How to Buy Bitcoin Now That It's Passed a $20,000 Valuation

The cryptocurrency Bitcoin passed a $20,000 valuation for the first time on Wednesday. If you're looking to get in on the action, there are plenty of ways for you to start buying and selling the cryptocurrency. Even if you can't afford the full $20k, you can buy partial amounts of Bitcoin to test the waters before converting your life-savings into crypto.

CNBC reported that Bitcoin passing the milestone valuation brings its year-to-date gains over 180 percent. At the time of this article's publication, Bitcoin is currently valued at $20,8181 a coin, according to CNBC. The rise marks an incredible recovery after the price dipped below $4,000 in March due to the COVID-19 pandemic, as previously reported.

While you may not have an extra $20,000 lying around to just throw into a Bitcoin investment with the hopes that it hits $30,000 by next Christmas, most brokers that allow people to purchase Bitcoin virtually also allow you to invest as little or as much as you want into crypto. So you should be able to dip your toe into Bitcoin with an investment as little as $5—here's how.

Apps

Digital apps are probably your best bet when beginning your crypto-empire. One of the most popular is the online broker Coinbase, which allows users to link their account to their bank, card or a wire, and begin making purchases of a variety of cryptocurrencies.

If Bitcoin is a bit too out of your price range, you can also purchase Ethereum (which currently sits at a cool $628.39) or Litecoin (which feels like a steal at $89.93). Before finalizing your purchase, Coinbase will allow you to preview the buy and show you the details. The online broker does charge a small fee that varies depending on how much crypto you plan on buying.

The stock-trading app Robinhood also has an option to purchase cryptocurrency. If you regularly use the app to buy and sell stocks, you can scroll to the bottom past your stocks and lists to see cryptos. You can also search for them within the app. When you go to purchase Bitcoin in the app, it'll show you an estimate of how much Bitcoin you're buying and allow you to review the purchase before swiping up to finalize it. Unlike Coinbase, Robinhood doesn't appear to charge a fee when buying cryptos.

Other services like Gemini, Etoro and Paypal also have different methods that allow people to buy and sell cryptos using their services.

Bitcoin ATMs

If you're a fan of the old-school ATM, there's also a method for something similar with Bitcoin. After setting up a Bitcoin wallet, you can go directly to these machines, which essentially act like normal ATMs, but you can withdraw and exchange Bitcoin for cash. You can also use them to buy Bitcoin and have it placed in your wallet. A map of Bitcoin ATMs can be found on Buy Bitcoin Worldwide.

Websites

Once your Bitcoin wallet is setup, you can also purchase Bitcoin through websites like Bitcoin.com and Bitcoin.org.

Direct Sellers

There are a few places across the internet where you can buy and sell Bitcoin directly from people selling them. One such website is Local Bitcoins, where people list parameters for deals and the ways that they accept payment for Bitcoin.

Mining

If you have the time, money and skillset, you can even try your hand at mining for Bitcoin yourself. The process itself is complicated, but Investopedia can be a helpful guide; according to the site, the two key steps are verifying one megabyte of transactions and being the first miner "to arrive at the right answer, or closest answer, to a numeric problem."

Bitcoin visual representation
A visual representation of the cryptocurrency Bitcoin on November 21, 2020 in London, England. Jordan Mansfield/Getty