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Best Bitcoin Account 2020 | Open an Account Now!

Check our list of the best bitcoin brokers below as we vet the ease of buying and storing BTC on their platforms
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Author: Nica

Last Updated: July 6, 2020

Despite being a highly speculative and volatile digital asset, bitcoin has garnered the attention of investors all over the world. Some investors also believe that the new crypto asset class will play a central role in the future of finances.

If you are thinking of joining the bandwagon, you will need a reliable BTC account provider. In this guide, we take an in-depth look at the top 3 online bitcoin brokerages in the market.  Read on to find out which one suits you best.

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    How to Open a Bitcoin Account in 3 Quick Steps

    Don’t have time to read our guide in full? Follow the 3 steps outlined below to open a bitcoin account right now!

    Step 1: Create an Account

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    Open a free trading account with our recommended broker. As part of the registration process, you will be required to submit your personal details for KYC.

    Step 2: Verify your Identity

    You’ll need to upload your ID or passport to verify your identity. Also, a recent utility bill, bank or credit card statement is needed to verify your address.

    Step 3: Deposit Funds

    wallet

    Once you have completed the registration and your account has been approved, you can transfer funds to your account by one of the provided payment methods.

    Top 3 Bitcoin Account Providers

    Before we get into the nitty-gritty of bitcoin account providers, note that the term “bitcoin account” is somewhat a misnomer. As a decentralized currency, bitcoin does not need an account with a middleman to keep your holdings. Rather, you need to create a bitcoin wallet where you can store your bitcoin.

    Here are the top 3 bitcoin account or bitcoin wallet providers.

    1. eToro – Best for Beginners

    Founded in 2007, eToro is a highly regulated online brokerage and licensed by multiple top-tier authorities. These include the Financial Conduct Authority (UK), Australian Securities and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC).

    eToro has its own crypto wallet for Android and iOS, which makes it possible to transfer and trade crypto on the go. As an all-in-one bitcoin account service provider, it lets you buy BTC and store it in the eToro crypto wallet.

    In terms of security, the bitcoin wallets have two-factor authentication (2FA) and multi-signature access. It has a unique design that does not require users to remember private and public keys. You can use it to make wallet-to-wallet transfers and transfer your digital assets from the trading platform. Also, you can carry out crypto-to-crypto conversions on eToro.

    For those looking to trade, there are a number of reasons why eToro is your best choice. First, it is renowned for its copy trading feature, which allows less experienced traders to copy the moves and strategies of seasoned pros. That way, they learn to trade from watching the gurus at work.

    Its copy trading features are integrated with social media, making it possible to share strategies, and trading tips with community members.

    Another highlight of the service is what it refers to as the CryptoPortfolio, which allows you to invest in popular cryptos. These include Bitcoin, Ethereum, Ripple, Litecoin, Dash, and Ethereum Classic. By investing in this portfolio, you get exposure to multiple currencies so you can diversify the risks associated with investing in just one crypto.

    Last year, eToro launched eToroX, a regulated cryptocurrency exchange. The minimum amount you can deposit when you first create your crypto exchange account is $200. Fees here range from one asset to another, with BTC attracting a 0.75% fee to exit a position. Every time you make a withdrawal, you will pay $5. If you do not log in to your account for more than 12 months, you will be charged $10 monthly in inactivity fees.

    With regard to usability, eToro’s interface is intuitive and has plenty of handy tools and features. Navigation is a breeze and the platform is highly responsive.

    eToro’s customer support team is reliable and professional, and you can reach them on live chat, or by opening a support ticket on their website. But they are only accessible during working hours on weekdays.

    Our Rating

    • Intuitive interface
    • Handy trading features like copy trading and CryptoPortfolio
    • You can trade and transfer BTC on mobile devices
    • $10 monthly inactivity fee
    CFDs are complex financial instruments and 75% of retail investor accounts lose money when trading CFDs.

    2. Binance – Best for Seasoned Pros

    Despite the fact that it was only founded in 2017, Binance has become a globally renowned crypto exchange site. The exchange offers more than 450 cryptocurrencies and has one of the fastest execution speeds in the market. On a daily basis, the site has over 300,000 active users, making it the second-largest crypto exchange by trading volume.

    It seeks to cater to investors of all levels, offering a basic as well as an advanced setup for trading. For new traders, the basic platform offers a simple user interface, without the advanced trading features. The advanced setup, on the other hand, offers plenty of charting features and trading indicators.

    The site offers a competitive trading fee of 0.1%, one of the cheapest in the market and if you use its proprietary coin BNB, it gets even cheaper.

