How to Buy Crypto: Best Ways to Buy Cryptocurrency like Bitcoin Securely

Gianluca Lombardi, 6 min read
Last Updated: 14 March, 2023

Have you heard about cryptocurrency like Bitcoin but actually have no clue how to buy crypto?

Or maybe you want to jump into crypto investing but the process feels overwhelming?

I’ve been there too.

Years ago when I first caught the cryptocurrency bug, I spent days digging through complex tutorials full of technical jargon just to figure out how to buy Bitcoin.

Fast forward to today and thanks to a surge of mainstream interest, it’s now easier than ever to buy crypto… but it can still feel like trying to navigate a maze blindfolded.

Between picking a trading platform, securing your coins, and a million other steps, there’s a lot standing between you and those sweet crypto gains.

That’s why I’ve created this complete beginner’s guide covering everything you need to confidently buy cryptocurrency.

Even if you can barely spell “cryptocurrency” let alone understand it, this guide has you covered.

This guide will walk you step-by-step through the entire process of buying cryptocurrency. We’ll cover:

By the end, you’ll have the knowledge to buy or sell Bitcoin, Ethereum, and other cryptocurrencies with confidence!

Choosing a Cryptocurrency to Buy

The first step is deciding which cryptocurrency you want to buy. There are over 18,000 different cryptocurrencies to choose from!
Here are the top cryptocurrencies to research:

Cryptocurrency Symbol Description
Bitcoin BTC The first and most well-known cryptocurrency
Ethereum ETH Platform for “smart contracts” and decentralized apps
Binance Coin BNB Cryptocurrency of Binance
Polkadot DOT Network protocol connecting blockchains

Bitcoin (BTC) is the most established and valuable cryptocurrency. Many people see Bitcoin as “digital gold.” Owning Bitcoin is seen as a long-term store of value.
Ethereum (ETH) is a blockchain platform that runs “smart contracts” and powers decentralized applications like NFTs, DeFi, crypto games, and the metaverse. Ethereum has the most developer activity and real-world usage.
New cryptocurrencies like Cardano (ADA) and Polkadot (DOT) are competing to become the top blockchain platform. They have interesting technical differences compared to Ethereum.
In general, Bitcoin and Ethereum are the best cryptocurrencies for beginners to start with. They have the highest mainstream adoption and widest availability across crypto platforms.
As you learn more, you can research and invest in other emerging cryptocurrencies.

bitcoin buying guide

Finding a Platform to Buy Crypto

The next step is choosing a platform to purchase your cryptocurrency.
There are two main types of platforms:

Crypto exchanges

  • eToro: A social trading platform known for copy trading, eToro allows users to mimic the moves of popular traders. It offers a user-friendly interface suitable for beginners.
  • Bybit: A rapidly growing exchange, Bybit is known for its advanced trading features and robust security measures. Ideal for experienced traders.
  • BingX: BingX stands out with its unique focus on derivative trading and copy trading. It offers a diverse range of trading pairs and products.
Winner
eToro-Icon
Hybrid

ecoinomy average rating:

9.5/10

Assets Traded Stocks, Indices, ETFs, Currencies, Commodities, Cryptoassets
Max Leverage Up to 30:1 (varies by asset)
Trading Fees Spread 1%
Regulations EU, USA, UK, Austalia, Middle East
Cryptocurrencies 79+ BTC-Coin-IconETH-Coin-IconMIOTA-IconBCH-IconRipple-IconDASH-IconADA-Coin-IconEOS-IconLTC-IconNEO-IconXLM-IconZEC-IconEthereum-Classic-IconBNB-Icon
Payment Methods PayPal, Visa, MasterCard, Skrill, Neteller, SEPA, WebMoney
Number of Users 30 Million+

9.7/10 - Safety

9.1/10 - Fees

9.6/10 - Ease of Use

9.3/10 - Customer Service


Start here

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.


Top Exchange

bingx logo
Exchange

ecoinomy rating:

9.1/10


Max Leverage Up to 125:1
Headquarters Singapore
Deposit Fees Crypto, SEPA 0%
Trading Fees 0,02% - 0,1%
Cryptocurrencies 530+ BTC kryptowaluta logoETH logo della criptovalutaBCH logo della criptovalutaRipple криптовалута логоADA криптовалута логоLTC криптовалута логоTezos криптовалута лого
Payment Methods Crypto, SEPA
Number of Users 10+ million

Security

Fees

Ease of Use

Customer Service


Start now

bybit logo
Exchange

ecoinomy rating:

9.0/10


Max Leverage 100:1
Headquarters Dubai
Deposit Fees Card 2%
Trading Fees 0,075%
Cryptocurrencies 470 BTC kryptowaluta logoETH logo della criptovalutaBCH logo della criptovalutaRipple криптовалута логоADA криптовалута логоLTC криптовалута логоTezos криптовалута лого
Payment Methods Crypto, Visa, MasterCard
Number of Users 3.000.000+

