Cryptocurrency is becoming more and more popular with each passing day. Almost everyone wants to find out how to buy bitcoin and other cryptocurrencies. But one must ask themselves the question, “Why?” It’s all about one thing: control over money. When you invest in cryptocurrencies or buy cryptocurrency, you are no longer at the mercy of banks or any other financial institutions that tend to charge hefty fees to transfer money and expose client funds to such risks as theft. You get to be in control of your money and keep it safe from hackers, the government, as you make more.
As a new user, you may find yourself overwhelmed by the vast and diverse landscape of cryptocurrency. What is a cryptocurrency? How do I buy and sell cryptocurrency in 2024? In this guide, we’ll walk you through all the basics of investing in cryptocurrency, including the best broker to buy cryptocurrency.
There are lots of brokers and exchanges. We’ll list some of the best later in this guide. Pick one that conforms to your financial goals and create a user account. Depending on your chosen broker/ exchange, the process should be straightforward. You just have to follow the prompts and fill in your details on a registration form.
In this stage, you’ll fund your account before buying your favorite cryptocurrencies. But, before that, you’ll be required to verify your identity by uploading a government-issued ID, driving license, passport, or any official identification document.
The process of funding your account may vary from one broker/exchange to another. We’ll walk you through the process for the ones we mention in this article.
For security reasons, you are advised not to keep your cryptocurrency on an exchange. Look up which wallets support the cryptocurrencies you want to invest in.
This is the part where you purchase cryptocurrency. Find out which currency your wallet supports to buy. The exchange will automatically convert your local currency into whatever cryptocurrency you want. Just make sure not to leave any money in the account if they don’t support it so nobody can steal it from you.
Cryptocurrency is a digital currency that uses cryptography (encryption) to control its creation and management rather than using central authorities.
Cryptocurrency is a medium of exchange like regular ‘fiat’ currency (USD, Euro, yen), but it uses cryptography to secure transactions and keep the currency from disappearing. In other words, only a certain amount of each coin exists, and once that amount has been reached, there are no more coins to create.
To illustrate this further, let’s say someone has five Bitcoins right now and wants to buy something at a store that accepts BTC. They give the merchant their five BTC, which is then immediately destroyed, thus making it easy to track the flow of currency without having to account for it in a ledger like normal fiat currencies.
So, what’s the big deal? It’s secure, anonymous, and CANNOT be inflated by any central authority (i.e. the government) like ‘fiat’ currency which can lose up to 90% of its value in a single year during times of war or economic distress. Additionally, only a tiny amount of cryptocurrency exists compared to regular currencies, which increases its value.
Cryptocurrencies were created as an alternative to regular money. Some people believe that our current financial systems are unfair and corrupt – it’s very rare for the average person to become incredibly rich by saving money. Cryptocurrencies were created to make wealth more evenly distributed and allow everyone to get involved in global financial systems, not just banks and big corporations.
Satoshi Nakamoto is the name used by the unknown person or people who designed Bitcoin and created its original reference implementation. As part of the implementation, they also devised the first blockchain database. In the process, they were the first to solve the double-spending problem for digital currency. They were active in the development of bitcoin up until December 2010.
This is the most popular and trusted way to buy and invest in cryptocurrency. Buy a certain amount of cryptocurrency now, hold onto it for an extended period, and sell it at a later date when you think the value has grown enough or you have reached your investment goal. You can also try holding onto less popular cryptocurrencies as they have less competition and are more likely to rise in value over time.
Bitcoin and other cryptocurrencies can be seen as a new asset class, the value of which is determined by pure speculation – on whether or not it will replace existing systems. This belief has driven up Bitcoin’s price to the point where some investors (who may not necessarily understand Bitcoin) are buying it to hold onto, hoping that it will increase in value over time. This kind of investment is extremely risky because the crypto you’re holding could potentially drop to zero. However, given the potential for crypto to become a severe threat to traditional financial institutions, these risks may be worth taking.
