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You can buy bitcoin through exchanges and stockbrokers, or from other owners. Regardless of where you get it, consider the risks of investing in digital assets.
Buying bitcoin is often the first step that investors take into the world of cryptocurrency. And it can be an unfamiliar landscape for someone used to traditional financial products.
The value of bitcoin — the world’s first and most popular cryptocurrency — has risen from $3,237 in December 2018 to briefly acheive new record highs above $65,000 in November 2021 (see price below). Like all cryptocurrencies, bitcoin is speculative and subject to much more volatility than many tried-and-true investments, such as stocks, bonds and mutual funds.
One common rule of thumb is to invest no more than 10% of your portfolio in individual stocks or risky assets like bitcoin. If you're new to investing, find out more about how to invest money. If you do decide to buy bitcoin, there are also some technical and logistical decisions you'll have to make.
How to buy bitcoin in 4 steps
Decide where to buy bitcoin. Cryptocurrency exchanges like Coinbase and a few traditional brokers like Robinhood can get you started investing in bitcoin.Think about how to store your cryptocurrency. Are you going to keep your bitcoin in a hot wallet or a cold wallet?
Make your purchase. Figure out how much you want to invest in bitcoin.
Manage your investment. Determine your long-term plan for this asset.
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