    When you open a bitcoin account on Binance, you would have the opportunity to create multiple sub-accounts, up to 200, under the main one. Here, you can manage additional accounts for family, friends and even clients. If you would like to trade as a legal entity, the corporate account allows you to do just that.

    When you first open a Binance BTC account, you will start with the basic account, with a 2 BTC daily withdrawal limit. There are no deposit limits, there will be a withdrawal limit if your account is not yet verified. But when you verify your account, you get access to more features and have the withdrawal limits lifted.

    If you would like to trade on the go, the Binance mobile app offers a compelling interface. It is accessible on both Android and iOS and has excellent functionality.

    The Binance customer support team offers assistance in 7 languages and is accessible via live chat and an online support portal. Live chat is only accessible during restricted work hours and it may take up to 24 hours to get a response on the support portal. It also has an extensive FAQ section that covers most aspects.

    Though it does not provide information on how it secures user funds, Binance’s response to a 2018 hacking attempt instilled user confidence. Automated systems raised alarm before the loss of any funds.

    our rating

    • Basic and advanced trading platforms for different levels of users
    • Accessible on mobile
    • Fast execution speeds and competitive fees
    • Basic account setup might be complex for complete beginners

    3. Coinbase – Best for Liquidity

    Founded in 2012, Coinbase has its headquarters in San Francisco, California. Not only is it one of the best known exchanges globally, but it is also one of the largest. It has a user base of over 20 million in at least 42 countries across the globe.

    The exchange is a reputable player in the market as it has the backing of well-known VC firms. These include Y Combinator, Andreesen Horowitz, Ribbit Capital, and Sozo Ventures.

    In addition to bitcoin, the site supports 18 other cryptocurrencies and offers a wide range of deposit and withdrawal options. Its wallet is accessible on iOS or Android mobile devices. Besides storing your BTC, the Coinbase bitcoin account also allows you to track price changes as well as buy and sell the crypto.

    Though the fees are not as low as on Binance, Coinbase’s fees are still competitive, ranging between 1.49% and 3.99%. They vary depending on the preferred payment method and country of residence.

    There are strict limits when it comes to how much you can transact. The limits for trading will depend on the age of your account, whether or not the account is verified, your location, and the preferred payment method.

    However, you can apply for a higher limit by verifying your phone number, personal info, and a photo ID. For verified customers, there is a generous $50,000 max for US users and $30,000 in Europe. Despite the limits though, the exchange offers remarkably high buying limits and liquidity.

    Coinbase stores 99% of all user funds in cold wallets, and the rest on its servers. To ensure there is no margin for error, this 1% is fully insured. The exchange also has a cover from FDIC Insurance, with a $250,000 cap for every user.

    Some of its wallet security features include two-factor authentication (2FA) and a multi-signature vault for large investors. The latter makes use of a three-key system, one in your possession, one shared and a third one in the custody of Coinbase.

    A great highlight of having an account on this site is the Earn program. Under this program, you take free crypto courses and earn free crypto worth $166.

    For more experienced users, Coinbase Pro (formerly GDAX) offers all the necessary bells and whistles. It supports BTC and a handful of other cryptos and its advanced features are remarkable.

    Customer support is one of the areas that could use some improvement. On every page of the FAQ section, it has a chatbot on hand to answer queries. The team is accessible via phone 24/7, email and an online ticketing system. Email responses take 24 to 72 hours but there have been complaints of users getting canned responses not tailored to their issues. The huge demand has also resulted in phone support delays.

    Another common complaint against the service has to do with the freezing and closing user accounts. The company is closely integrated with traditional banking regulations and as such, takes pride in legislative compliance.

    It has a reputation for tracking how users spend coins and may close your account for a variety of reasons, including gambling, engaging in adult sites, contraband purchases, and a host of other reasons.

    our rating

    • High liquidity
    • Accessible on mobile devices
    • Robust security
    • Poor customer support

    How to Create a Bitcoin Account on eToro

    Bitcoin account setup on eToro is simple and straightforward. Here is how to open a bitcoin account on the trading platform:

    Step 1: Create an Account

    Go to eToro’s official website and click “Join Now.” In the window that appears, fill in the required sign up details such as your name, email, and password. Click “Create Account” to finish the sign-up process.

    Step 2: Verify your Identity

    Best to create a Bitcoin account on eToro | Learnbonds

    You’ll need to upload your ID or passport to verify your identity. Also, a recent utility bill, bank or credit card statement is needed to verify your address.

    Though you may skip this step, it is mandatory to verify your identity when you need to purchase large amounts of BTC.

    Step 3: Deposit Funds

    Best to create a Bitcoin account on eToro | Learnbonds

    To add funds to your account, select a deposit method from the list of available options. eToro’s supported payment methods include debit/credit card, PayPal, Neteller, Skrill, wire transfer and WebMoney.

