Which app should I use for investing in Bitcoin in 2021?

Bitcoin is a type of virtual currency that you can use for digital purchases or you can trade like stocks or bonds. To buy and sell cryptocurrency including Bitcoin, you need to use a bitcoin exchange.

The best cryptocurrency exchanges are secure, cost-effective, quick to set up, easy to use and accept a variety of funding sources. Here are our picks for the best places to buy bitcoin.

Best Places to Buy Bitcoin

• Best Overall: Coinbase
• Best for Beginners: eToro
• Best for No Cost: Robinhood
• Best Instant: CoinMama
• Best for Interest and Borrowing: BlockFi
• Best for Privacy: Bisq

Coinbase:

Coinbase is a large cryptocurrency wallet provider and exchange based in San Francisco. It boasts over 35 million users in over 100 countries, making it a popular choice for cryptocurrency enthusiasts, investors, and traders. Coinbase claims it holds over $25 billion in assets and has facilitated more than $320 billion in trades. You can trade dozens of currencies, including Bitcoin at Coinbase.

Coinbase charges several fees, which it discloses upfront when entering a transaction. Those include a flat per-transaction fee and a spread of about 0.50%. Fees vary based on the funding method going up to 3.99% when you use a debit card to buy. Serious users may want to upgrade to Coinbase Pro, which uses its own pricing model.

To exchange Litecoin, visit: bitcoin to euro

Best for Beginners: eToro

If you’re looking for a simple and focused platform that allows you to buy bitcoin while learning more about the cryptocurrency ecosystem, eToro could be right for you. Those new to bitcoin will appreciate the simple and straightforward platform and CopyTrader system that allows you to mimic trades from others on the platform.

You can test the waters with a $100,000 virtual account with no risk to your actual money when you sign up. Once you're comfortable, you can enter a live trade with real dollars. Just take note of the 0.75% spread price for bitcoin and higher fees for other currencies.

Best for No Cost: Robinhood

When you pay fees of 0.5% or more to buy and sell, you’re giving up a big portion of your potential bitcoin gains right off the top. Robinhood is best known as a commission-free stockbroker, but you can buy and sell bitcoin with no commissions as well. If you already have some experience with stock market investing, buying cryptocurrencies with Robinhood will likely feel familiar, a bonus for those new to bitcoin.

Robinhood Crypto is technically a separate account that you use alongside your Robinhood stock investment account. It supports a fairly short list of currencies, but that could be fine for many bitcoin buyers.

Best Instant: CoinMama

If you want to own bitcoin as quickly as possible and already have a bitcoin wallet, Coinmama may be your best choice. Coinmama features fast account setup and verification. Once you’re logged in, you can buy bitcoin instantly using several payment methods, though there may be a fairly high price tag for those instant purchase privileges.

You can use a credit or debit card to buy one of nine different currencies. When you place an order, the funds are instantly verified with your connected card by Coinmama, then the cryptocurrency you chose is deposited into your crypto wallet. Those in the UK and EU have additional instant funding options that are not available in the US.

Best for Interest and Borrowing: BlockFi

If you have a lot of bitcoin and want to do more with it without selling, you should know about BlockFi. BlockFi enables you to earn interest when you deposit your bitcoin to an account. If you want to unlock your bitcoin without selling, you can also use existing bitcoin as collateral for a loan, but take note of the interest rates of 4.5% to 9.75% and the required 2% origination fee. You can also buy and sell bitcoin and other cryptocurrencies with no added trading fees.

Early adopters to the cryptocurrency bandwagon or with major holdings can earn serious interest with rates up to 8.6% APY (as of January 2021). BlockFi also has a new rewards credit card that will pay you in bitcoin, which shows plenty of innovation to come from this unique crypto exchange.