Bitcoin is quickly closing in on all-time high, with the price of the cryptocurrency surging since September and now at more than $18, a coin.

There are predictions it could surpass the previous peak of more than $19, a coin and even top $20, by the end of this year. 

Many investors may be tempted to buy some bitcoin, even though it looks like a speculative boom, but even experts who back the cryptocurrency say it should only be a small part of a portfolio and people must realise it is high risk.

While crypto watchers say the latest boom has been driven more by professional investors, there is evidence more armchair enthusiasts are trying to get in on the action, especially as it continues to make headlines.

When the price boomed in late , the number of established exchanges were few and far between, meaning those buying it faced a Wild West of providers if they wanted to buy in.  

Bitcoin has surged since September and its price is closing in on its all-time high

Investment platform eToro said November was on track to see the most investment into bitcoin in three years, while interest could surge even more if the cryptocurrency tops $20, a coin.

This time around, it is easier to buy bitcoin, although there are a number of hoops and challenges to get through first.  

Money held in cryptocurrencies is unprotected and the coins are among the most volatile investments around, buying bitcoin can still be complex and may be difficult for casual investors to get their head around.

With that in mind, This is Money has put together a guide comparing some of the most popular ways to invest, how much they cost, and how it can be paid for.

Where can you buy bitcoin?

The most common place to purchase bitcoin and other cryptocurrencies is what is known as a cryptocurrency exchange.

These are platforms, mobile apps and websites which allow investors to purchase bitcoin with government, or fiat, money or with another cryptocurrency.

According to research by the Financial Conduct Authority published earlier this year, 77 per cent of people surveyed who had bought cryptocurrency in Britain did so through an online exchange.

The five most popular exchanges among UK cryptocurrency investors, according to a survey by the FCA earlier this year

Most did so through exchanges not based in the UK, with the five most popular exchanges among consumers - Coinbase, Binance, Kraken, Bittrex and Bitfinex - all based overseas. 

In some instances, this means investors will have to pay foreign exchange fees as these exchanges will only accept deposits in dollars or euros.

While many advocates of cryptocurrencies like bitcoin tout the privacy and anonymity they can offer holders and spenders, it is worth noting exchanges will ask investors to provide email addresses, phone numbers, personal details and identity documents before they can fund their accounts with sterling deposits.

Exchanges state this is to prevent fraud and protect their investors, as well as to comply with anti-money laundering and 'know your customer' regulations.

As well as that documentation, exchanges may levy a variety of fees depending on the payment method investors opt for.

What will I pay? 

There can be fees for funding an account with a debit card or bank transfer, as well as the trading costs of actually buying bitcoin.  

These trading costs can eat into how much bitcoin someone ends up buying, in the same way that dealing fees on DIY investment platforms can affect how many shares or funds investors end up with.

The platforms we looked at vary in their costs. Some charge a flat fee, some charge a percentage and others also include a 'spread margin'. 

This is how some platforms which otherwise don't charge a fee make their money, as this margin means investors get less for their money than the underlying price of what they are buying would suggest, as platforms and exchanges take a built-in cut.

Someone buying £ worth of bitcoin through Coinbase, the most popular exchange among UK investors according to the FCA's survey, would be charged a per cent fee, while the exchange also charges a spread of around per cent.

Together, this would see a buyer billed a £ fee and a £ spread.

Buying the same amount's worth of bitcoin through Binance would cost £9 with a debit card or nothing with a bank transfer, coupled with a 50p trading fee as it charges just per cent on trades of up to 50 bitcoin. 

Kraken would bill someone buying £ worth a per cent fee, so £, although funding the account with a card could incur foreign exchange fees as money is converted into euros. 

The same can be said for Bittrex, which charges card and foreign exchange fees, but it also has a similarly low trading cost of per cent, or £1 on a £ trade.

And Hong Kong-based Bitfinex charges the same fee, although the account is aimed at higher rollers with investors having to deposit £10, at a time and incurring a deposit fee of per cent, with a $60 minimum.   

We have broken down the details when it comes to the UK's five most popular exchanges in the above tables, all of which come with websites and mobile apps and offer two-factor authentication to enable users to better secure their accounts.

We have also included a rating out of five from the website Down Detector, which monitors website crashes and outages, to give potential traders an insight into how reliable their chosen exchange is and how likely it is to go down at an inopportune moment - the higher the score, the better it rates it. 

Where else can you buy it?

As well as the five major exchanges outlined above, other trading platforms also let investors buy into bitcoin and other cryptocurrencies.

One of the best-known is eToro, one of a new breed of commission-free dealing platforms aimed largely at younger investors. 

While its adverts are primarily about letting investors buy into their favourite companies, the year-old firm started offering cryptocurrency access in

Users can register with an email address and phone number, and must provide proof of address and government ID. 

Money can be uploaded via bank transfer, with a minimum deposit of $, or using PayPal or a debit card, with a minimum deposit of $

This means UK investors could be hit with a foreign exchange fee from their bank, while the platform charges per cent itself. 

And while there are no fees to buy cryptocurrency, how much investors get for their money is affected by a per cent spread which eToro charges.

Money and assets deposited onto eToro are held in segregated bank accounts.

The other is Revolut, the banking app which offers users the opportunity to trade anything from bitcoin to gold. 

It is mobile-only service and users must identify themselves with the phone number, government ID and a picture of themselves, while some users have suggested the bank asks for proof of funds when they have tried to buy cryptocurrency.

Any bitcoin will be bought and held by Revolut on the investors' behalf, meaning they won't actually possess it themselves, but do still have the rights to it, even if they can't use it to buy anything.

Investors can load money onto Revolut from another bank account and exchange up to £1, into bitcoin for free. 

Above that those who don't subscribe to either of its paid for accounts are charged per cent, while it takes per cent on the exchange rate too.

Will your bank let you buy it?

While Britain's biggest banks are unlikely to be that keen on cryptocurrencies, most still won't stand in investors' way if they want to buy into them.

With the exception of Nationwide Building Society, which according to UK advice website Crypto Buyers Club has blocked bank transfers to Coinbase since , all of Britain's major high street names let customers use their bank accounts and debit cards to fund deposits to exchanges or cryptocurrency purchases, although many have banned credit card transactions. 

Perhaps ironically, some of those least keen on bitcoin are the new breed of digital challenger banks, with Starling blocking cryptocurrency purchases.

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