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Best Bitcoin Accounts: How to Open a Bitcoin Account in 5 Minutes

Are you looking for the best Bitcoin accounts in 2020? Read our step-by-step guide on how to find and open a Bitcoin account.
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Author: Kane Pepi
Last Updated: 29 March 2020

Although Bitcoin is one of the most speculative asset classes in the online trading space, investor interest is still growing at an exponential rate. The overarching reason for this is that many believe that Bitcoin is likely to play a major role in the future of money.

As such, it’s still not too late to enter the market at a highly favourable price. Looking to find out the best way to invest in the cryptocurrency with a secure Bitcoin account? If so, be sure to read our ultimate step-by-step guide!

Our Recommended Bitcoin Account 2020

OUR RATING

  • Buy, sell, trade and store BTC on the eToro platform
  • Social trading platform & copy trading
  • CySEC & FCA regulated
75% of retail investors lose money when trading CFDs with this provider.

What is a bitcoin account?

Although the term is used widely by crypto-newbies, there is no such thing as a ‘Bitcoin account’ per-say. On the contrary, Bitcoin is a decentralized digital currency, meaning that you will not have an account with a third-party entity. Instead, you can invest in Bitcoin by making a purchase from a cryptocurrency exchange, and then withdrawing your coins to a private wallet. This allows you to retain full ownership of your Bitcoin, as opposed to entrusting a middleman.

It is also important to note that you can open a Bitcoin account with a CFD broker. For those unaware, a CFD allows you to speculate on the future price of an asset without actually owning it.

With Bitcoin now a multi-billion dollar asset, you can now invest in the digital currency via a CFD. In doing so, you’ll be using a heavily regulated broker and thus – there is no need to worry about having your Bitcoin hacked from your private wallet.

Best btc account providers

So now that you know what a Bitcoin account actually is, in this section we are going to explore the best platforms to open one with, and how to setup a bitcoin account in a few simple steps. Take note, both of the following brokers facilitate the buying and selling of CFDs, so you won’t need to store your coins in a private wallet.

Instead, your investment remains with the regulated broker at all times, meaning that you can buy or sell Bitcoin at the click of a button. You’ll also be able to view the current market value of your Bitcoin account with ease.

1. eToro: All in one exchange and wallet

If you're based in the US and wish to open a Bitcoin account with a regulated broker, we would recommend social trading leader eToro, a well-regulated platform counting with licenses from multiple regulatory bodies. eToro is an all in one bitcoin account solution allowing users to buy the physical coin and store it in the eToro wallet, or to trade Bitcoin as CFDs (Europe customers only).

If you are interested in trading CFDs, eToro provides a safe and intuitive platform with tight spreads, leveraged trading and short-selling, giving users the ability to make money on their bitcoin account even in times of market downtime.

eToro does not charge any trading fees or commissions, so you will only need to worry about the spread. Being a social trading platform, eToro is also the best bitcoin account for beginners.

Their Copy Trading technology allows complete beginners to get started with bitcoin trading by learning successful investors portfolios and sharing trading tips and strategies on eToro's interactive social community.

  • Own the bitcoin outright or trade as CFDs
  • Licensed by multiple regulatory bodies
  • Paypal supported
  • You have to store the coins in the eToro wallet
  • Limited to around 20 cryptocurrencies
70% of retail investors lose money when trading CFDs with this provider.

2. Bitcoin Trader: Recommended for auto-trading

Bitcoin Trader is an auto-trading tool created by Gary Roberts in 2017 that claims to automatically trade, buy and sell bitcoin for profit by following the market trends and executing automatic trades 0.01 seconds faster than its competitors.

The software provides is the easiest way to open a bitcoin account and trade with little experience. It claims to be able to generate $1300 minimum daily profit for its investors, all for a minimum trading fee of $250.

A free demo bitcoin account is also available to all users free of charge in order to allow investors to familiarise themselves with the platform before investing real money. Once familiar with the process, Bitcoin Trader will require a small deposit of $250 to get started. The investor must then activate the auto-trading function and let the bot open and close trades with little intervention.

  • Little to no trading experience required
  • Easy bitcoin account opening process
  • 92% claimed win rate
  • The software may not win on every trade

3. Binance: Ideal for the experienced bitcoin user

Binance is a crypto exchange founded in 2017 which seeks to offer an easy-to-use platform to buy and sell 184 tokens.

Binance is a great choice crypto enthusiasts which are looking to get access to the latest coins. Not only that, but Binance offers one the lowest-fee bitcoin accounts in the market with low trading fees that are made even cheaper if you buy your bitcoins using Binance Coin (BNB). Binance offers a fast and effective platform on mobile and desktop as well multi-device support and very high transaction speed.

