Best Exchange to Buy Bitcoin in 2025

Why Total Cost Matters More Than Trading Fees

Here's what most "best exchange" articles get wrong: they only compare trading fees. But if you're following Bitcoin best practices and moving your BTC to self-custody (your own wallet), you need to consider withdrawal fees too.

Withdrawal fees vary dramatically. Some exchanges charge flat fees regardless of network conditions. Others pass through dynamic network fees. Some offer Lightning Network withdrawals that cost pennies. The difference can be $5 or $50 depending on the exchange and network congestion.

Best Exchanges for Buying Bitcoin (Detailed Reviews)

🏆 Kraken — Best for Self-Custody

If you're buying Bitcoin to hold in your own wallet, Kraken offers the best overall value. The combination of 0.16% maker fees (or 0.26% taker) plus dynamic withdrawal fees that reflect actual network costs means you're never overpaying.

Key advantages for Bitcoin buyers:

• Lightning Network: Withdraw via Lightning for essentially zero cost
• Proof of Reserves: Kraken publishes cryptographic proof that customer funds are fully backed
• No withdrawal delays: Unlike some exchanges, Kraken doesn't artificially delay withdrawals
• Security: 14 years operating without a hack

The main limitation: Kraken isn't available in New York. If you're in NY, Gemini is your best option.

🏢 Coinbase — Best for Beginners

Coinbase isn't the cheapest, but it's the most trusted on-ramp for new Bitcoin buyers. If you're making your first purchase and want to minimize confusion, Coinbase's simple interface is worth the premium.

The key is using Coinbase Advanced (free to enable) instead of the simple buy button:

Coinbase also offers Coinbase One for $30/month, which eliminates trading fees on up to $10,000 in monthly trades. If you're dollar-cost averaging $500+ per month into Bitcoin, it pays for itself.

📱 Robinhood — Cheapest for Keeping on Exchange

Robinhood markets "commission-free" crypto trading, but the real cost is hidden in the spread (typically 0.3-0.4%). For a $1,000 BTC purchase, you'll pay roughly $3-4 in spread costs—cheaper than most exchanges.

The catch: Robinhood isn't designed for self-custody. While they now allow withdrawals, the process is slower and less feature-rich than dedicated exchanges. You can't use Lightning Network, which means higher withdrawal fees.

Robinhood makes sense if:

• You plan to hold Bitcoin on the exchange (not recommended for large amounts)
• You're already using Robinhood for stocks and want everything in one app
• You're buying small amounts where the spread is cheaper than explicit fees

💵 Cash App — Easiest for Small Purchases

Cash App charges a significant premium (~1.5-2% spread) but offers the smoothest experience for casual buyers. If you're buying $50-100 of Bitcoin at a time and already use Cash App for payments, the convenience might be worth the cost.

Cash App's underrated feature: Lightning Network support. You can receive Lightning payments directly to your Cash App, which is useful for spending Bitcoin at merchants.

⚠️ PayPal — Avoid for Bitcoin

PayPal allows Bitcoin purchases, but you cannot withdraw your Bitcoin. Your BTC is permanently locked in PayPal. This defeats the entire purpose of owning Bitcoin (self-sovereignty, censorship resistance, true ownership).

The only scenario where PayPal makes sense is if you want price exposure to Bitcoin without actual ownership—but at that point, a Bitcoin ETF is a better choice.

Best Exchange for Dollar-Cost Averaging

If you're buying Bitcoin regularly (weekly or monthly), recurring fees add up. Here's the best approach for DCA:

Option 1: Coinbase One ($30/month) — If you're investing $500+/month, the subscription pays for itself. Zero trading fees up to $10K/month, plus priority support and other perks.

Option 2: Kraken Recurring Buys — Set up automatic purchases at 0.26% per buy. No subscription fee. Better for smaller amounts.

Option 3: Swan Bitcoin — Specialist Bitcoin-only service built specifically for recurring purchases. Fees are ~1% but they handle automatic withdrawal to your wallet.

What About Bitcoin ETFs?

Since January 2024, spot Bitcoin ETFs (like iShares Bitcoin Trust - IBIT) let you get Bitcoin exposure through regular brokerage accounts. No wallets, no exchanges, no withdrawal fees.

ETFs make sense if:

• You want Bitcoin in a tax-advantaged account (IRA, 401k)
• You don't want to manage private keys
• You're already investing through a brokerage

The tradeoff: you don't actually own Bitcoin. You own shares in a fund that owns Bitcoin. You can't send it, spend it, or truly self-custody it. For many investors, that's fine. For Bitcoin purists, it defeats the purpose.