Cryptocurrency CFDs (contracts for difference) are risky and should only be used by experienced traders because they offer a quick way to buy cryptocurrency at high leverage. CFDs allow you to purchase more than you could with your cash balance. It’s like betting on the price of cryptocurrency; you place the same amount of money in your account as you would buy cryptocurrency, but decide if you think the price will go up or down instead. Please note that CFDs are derivative products and are therefore considered high risk. They are not suitable for all investors.
You can also invest in blockchain stocks and ETFs (exchange-traded funds). This is a much less volatile method of investing because you’re not trying to predict the future price of cryptocurrency; you’re just using it as a vehicle to help fund your other investments. In this case, you’re investing in the technology behind cryptocurrency instead of trying to guess how profitable it will be.
You can buy cryptocurrency with a credit card or debit card at some exchanges. This is the fastest and easiest way to purchase cryptocurrency, even if it means you will pay a little extra in fees (you would also pay extra for convenience shopping at a store). You only enter such basic details as your name, card number, expiry date, security code, and you’ll receive crypto in your wallet.
Please note that the same brokers/exchanges that allow virtual currency purchases with credit card or debit card may not always allow withdrawals using the same cards. You may, therefore, need to explore other options in such cases.
Some cryptocurrency exchanges accept PayPal, though most have problems because of its chargeback and buyer protection policies. Only try using PayPal to buy cryptocurrency if you think your regular money is at risk of getting stolen or feel unsafe about the other payment options.
Still, PayPal is known for speed and cost-effectiveness. Transferring money from your bank to PayPal is instant.
Another way to buy cryptocurrency is through eWallets such as Skrill and Neteller. You can buy these at a broker like eToro. They allow you to deposit into the account online by sending money from your bank account or credit card or debit card (you will need to pay the fees for those services, though).
You can also buy cryptocurrency by making a bank wire transfer at an exchange or broker that lists it as a payment method. This is one of the most secure way to purchase cryptocurrency because you’re not giving your money to some random person on Craigslist; you’re trading directly with the exchange.
Anyone with access to cryptocurrency can buy it. While some cryptocurrency brokers and exchanges are very strict on whom they allow on their platform, the most popular ones are accessible by anyone.
For now, cryptocurrency is legal in most developed countries. However, certain restrictions may vary depending on the country’s financial policies. Some banks have banned using credit cards to purchase cryptocurrency, but you can still use debit cards in most cases.
Of course, it’s always wise to check your state and country laws, so you don’t fall into any trouble. Most of the time, cryptocurrency exchanges will ask for an ID from their users, which means you’ll need a government-issued ID. Don’t forget that some countries or states may not allow you to trade or give you trouble if you do, so do a little background check before signing up. Countries with stringent cryptocurrency policies include India, China, Bolivia, Ecuador, Morocco, Nepal, and Pakistan.
There are a few things you need before you can start buying cryptocurrency. An important note to remember is that your country may have restrictions on where and how you can purchase cryptocurrency, so always check its legality first.
Before buying cryptocurrency, you need to set up an account with a reputable broker/ exchange. A good website has features like digital wallets to store your funds and analytics tools that show real-time data about the market and charts. Since most brokers trade in fiat currency (USD, GBP, EURO), it’s also advisable to set up an account with a bank that lets you transfer foreign currency.
You can create cryptocurrency accounts by clicking the “Sign Up” button at the chosen broker/exchange platform. When creating your account, follow all steps carefully and make sure you save/back up your password and verification phrase/back-up PIN.
For the process, you’ll need such basic details as your names and email address.
Your investment capital is the amount of money you will use to buy cryptocurrency. Make sure you have enough to cover all fees, so your funds don’t get stuck in the system, and you can continue to use them for future transactions. You don’t want to start an investment and then realize that you can’t pay for it when the time comes. Most cryptocurrencies are bought with either USD or EURO, which means that your bank account/credit card must support the currency you wish to use.