Opening a Binance bitcoin account is an easy process and your account should be up and running on the same day. However, being an unregulated exchange, Binance lacks in security and safety. As opposed to regulated platforms like eToro or Plus500, Binance is vulnerable to security breaches and thus not the safest bitcoin account out there.

Binance also does not offer the option to buy bitcoins in fiat, as it is a crypto-only exchange meaning that you will have to own tokens to make your purchase.

  • Excellent trading interface
  • Cheap bitcoin account
  • Fast transaction speeds
  • No fiat deposits
  • Unregulated platform

4. Coinbase: Best BTC account for liquidity and buying limits

Coinbase is one of the largest bitcoin exchanges in the world, available in 42 countries and servicing over 20 million crypto enthusiasts around the world.

Coinbase is decent choice for users who wish a quick, easy to set up bitcoin account to buy and sell bitcoin with a multiple range of banking options.

Coinbase offers very high buying limits, with verified customers being able to buy and store up to $50,000 worth of bitcoin daily. Coinbase also offers a Hosted Digital Currency Wallet Service free of charge. This means that you can buy bitcoin through their platform and store it for free.

When it comes to fees, Coinbase charges a spread of about 0.5% on purchases, as well as a Coinbase Fee which ranges from $0.99 to $2.00 for transactions between $10 and $200.Credit and debit card purchases are charged a 3.99% fee and bank transfers are charged a 1.49% fee. This means that if you are looking for a cheap bitcoin account, Coinbase may not be for you.

  • High buying limits
  • Easy to set up bitcoin account
  • Instant Buy option available with debit card purchases
  • Very high fees on credit card purchases
  • Verification and purchase can take a few days to complete

5. Plus500: Useful for bitcoin cfd trading

If you're based outside of the US and wish to register a Bitcoin account with a regulated CFD broker, we would suggest exploring the merits of Plus500. The UK-based broker allows you to sign up for a Bitcoin account in a matter of minutes. You will first need to open an account and verify your identity.

After that, simply deposit some funds to purchase Bitcoin for the very first time. Plus500 has one of the best reputations in the online brokerage space. Not only does it hold a license from the UK's FCA, but its parent company is listed on the London Stock Exchange.

In a similar nature to eToro, Plus500 does not charge any trading fees or commissions other than the spread. You can also fund your account with lots of everyday payment methods - such as a debit/credit card or PayPal. Take note, your Bitcoin account at Plus500 will be in the form of a CFD, so you won't be able to withdraw the coins out. However Plus500 supports short-selling and you can apply leverage to your Bitcoin trades.

All trading is commission and trading-fee free and you will only have to pay on the spread.

  • Regulated by the UK's FCA
  • Supports debit/credit cards, PayPal, and a bank transfer
  • Open a bitcoin account in just 5 minutes
  • Inability to withdraw your Bitcoin
  • Your Bitcoin account will be in the form of CFDs
75% of retail investors lose money when trading CFDs with this provider.

How to create a bitcoin account : step-by-step tutorial

Below we explain how to set up a bitcoin account in a few simple steps, with our recommended providers.

eToro

The bitcoin account opening process at eToro is quick and easy, but being a regulated broker you should note that you may be required to go through KYC and verification if buying large amounts.

Step 1: Create your bitcoin account

Go to the eToro website and open your bitcoin account.

You will need to fill out your information and move onto step 2.

Step 2: Verify your identity

If you’re purchasing a large amount of bitcoin, you will need to verify your identity. For this you will need to upload your ID, driving license or passport.

Step 3: Deposit funds

The next step is to add funds to your account. You can do this via bank transfer or credit card and then buy Bitcoin.

For a beginner, $250 is a good amount to start with as you learn how the platform works.

Step 4: Send your bitcoins

You can then send your bitcoins to your eToro bitcoin wallet account which you can use to multiple types of coins. The advantage with this platform is that you won’t need to memorise private keys as the wallet only requires your username and password.

Visit eToro

Plus500

Plus500’s bitcoin account opening process is easy and this brokerage is well-regulated and listed on the stock exchange, making it a very reputable company. Below we explain how to create a bitcoin account on this well-reputed broker.

Step 1: Register to Plus500

The first thing you’ll have to do is sign up to Plus500 by clicking here. Simply complete the form with your details.

 

You will then be required to complete more information regarding your trading experience.

 

 Step 2 : Deposit funds

Then, deposit a minimum of $100/ £100/€100 by simply clicking on “deposit” in the “funds” section.

