The Best Ways to Buy Cryptocurrency [A Guide for Newbies]

Bitcoin, Litecoin, Ethereum… By now, you have probably realised crypto is here to stay, and with recent news on crypto regulation, it’s likely to see increasing adoption. So if you want to buy crypto but you don’t know when to start, and you’re set on doing it properly, we’re here to help. Here’s how to buy cryptocurrency the right way.

How Tо Buy Cryptocurrency – Explained Step By Step

Let’s start with the basics. Buying crypto may seem daunting, but we promise it’s nothing different from online shopping. Step-by-step, we’ll examine the best ways to purchase crypto assets, assuring a smooth and secure investment journey.

Step One – Research and Select the Right Platform

Before you head over and sign up for the first trading platform you see, we recommend looking at your options and doing a bit of research. Generally, there are three ways to safely buy crypto – through a crypto exchange, a crypto broker, or a Bitcoin ATM. Each has its pluses and minuses and can enable you to buy, sell, trade, and store cryptocurrency. We’ll go through each method in depth so you can pick the one that works best for you.

Crypto Exchange

A crypto exchange is perfect if you want to get into the nitty gritty of trading. Most crypto exchanges offer unique trading options, including margin trading, stop/loss orders, copy trading, and more. Keep in mind that you will need to pay transaction fees when cashing out your crypto and depending on your trading volume. 

We tend to recommend crypto exchange sites to more experienced brokers, as these can intimidate newbies. You should also remember that your crypto exchange might not have an in-built crypto wallet for your crypto holdings. That means you must set it up separately before your crypto purchase.

There are many popular exchanges out there, with varying payment methods. Make sure your chosen exchange accepts your go-to deposit options. A cryptocurrency exchange will enable you to buy crypto with fiat currency or exchange one crypto for another. Some exchanges even allow you to buy NFTs or participate in P2P trading, where you can set a price for your coins or tokens and look for a potential buyer.

• Our pick: Binance

Crypto Brokerage

A crypto broker can help you take your first crypto steps and introduce you to the lucrative trading world. We actually managed to find a brokerage matching service without any signup fees or commissions! The site we recommend below only requires that you make a minimum $250 deposit, which you can use in full to invest in crypto as soon as you register. 

Moreover, buying crypto from a broker can be even more exciting, as they tend to offer unique trading options and great prices. Not to mention a cryptocurrency broker can save you tons of time finding the best crypto market deals.

Choosing cryptocurrency brokers is ideal if you’re a beginner – they will share educational resources, market insight, and tips for investing in cryptocurrency. You can even utilise trading tools when you pair with a broker, and enjoy demo trading, AI trading a lot more. Buying cryptocurrency has never been easier!

• Our pick: Bit GPT

Bitcoin ATM

Lastly, you can always opt for purchasing crypto at a Bitcoin ATM. There are thousands worldwide, and while ATMs may not be the most cost-effective option, they have some curious perks. It remains the most incognito payment method, as you don’t have to share your bank account details or create a crypto account. 

All you need is your crypto wallet and a debit or credit card. Once you deposit cash into the ATM and select the crypto of your choice, you can punch in the special public key to connect the digital currencies you bought with your wallet, and voila! You’re a proud crypto owner.

Keep in mind that while Bitcoin ATMs are convenient, they have a limited range of digital assets available. Typically, you’ll see the most well-known coins and tokens, such as Bitcoin, Ethereum, and Litecoin. Additionally, crypto ATMs have steep fees, often ranging between 5% and 15%, which are added on top of the cost of your crypto. If you think Bitcoin ATMs can be useful to you, you can find a map below:

• Bitcoin ATM Map

Step Two – Create an Account

Once you select one of the above methods of buying crypto, it’s time to create an account. Ignore this step if you choose a Bitcoin ATM. Head to the official website, press the sign-up button, and add the necessary information. 

To make an account, you may need to write down your full name, phone number, and address. Of course, remember to come up with a strong password to protect your profile by following the provided suggestions.

Step Three – Complete the Verification Process

Whether you sign up to pair with a cryptocurrency exchange or a broker, you must complete a verification process. These KYC (Know Your Customer) steps prevent money laundering and are a recent addition to most websites. 

You will receive a phone call from a customer representative asking to confirm your details or an SMS with a unique code you need to provide in the registration form. Once you have verified your account, proceed to the next step.