You can use any currency (fiat) that your country uses. For example, if you’re in the UK, it doesn’t matter which currency you use to buy cryptocurrency because it will be converted into GBP when your funds are deposited in your account.
You have two options when storing your coins:
You can store your cryptocurrency in a wallet set up on the broker’s website. This is usually only an option for people who don’t plan to withdraw their funds anytime soon. Most brokers charge fees for each transaction, so it will get expensive fast if you keep withdrawing money. Brokers also have daily limits that they can’t lift until you provide some sort of identification to prove your identity.
The second option is to use a wallet website/app/hardware device dedicated to storing cryptocurrency. This means that the company that made the wallet will take care of all security measures, so you don’t have to worry about anything. All you have to do is register and set a password.
Many people think that you need a considerable sum in your account to buy cryptocurrency, but in reality, you only need enough money to pay for the transaction fees.
In general, most exchanges accept fiat currencies like dollars, euros, or pounds as deposits, and they pair them with cryptocurrencies to allow trading. So, for example, if you wanted to exchange Bitcoin for Ethereum, the fees on using an exchange would be marginal compared to trading between wallets.
As a rule of thumb, invest only as much money as you can afford to lose. Cryptocurrency is known to be very volatile, so there’s no guarantee that the value of your funds will remain at the same level for long.
There are many different ways to get cryptocurrency, but the easiest way is probably through an online exchange. Exchanges and brokers are among the best platforms where you can buy, sell or exchange your coins/tokens for other cryptocurrencies. Common examples include Coinbase and eToro, among others that we will list later in the post.
You can also buy your favorite cryptocurrencies on P2P platforms. These enable you to buy and sell crypto directly from other buyers and sellers.
Cryptocurrency is available in three different forms:
Ready to buy your crypto? Well, one more thing – You should be able to choose a suitable platform. Here’s a checklist you could use;
You should check the fees on any platform you’re thinking of buying from because you might eventually get higher charges than expected. Most trading platforms charge a fee for every transaction made, while some add-in withdrawal or transfer fees.
Some exchanges charge high fees while others offer lower ones. The lower the costs, the better, so do your research and compare prices before committing to a platform.
You should always look for platforms that accept more than one payment type because it might be easier to use some methods over others. Some platforms only accept cash deposits, while some will accept credit card payments and PayPal transfers.
There are many platforms out there that can be hard to use, even for experienced crypto users. If your primary concern is safety, then go with the most straightforward platform you can find because it will ultimately be easier to navigate and use.
The platform you’re buying from needs to be reputable, or there could be problems with customer service or payment methods. Look into how long the platform has been around and see what reviews it has gotten from customers in the past.
If you ever get stuck when using a website, you need to know that there’s someone you can call to help you out. Check whether the platform has a good support team before committing your money there.
eToro is a top-rated social trading network that allows you to invest in cryptos by copying trades from real traders. eToro supports more than ten cryptocurrencies, including;
The platform also offers low fees and pretty good customer support, so it’s worth checking out if you’re interested in social trading. The broker features a demo account for traders to sharpen their skills. They also have CFD and real coins, except for some countries that only offer real coins, such as the UK.
Here’s our 2024 detailed eToro guide with a step-by-step guide on buying and selling cryptocurrency on eToro; and everything you should know.
Capital.com is a London-based online broker founded in 2016 and operates under many jurisdictional regulations, including the UK, Cyprus, and Belarus. This broker serves customers from 183 different countries across multiple continents.
Capital.com offers a lot of choices for clients, with more than 3,700 different assets to trade on. Some popular options include 27 indices and 200 cryptocurrencies or 37 commodities such as gold coins – making them an all-inclusive marketplace for traders looking to get into markets without having any worries about what they’re missing out on.
The broker features multiple payment options, including Wire Transfer, credit card or debit card, Skrill, and Neteller.
You can read more about the broker in our comprehensive 2024 Capital.com review.
