If you are new to the world of cryptocurrency, this blog post is for you.
This introduction will cover everything from the basics of what cryptocurrencies are and why they exist, as well as tips on buying them safely.
If you already know how to buy cryptocurrencies from a website like Coinbase or Binance, then skip ahead.
In this blog post, I will walk through everything one needs to make their first purchase of any digital currency. It’s never been easier!
What is cryptocurrency?
Cryptocurrency is a digital payment system that doesn’t rely on banks. It’s a peer-to-peer, decentralized network where anyone can send and receive payments without the need for any third party.
The idea of cryptocurrency was born from the financial crisis of 2008, but its current popularity has skyrocketed in recent years due to various benefits such as decentralization and anonymity.
Encryption aims to provide security and safety while the transactions are recorded in a public ledger called the blockchain.
Cryptocurrencies are digital assets that trade on a 24/7 global market. They can be used to make purchases or transfer funds across borders and don’t require intermediaries like banks, payment processors, etc.
While they’re still in their infancy stages of development and volatility is high at the moment due to lack of regulation by government bodies, cryptocurrencies will soon become an integral part of daily life for humans all over the world as we move into the future together with these new technologies.
Where can I buy cryptocurrency?
Cryptocurrency is a type of digital asset that uses cryptography to secure transactions and control the creation of new units.
The best place to buy cryptocurrency is on an exchange. There are thousands of different cryptocurrencies available for purchase, but Bitcoin’s most popular one. It was created in 2009 and has since expanded into a global phenomenon with no signs of stopping.
The first step in purchasing cryptocurrency is finding an exchange that will sell them since they do not exist as physical coins or notes.
Exchanges are online platforms where people can buy cryptocurrencies from other users with different fiat currencies such as dollars, euros, yen, etc., using their preferred payment methods like credit cards or bank transfers.
So, where can you buy it?
Coinbase
- Wallet: Yes
- Transaction fees: Maker and taker fees up to 0.50% each
- Currencies: 100+
- Account minimum: 0
Coinbase is a wallet and exchange with more than 68 million verified users in over 100 countries. It allows users to buy, sell and trade cryptocurrencies from their web browser and mobile app.
Coinbase is one of the most popular cryptocurrency exchanges, especially its ease of use and low fees.
Coinbase comes with several fees, which are clearly stated when a transaction takes place.
Flat transaction costs and maker-taker fees of up to 0.50 percent each are included in these charges. Depending on the funding source, fees might vary, and frequent customers may opt to choose the more premium Coinbase Pro plan.
Binance
- Wallet: Yes
- Transaction fees: 0.015% to 0.1%
- Currencies: 100+
- Account minimum: 0
Binance is a cryptocurrency exchange created in 2017 with a significant emphasis on altcoin trading.
Binance was prohibited from operating in the United States in 2019. However, the firm split the US version to Binance.US to alleviate that. By November 2021, Binance commands the worldwide crypto exchange sector, accounting for a sizable part of daily bitcoin trading activity.
Although the exchange only accepts US-dollar deposits via the Society for Worldwide Interbank Financial Telecommunications (SWIFT), it enables customers to acquire a limited number of cryptocurrencies directly using a credit or debit card. Deposits in 12 different fiat currencies, including the Euro, are accepted.
Binance is ideal for those interested in trading or investing in lesser-known cryptocurrencies. Binance allows users to trade over 50 different cryptocurrencies and is a fantastic alternative for those seeking more comprehensive charting capabilities than most other exchanges provide.
The tools, graphing capabilities, and information that comes with your membership are pretty outstanding, especially in light of the low fees.
Kraken
- Wallet: Yes
- Transaction fees: The cost for quick purchases is 1.5 percent for the majority of cryptocurrencies and 0.9 percent for stable coins denominated in USD or another stable coin. Additional fees may apply depending on the method of payment used to make the transaction. The cost of financing varies from 0.5 percent when using a bank account to more than 3.75 percent when using a debit card, credit card, or digital wallet.
- Currencies: 50+
- Account minimum: 0
Kraken is one of the longest-running crypto exchanges and has a high level of security. It offers users a large variety of trading coins such as Bitcoin, Ethereum, Litecoin, and many more.
Kraken is the original and one of the most reliable platforms for buying cryptocurrency. They offer a limited section of coins and tokens for US customers versus international customers, allowing margin trading. Kraken also provides an easy-to-use interface with intuitive navigation.
Kraken also requires two-factor authentication, but some reports indicate people getting locked out, so make sure to pay attention to the setup process. There are also claims of poor customer service for this platform.
