of the best places to buy Bitcoin.

    Selling Your Bitcoin Investment

    Selling your crypto assets couldn’t be easier if you choose to invest in Bitcoin via an online broker. This is because you don’t have to go through the hassle of depositing BTC coins back into the platform you bought it from – and then swapping that for fiat.

    See below a step-by-step of how to sell your Bitcoin investment at an online brokerage:

    • Log in to the platform using the email and password you signed up with
    • Select your Bitcoin investment from what’s in your portfolio
    • Next, you can create a sell order
    • Enter the amount you wish to sell and confirm all
    • Finally, the funds from the sale will be added to your account equity

    As is clear, this is a much less complicated way to cash out your Bitcoin investment. It also makes it easier to reinvest if that’s what you want to do. For example, you might also want to buy Litecoin to diversify. Alternatively, make a withdrawal to have the funds sent to the initial deposit method.

    Best Way to Invest in Bitcoin 2021: Fees to be Aware of

    When thinking about the best ways to invest money, many people look to cryptocurrencies. With that said, it’s super important not to be naïve when it comes to the potential trading costs involved.

    We have listed below the fees seen at most platforms where you might invest in Bitcoin:

    • Commission Fees: The variation between platforms can be as different as night and day. For instance, AvaTrade charges 0% – in contrast, crypto exchange Coinbase stipulates 1.49% for every transaction. Always check what you may be liable for before placing an order to invest in Bitcoin.
    • Deposit and Withdrawal Fees: This is another potential charge to be aware of which can depend on the brokerage in question, but also the payment type you choose. To give you an example, AvaTrade, Blueberry Markets, and Capital.com charge 0% on all deposits. The aforementioned Coinbase stipulates 3.99% for debit/credit payments.

    It’s more than reasonable that crypto brokers need to make gains to stay in business and that there will be fees to pay to access the markets. As such, when you are finding the best way to invest in Bitcoin it’s important you do your homework first to see what is expected of you.

    Best Place to Buy Bitcoin 2021: Full Assessment

    It’s important to carry out a personal investigation to reach your own conclusion on the top broker for your needs – but it’s also helpful to get an idea of what is out there. As such, we have saved you some time and reviewed the best places to buy Bitcoin in 2021.

    Some of the things we look for include:

    • Wide choice of assets and crypto pairs
    • Safety and security of the platform
    • Flexible trading derivatives like Contracts for Differences (CFDs)
    • Trading and educational resources
    • Compatible payment methods

    Each broker reviewed meets the above requirements and should be worth your consideration when looking for the best bitcoin exchange platform.

    1. AvaTrade – Overall Best Platform to Invest Bitcoin 2021

    Heavily regulated broker AvaTrade provides you with the opportunity to go long with a buy order, or short with a sell order. This is because the platform offers CFDs, whereby you can profit from the price fluctuations of Bitcoin without taking ownership of it.

    At this top-rated brokerage, you can access Bitcoin pairs that contain the US dollar, Japanese yen, and euro. Alternative cryptocurrencies to add to your portfolio include NEO, Stellar, Bitcoin Cash, Litecoin, Ethereum, Ripple, EOS, and many more.

    We found the fees at AvaTrade to be low - with zero commission charged to buy or sell Bitcoin pairs and super-tight spreads across all markets. Speaking of which, you can also access CFDs on forex, commodities, stocks, ETFs, bonds, and indices - should you want to diversify later.

    When looking at how to invest in Bitcoin in 2021 - it's imperative that you have access to the technical analysis tools needed to predict and measure the market sentiment. This is especially the case if you prefer the idea of buying and selling CFDs - as this is a short-term trading strategy.

    AvaTrade offers educational content for those who need it. When it comes to the aforementioned analysis, the best way to carry this out is via MT4. Create an account with the broker and then sign into the third-party trading platform with the same details to link the two.

    The minimum deposit here is $100. You can choose between credit or debit cards, bank transfers, and e-wallets like Neteller, WebMoney, and Skrill. AvaTrade enables you to trade on margin, and add leverage to invest more than you have in equity. Always educate yourself first.

