Bitcoin can seem like a daunting and complicated subject, but the good news is there are several easy ways for even the most casual investor to get their hands on their first dollars worth of bitcoin. In this article, we're going to take a look at three ways that you can buy bitcoin today and rate which one is the easiest to use for the non-technical casual investor.
Cryptocurrencies like bitcoin represent an entirely new type of investment and asset that could change the way we think about money someday. Today, the entire bitcoin market (that is, the value of every bitcoin combined) is about $122 billion. Anyone can own bitcoin and you don't need to have any special permission to keep it. What makes it really interesting is that you can send it to anyone, anywhere in the world - instantly, without needing to use a bank or money transfer company that wants to charge you a fee.
For the small, casual investor, you don't need to buy an entire bitcoin at a time. You can buy tiny fractions of bitcoin, such as just $1 worth at a time, or even less. Today, there are dozens of apps where you can buy bitcoin quickly and easily - but which one is the best for a casual investor?
Robinhood, Cash App, and Coinbase
Robinhood is a popular stock trading app that became famous for offering completely free stock trading. Recently they starting offering bitcoin investing. The best thing about Robinhood's offering is just like their stock trading service, buying and selling bitcoin is completely free. The only downside to Robinhood is that the bitcoin you buy can't be withdrawn. Instead, you can only buy, hold, and sell within the platform. If your goal is just to buy for investment reasons, Robinhood could be a perfect fit. But if you want to hold onto the bitcoin yourself, you will want to look at other options.
Cash App is a hugely popular alternative to PayPal and Venmo for sending money to friends. Cash App now allows you to buy, sell, and withdraw bitcoin from the app's investments tab. You can buy bitcoin in increments as low as $1. The downside for this platform is that it does charge a small fee - around 2%, for bitcoin transactions.
Coinbase is the grandfather of bitcoin services and is many investors first place to go. In addition to bitcoin, dozens of other cryptocurrencies can be bought, sold, and stored here. Coinbase by far gives the most flexibility and is definitely the place to go for a soon-to-be power user. Unfortunately, Coinbase has the highest fees of all three choices, charging $1 for a $5 purchase, or $1.49 for a $25 purchase. You can save some money on fees by using their Coinbase Pro service, but it's not for the faint of heart.
So which one is the best? If you just want the easiest to use and straightforward interface, Cash App is our winner. If you want a little more control and don't need to withdraw bitcoin, Robinhood is our winner.