How to Invest in Bitcoin Stock

Investing with bitcoin or other cryptocurrency can be a fun way to explore experimental new investments. But it is also true that investing in cryptocurrency must carry a warning label like cigarettes: "This product may be harmful to your financial health. Never buy more than you can afford to lose."

The value of bitcoin - the first and most popular cryptocurrency in the world - has risen from recent lows but is still trading far below highs in 2017. Like all cryptocurrency, bitcoin is experimental and subject to far more volatility than many investments tried and right, like stocks, bonds, and mutual funds. NerdWallet recommends investing no more than 10% of your portfolio in individual shares or risk assets such as bitcoin. If you are new to investing, find out more about how to invest money.

Coinbase: This is a popular choice for U.S. bitcoin buyers, in part because you can easily link your bank account. Coinbase also offers access to etherium, litecoin and other cryptocurrencies. On each transaction, Coinbase charges a spread (an adjustment in the purchase or sale price of an investment) of about 0.5%, plus a fee. The fee is the greater of a variable percentage based on region and payment type — for example, 1.49% for a purchase funded by a U.S. bank account — or a flat fee that ranges from $0.99 to $2.99, depending on the amount transferred.

Binance: The world’s largest exchange by volume for all cryptocurrencies, Binance charges a 0.1% fee for all crypto trades (some discounts are available), plus a withdrawal fee. Generally, you can only make purchases using cryptocurrency, though Binance did recently add the option to pay by credit card for an additional fee (this option is unavailable in some U.S. states).

Gemini: This U.S.-based crypto exchange trades bitcoin, ether, bitcoin cash, litecoin and zcash. Transaction fees range from $0.99 to 1.49% of your order, depending on the size of the purchase or sale, plus a fee of about 0.5%.

Coinmama. This exchange trades in eight cryptocurrencies, including bitcoin. Coinmama requires a minimum $60 purchase and charges a transaction fee of 5.9% (plus an additional 5% fee for credit card purchases).