    Our Rating

    • Speculate on the rise or fall of Bitcoin without paying commission fees
    • Regulated by in 6 jurisdictions around the world
    • Facilitates small Bitcoin orders of 0.01 lots
    • Admin and inactivity fee after 12 months of not depositing or trading
    71% of retail investors lose money when trading CFDs with this provider

    2. Blueberry Markets – Best Broker to Invest Bitcoin via MetaTrader 4 and 5

    ASIC-regulated Blueberry Markets offers 300+ CFD instruments, including Bitcoin. This allows you to go short and make gains if you correctly predict the digital currency will fall in value - and you can leverage your trade. This is like a loan so should be used with caution.

    You can trade Bitcoin against US dollars at this brokerage. Other cryptocurrencies include Bitcoin Cash, Ripple, Ethereum, and Litecoin. Blueberry Markets also lists CFDs on shares, commodities, metals, and forex. All assets come with low spreads.

    The minimum lot at Blueberry Markets is just 0.01, which means you don't need thousands in the bank to access Bitcoin and can instead sell or buy a fraction of a token. This presents an opportunity to get your foot in the door and build a portfolio with BTC coins - and more.

    To access everything Blueberry Markets has to offer, you will be best linking your broker account to the previously talked about MT4/5. You can also get to know the platform with a free demo account. Additionally, you will find dozens of indicators, charts, and drawing tools.

    This platform supports several currencies and heaps of payment methods. You can add funds to your account using credit or debit cards, wire transfer, and also e-wallets such as Skrill. The minimum deposit is $100 and Blueberry Markets does not charge commissions.

    Our Rating

    • Link your Blueberry Markets account to MT4/5 to trade Bitcoin commission-free
    • ASIC regulated broker with tight spreads on most assets
    • Heaps of deposit methods accepted and fractional Bitcoin orders
    • Possibly not be advanced enough for experienced CFD traders
    Your capital is at risk of loss when trading CFDs at this platform

    3. Capital.com – Best Place to Invest in Bitcoin for Beginners

    The FCA and CySEC regulate Capital.com. Thi brokerage company is reputable and has clients from over 183 countries. Here you can trade Bitcoin CFDs and therefore save yourself from having to download cryptocurrency wallets to safekeep your investments.

    This guide found there to be over 200 cryptocurrency markets - all of which can be bought or sold as CFDs without paying any commission. Bitcoin can be traded against altcoins such as Tether (pegged to USD), Cardano, Litecoin, Tron, Bitcoin Cash, Bitshares, and more.

    Other digital assets include Polkadot, Stellar, Tron, EOS, Ethereum, Shiba Inu, Quantum, and IOTA amongst others. Bitcoin can also be traded against fiat money such as US dollars, euros, Australian dollars, Swiss francs, and Canadian dollars.

    Have a thirst for risk? You can also trade Bitcoin against emerging economies - including the Belarusian ruble, Russian ruble, South African rand, and Hungarian forint. As you can see, there is a wide range of options here to access this market. The spread is competitive across the board.

    The minimum deposit at Capital.com is $20 when funding your account with a credit or debit card or e-wallets such as Giropay, Sofort, iDeal, and Multibanko. You can also opt for a bank wire - however, please note this requires a minimum deposit of $250.

    Our Rating

    • Over 200 commission-free crypto markets
    • Heaps of deposit options and minimum starts at $20
    • CySEC and FCA regulated
    • Thin on fundamental analysis
    76.25% of retail investors lose money when trading CFDs with this provider

    4. LonghornFX – Best Provider to Invest in Bitcoin With High Leverage

    LonghornFX is a transparent brokerage that offers a secure environment to buy and sell Bitcoin. The platform uses a cold storage system to give you peace of mind and provides institutional-grade liquidity to keep spreads tight.

