Cryptocurrency Buying Guides: Buy and Trade Crypto

What Buy Crypto?

These days it’s pretty easy to buy crypto and you might be surprised how quickly you can acquire Bitcoin or other cryptocurrencies. It’s very similar to opening a new bank account or downloading a financial app like Robinhood or SoFi.

Essentially you’ll need to be 18 years old, provide some basic identity verification, and have some method of funding your account. Here’s a quick step-by-step breakdown of the basic process for buying crypto:

Step 1. Decide Where to Buy Crypto

Your first step for buying cryptocurrency should be to pick an exchange where you want to make your first purchase.

Because there’s generally a verification phase that might take up to a few days when getting started, it’s better to begin with the exchange and sort out the rest later.

You’ll want to read about what makes the best crypto exchanges or the safest crypto to invest in, but in general, you want a secure exchange that offers a wide selection of digital assets.

It’s best to pick an exchange that’s regulated in a country with tight laws regarding finance (such as the USA) and has a long history of operation with a good reputation.

Once you pick one, you’ll need to provide some form of identity verification. In most cases, you’ll have to provide some of the following:

• Email address
• Driver’s license or other government-issued ID
• Proof of address
• Social security number (or similar number in your region)

Step 2. Decide Which Cryptocurrency to Buy

There are thousands of different cryptocurrencies but most can be separated into three main types of coins:

Bitcoin

The original crypto and still the most popular coin in the world. It offers by far the biggest market cap in the crypto market and it tends to be the least volatile crypto. Blockchain, the fundamental tech behind all crypto, originated with Bitcoin. BTC is often referred to as a store of value or digital gold.

Ethereum

Ethereum has been likened to silver when compared to Bitcoin, but it might more accurately be considered a digital bond because there’s potential to stake it for a yield. Ethereum is a smart contract crypto platform which means in can be used to create apps for DeFi or NFTs.

Everything Else

There are thousands of other coins out there that are trying to perfect the crypto puzzle. Most are trying to be faster and cheaper versions of Ethereum (such as Solana or Cardano) but others are trying to solve more niche problems such as file storage (Filecoin) or online advertising (BAT). These are the most volatile assets.

When you’re buying your first crypto it’s pretty easy to just say: I bought Bitcoin. It’s the one coin that every exchange will have and it’s been the most reliable over the years. Ethereum could also be good choice but we’d be wary of investing too heavily in so-called altcoins in the beginning. Keep in mind this article is not financial advice and no one knows for sure what will happen in the volatile crypto markets.

Step 3. Choose a Payment Method

Once you have an account on an exchange and you’ve decided which coin you want to buy you’ll have to fund your account with fiat currencies such as USD or CAD.

The easiest way to fund your account is to use one of the following:

• Bank transfer (ACH, SEPA, etc.)
  
• Wire transfer
• Credit or debit card
• Apple Pay
• Google Pay
• PayPal

Your preferred payment method will come down to accessibility, affordability and speed.

Bank transfers (such as ACH or SEPA) are generally one of the cheapest ways to buy crypto assets, but they generally take a day or two to process. Credit or debit cards are nearly instantaneous but have high fees.

Payment processors like Apple Pay, Google Pay and PayPal can be very good for speed and affordability but not every exchange offers them.

Step 4. Store Your Cryptocurrency

Once your account is funded you’re just minutes away from owning crypto.

You just have to select the number of coins you want to buy and hit the purchase button. They should be in your account nearly instantaneously.

Cryptocurrency buying guides are well and good, but what happens once you’ve bought it?

Because there is a long history of crypto exchanges going bankrupt and taking customer’s coins with them, consider a personal wallet to store your funds. A personal wallet (particularly a hardware-enhanced wallet) offers a level of personal protection that exchanges simply don’t offer. Here’s a look at some of the best crypto wallets.

That said, not everyone will be able to operate a personal wallet and will choose to leave their Bitcoin on an exchange. In that case, it’s especially important they pick an extremely reliable platform.

Finally, there are a number of things you can do with crypto beyond just storing it. Crypto is one of the most liquid assets in the world. Many people make a living trading crypto but you’ve got to be able to manage risk, as crypto prices are extremely volatile.

What is Cryptocurrency?

Cryptocurrency, or crypto, is digital currency. It was popularized with the invention of Bitcoin in the late 2000s. Crypto is renowned for its remarkable growth in value, with Bitcoin going from being worth pennies in 2010, to $68,789 per coin a little over a decade later.

A key feature of crypto is that it’s not reliant on any centralized entity such as a bank or a government. It’s traded freely around the world.

How to Get Started in Cryptocurrency

Your first step to getting started with crypto should be to learn as much as you can about the technology behind it. That includes Bitcoin, Ethereum, blockchain, ledgers, peer-to-peer networks and more. You don’t need to be an expert to invest, but it’s good to learn the fundamentals.

Once you have a basic understanding, your next step should be to actually acquire some crypto and experiment with all the major transactions, including buying, selling, sending, trading, and securing it safely.