According to our January 2025 Market Sizing Report, global crypto owners increased by 13% last year, rising to 659 million investors as of December 2024. Meanwhile, the total market capitalization of all cryptocurrencies has risen to $3.9 trillion as of August 2025, reflecting both increased adoption and the expanding utility of digital assets. When you buy from a centralized exchange, your crypto usually stays in a custodial wallet by default. This means the platform technically controls your private keys — and if it goes down, gets hacked, or freezes withdrawals, your funds could be at risk. These are tools and platforms that allow you to buy crypto without completing a Know Your Customer (KYC) process. While they offer more privacy, they’re often better suited for users with at least a basic understanding of wallets, blockchain networks, and transaction security.
Our Platform
The convenience comes at a cost, however, as the beginner-friendly options charge substantially more than it would cost to buy the same crypto via each platform’s standard trading interface. To save on costs, you might aim to learn enough to utilize the standard trading platforms before you make your fist crypto purchase—or not long after. Finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which Finder receives compensation. We may receive compensation from our partners for placement of their products or services.
- Most beginners start with custodial storage on the exchange where they bought their crypto.
- It’s important to wrap your head around both, because there are some significant ways that adding crypto to your portfolio can impact your finances.
- Answers to the most frequently asked questions by those looking to buy their first cryptocurrency.
- To get started, check out our best crypto exchanges to compare your options.
- Be among the first to experience the future of money transfers, and earn surprise bonuses for getting in early.
- Although acceptance of Bitcoin is gaining in the mainstream financial world, there still aren’t very many Wall Street firms doing traditional research on digital assets and issuing price targets.
Best New Service with Free Offer: Moby Premium
Most platforms offer multiple funding methods, with various processing times. After buying your cryptocurrency, it’s mission critical to store and manage your new assets securely. Many investors also value crypto as a serviceable tool in day-to-day payments, especially in regions with limited access to banking. In places with high inflation or currency instability, cryptocurrencies like Bitcoin and USDC also offer an alternative store of value. Beyond this, there’s a growing demand for digital-native assets as more aspects of finance and life in general shift online. Considering investing in cryptocurrency but not sure where to begin?
Buying Crypto on an Exchange (Step-by-Step)
The Crypto.com App offers a secure built-in hot wallet for everyday use, backed by strict security protocols. For users looking for even greater control, we also support withdrawals to external cold wallets, giving you full autonomy over how your crypto is stored. Whichever exchange you choose, it should sport high level security, including two-factor authentication (2FA), the option to transfer assets into cold storage if you wish, and regulatory compliance. We stay up to date on these platforms’ service offerings, subscription fees, trade commissions, and welcome bonuses.
- While that era saw more than its fair share of failures, it also laid the foundation for today’s ‘Magnificent Seven,’ now among the most valuable companies in the world.
- You can start investing in cryptocurrency by following these five easy steps.
- Additionally, note that Kriptomat supports 22 languages and provides fast and reliable customer support.
- This step by step beginner’s guide walks you through choosing a secure platform, creating an account, funding it, and making your first purchase – plus key tips to help you keep your investment safer.
- The convenience comes at a cost, however, as the beginner-friendly options charge substantially more than it would cost to buy the same crypto via each platform’s standard trading interface.
Then, you’ll have to pass KYC, or, in trade bitcoin futures other words, verify your identity. For doing that you normally need a passport or a driving license. Lastly, you’ll be asked to set up Two-Factor Authentication to secure your account. The next step is to find out which is the best place to buy a cryptocurrency and how to pay for it. From making your first crypto trade to becoming a seasoned trader, you’ll have us to guide you through the process.
Which cryptocurrency should I buy?
And because most cryptocurrencies operate on a public ledger, the asset class also offers a reasonable level of security and traceability. A hot wallet is far more vulnerable to hackers than a cold one. Some exchanges may offer to hold your cryptocurrency on your behalf, but we strongly recommend a custodial wallet that you control. The safest way to buy cryptocurrency is to conduct your own research about the usability, costs, and security of each exchange in mind. Make sure you understand any coin you decide to buy, and be ready with a cold wallet to keep your assets safe from hackers.
Crypto ETFs’ share price varies daily based on investor sales and purchases. Once your account is set up, you can start buying cryptocurrency on the exchange. They allow you to buy and hold your cryptocurrency, or you can exchange it for another cryptocurrency. To learn how to buy cryptocurrency, you’ll first need to know where to buy cryptocurrency.
The specific process varies from exchange to exchange, so we suggest reading blog posts or watching a video to make sure you know what to expect when you buy cryptocurrency. Bitcoin was the world’s first cryptocurrency and is still one of the most popular. Other coins that have proven themselves include Ethereum, Solana, Cardano, and Dogecoin. You may also want to consider some stable coins, whose value is meant to track the value of fiat currencies such as the US dollar.
Before investing in crypto, it’s essential to understand the wider landscape, including the risks, security measures, regulatory requirements, and potential investing strategies. After choosing your preferred cryptocurrency exchange, the next step is to create and verify your account. These are common questions — and totally normal if you’re just getting started.
Where should I store my crypto after buying?
This means that, once you have bought your crypto, you can trade it for other cryptos by buying and selling it to other people on CEX.IO. You can also use it to earn additional income through staking or lending. ETFs are extremely popular investment tools that let you buy exposure to hundreds of individual investments in one fell swoop. This means they provide immediate diversification and are less risky than investing in individual investments. You may not be able to buy or sell cryptocurrency until you complete the verification process. The platform may ask you to submit a copy of your driver’s license or passport, and you may even be asked to upload a selfie to prove your appearance matches the documents you submit.
The information you provide will be compared against official databases to confirm that you’re not a sanctioned individual or Politically Exposed Person (PEP). The good news is that there are plenty of things you can do to protect yourself and your crypto holdings, and we’ll get into those toward the end of this guide. Then you might want to think about using a P2P website, like LocalBitcoins or LocalEthereum. Additionally, note that Kriptomat supports 22 languages and provides fast and reliable customer support.
Kat has expertise in insurance and student loans, and she holds certifications in student loan and financial education counseling. You can check an exchange’s registration by visiting the official registry at FinCEN. Have these documents ready before you sign up for an exchange to speed up the process, and make sure your documents are valid, clear and unexpired to avoid delays. Here’s what to expect, so you can move from account setup to your first purchase with confidence.
Just a few years ago, there were only a few places to buy and sell cryptocurrencies. The most popular, however, is buying crypto from cryptocurrency exchanges. With beginner-friendly platforms, low fees and simple signup options, you can make your first purchase in minutes with no experience required. To get started, check out our best crypto exchanges to compare your options. After your identity is verified, the next step is to deposit money into your crypto exchange account so you can make your first purchase.
This crypto exchange might not be the best for total beginners, though, as it isn’t as easy to use as Coinbase or Coinmama. Also, it charges pretty high fees for making instant purchases – a 4% fee + any additional fees charged by your card issuer. This is surely higher than the fees charged by other exchanges like Binance or Bybit. Once there is money in your account, you’re ready to place your first cryptocurrency order.