What is the best way to buy cryptocurrency?

So, you’ve decided to invest in cryptocurrency. However, you’re confused and don’t know where to start – you’re wondering, how to buy cryptocurrency? With so many options available, it can be difficult to choose the best option for you. Plus, there are lots of things you need to think about before you start making payments.

Learning how to buy cryptocurrency can be a confusing process. It doesn’t have to be, though. In this guide, I will give you the answers to all the following questions:

How to buy cryptocurrency using USD, EUR and GBP?
What is the best way to buy cryptocurrency?
Can I buy cryptocurrency using a credit card?
And many more!

By the end of this guide, you’ll know exactly how to buy crypto, which is the best way for you (i.e. exchanges, such as Binance or Kraken), and where you should go to do it. So, let’s get started!

Table of Contents

How do you Buy Cryptocurrency?
Where To Buy Cryptocurrency?
How To Buy Cryptocurrency on Cryptocurrency Exchanges?
Should I Buy Cryptocurrency?
When Should one Buy Cryptocurrency?
How To Buy Cryptocurrency on Non-Exchange Trading Platforms
How to buy cryptocurrency with credit card / debit card / Paypal?
How to buy cryptocurrency with cash?

How to Buy Cryptocurrency?

The process of buying and selling cryptocurrency has been made a lot simpler over the last few months. There are five important factors that you must think about before buying cryptocurrency:

Location

To find out how and where you can buy cryptocurrency, it is important for you to check your country’s regulations.

Payment Method

The most common and accepted payment methods to buy cryptocurrency include: credit or debit card, bank transfer, or even cash. Different websites accept different payment methods, so you’ll need to choose a website that accepts the payment method you want to use.

Type of Cryptocurrency

Not all cryptocurrencies are available for purchase on every website. You will have to find a website that sells the cryptocurrency that you want to buy.

Cost of Fees

Each website has different fees. Some are cheap, some are not so cheap. Make sure you know how much the fees cost before setting up an account on any website. You don’t want to waste your time verifying yourself and then find out the fees are too high!

How Much You Can Afford

As with any investment, you should never invest more than you can afford. I recommend speaking to a financial adviser first.

With those 5 factors in mind, we can move on. When you buy your cryptocurrency, though, where are you going to store it? I’ll give you a hint: it’s not your bank account.

Cryptocurrency Wallet

A cryptocurrency wallet is where you store your cryptocurrencies after you have bought them. You can compare a cryptocurrency wallet with your bank account. In the same way that you store traditional currencies (USD, JPY, EUR etc.) in your bank account, you will store your cryptocurrencies in your crypto wallet.

There are a lot of easy-to-use and safe options to choose from. It is important that you choose a highly-secure wallet, because if your cryptocurrency gets stolen from your wallet, you can never get it back.

There are three types of wallets:

Online wallets: The quickest to set up (but also the least safe);
Software wallets: An app you download (safer than an online wallet);
Hardware wallets: A portable device you plug into your computer via USB (the safest option).

The wallet you need will depend on which cryptocurrency you want to buy. If you buy Bitcoin, for example, you’ll need a wallet that can store Bitcoin. If you buy Litecoin, you’ll need a wallet that can store Litecoin.

Now that you know where you’re going to store your cryptocurrency, the next step is to find out which is the best place to buy a cryptocurrency and how to pay for it.

Where to Buy Cryptocurrency?

There are a plethora of ways to buy cryptocurrencies.

Exchanges like Coinbase, Binance, Cex.io, Bitstamp, etc are one of the easiest and safest methods to purchase Bitcoin and other cryptocurrencies online.

LocalBitcoin.com and similar sites are the most popular ways to purchase cryptocurrencies in cash and in a P2P fashion.These are also known as OTC or Over The Counter ways of buying cryptocurrencies. Bitcoin ATMs are another popular medium to easily buy cryptocurrencies.