Uphold is an online trading platform that allows you to buy and sell stocks, metals, and cryptocurrency with no transaction fees!
The Uphold trading platform offers access to 36 cryptocurrencies. You can buy Bitcoin and XRP or smaller names like Chainlink and Digibyte with UPI directly from the US in Europe at no cost! Domestic exchange fees are between 0% -1.85%.
Check out our detailed 2024 Uphold review to get started with the broker.
Coinbase is one of the go-to spots for new crypto investors. Whether you’re just getting started or looking to diversify your portfolio, this exchange has what it takes to meet all of your needs and expectations!
The exchange offers a wide variety of products, including cryptocurrency investing in addition to its other services. It has an advanced trading platform that both retail investors and institutions alike can use. It also provides custodial accounts for those who work at more than one financial firm, so you don’t need multiple passwords or usernames just because your job changes hands every few years!
The Coinbase wallet provides security while offering easy access with features such as real-time verification on purchases. Therefore, there are no waiting days between hits like some people experience when buying Bitcoin directly through exchanges without any protection layer built into their identity.
Clients can trade Ethereum, Litecoin, Bitcoin Cash, XRP, among others.
Check out our 2024 comprehensive Coinbase review for a step-by-step guide on how to buy and sell cryptocurrency on Coinbase.
Binance is the world’s most popular cryptocurrency exchange. It offers over 100 different trading pairs, including BNB coins, that give you discounts on trading fees when referring new users to the platform!
Binance also provides brokerage services which means you can buy digital currencies with your card or bank account transfer in just seconds – no matter where you live around the globe.
You will pay 1.8% for instant credit card or debit card purchases. Binance will also charge you a 0.10% commission on every buy and sell order, making it one of the most competitive exchanges in this space – considering how cheap their commissions are!
Learn how to buy cryptocurrency on Binance, and more in our 2024 full Binance review.
Apart from the earlier discussed methods, here are other ways you can acquire some cryptocurrency;
One of the easiest ways to get crypto coins is to ask for them. Several companies sell preloaded gift cards or “te-cash”, as they’re often called. These cards have their value established before purchase and can be used right away, much like a prepaid debit card from a more traditional financial institution.
The cards are generally loaded with Bitcoin or Ethereum, currently the two most popular cryptocurrencies. However, it’s certainly possible to ask for more obscure altcoins as well, so long as they’re available on the service. Coin cards, for example, can supply cards loaded with Litecoin and Dash in addition to Bitcoin and Ethereum.
This is also very common on platforms like Steemit.com or Bitshares, where people share useful content and get rewarded in cryptocurrency (Steem or BTS). It’s a great way of earning cryptocurrency without much of a hassle!
A cryptocurrency faucet is a reward system that dispenses rewards in the form of a tiny fraction of Bitcoin for visitors to claim in exchange for completing a captcha or task as described by a website. There are hundreds of sites that offer this service, and if you play your cards right, you can earn enough crypto to make a significant purchase.
If you are not willing to do anything, then these are perfect for you! You simply need to solve captchas or read interesting articles and websites that offer free coins for your time.
It is still possible for regular people to make money mining cryptocurrencies, but you need a powerful machine and a lot of patience to get there. You should keep in mind, though, that it will probably take 3–5 years to recoup the investment that you have spent. Mining is a very energy-intensive process, and it can be pretty expensive as well, so make sure to do all of your research before getting into this business.
If you are internet-savvy, this is probably the option for you. There are plenty of websites out there that will pay you in bitcoin or another form of cryptocurrency. You need to do your own research here, as some sites can be scammy.
Some cryptocurrencies have been made just for gamers. Gaining cryptocurrency through gaming (playing games, not gambling) is one of the best ways to generate cryptocurrency if you want a passive income. There are lots of games on most online platforms that you can play and get paid in cryptocurrencies.
