Don’t be put off by the prospect of purchasing cryptocurrency; it’s now easier than ever to do so.
Crypto is an exciting investment, especially given how much prices have risen. However, if you’re just getting started, the purchasing process can be perplexing, and you may be unsure where to begin.
One of the main issues that deter potential cryptocurrency investors is this. In a recent crypto survey, nearly a quarter (24%) of respondents said the most difficult part of buying crypto was figuring out where to begin.
It’s not nearly as difficult as it appears at first glance, whether you’re just looking for places to buy Bitcoin or want to invest in a variety of coins. You can make your first crypto purchase safely by following a few simple steps.
1. Research your cryptocurrency purchasing options.
You can buy cryptocurrency on a number of different platforms. Crypto exchanges, stockbrokers, and payment apps are the most popular options. You can choose the one that is best for you after learning more about them.
A cryptocurrency exchange is a place where you can buy, sell, and trade cryptocurrencies. These are the ones with the most cryptocurrencies and features. If you’re serious about crypto investing, an exchange will almost certainly be your best bet.
The learning curve for exchanges can be steep. Several of the best cryptocurrency exchanges, on the other hand, are simple to use and provide a wealth of educational content. If you’re new to crypto, the following two are excellent: Binance,
In recent years, some stock brokers have begun to dabble in cryptocurrencies. One of the most well-known examples is Robinhood.
These don’t give you as much as an exchange would. Crypto selections are typically limited, and you may not be able to transfer crypto outside of the brokerage. Even so, if you already have an account with a crypto broker, this can be a convenient way to add crypto to your portfolio.
You can also buy cryptocurrency with Venmo and PayPal, two popular payment apps. They have the fewest features and don’t allow you to transfer cryptocurrency outside of the app. Despite the disadvantages, some buyers appreciate how quick and simple it is to obtain cryptocurrency via a payment app.
2. Create an account on a cryptocurrency exchange.
After you’ve looked into where you can buy cryptocurrency, the next step is to choose one and open an account with it. If you already have an account with a stockbroker or app, all you need to do now is enable crypto purchases.
The registration process varies by platform, but all of them require similar information. To comply with know-your-customer (KYC) regulations, every licensed crypto platform in the United States must obtain certain customer data.
Before you can buy cryptocurrency, you’ll need to provide the following information:
- Name in full
- Contact information via email
- Number to call
- Physical location
- Number assigned by the Social Security Administration
- Year of birth
- You may be required to provide proof of identity in the form of a valid ID, proof of address, and possibly even a selfie in some cases.
3. Purchase your first cryptocurrency
After you’ve set up your account, the final step is to make a purchase. Choose a payment method after deciding which cryptocurrency you want and how much you want to spend.
This is yet another instance where the procedure differs depending on the platform you select. Almost all stock brokers demand that you make a bank or wire transfer deposit first. Debit and credit cards are common payment methods accepted by cryptocurrency exchanges.
Examine the accepted payment methods and their associated fees before deciding how to pay. By selecting the most cost-effective payment method, you can save money on crypto trading fees. Bank account transfers, on average, have the lowest fees for cryptocurrency purchases.
On the other hand, credit cards are almost never a good option. Buying crypto with a credit card can cost you an extra 7% or more due to additional trading and cash advance fees.