Buying cryptocurrency is easy and safe when using reliable crypto exchanges. Buying cryptocurrency requires diligence from the user, but it’s not a complicated process.
The purchase process begins by choosing a cryptocurrency exchange. Registering a new account on a crypto exchange is normally fast and straightforward. After the registration, you must verify your identity. Before buying cryptocurrencies, you must deposit fiat currency (EUR, USD, GBP, etc.) into your account. After the deposit, you can buy the cryptocurrency you want.
Finally, it’s important to ensure the proper storage of cryptocurrencies. We also recommend keeping up with the crypto news and regulations. Investing in cryptocurrencies can be challenging and requires careful consideration.
Table of Contents
How To Buy Cryptocurrency: A Quick Guide
Buying cryptocurrency is easy and safe when using reliable crypto exchanges. We recommend using Coinbase for beginners. Coinbase is a heavily regulated crypto exchange operating for over ten years. Coinbase has a simple design, which makes buying cryptocurrency as easy as online banking.
Each country also has local crypto exchanges regulated by the local financial authorities. Choose the local crypto exchange if using your language is important and Coinbase doesn’t support it. This is usually the case with smaller regions, like Scandinavia or Eastern Europe.
How to buy crypto in seven steps:
- Choose a crypto exchange marketplace: We recommend Coinbase or domestic exchanges for beginners.
- Open a user account: Register a new account on Coinbase by clicking here.
- Download the mobile app: A mobile app is the easiest way to use any crypto exchange, and in some cases, your identity must also be verified using the app.
- Verify your identity: Identity is verified with a passport picture (global exchanges) or bank credentials (domestic exchanges).
- Deposit funds: You can deposit funds via a bank transfer or credit card.
- Buy cryptocurrency: Buy the cryptocurrency you want.
- Remember safe storage: Consider transferring cryptocurrencies to your crypto wallet after purchase.
We also recommend following news of the crypto industry. Technological advances, crypto and tax regulations, and many more things are all in transition. Every crypto investor needs to stay alert!
Below is a picture from the homepage of Coinbase.
There are hundreds of different crypto exchanges on the market. No wonder “Where to buy cryptocurrency” is a common question among beginners. No worries! We have compiled a list of cryptocurrency exchanges that are safe, reliable, and proven to be good.
Click “Exchanges” on the main menu to find a list of reliable and popular exchanges. Click reviews on the main menu to find beginner’s guides as well.
We recommend exploring different options and studying cryptocurrencies before purchasing. You can find lots of useful information by browsing the links in the main menu. If the term “cryptocurrency” is unfamiliar, we recommend starting with this article: What Is Cryptocurrency – The Beginner’s Guide.
Next, you will receive detailed instructions on buying cryptos.
How to Buy Cryptocurrency: A Detailed Guide
Buying cryptocurrency requires diligence from the user, but it’s not a complicated process. The purchase of cryptos starts with choosing an exchange and ends with selecting a storage method. Next, we will go through the different steps in detail.
Where to buy cryptocurrency?
The purchase process begins by choosing a cryptocurrency exchange. There are many popular cryptocurrency exchanges on the market, and typically, each country has several options! How do you know what exchange to choose, then? That depends on factors such as:
- Which cryptocurrencies are you buying?
- Is the English language a problem for you?
- Are you a trader?
Local exchanges are often more user-friendly because of the language, but their selection is more limited. You must move to foreign exchanges like Binance to buy rarer cryptocurrencies. If you stick to cryptos such as Bitcoin or Ethereum, you can (very likely) buy them from your local exchange.
The mother tongue is often the most important selection criterion for beginners. If you are one of them, choose a domestic exchange. Remember that language choice comes up in addition to the user interface, for example, when dealing with customer service. If you are unfamiliar with crypto terminology in English, you might struggle to explain your problem to an English customer service agent.
If you need professional trading tools, leverage, or futures, your choices are global exchanges such as Binance, Coinbase, Kraken, and Bitget. You can see a list of the market’s most popular exchanges on the best cryptocurrency exchange page. Click Reviews on the main menu to find user guides for these services.
Open a user account and download the mobile app
Registering a new account on a crypto exchange is normally fast and straightforward. Below is an example of the registration form for Coinbase.
