Want to know how to buy cryptocurrency?

If you’re new to it, buying your first crypto can seem overwhelming.

Don’t worry! 

This beginner-friendly guide will walk you through each step.

We’ll help you confidently buy cryptocurrency from tried and tested crypto exchanges.

Step 1: Choose a Trusted Crypto Exchange

First, you’ll need to select a platform to buy cryptocurrency from. 

These platforms are called cryptocurrency exchanges.

They work like online marketplaces where you can exchange your money (like dollars) for crypto.

Popular Crypto Exchanges:

• Binance:
  • The largest crypto exchange in the world. 
  • Offers a wide variety of cryptocurrencies and advanced features. 
  • Over 220 million users worldwide and counting.

• KuCoin:
  • Supports 48 fiat currencies. 
  • An estimated 1 in 4 crypto holders use this exchange. 
  • You can exchange between fiat and cryptocurrencies without restrictions.

• MEXC:
  • Easy to use. 
  • High-performance and mega transaction matching technology, which allows for fast and efficient trading. 
  • With the highest selection of tokens at over 2,400 and among the lowest trading fees (0% maker and 0.01-0.02% taker).

Make sure to choose a reputable exchange that operates in your country.

Step 2: Create and Verify Your Account

Once you’ve chosen an exchange, you’ll need to create an account.

1. Sign up: Provide basic information like your name, email, and password.
2. Verify your identity: Most exchanges require identity verification for security. You’ll need to upload documents like a government-issued ID.

Verification can take a few minutes or up to a few days depending on the exchange.

Step 3: Deposit Money into Your Account

After your account is verified, you’ll need to deposit funds to buy cryptocurrency. 

You can do this by linking your bank account, using a debit/credit card, or sometimes even PayPal.

• Bank transfer: Often has lower fees but may take a few days.
• Debit/Credit card: Faster but may come with higher fees and/or higher exchange rates.
• P2P (peer-to-peer): Relativity is quick but dependent on merchant approval time (usually within minutes) and availability of matching currency to transact in. Exchange rates will vary among merchants.

Choose a method that works best for you, keeping fees and transfer times in mind.

Step 4: Choose the Cryptocurrency You Want to Buy

Once your account is funded, it’s time to pick the cryptocurrency you want to buy. 

Some popular options for beginners include:

• Bitcoin (BTC): The first and most well-known cryptocurrency.
• Ethereum (ETH): Known for its smart contracts and large ecosystem.
• Litecoin (LTC): A faster and cheaper version of Bitcoin.

Explore the market and decide which crypto fits your goals.

Step 5: Place Your Order

Now that you’ve chosen your cryptocurrency, it’s time to place your order on the trading platform. 

There are a few types of orders you can place:

• Market Order: Buy immediately at the current price.
• Limit Order: Set a price you’re willing to pay, and the exchange will execute the order when the price reaches that point.

For beginners, starting with a market order is simpler. 

It is not however recommended to do this with large amounts. 

Step 6: Secure Your Cryptocurrency

Once you’ve purchased your cryptocurrency, it’s important to store it securely. 

You can leave it on the exchange, but it’s not recommended.

The best way to safely store your cryptocurrency is in a crypto wallet. 

There are two main types of wallets:

• Hot Wallet: Software-based and connected to the internet, like mobile or desktop apps.
• Cold Wallet: Physical devices not connected to the internet, like hardware wallets (e.g., Trezor or Ledger).

For better security, a cold wallet is recommended for larger amounts of crypto. 

A hot wallet should be used mostly for convenience and small transfers.

Step 7: Monitor and Manage Your Investments

Congratulations! 

You now own cryptocurrency. 

Keep an eye on the market and manage your investments. 

You can hold onto your crypto, trade it for other assets, or even spend it where accepted.

FAQs

How much should I invest in cryptocurrency as a beginner?

It’s wise to start small and only invest money you can afford to lose, as crypto markets can be volatile.

Are crypto transactions reversible?

No, once a crypto transaction is made, it cannot be reversed. 

Be sure to double-check details before confirming any transactions.

Do I need a wallet to buy cryptocurrency?

You don’t need a wallet to buy cryptocurrency, but it’s safer to store your funds in one, especially if you’re holding them long-term.

Can I buy cryptocurrency with cash?

Yes, some platforms and peer-to-peer services allow you to buy cryptocurrency using cash, but this is less common.

Are there fees for buying cryptocurrency?

Yes, most exchanges charge fees for transactions. 

Fees vary depending on the platform, payment method, and cryptocurrency.