Cex.io
- Wallet: Yes
- Transaction fees: 0.10-0.25% maker fees; 0-0.16% taker transaction fee (2.99% deposit)
- Currencies: 100+
- Account minimum: $20
Cex.io is a platform that makes it easy to buy cryptocurrency with a credit or debit card and bank transfer. It also supports 99% of countries across the globe! It is also a cryptocurrency exchange that allows users to take advantage of margin trading, staking rewards, and more.
Cex is ideal for individuals and organizations looking for cryptocurrency solutions such as staking, cryptocurrency-backed loans, leverage trading, and order execution tools. However, because the platform offers a restricted number of coins, it is more suited to token-focused traders.
EToro
- Wallet: Yes
- Transaction fees: 0.75 percent spread on BTC, depends for other coins
- Currencies: 17
- Account minimum: 0
EToro is a popular online platform for people looking to buy and sell cryptocurrency. The site offers easy-to-start, worldwide options for trading, but it does not support as many tokens and coins as other platforms on this list. Investments are subject to market risk, including the loss of principal.
The first step to getting started with cryptocurrency is opening a practice account with eToro, which will allow you to test out trading through virtual currency before using real funds.
If you’re seeking a straightforward and focused platform that enables you to purchase bitcoin while also learning about the crypto world, eToro could be the ideal fit.
Newcomers to crypto will like the site’s simplicity and the CopyTrader function, which enables you to replicate transactions made by others on the platform.
Crypto.com
- Wallet: Yes
- Transaction fees: Up to 0.40%, less if you hold and use the Crypto.com Coin (CRO)
- Currencies: 200+
- Account minimum: 0
Crypto.com is a cryptocurrency exchange that provides trading, investment, staking, wallets, and non-fungible tokens.
This exchange supports over 150 different currencies, charges a reasonable price, and discounts those who own a considerable amount of Crypto.com Coin (CRO). Its ecosystem of cryptocurrency-related items may make it an attractive option for people wishing to use their coins effectively.
The fee structure and customer service are complicated, so it’s essential to consider these things before using the site as your primary option for trading cryptocurrencies.
Crypto.com may be a suitable option for anyone wishing to purchase and hold cryptocurrencies like Bitcoin and Ethereum. Fees are capped at 0.40 percent and drop with increased trading volume or considerable CRO currency holdings.
Crypto.com presently supports 150+ cryptocurrencies and offers complex order types. Additionally, the site allows for the trading of crypto futures.
Robinhood
- Wallet: No
- Transaction fees: 0
- Currencies: 7
- Account minimum: 0
Robinhood is a stock brokerage firm that operates in the United States. They offer trading in cryptocurrencies, but the coins you can trade are minimal. Their list of supported cryptocurrencies includes Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Ethereum Classic, Litecoin, and Dogecoin.
In contrast to many traditional brokerage firms, Robinhood customers may purchase specific cryptocurrencies directly from their stock brokerage account. Additionally, it is free, and Pure-play cryptocurrency brokerages typically charge a premium for a comparable service. Robinhood’s recurring stock investing option is available for its cryptocurrency offering.
However, there is a catch: you don’t truly possess the crypto you purchase. Instead of that, your only choice is to buy them in USD and then sell them in USD. You will be unable to send or receive coins purchased. This also implies that you will not participate in emerging cryptocurrency applications, such as decentralized finance initiatives.
FAQ
What is Bitcoin?
Bitcoin is a form of digital currency in which encryption techniques regulate the generation of units and verify the transfer of funds, operating independently of a central bank. Bitcoin was created in 2009 by an unknown person or group under Satoshi Nakamoto pseudonym.
In 2017, it saw a rapid rise in value because people were looking for an alternative to fiat currencies with their decentralized nature. This led to many businesses accepting bitcoin as payment through blockchain, which eliminates third-party intermediaries from the process.
How to buy Bitcoin?
To buy Bitcoin, you will need to use a service that can purchase Bitcoin. This article provides you with several options to buy Bitcoin and other cryptocurrencies.
Factors to consider when buying bitcoin
When buying bitcoin, the factors to consider are how much of the fiat currency you can afford to spend, the expected price in the future, and whether or not you plan to sell it for a profit.
Alternative ways to buy bitcoin
There are many alternative ways to buy bitcoins. Some of the most popular methods include:
- Buying from a bitcoin ATM;
- Instantly buying with credit/debit card;
- Buying from a friend; and
- Buying with cash locally.
Best cryptocurrency brokers
In the cryptocurrency industry, brokers provide services to help people buy and sell cryptocurrencies. There is a wide range of brokers in this industry, from large traditional brokers to online exchanges. Some brokers may charge a percentage of the traded amount, while others may charge monthly subscription fees.
We recommend using the well-established exchanges we outlined in this article.
Conclusion
So you want to buy cryptocurrency? I’m right there with you – it takes a lot of time and research before jumping in. But don’t worry, the information in this article should be enough for you to get you started with crypto exchanges and platforms!