    Step 4: Buy BTC

    Best to create a Bitcoin account on eToro | Learnbonds

    Go to the Buy BTC page and enter the amount of BTC you want to buy or the USD amount you want to use. Once you’ve checked if the values you entered are correct, simply click the “Trade” button to finish the transaction.

    The BTC you purchased will then be deposited to your eToro bitcoin wallet.

    Can I Create a Bitcoin Account with No ID?

    Now that you have learned how to set up a bitcoin account, you may be wondering whether it is possible to create an account without an ID. The answer depends on the platform on which you want to create your account.

    Regulated service providers are mandated by law to verify user identities. eToro is one such regulated broker and therefore subjects all their clients to the Anti-Money Laundering (AML) and Know Your Customer (KYC) verification processes.

    You can try unregulated services like Switcher and Localbitcoins that do not require any form of identification during the account creation process.

    Can I Create an Account and Buy Bitcoin Instantly?

    The speed at which you get your BTC after purchase depends on the payment method you use. Bank transfers take much longer than most other methods, but if you want your purchase to reflect instantly, you could use such fast methods as credit and debit cards.

    Note that the fast service comes at a premium since exchanges like Coinbase and Coinmama charge as high as 4% for credit and debit card purchases.

    Should I Buy BTC?

    In order to answer this question, let’s take a look at the state of the market and what this means for bitcoin.

    There are many times when BTC seems set to hit new highs but then it takes a nosedive. Though it started the year on a bullish note, the price is now almost half of its January highs.

    Fortunately, there will only ever be a total of 21 million bitcoin. With this finite supply as well as the increasing demand for bitcoin, BTC’s price is expected to increase not only this 2020 but also in the coming years.

    Additionally, a lot of tech companies and institutions now see it as digital gold because of its perceived market value.

    BTC Predictions for 2020

    Bitcoin went through a dramatic roller coaster ride in 2019. What is its outlook for 2020?

    Let us take a look at one major event that could affect bitcoin’s price in 2020:

    • Bitcoin Halving

    Bitcoin Halving in 2020 | LearnbondsIn May 2020, the legacy cryptocurrency will be undergoing a halving event. This is when mining rewards reduce by half in order to reduce the pace of creation of new coins. The mining reward will reduce to 6.25 BTC from 12.5 BTC.

    This means that fewer coins will be coming into the market, but in theory, the demand will remain constant. This should drive prices up.

    The upcoming halving will be the third since bitcoin’s inception. During the previous two halving events, BTC price rallied. Many are expecting that the price rally will also happen this 2020.

    Conclusion

    Now that you know the best bitcoin account providers, simply choose one of them and create your bitcoin account today.

    Remember to get a grasp of the general crypto market dynamics before making an investment. If you’re also interested in bitcoin trading, try out the demo accounts first before risking real money.

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    FAQs

    Why do I need a bitcoin account?

    As a digital currency, BTC does not exist in any physical form. So you cannot store it in any physical storage facility. Rather, you need a bitcoin account or bitcoin wallet to store the keys that give you access to your BTC holdings and allow you to transact.

    How much do I need to deposit to have a bitcoin account?

    The minimum deposit will depend on the platform you choose. If you want to create a bitcoin account on eToro, you need to deposit a minimum amount of $200.

    What is a bitcoin cold wallet?

    A bitcoin cold wallet is a storage facility for bitcoin that operates entirely offline. A bitcoin cold wallet is a storage facility for bitcoin that operates entirely offline.

    Can my bitcoin transactions be tracked?

    Yes, when you verify your identity during account creation, this makes it possible to link your bitcoin wallet address to your identity. Since all bitcoin transactions are recorded on a public blockchain, tracking transactions to a real-life identity is a breeze.

    Can I access my bitcoin account using my smartphone?

    Yes, eToro’s mobile crypto wallet works like the bitcoin account you can access when you’re on your desktop. The app also allows you to buy, sell and trade other cryptocurrencies.

    See Our Full Range Of Cryptocurrency Resources – Cryptocurrency A-Z

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    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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    Nica is a BA Political Science degree holder who fell in love with writing after college. She specializes in financial technology and cryptocurrency. At her young age, she was already able to work with founders who graduated from Harvard, tech startups funded by Y-Combinator, CEOs of multi-million dollar blockchain companies, investment companies in London and many more.

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    eToro: Buy Bitcoin with 0% Commission

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    Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

    eToro: Buy Bitcoin with 0% Commission
    Visit eToro

    Cryptoassets are highly volatile unregulated investment products. No EU investor protection.