    This guide found 35 cryptocurrency pairs. Markets inclusive of Bitcoin also comprise US dollars, Dash, Litecoin, NEO, Zcash, and Monero. There are other CFD assets to choose from such as forex, indices, metals, futures, stocks, and commodities.

    The commission fee is competitive here with a charge of $6 for every 1 BTC traded. It's also worth mentioning that LonghornFX supports fractional investments of 0.01 lots. Furthermore, retail investors can access leverage as high as 1:500.

    The LonghornFX platform helps you to discover your next trading opportunity by offering access to data on breakouts and price trends. Newbies can also follow video tutorials. To view technical analysis surrounding Bitcoin, you can connect your broker account to MT4.

    Interestingly, this broker accepts direct Bitcoin deposits and same-day withdrawals with this method. You can also fund your account with credit and debit cards or bank transfers to invest in BTC coins. The suggested minimum deposit is just $10 and you can access a free demo.

    LT2 Rating

    • Buy and sell Bitcoin CFDs with leverage of up to 1:500
    • Super low commission fees, fractional investments and tight spreads
    • Same-day Bitcoin withdrawals
    • This broker prefers Bitcoin deposits
    Your capital is at risk when trading CFDs with this provider

    5. Currency.com – Best Place to Invest in Bitcoin via Tokenized Assets

    Currency.com is authorized by a regulatory body specializing in blockchain tech-based firms. This means you can invest in tokenized Bitcoin in safe surroundings. For those in the dark, this platform takes a variety of assets and creates a digital token to represent them.

    As such, you merely take ownership of a token that represents Bitcoin, not the asset itself. Storage isn't an issue, as any coins you buy go into an isolated and encrypted cold wallet for safekeeping. Much like with CFDs, you can go short with a sell order if you feel the market will fall.

    Here, BTC coins can be traded against fiat currencies including US dollars, British pounds, and euros. Emerging markets include the Russian ruble, Thai baht, Belarusian ruble, and Hungarian forint. Other pairs comprise Bitcoin against Tether, Litecoin, and Bitcoin Cash.

    Alternative tokenized markets include indices, commodities, shares, and bonds. Commission fees are competitive - as is the spread. Professional clients who want to add leverage to their Bitcoin position can access up to 1:100, while retail investors may be able to apply 1:20.

    Currency.com supports Bitcoin, Ethereum, Litecoin, Ripple, Tether, and Bitcoin Cash deposits. If you don't hold any cryptocurrencies yet, you can also opt for the fiat option of a credit or debit card with a minimum deposit of $10. Bank transfers stipulate at least $50.

    LT2 Rating

    • Invest in tokenized Bitcoin with low commissions
    • Competative spreads and high leverage up to 1:100
    • Same-day withdrawals heaps of crypto and fiat deposit types to choose from
    • Provider favors Bitcoin deposits
    Your capital is at risk when trading tokenized assets with this provider

    Best Ways to Invest in Bitcoin 2021: Sign up With a Crypto Platform

    As we said, the best way to invest in Bitcoin is to join forces with a trading platform. For anyone who has no broker experience, we have simplified things by offering a 5-step walkthrough of how to sign up.

    Step 1: Create a New Account

    After thinking about fees, ease of use, available markets, deposit methods, and a range of other important factors – you hopefully have a clearer idea of which broker might offer the best way to invest in Bitcoin in 2021.

    So now – head over to the platform and look for a join now or sign up button. Click this and either a new page will open or a form will appear.

    When prompted, enter your full name, address, email, telephone number, chosen password, and confirm all.

    Your capital is at risk when trading CFDs at this provider

    Step 2: Complete KYC

    Generally speaking, you should receive an email or SMS confirming your new broker account.

    Now, you can complete the aforementioned KYC:

    • Upload a clear copy of your passport, driving license – or any other government-issued ID accepted by the provider.
    • To invest in Bitcoin, you also need to provide the broker with a copy of a recently dated bank statement, tax letter, or utility bill.

    Please note that the latter (proof of address) must feature your full name, a matching address, and a date within the prior 6 months.