Step 3: Trade bitcoin

Plus500 will give you access to a CFD bitcoin trading account meaning that you will not own the bitcoin physically.

On this platform, you will be able to trade bitcoin as CFDs and profit from the price fluctuations.

To do so, click on “trade” in the menu on the left side of the page. There you will find your trading space. If you scroll down you will find the option of trading cryptocurrencies. When you find Bitcoin, you will be able to trade with it by clicking on “sell” or “buy”, selecting your trading parameters and clicking on “confirm”.

Visit Plus500

Coinbase

If you’re looking to buy and store Bitcoin in its truest form, then you will need to withdraw your coins to a private wallet. The brokers that we have listed above do not allow you to do this, so you’ll need to use a cryptocurrency exchange. The good news is that there are hundreds of bitcoin exchanges active in the market – most of which accept customers from all over the world.

Check out the step-by-step below to find out how to open a bitcoin account on Coinbase.

Step 1: Register with Coinbase

Your first port of call will be to register and create your Bitcoin wallet. There are heaps of services available in the online space, most of which are free of charge. You will need to ensure that you use a provider that has a good reputation.

This is because you will be 100% responsible for storing your Bitcoin, so you need to make sure that the underlying security features are water-tight. You will have the option of downloading a Bitcoin wallet to your mobile phone or desktop device. For even higher security, consider a hardware wallet.

In the case of Coinbase, sign up using this link. You’ll be asked to fill in your personal details.

Step 2 : Create a bitcoin account

The next step is to create your unique bitcoin address.  Navigate to the “Accounts” section and click on “New account”.  Then, select wallet and give it a name and click on “Create account”.

Step 3: Find your bitcoin address

You can find your BTC address by clicking on “Wallet address at the top right hand side of the page. Your address will be displayed as a public key and QR code. When a person asks for requests for your bitcoin address, give them the public key.

 

Step 3: Deposit funds and buy bitcoin

Once that’s done, you will be able to go to buy bitcoin and send them to your bitcoin account. Once you submit the transfer, the coins should be added to your Bitcoin account wallet within 10 minutes.

Step 4: Send and receive bitcoin

Now that you are funded, you don’t need to do anything else if you are looking to keep hold of your investment in the long-run. With that being said, you do have the option of transferring the coins to another person. You can also transfer them back to a cryptocurrency exchange in the event that you want to sell your Bitcoin back to cash. Either way, just make sure that you transfer the coins to the correct address, as mistakes are irreversible!

Visit Coinbase

 Final thoughts

If you’ve read our guide from start to finish, you should now know that the term ‘Bitcoin account; is somewhat non-descript. The overarching reason for this is that by investing in a decentralized currency, there is no third-party that can facilitate a Bitcoin account for you. As such, you will be 100% responsible for your Bitcoin, as you will need to store the coins in a private wallet.

With that being said, the exception to this rule is to purchase Bitcoin with an online broker. Not only are the brokers that we have recommended regulated by leading licensing bodies like the FCA and CySEC, but you will not be required to store the coins yourself. Ultimately, this removes the threat of having your Bitcoins hacked by a bad actor!

Our Recommended Bitcoin Account 2020

OUR RATING

  • Buy, sell, trade and store BTC on the eToro platform
  • Social trading platform & copy trading
  • CySEC & FCA regulated
75% of retail investors lose money when trading CFDs with this provider.

FAQs

What is a Bitcoin account?

There is no such thing as a Bitcoin account per-say, as cryptocurrencies are decentralized. Instead, you will need to open an account with a broker or cryptocurrency exchange. Bitcoin itself is merely the asset.

What is the easiest way to open a Bitcoin account?

If you're looking to invest in Bitcoin, the easiest way is to open an account with a regulated broker. You'll be able to open an account and deposit funds in 5 minutes. Once you do, you can then buy Bitcoin.

What payment methods can I use with a Bitcoin account?

If you hold an account with a regulated broker, you'll be able to choose from heaps of everyday payment methods. This includes the likes of debit/credit cards, e-wallets, and a bank transfer.

How do I top-up my Bitcoin account?

If you're using a private wallet, then you will need to transfer additional coins over from an exchange. Alternatively, if you're using a regulated broker, you can top up your account up with a supported payment method as and when you like.

Can I withdraw my Bitcoin from a CFD broker?

If you have a Bitcoin account with a CFD broker, then you will not be able to withdraw your coins out. This is because you do not actually own the underlying asset when you invest in a CFD, so in this instance, the Bitcoin does not exist.

Remember, all trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
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Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of publications in the online space.

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