Security

Fees

Ease of Use

Customer Service


Start here

Cryptocurrency CFD brokers

Winner
eToro-Icon
Hybrid

ecoinomy average rating:

9.5/10

Assets Traded Stocks, Indices, ETFs, Currencies, Commodities, Cryptoassets
Max Leverage Up to 30:1 (varies by asset)
Trading Fees Spread 1%
Regulations EU, USA, UK, Austalia, Middle East
Cryptocurrencies 79+ BTC-Coin-IconETH-Coin-IconMIOTA-IconBCH-IconRipple-IconDASH-IconADA-Coin-IconEOS-IconLTC-IconNEO-IconXLM-IconZEC-IconEthereum-Classic-IconBNB-Icon
Payment Methods PayPal, Visa, MasterCard, Skrill, Neteller, SEPA, WebMoney
Number of Users 30 Million+

9.7/10 - Safety

9.1/10 - Fees

9.6/10 - Ease of Use

9.3/10 - Customer Service


Start here

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.


skilling logo
CFD Broker

ecoinomy rating:

9.4/10


Trading Assets Forex, Shares, Indices, Commodities, Cryptocurrencies
Max Leverage Up to 50:1 (varies by asset)
Trading Fees 1%
Regulations EU
Cryptocurrencies 51+ BTC-Coin-IconETH-Coin-IconMIOTA-IconBCH-IconRipple-IconDASH-IconEOS-IconLTC-IconNEO-IconXLM-IconZEC-IconEthereum-Classic-IconTezosMoneroCosmosVechainUniswap
Payment Methods SEPA, VISA, MasterCard, Trustly, Skrill, Neteller, Klarna, Swish
Number of Users unknown

Security

Fees

Ease of use

Customer service


Start here

Plus500 logo CFD Broker

ecoinomy rating:

9.0/10

Assets Traded CFD Crypto, CFD Forex, CFD ETFs, CFD Stocks, CFD Commodities, CFD Options, CFD Indices
Max leverage Up to 30:1
Trading fees Spread from 0,1%
Regulations CySEC #250/14 (EU), FCA (UK), ASIC (AUS), FMA (NZ), FSP (SA)
Cryptoassets 20+BTCETHBCHLTCADAXLMEOSNEOTRXIOTABinance CoinChainlinkPolkadotUniswap
Payment methods Paypal, Visa/Mastercard, Skrill, Apple Pay, Trustly
Number of users 25 Million+ since inception

Security

Fees

Ease of use

Customer service


Start here

82% of retail CFD accounts lose money.


eToro is a great choice for beginners who are interested in learning from and copying the trades of experienced investors. Bybit and Bitget cater to more experienced traders with their advanced tools and features.

Brokers like Plus500, Libertex, and Avatrade are excellent options for those who prefer a straightforward, educational approach to trading cryptocurrencies.

Funding Your Account to Buy Cryptocurrency

To start purchasing cryptocurrency, you’ll need to deposit money into your account on the buying platform.
Most exchanges and brokers allow you to fund your account through:

  • Bank transfer (ACH/Wire): Link your bank account to transfer USD. Slow but low fees.
  • Debit/Credit card: Instant but has higher fees and limits.
  • E-Wallets like PayPal: A convenient and fast method for buying cryptocurrencies. Link your PayPal account for quick purchases.

I recommend making a SEPA bank transfer to fund larger purchases. Use a debit card for quick access if buying a small amount of cryptocurrency under $1000.
Here are the typical funding methods accepted on top beginner platforms:

Platform Bank Transfer Card Deposit PayPal
eToro Yes Debit/Credit Yes
Plus500 Yes Debit/Credit Yes
Bybit Yes Debit/Credit No
Skilling Yes Debit/Credit Yes
BingX Yes No No

Once your account is funded, you’re ready to place your first cryptocurrency buy order.

Placing Your First Buy Order

Buying crypto is similar to buying stocks or other securities on an investment platform.
Follow these steps to place your first purchase order:

  1. Log in to your broker or exchange account.
  2. Navigate to the trading screen for the cryptocurrency you want to buy. This is usually labeled “Trade” or “Buy/Sell”.
  3. Enter the amount of USD or EUR you want to trade with. Alternatively, you can enter the amount of crypto you want to buy.
  4. Preview and confirm the details of your buy order. This will show the amount of crypto you’ll receive for your purchase amount.
  5. Double check that all details look correct, then submit your buy order.
  6. Wait for the transaction to process. Purchases made with a bank transfer can take 4-5 days to clear, while debit card buys are usually instant.

Once the order is filled, you should see the newly purchased crypto in your exchange account wallet.

If you purchase with a crypto exchange

Don’t forget to withdraw it into your private wallet for security best practices.
Here are some pro tips for buying crypto to get the best rates:

  • Use a limit order to specify a target purchase price instead of buying at market price.
  • Be patient for dips in the market to time your purchases when prices are low.
  • Use dollar cost averaging to make regular, incremental buys to reduce risk from volatility.