    Step 3: Make a Deposit

    The best place to buy Bitcoin will have the capacity to accept a variety of payment methods – to make funding your account a simple and stress-free process.

    One of the best ways to invest in Bitcoin is with a credit or debit card – which is because the transaction time is usually instant. The same should apply to e-wallets, such as Skrill, for example.

    Many online brokers accept bank wire transfers but this usually takes longer and may come with different conditions, such as a higher minimum deposit. Always check the fee table to see where you stand.

    Step 4: Search for Bitcoin

    You are another step closer to investing in Bitcoin – via a regulated brokerage.

    Take a look around and find the ‘markets’ section, or simply type Bitcoin into the search bar found at most online brokers.

    Once you have located BTC coins, you can select it.  This should present you with an order box or separate page to invest in Bitcoin.

    Step 5: Invest in Bitcoin

    By step 5, you should have a brokerage profile set up and have some money in your account to invest in Bitcoin.

    Here, we are looking to trade a CFD on Bitcoin against Australian dollars.

    After finding Bitcoin, you can also place your chosen order. Enter the amount of BTC coins you wish to buy and confirm your transaction. At this point, the brokerage in question will execute your order and your Bitcoin investment will appear in your portfolio!

    Best Ways to Invest in Bitcoin 2021: To Conclude

    Having made it to the end of this guide, you likely have a clearer idea of the best way to invest in Bitcoin. Online brokers offer some important advantages over exchanges – such as the peace of mind that regulation brings to the table.

    There is also the crucial matter of storage, which can be a nightmare for beginners who are new to the unregulated cryptocurrency arena. The best place to buy Bitcoin will guarantee secure storage, safe transactions, low fees, and access to multiple markets.

    After much research into the best platforms to access Bitcoin, we found heavily regulated AvaTrade to be a top consideration. This broker facilitates fractional investments from just 0.01 lots without charging commissions.

     

    Eightcap - Regulated Platform With Tight Spreads

    Our Rating

    • Minimum deposit of just $250
    • 100% commission-free platform with tight spreads
    • Fee-free payments via debit/credit cards and e-wallets
    • Thousands of CFD markets including Forex, Shares, Commodities, and Cryptocurrencies
    Start your journey towards reaching all your financial goals right here.

     

    FAQs

    What is the best way to invest in Bitcoin?

    The best way to invest in Bitcoin in 2021 is by signing up with a well-respected broker with a license. This allows you to make fiat deposits using credit and debit cards in the safety of a regulated platform. Furthermore, you can expect low fees, high liquidity and will not have to worry about storage. Top brokers to consider include Blueberry Markets, Capital.com, LonghornFX, and Currency.com. The latter specializes in tokenized assets.

    What is the best place to buy Bitcoin?

    After much careful consideration, and reviewing heaps of key elements, this guide found AvaTrade to be the best all-rounder to invest in Bitcoin. Here you can trade CFDs so that you don't have to store and secure your investment. You will not be charged any commissions and there are plenty of payment types and altcoins to choose from.

    Is it safe to invest in Bitcoin in 2021?

    All investments come with risks attached, and it's therefore important to be mindful of the pitfalls and have realistic expectations. With that said, you will be much safer opting for a regulated broker over a crypto exchange. Regulatory bodies ensure standards are upheld and your money is somewhat protected from financial crime. AvaTrade is regulated by 6 authorities around the world and offers a wide range of digital asset CFDs.

    Is Bitcoin considered a good investment in 2021?

    This market is notoriously volatile, so whether BTC coins are a good investment remains to be seen. Bitcoin is a highly liquid cryptocurrency - and its high demand means you won't have any trouble cashing out your investment. The best thing to do is research the asset yourself and learn technical analysis to try to predict its rise or fall in value.

    What is the best way to sell my Bitcoin investment?

    If you invest in Bitcoin at an online brokerage, you can simply log into your account and create a sell order - meaning the provider buys them back. The blatant goal is to get a higher price than what you paid to begin with. Regulated broker Capital.com offers a beginner-friendly interface and does not charge commissions.