Step Four – Deposit Funds

It’s time to deposit some funds to start trading and complete your first crypto purchase. You can choose a payment method from the ones provided at the exchange. If you picked a cryptocurrency broker, bear in mind that the methods would differ from representative to representative. 

You can always switch to someone else if they don’t have what you need. Before you buy crypto, it’s essential to review the deposit and transaction fees. You may pay using popular fiat money, including pounds, euros and dollars.

Step Five – Purchase Crypto

Once you have money in your account, you can now buy crypto. Make sure to do in-depth research and consider variables such as market demand and the coin’s potential in the future. 

Moreover, don’t forget to take a look at the coin’s whitepaper to familiarise yourself with its tokenomics. Although Ethereum (ETH) and Bitcoin (BTC) are the most well-known options, many other altcoins can be purchased for investment.

How To Determine Your Risk Tolerance

So far, so good. Now that you know how to buy cryptocurrency, let’s expand your knowledge and answer a few other questions. For instance, how much crypto should you buy? There are tons of guides online explaining the steps of buying crypto. However, very few advise you how many coins you should get your hands on.

Of course, there is no universal answer to this question. The amount will vary from person to person, and it is best determined by your personal finance and risk tolerance. In order to estimate your risk capacity, consider the following crucial factors:

• –Age: Do your savings and age allow you to take more risks when investing? For instance, a 20-year-old has a bigger risk tolerance if they don’t have a debt to pay off and a steady job compared to a 35-year-old with a student loan.
• –Experience: If you have little trading experience, we don’t recommend that you head for highly-risky coins and tokens. Instead, start with small investments until you learn more about the industry and are confident to invest more.
• –Goals: Are you aiming to make a long-term profit because you want to pay off a house or save up for a holiday? Holding onto your crypto is the best bet. On the other hand, if you want to make a small profit fast, you can look into day trading. This short-term trading style is pretty risky, however.

You should be able to assess your own risk tolerance after taking into account all of these factors. Of course, speaking to a financial advisor and working together to create a budget for crypto transactions is always a good idea.

Mitigating Risk – Diversify Your Portfolio

While we can’t be specific in saying “spend $10000 on Bitcoin,” we can give you a percentage estimate to help you create a diverse portfolio. Our example is a balanced, less risky portfolio, mainly consisting of stable digital assets. Here’s what it consists of:

• -Bitcoin (BTC): 30% -The most stable crypto, the King coin;
• -Ethereum (ETH): 25% – Second most popular coin around;
• -Tether (USDT): 25% – Third according to market cap;
• -Polkadot (DOT) 10% – Great potential for development;
• -Pi Coin (PI) 5% – A bit of a gamble, with its price yet to be announced, but it could be a great future investment.
• -Dogecoin (DOGE) 5% – A meme coin with nifty uses, known for being the most popular crypto-tipping coin.

Of course, as the crypto market is famously volatile, these coins may or may not be in the top 10 at the time of reading. So to keep your selection relevant, here’s how we picked these coins.

We used the 80-20 rule, putting most of your investment in the most stable coins. We simply took Bitcoin and Ethereum as must-haves and added the third coin according to the current market cap. If you are looking for a stable portfolio, make sure it consists mainly of these coins, as they are the most stable. The other 20% of the portfolio consists of coins with great future potential, albeit riskier investments.

Lastly, don’t forget to rearrange your portfolio to keep up with recent crypto market changes. Buying crypto is only the first step. It’s equally important to log into your exchange account and adjust according to market developments.

Final Thoughts

We hope we taught you how to buy cryptocurrency and gave you insight into the best places for buying crypto. You are now more than capable of creating a trading portfolio and managing your cryptocurrency holdings. To round off this article, we’ll answer a few common questions on the topic, so stick around.

Frequently Asked Questions

We collected the internet’s most commonly asked questions to help you further understand how to buy cryptocurrency.

How Do Beginners Buy Crypto?

If you are wondering how to buy crypto for the first time, take a look at our section titled “How To Buy Cryptocurrency – Explained Step By Step.” We provide a detailed guide and some trusty recommendations to get you started.

What Is The Easiest Way To Buy Crypto?

Surprisingly, the easiest way to buy crypto isn’t via a crypto exchange. Crypto brokerages provide the fastest service with the added bonus of helping their clients by answering questions and granting them trading tools.

How To Buy Crypto Safely?

By joining a reputable platform like the ones, we recommended in this article. Additionally, make sure to buy legitimate coins and tokens and research their whitepaper beforehand to check their legitimacy.

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