You may be buying into Bitcoin or buying Ethereum (use this Ethereum calculator to figure out the price in fiat) or trading Litecoin. Whatever you do, it is important to know the best sites to buy cryptocurrency.

This guide from Invezz gives you a great overview and comparison of the different platforms to buy cryptocurrencies so you can choose the one that best suits your needs.

How To Buy Cryptocurrency on Cryptocurrency Exchanges?

Binance

A company founded by Changpeng Zhao in 2017, Binance is currently one of the most used cryptocurrency exchanges. They even enable buying stocks like Tesla, Apple, Twitter, Facebook, Google etc. through their tokenized stock offering. However, Binance at present only allows users of certain countries to deposit via their fiat gateway.

Other users have to deposit either Bitcoin, Bitcoin Cash, ETH, BNB, TRX, XRP or USDT to buy other cryptocurrencies. Binance is probably the best place to buy cryptocurrency right now. Binance’s mobile app is one of the best too.

Here are instructions on how to buy cryptocurrencies on Binance:

Go to their website, Binance.com and get yourself registered.
Submit the required documents to complete your KYC.
Enable 2 Factor Authentication to add further security to your account.
Deposit Bitcoin or Ethereum to your account.
Users of certain countries can alternatively deposit their local currency directly via the fiat gateway.
Wait for the confirmation of the deposit to take place.
Click “Exchange > Basic” on the top left menu to go to the exchange screen.
Select the desired exchange pair.
Click the ‘Market’ option in the buy box below the graph.
Put in the desired amount of Bitcoin, ETH, BNB, TRX, XRP or USDT you want to buy with.
Simply click the buy button and the trade will be carried out.

Coinbase

Coinbase is one of the oldest cryptocurrency exchanges, operational since 2012. They allow the purchase of Bitcoin, Bitcoin Cash, Ethereum and 14 other cryptocurrencies. Coinbase permits depositing money through wire transfers, debit cards or domestic transfers.

Coinbase also has a trading app for those who are on the move.

Here are instructions on how to buy crypto on Coinbase:

Create an account on their website, coinbase.com.
Verify your account by completing the KYC.
Enable 2 Factor Authentication to add further security to your account.
Deposit money into your account via bank account transfer or by using a credit or debit cards.
Select the “Buy/Sell” option from the top menu.
Select the cryptocurrency of your choice and check the price.
Buy the desired cryptocurrency by simply entering the amount of the payment and click “Buy”.

Cex.io

Cex.io is a London based cryptocurrency exchange. Operational since 2013, Cex.io allows users to buy cryptocurrency with debit card, credit card, bank account transfer or wire transfer.

Here are instructions on how to buy cryptocurrencies on Cex.io:

Fill in your personal details.
Submit the required documents to complete your KYC.
Deposit funds into your account using any one of their many alternatives.
Select the cryptocurrency you want to purchase from the ones available on their exchange.
Select one of the fiat currencies – USD, EUR, GBP or RUB, you deposited.
Once you click on one of the currencies, a trading page along with a graph will open.
Now select “Market” located below the “Buy” box to trade at the prevailing trading rates.
Enter the amount you would like to purchase and click the option below.

Gate.io

Gate.io is a secure and easy to use cryptocurrency exchange. It allows users to deposit Bitcoin, Ethereum or USDT and trade them to buy other cryptocurrencies.

Here are instructions on how to buy cryptocurrencies on Gate.io:

Go to their website, Gate.io and create an account.
Verify your email address.
Enable 2 Factor Authentication to add further security to your account.
Go to their deposit page and deposit Bitcoin, Ethereum or USDT.
Look for “Markets” on the top menu and click it.
Select your desired cryptocurrency along with the trading pair on the left panel.
Enter the payment amount of the selected cryptocurrency in the box below the graph and click it.
The cryptocurrency of your choice will now be in your wallet.

Bitstamp

Bitstamp, founded in 2011 is one of the first major cryptocurrency exchange. They allow their users to deposit EUR and USD via their fiat gateway. Users can buy Bitcoin, ETH, XRP, LTC and BCH on the exchange.