If you buy your crypto CFD with a trading platform

No Physical Ownership Advantage: When you invest in a crypto CFD, you bypass the intricacies of purchasing and owning actual cryptocurrency. Instead of dealing with the actual asset, you’re simply speculating on its price movement.

This approach eliminates the need for a crypto wallet and the responsibility of securing your digital assets.

It’s a straightforward, hassle-free way to engage in the crypto market without the complexities and security concerns associated with managing real cryptocurrencies.

Setting Up a Cryptocurrency Wallet

To buy and hold cryptocurrency, you’ll need a cryptocurrency wallet.
Cryptocurrency wallets allow you to:

  • Securely store your holdings
  • Interact with blockchains
  • Send, receive, and exchange coins

There are different types of wallets to choose from:

Wallet Type Description
Hardware Physical device to store crypto offline
Software App to store crypto on your device
Broker / Exchange Custodial wallet on a trading platform
Mobile Wallet app on your smartphone
Paper Printed public and private keys

The most secure option is a hardware wallet like a Ledger Nano X. Cold wallet devices store your private keys offline so they can’t be hacked. However, they cost between 60 and 250 EUR.

A free and secure alternative is using a fully licensed trading platform like eToro. These platforms manage the security of your investments, ensuring safekeeping of your assets. They are regulated and offer a higher level of security compared to software wallets.

Web/Exchange wallets provided by trading platforms like Coinbase are also free and convenient. While you don’t control the private keys, assets are stored securely by the platform, which is responsible for their safekeeping.

For small amounts of crypto, using a secure and regulated platform like eToro provides a good balance of security and convenience, without the need to manage private keys yourself.

As you acquire more crypto holdings, transitioning to using a hardware wallet in combination with a secure trading platform can enhance your security.

Here are step-by-step instructions to set up an account on eToro, a popular trading platform:

  1. Go to the eToro website and click on the “Join Now” or “Trade Now” button.
  2. Fill in the required fields with your personal information to create a new account.
  3. Verify your account by providing the necessary identification documents, as required by regulatory compliance. Once your account is verified, log in and navigate to the ‘Deposit’ section.
  4. Follow the prompts to securely deposit funds to open cryptocurrency position.

Your eToro wallet is now ready. You can buy, sell, and hold cryptocurrencies, as well as explore other trading options.

Securely Storing Your Crypto

Now that you’ve bought cryptocurrency, it’s critical to keep it secure through proper storage practices:

  • For small amounts, keep coins in a software or mobile wallet on your personal device. Enable all available security features.
  • Once you accumulate larger holdings, transfer them to a hardware wallet. Store recovery phrases offline.
  • Consider splitting coins across multiple wallets as another layer of security.
  • Always verify addresses carefully before sending crypto. Double check the full address.
  • Be cautious accessing crypto wallets from public Wifi connections to avoid hacking.
  • Never share private keys or recovery phrases. Ignore scam attempts asking for them.

Storing crypto securely takes vigilance, but a few simple habits like using hardware wallets and enabling 2FA go a long way.

Frequently Asked Questions

Here are answers to some common questions beginners have about buying cryptocurrency:

How much money do I need to get started?

Most exchanges and brokers allow you to buy as little as $1 worth of cryptocurrency to start. Fund your account with as much as you want to invest.

What are crypto trading fees?

Exchanges like Coinbase charge .50% – 1% fees per trade. Brokerage services often charge about the same ~1% fees to buy crypto with a debit card.

Is it better to trade or hodl crypto?

For beginners, it’s typically better just to buy and “hodl” (hold long-term). Trading is higher risk and requires experience.

How do taxes work with crypto?

You likely need to pay capital gains tax when selling crypto at a profit. Keep records of your cost basis, trade prices, and tax obligations.

Is it too late to invest in cryptocurrency?

While crypto has grown a lot, the future potential remains high. Many experts think we are still in the early adoption phase for crypto investing.

Conclusion

And that covers everything you need to confidently buy cryptocurrency for the first time!
The key steps are:

  • Choose a cryptocurrency to invest in
  • Register for a trusted crypto exchange or broker
  • Connect your wallet to transfer purchased coins
  • Fund your account with a payment method
  • Place your buy order for crypto
  • Set up a secure crypto wallet

While it may seem daunting at first, the process gets much easier with experience. In no time you’ll be comfortably trading Bitcoin, Ethereum, and other cryptocurrencies.
We hope this guide was helpful on how to buy crypto as a beginner!
Let us know if you have any other questions.
And happy investing!

Gianluca Lombardi

Gianluca is the editor-in-chief of this site. A finance graduate, he is an active trader who has tested all trading platforms and knows all their secrets. Technology is his passion; he spends much of his free time in the metaverse. Gianluca loves learning new things, researching, discussing and writing about technology, especially when it comes to cryptocurrency and blockchain technology.