In a little over a decade, Bitcoin (BTC) has evolved from an obscure digital token used by a small group of people into a payment method and store of value that millions believe is the currency of the future. If you're interested in buying Bitcoin, you'll first need to open an exchange or platform that allows Bitcoin trading. Below we cover our top picks for the best place to buy Bitcoin, along with why we're fans.

The SEC advises investor caution when it comes to crypto and has filed charges against several crypto platforms in 2023. It says that a number of popular cryptocurrencies -- including Solana, Cardano, and Polygon are unregistered securities. This could impact the way these and other cryptos are traded in the U.S. As a crypto investor, make sure you understand how the SEC cases and other proposed regulatory changes could impact your portfolio.

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Investing in crypto can be extremely risky. We think investors should approach these assets like any other technological investment — with a long-term mindset and the expectation of ups and downs. The Fool realizes there may be opportunities for investors. We do actively recommend select cryptocurrencies to our community. But we encourage everyone to be well versed prior to investing to understand the potential risks and rewards.

There are dozens, if not hundreds of different places you can buy Bitcoin, but they mostly fall into one of these three categories.

Cryptocurrency exchanges

Cryptocurrency exchanges are in the business of facilitating the purchase, sale, and storage of cryptocurrencies only. Coinbase and Gemini are examples of some of the best cryptocurrency exchanges.

Brokerages

Some stock brokers that allow users to buy stocks, bonds, mutual funds, and other investment vehicles also allow investors to buy and sell certain cryptocurrencies. Robinhood is a good example of a brokerage with cryptocurrency offerings.

Apps

Some of the platforms in the previous two categories certainly have apps. However, there are some apps that aren't official cryptocurrency exchanges or brokerages that facilitate the purchase and sale of Bitcoin. Cash App and Venmo fall into this category.

Safety is a relative term when it comes to cryptocurrency. This is still a fairly new and unregulated industry, and there are limited consumer protections in place. As we saw with the high profile collapse of FTX and other cryptocurrency platforms, crypto assets are not covered by SIPC insurance or FDIC insurance. If you keep your Bitcoin in a custodial wallet, it could be at risk if the exchange fails.

Safety-wise, if you're looking for the best place to buy Bitcoin, here are some factors to consider:

• Cold storage: Reputable exchanges will store the bulk of a customer's crypto assets in "cold storage." This typically means on servers that are not connected to the internet, making it less susceptible to hackers.
• Insurance: The best place to buy and store Bitcoin will carry external insurance to protect against theft. Look into the details, such as what firm provides the insurance, how much is insured, and under what circumstances you'd be paid.
• Third party audits: Before you deposit money or buy Bitcoin, see what assurances the platform offers in terms of its proof-of-reserves. This is the evidence that it holds enough assets to cover client deposits. Check whether your crypto platform has an independent board and carries out external audits of its accounts.

Finally, it's important to note that many exchanges don't provide any protection against unauthorized account access. Be sure to activate user-level security features such as two-factor authentication. And keep your passwords and other authentication methods secure.

RELATED: Check out The Ascent's guide to the best NFT wallets.

We have yet to find a perfect place to buy Bitcoin. But if you want to know the best place to buy Bitcoin for you, the answer will depend on the features that matter most to you. Here are a few that you should consider when evaluating the best cryptocurrency exchanges, brokers, and apps.

Fees

The cost of buying and selling Bitcoin can vary dramatically from one crypto exchange platform to another. While it shouldn't be the only thing you look at, it's important to know what you'll pay on each platform you're considering.

Investment selection

All of the places on the above list will let you buy Bitcoin. But if you want to invest in other cryptocurrencies or begin crypto trading, you'll want to look for a platform that has a good selection. If you'd like to invest in Bitcoin and stocks in the same place, you'll need a platform that offers that.

Educational resources

Some of the biggest cryptocurrency exchanges have extensive libraries of articles, videos, and tutorials to help users learn about Bitcoin and other cryptocurrencies. This can be a big differentiator when looking for the best place to buy Bitcoin, even for people who already understand how Bitcoin works.

Bonuses

In addition to being the best place to buy Bitcoin fast, some of our favorite platforms are offering decent sign-up bonuses. And many have very low initial spending requirements. While a platform's bonus offer shouldn't be the deciding factor, it can certainly be a tiebreaker.

User-friendliness

Depending on the investor, this could mean different things. For example, someone who is looking to buy their first Bitcoin and only plans to occasionally buy and sell the digital currency may want as simple of a user interface as possible. On the other hand, an active and experienced Bitcoin trader might want a trading platform with many features (charting tools, order options, etc.).

Security

We touched on safety above, but it bears repeating. There's no point in investing in Bitcoin only to lose your assets if the platform collapses or is hacked. Research the risks involved and look for crypto exchanges that are transparent about their security, assets, and insurance.

The cost to buy Bitcoin depends on the platform you're using. This should certainly be a major consideration for you when deciding where is the best place to buy Bitcoin.

Although there are different terms used by platforms, virtually all of them make money on the "spread." This is the difference between the price an exchange is willing to buy Bitcoin for and the price it is willing to sell it for. For example, a few popular platforms add 0.5% to their quoted price for buying transactions and subtract 0.5% for selling transactions to create a spread.

Additionally, some (but not all) platforms also charge a transaction fee. This often depends on the size of the purchase or sale, the method of payment, and the user's location.

In addition to the trading fee, you may also be charged a withdrawal fee to take your crypto or traditional money off the platform. It's also worth watching out for any charges to deposit money.

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It has never been easier to buy Bitcoin. Just follow these five steps:

1. Decide which cryptocurrency platform you want to use. As you can see from this page, there are a number of different crypto exchanges that trade Bitcoin. The right one for you depends on the type of investor you are and which features matter most to you.
2. Create an account. Once you've picked an exchange or brokerage, the next step is to open an account. To do this, you'll need to fill in some personal information, such as your name and contact information. You'll often also have to provide proof of address and upload a copy of your ID. This usually only takes a few minutes and helps exchanges comply with anti–money laundering regulations.
3. Deposit money. Most cryptocurrency platforms offer a few different ways to deposit fiat currency (traditional money, like dollars). You'll find the fees vary, though the cheapest way to fund your account is usually through a bank transfer. Credit card or debit card deposits often come with a charge of 2% to 5%.
4. Buy your Bitcoin. Remember, you don't have to buy a whole Bitcoin -- you can choose the dollar amount you want to spend. Some exchanges have an instant convert function, but on other exchanges, you may have to place an order. Once that's done, you'll have bought Bitcoin. Congratulations!
5. Consider where you want to keep your Bitcoin. Many new investors opt to leave their cryptocurrency assets on the exchange where they bought them. This is frowned upon by long-term crypto enthusiasts, but it isn't a bad choice when you're getting started. You could also consider moving your Bitcoin to a separate crypto wallet, such as a hot wallet or a hardware wallet. A Bitcoin wallet will keep your coins extra secure but gives you additional responsibilities. For example, if you lose your account passwords, you may completely lose access to your funds.