Here are instructions on how to buy cryptocurrencies on Bitstamp:

Register yourself on their website, bitstamp.net.
Complete your KYC by submitting the required documents.
Secure your Bitstamp account by setting a 2-factor authentication.
Click “Deposit” located on the top left of the page and fund your account.
Go to the “Buy/Sell” tab and select one of the four methods of trading.
Choose the cryptocurrency you wish to purchase and enter the desired amount.
Simply click on the “Buy” option and you will find the cryptocurrency in your wallet.

Bitfinex

Headquartered in Hong Kong, Bitfinex was founded in 2012 as a peer-to-peer Bitcoin exchange. Since then they have expanded and are now offering other cryptocurrencies like ETH, XRP, LTC, NEO among numerous others. They also allow users to deposit USD, EUR, JPY and GBP via their fiat gateway.

Here are instructions on how to buy cryptocurrencies on Bitfinex :

Go to their website, bitfinex.com and click on either the ‘Sign Up’ or ‘Open Account’ button to register.
Confirm your email address.
Complete the five stages of the verification process – Name & Contact, Address, Identity, Financial and KYC.
Safeguard your account by enabling 2-factor authentication.
Fund your account by depositing EUR, JPY, GSB or USD. You can also deposit a wide array of cryptocurrencies.
Choose the “Trading” tab from the main menu
Now enter the desired amount and select the trading pair of your choice.
Once you select “Exchange Buy”, the trade will be carried out and you will find the cryptocurrency in your wallet.

How To Buy Cryptocurrency on Non-Exchange Trading Platforms

eToro

eToro provides a wide array of assets to trade. It’s probably best known as a brokerage for active traders investing in stocks like Amazon or Netflix, but you can also trade cryptocurrencies. With eToro you can purchase Bitcoin, ETH, BCH, XRP, DASH etc using local currencies. It is the best site to buy cryptocurrency

Here are instructions on how to buy cryptocurrencies on eToro:

Create an account by going to their website, etoro.com.
Verify your email address.
Deposit a minimum payment of £200 using any one of the following mediums – Paypal, Skrill, debit/credit cards or wire transfer.
Click on “Top Markets” on the top of the menu and select cryptocurrencies.
Select the trading pair of your choice and enter the desired amount of that cryptocurrency.
Click on “Trade” and the aforementioned cryptocurrency will be present in your wallet.

Paxful

Paxful is a peer-to-peer Bitcoin trading company. As it is a P2P trading platform, fees are drastically less than other centralised trading exchanges. At present, Paxful allows its users to only buy and sell Bitcoin.

Here are instructions on how to buy cryptocurrencies on Paxful:

Sign up on their website, paxful.com.
Complete all the verifications required.
Secure your Paxful account by setting a 2-factor authentication.
Fund your account by depositing via credit/debit cards, MoneyGram, Bank transfers, Paypal or Western Union.
After depositing, you can directly purchase Bitcoin with the amount deposited.
Once you have purchased Bitcoin you can find the desired amount in your wallet.

Coinmama

Coinmama is an easy to use cryptocurrency brokerage company that allows its users to buy cryptocurrencies using their local currencies. They serve over 1 million customers in over 180 countries!

Here are instructions on how to buy cryptocurrencies on Coinmama:

Register yourself on their website, coinmama.com.
Verify yourself by submitting the required documents.
Link or set up a cryptocurrency wallet on any third-party provider (ex: MyEtherWallet, Freewallet, exodus, etc)
Choose the desired cryptocurrency – Bitcoin, ETH, ETC, XRP, LTC, BCH, ADA or QTUM.
Enter the specific amount you would like to buy and click “buy now”.
Enter your wallet address of any third party provided.
Choose the desired form of payment – credit/debit card or bank account transfer.
Confirm your wallet address and receive the cryptocurrency in the linked wallet.

