Where to buy Bitcoin

In the previous article I explained how to buy bitcoin. Now that you know how, it is time to decide where to buy it.

It is an important issue, not so much because of price variation — which should be small — but because buying in one place or another has different implications.

Before deciding, you need to check whether custody of the bitcoin is handled by the provider itself, a third party or directly by you. You should also check whether the place where you buy it lets you withdraw BTC to your wallet, and what fee it charges. If you cannot send it to your own wallet, you have economic exposure but do not control the asset. And if the fee is high, it will eat into your returns.

Where to buy native Bitcoin

Let's look at the different options:

Centralized exchanges (CEX)): these are the most common option. They run markets where users buy and sell BTC, and usually offer bank transfers, cards and different types of orders. Examples:

Decentralized exchanges (DEX)): the DeFi version of the above. Only if you already have cryptoassets such as USDC or USDT. Examples:

Platforms that are not exchanges: for example mucho.finance. Or wallets themselves, such as MetaMask or Ledger's app (Ledger Live). Wallets can be more convenient, but their fees are usually higher.

ATMs: they still operate in many cities and offer more privacy. In return, fees are high, there are limits on how much capital you can exchange, and they are not available in every city.

P2P platforms: transactions can be arranged electronically or in person. Examples:

Where to buy wrapped Bitcoin

First, obviously, for anyone who does not know, we should explain what a “wrapped” bitcoin is.

To keep it simple, let's say that a wrapped bitcoin is a token that tracks the price of native bitcoin but operates on a network other than Bitcoin. Examples include wBTC, which operates on EVM networks (Ethereum and derivatives), or cbBTC on the Solana network.

The advantages of these tokens are:

They provide exposure to the price of BTC.
They let you use DeFi, or decentralized finance, which replicates what traditional banking does with fiat money. You can also do this with native BTC, but to a lesser extent.
In general, transactions with wrapped BTC are faster and have lower fees than transactions with native BTC.

And where can you get these wrapped BTC? Basically, everywhere you can buy native BTC, plus some additional DEXs, except ATMs and P2P platforms.

Where to buy financial assets exposed to the price of Bitcoin

Through your usual broker you can buy ETFs linked to the price of Bitcoin. They are an alternative for anyone who only wants price exposure and prefers to keep their whole portfolio on one convenient platform. Let's be honest: trading through these brokers involves less friction than doing it directly on the blockchain.

For what it's worth, I use XTB , MyInvestor and DeGiro , and I'm happy with all three. I've also heard very good things about Interactive Brokers, but I have not used it yet.

How to choose a platform to buy Bitcoin

The first criterion is deciding whether you want to buy native BTC, wrapped BTC or an ETF.

That will determine which route you take. Within each one there are different options: if you prefer complete anonymity and there are bitcoin ATMs in your city, you can use those, while if you prioritize low fees a platform such as mucho.finance may be your solution.

Of course, if what you want is an ETF and you already have a broker, you can buy it through your existing one or diversify risk and use another.

In practice, all the options I mention here are reliable because either I have used them myself or people I know have used them.

If you ask me which one I consider the best without taking the buyer's profile or context into account, I would say mucho.finance is the one I believe offers the most long-term advantages.

Next steps

Below are the next articles in the series. They are designed so that, if you do not know much about Bitcoin, you can read them in order, but each one stands on its own, so you can jump to whichever interests you most:

Frequently asked questions

Where can you buy Bitcoin?

You can buy Bitcoin on exchanges, P2P platforms, some wallets, ATMs and certain brokers.

What should I check before buying Bitcoin?

Mainly the fees, custody and whether you can withdraw the BTC to your own wallet.

Is it better to buy Bitcoin on an exchange or through a broker?

It depends on whether you want to buy BTC directly or only gain exposure to its price through a financial product.

What is the difference between native Bitcoin and wrapped Bitcoin?

Native BTC runs on the Bitcoin network; wrapped Bitcoin represents BTC on other blockchains.

Can you buy Bitcoin at an ATM?

Yes, although fees are usually higher than on online platforms.

What is a P2P platform for buying Bitcoin?

It is a marketplace where you buy Bitcoin directly from other users.

Can I buy Bitcoin from a wallet?

Yes, some wallets let you buy BTC from within the app itself.

Can I buy Bitcoin without using an exchange?

Yes. You can use P2P platforms, ATMs, certain wallets or other specialized services.

Is it important to be able to withdraw Bitcoin to my own wallet?

Yes, especially if you want direct control over your BTC and do not want to depend on a platform's custody.

What is the best platform to buy Bitcoin?

There is no universal best option: it depends on fees, custody, privacy and the type of Bitcoin you want to buy.