We’ve gone through multiple ways of acquiring cryptocurrencies. You probably have some. So, how and where do you plan on using your newly acquired crypto? How and where can you spend them? Here are some of the ways;
HODLing is definitely an excellent way of making money in the cryptocurrency market. Still, if you’re new to this game, it’s essential to realize that your expectations shouldn’t be too high. After buying some BTC, ETH or any other altcoin, you simply hold on to it for some time and sell at some point when prices are higher than when you bought in.
You can also use crypto for trading, either by buying the coins you think are cheap and selling them at some point when their value has increased or by doing margin trading. Again, there’s a vast potential to make money.
There are already several companies (online and physical) that will accept cryptocurrencies as payment. It is easy to start using cryptocurrency if you don’t want to change any money into bucks first. Our list of the best brokers and exchanges is an excellent place to start. Be sure to check them out.
Cryptocurrencies are all about making the world a better place, so if you own some coins, then why not do it in style? Donating is another excellent way to use your crypto, which you can do via various charities accepting cryptocurrencies. Just make sure you check out whether your charity of choice is legit or not.
Another easy way to use your coins is by tipping or sending them as gifts online. Starting from forums and social media networks up to international content platforms, you’re likely to find a tipbot that will let you do just that.
The Reddit community has diverse opinions when it comes to buying and investing in cryptocurrency. Most are for the idea, while others still believe that cryptocurrency is a risky investment not worth taking. Others still have trouble differentiating between different types of crypto, generally asking how to know which crypto to buy. A specific Reddit user had a post asking the difference between Bitcoin and Ethereum. Another Redditor also had a post asking about the best exchange to buy cryptocurrency.
There have also been many discussions about whether or not cryptocurrency is legal. And, different Redditors hold different opinions on the subject.
On Quora, there are a lot of talks about cryptocurrencies and the state of digital currencies. Quora users discuss issues such as how they can invest their money wisely and if this is even real currency at all. Most conversations are initiated by people who are just getting into the crypto world and are unsure which step to take next. In one of the popular discussions, a Quora user posted the question, ‘How can one invest in cryptocurrency?’ – a discussion that received a couple of valuable comments.
There was also a discussion question on the best cryptocurrency to invest in right now. Most responses listed a couple of coins, with Bitcoin topping the list. However, as you’d expect, people hold diverse opinions on this.
A cryptocurrency is a form of digital money that you can use for secure and quick transactions online. You can buy it from established trading platforms so long as you have the cash to pay for it. Remember to check how well known the site is, what kind of reviews it has gotten in the past and what payment methods are available if you decide to use a new website to buy your coins. This article has covered all that – everything you need to know to get started with cryptocurrency.
Cryptocurrencies, also known as “crypto”, is a form of digital currency. It can be used to purchase goods and services, just like fiat currencies are used in today’s society. Some companies issue their own cryptocurrencies, which may then be exchanged for specific products or services that such organizations provide (i.e. tokens).
Blockchain technology facilitates all transactions made using these coins by keeping them securely encrypted on millions of computers worldwide. It becomes challenging for adversaries to hack into any individual trade. Also, no one person controls more than one copy of your information, thus ensuring its security!
Functioning cryptocurrencies are bought at brokers/ exchanges. Essentially, you want to go to an exchange that has the coin you’re interested in. You can then either buy or trade your regular currency (usually bitcoin or ethereum) on that exchange into the coin of your choosing.
Cryptocurrency has been on an upward trajectory for the past few years, with its value increasing exponentially. This means that if you invest now, your investment could be worth millions or even billions of dollars. Again, investing in crypto could be an extremely profitable venture if you play your cards well, but also highly risky.
That depends on the country you’re in and what their regulations say about them. However, digital currencies can be a powerful tool for both investments and transactions around the world. They offer security through encryption, which makes it impossible to counterfeit or modify data without detection by third parties like banks.
The Initial Coin Offering (ICO) has become a popular way for cryptocurrency companies to raise their initial capital. It is used by crypto organizations just as publicly traded corporations do with IPOs or other methods that involve equity financing transactions like bonds and loan agreements.