After personal and address details, you will be asked about deposits and withdrawals. Exchanges have to do this because of anti-money laundering laws.
After opening an account, it’s a good idea to download the exchange’s mobile app. All popular crypto exchanges have mobile apps for Android and iOS. Mobile apps are easy to use, and identity verification is often finalized in the mobile app.
Verify your identity (KYC process)
After the registration, you must verify your identity. This is often referred to as the KYC process. In local exchanges, this is usually done with online bank credentials, which is a significant advantage. It makes the process easy and fast.
In globally-operating exchanges, identity is confirmed with a picture of a valid passport (or other ID). The address is confirmed with an electricity bill or a similar document. You will usually complete the KYC process in the mobile app.
The KYC process is mandatory in all crypto exchanges where bank transfers are made.
Make a deposit
Before buying cryptocurrencies, you must deposit fiat currency (EUR, USD, GBP, etc.) into your account. This process is fast and easy, as all well-known exchanges support bank transfers. When using a SEPA transfer, the deposit often appears in your account within a couple of hours, and the same applies to withdrawals.
Another popular option is to deposit with a debit card. However, check the costs of deposit options before transferring money. A bank transfer is almost invariably the cheapest option.
The “Deposit” option can be found in the main menu of every crypto exchange.
After the deposit, you can buy the cryptocurrency you want. The purchase forms are very simple and beginner-friendly. Below is an example of a purchase of Ethereum with 100 euros by using the Binance mobile app.
You can buy cryptocurrency with the desired fiat amount or in a certain quantity, for example, one (1) ETH. The purchase is made at the current exchange rate, and the coins appear in your account immediately.
Professionals can buy cryptocurrencies by using advanced trading pages if they are available. These allow the use of leverage and placing limit orders. We do not cover these options in this article.
Take care of safe storage
Finally, it’s important to ensure the proper storage of cryptocurrencies. You have two options:
- You can store the cryptocurrencies in the exchange where you bought them.
- You can transfer cryptocurrencies to your wallet.
The first option is suitable for beginners making their first cryptocurrency purchases. Local exchanges are usually very secure, and customer funds are protected even in bankruptcy. It is important to note that investment regulations may vary across different countries.
Most crypto investors use foreign exchanges where the situation could be different. In 2022, many crypto service bankruptcies were witnessed, costing unlucky investors billions of dollars.
We recommend using a personal cryptocurrency wallet for long-term storage. It’s good to remember that the ability to manage your funds is one of the most important features of cryptocurrencies.
Follow the news
We also recommend keeping up with the crypto news and regulations. Many traditional investors might check their portfolios a couple of times a year. This isn’t a good idea in the crypto world, as market cycles are much faster. More can happen in one month than in the stock market in one year.
Even if you’re not a day trader, staying informed about market events is highly recommended. The world of cryptocurrencies is evolving rapidly, especially in terms of legislation. It’s also worth noting that your apps and wallets may receive critical software updates.
Following the social media of the cryptocurrencies you’ve invested in is a good idea. For example, go through the official Reddit page once a week or follow the respective crypto project on Twitter. Following our news reports is a good first step!
Cryptos as an investment
Investing in cryptocurrencies can be challenging and requires careful consideration. Cryptos can offer a huge profit potential as a counterweight to high risk. Cryptocurrencies are, above all, a completely new investment category. There is little historical data, and investment instruments and liquidity are still very much limited.
What is required of a crypto investor? Here are some important points:
- Volatility tolerance: The volatility of cryptocurrencies is completely in a class of its own compared to other investments.
- Technological knowledge: Understanding the fundamentals and managing wallets requires learning a completely new kind of technology.
- Caution: The crypto industry is full of various scams that cause thousands of amateur investors yearly losses.
- Accounting and taxation: A crypto investor must keep records of transactions and report profits and losses to the taxman every year.
Of course, many legalities familiar from the traditional investment world also apply to crypto investing. Such are, e.g., technical analysis, managing profits and losses mentally, making an investment plan, gaining an informational advantage, etc.
However, it is important to understand that crypto investing contains unique features that have not been seen in investing before. A successful crypto investor is ready to learn something new every day. A crypto investor also requires an understanding of technology and a lot of vigilance to avoid scams.
Read more in our article about how to invest in crypto. It deals with the topic in a much broader way.