Changelly

Changelly is one of the fastest and easiest to use Bitcoin and altcoin exchange platforms. Their platform allows users quick conversion between cryptocurrencies. Users can also purchase cryptocurrencies via credit or debit card.

Here are instructions on how to buy cryptocurrencies on Changelly:

Go to their website, changelly.com.
Choose the desired trading pair. You can also select either debit/credit card or bank transfer.
Enter the desired amount and click “Exchange Now”.
Confirm the transaction by signing in via your email address.
Transfer the exact payment to the address provided and receive the previously chosen cryptocurrency in your wallet within minutes.

How to buy cryptocurrency with credit card / debit card / Paypal?

You can use a credit or debit card to purchase cryptocurrency from exchanges like Coinbase, Coinmama, Cex.io among many others. Out of these, Coinbase charges the least fees at 3.99%. It is easy to buy cryptocurrency with Paypal now.

How to buy cryptocurrency with cash?

Buying Bitcoin or other cryptocurrencies with cash has never been easier. There are quite a few numbers of ways to buy cryptocurrency with cash payment. LocalBitcoins is the most popular and trusted peer-to-peer ways to buy Bitcoin. Others include Paxful, Walls of Coins, BitQuick, etc.

One can also buy digital currency with cash at Bitcoin ATMs. One can also sell Bitcoin for cash via these ATMs. Once you buy cryptocurrency with cash, be sure to secure it in your wallet and safeguard your private key.

Frequently Asked Questions

Should I Buy Cryptocurrency?

Yes, buying cryptocurrencies are a no-brainer! It has been over a decade since the first bitcoin transaction took place and no other piece of technology since then has been more of a revolutionary one.

Blockchain, the technology underlying bitcoin removes the need of a third party like a bank for carrying out financial transactions. With this, transaction fees are a fraction of what banks charge to send money across the globe. This is just one of the innumerable utilities of cryptocurrencies.

Which cryptocurrency should I buy?

It depends on your personal wants and needs. Naturally, Bitcoin and Ethereum are two of the more popular options, but different crypto exchanges deal in a wide variety of altcoins, too. Just make sure that your wallet supports the cryptos of your choice!

What is the best place to buy cryptocurrency?

If you have a cryptocurrency ATM near you, that’s surely one of the faster and simpler ways to go about it. Generally, though, in most cases, your best bet is to look for and utilize a cryptocurrency exchange, such as Binance – these are quite safe, and employ a lot of security features in order to make your transactions as smooth and care-free as possible.

Which cryptocurrency exchange is best for beginners?

Reading through various best crypto exchange reviews online, you’re bound to notice that one of the things that most of these exchanges have in common is that they are very simple to use. While some are more straightforward and beginner-friendly than others, you shouldn’t encounter any difficulties with either of the top-rated exchanges. That said, many users believe that KuCoin is one of the simpler exchanges on the current market.

What is the difference between a crypto exchange and a brokerage?

In layman’s terms, a cryptocurrency exchange is a place where you meet and exchange cryptocurrencies with another person. The exchange platform (i.e. Binance) acts as a middleman – it connects you (your offer or request) with that other person (the seller or the buyer). With a brokerage, however, there is no “other person” – you come and exchange your crypto coins or fiat money with the platform in question, without the interference of any third party. When considering cryptocurrency exchange rankings, though, both of these types of businesses (exchanges and brokerages) are usually just thrown under the umbrella term – exchange. This is done for the sake of simplicity.

Are all the top cryptocurrency exchanges based in the United States?

No, definitely not! While some of the top cryptocurrency exchanges are, indeed, based in the United States (i.e. KuCoin or Kraken), there are other very well-known industry leaders that are located all over the world. For example, Binance is based in Tokyo, Japan, while Bittrex is located in Liechtenstein. While there are many reasons for why an exchange would prefer to be based in one location over another, most of them boil down to business intricacies, and usually have no effect on the user of the platform.