Learn the Best Way to Buy Crypto

Before investing in cryptocurrency, you must learn the best way to buy crypto safely and effectively. In addition to following the best practices and guidelines, you must monitor the industry in general and keep an eye out for new developments. While cryptocurrencies often follow specific price patterns, like Bitcoin, the overall trajectory of digital currencies will likely be influenced by news of cryptocurrency hacks, fraud, and price manipulation. It is essential to know how to buy crypto, as well as how to avoid being scammed.

Buying cryptocurrency may be difficult if you aren't sure which sources are best. Exchanges, online brokers, cash, and payment applications are all legitimate ways to acquire cryptocurrency. However, suppose you are used to traditional investing systems. In that case, it's essential to remember that these digital trading systems often have different charge structures, narrower client service options, and enhanced security features. Therefore, it's essential to do your research before investing.

What Is a Cryptocurrency Exchange and Broker?

A cryptocurrency exchange is a marketplace where buyers and sellers meet to trade cryptocurrencies. Exchanges frequently have low fees, but they also have more complex interfaces with multiple trade types and advanced performance charts.

Cryptocurrency brokers simplify the purchasing of cryptocurrency by providing simple interfaces that interact with exchanges on your behalf. Others offer it free but with a catch by selling information about you and other traders' transactions to large brokerages or by failing to execute your trade at the best possible market price.

Some of the most well-known cryptocurrency exchanges and brokers are listed below. While the standard trading interfaces of these companies may be intimidating to beginners, particularly those with no experience trading stocks, they also provide user-friendly, easy purchase options.

Binance

If you're new to crypto, the best way to buy crypto is with Binance. With the help of a partner called Simplex, you can deposit your crypto using your debit or credit card. The brokerage service has a fee of 4.5%, but you'll only be charged this if you deposited using USD. You can also use a credit card to deposit your crypto, but it's more expensive.

To buy crypto on Binance:

1. Sign up for a free account.

2. Register with your email address or mobile phone number.

3. Choose a strong password to protect your account.

4. Download the app on your phone to trade with other users. You can also link your bank account or debit/credit card to buy crypto directly from other users.

The Binance app will automatically calculate the amount you'd need to buy the cryptocurrency.

Coinbase

One of the most popular Bitcoin brokers, Coinbase, has a user base that rivals Charles Schwab's. It skyrocketed in popularity in 2017 alongside the price of Bitcoin. Its Pro version is designed for more advanced users, with price charts, order books, market orders, and stop limits. It is an excellent way to buy Bitcoin and other cryptocurrencies. If you are unsure about the process, try out the free demo and see if it's right.

Etoro

Investing in cryptocurrency through eToro is a safe and secure way to get started. To buy crypto on eToro, you need an account. First, you'll need to complete a quick KYC process by providing standard identification documents and answering financial questions. Once you've completed the KYC process, you'll need to choose a deposit amount and payment method.

Coinmama

The fees associated with buying crypto at Coinmama depend on your loyalty level and payment method. You will usually be charged 2.9%, but this can be discounted to 0.5% if you are a loyal customer. For selling cryptocurrency, there is a 3.8% transaction fee. You can also choose to pay with a bank transfer if you prefer. However, keep in mind that there are some fees associated with this method, such as the exchange rate fee, which can be disputed and refunded.

Paypal

In terms of popularity, the best way to buy crypto is with Paypal. PayPal is perhaps the most convenient. Unlike bank transfers and ACH deposits, your deposit amount is processed instantly. ACH and bank wire transfers can take one to three days to process. With PayPal, you also benefit from secure, encrypted login credentials and a low fee for currency conversions. However, there is one major drawback: you cannot convert crypto assets into cash or withdraw them from PayPal.

ShapeShift

Among the numerous ways to buy crypto, ShapeShift is a popular choice. Its service covers over 160 countries, offers competitive rates, and allows users to instantly take advantage of market trends. The company's wide range of currencies will enable you to diversify your crypto portfolio and invest in your favorite assets. Since 2014, ShapeShift has remained one of the leading exchanges, offering complete control over your digital assets.

Ledger Nano S

Buying your first cryptocurrency with the Ledger Nano S is relatively simple. The device is just like having a savings account in your home. You can view your funds on your phone, desktop, or Android device. However, it's worth noting that the device is limited storage space. If you have more than three currencies you want to track, you should consider upgrading to the Ledger Nano X. The best part about a Ledger Nano S is that you can access it through any Internet-connected device.

Square

If you're a first-time crypto buyer, Square is a great option. This payment platform pairs bitcoin with USD, so you can easily buy or sell the crypto. Additionally, it lets you buy or sell stocks. You can also use Square Cash to purchase Bitcoin. You'll need a debit/credit card to do this. However, this app is not for day trading, so you might want to look elsewhere.

Mode

When it comes to purchasing crypto, there are a few different modes of payment that you can use. Using a peer-to-peer exchange, or P2P exchange eliminates the middleman and lets you purchase crypto directly from the asset owner. Coinbase, for example, requires you to provide your identity to buy or sell crypto. Amy wants to sell Ether but is hesitant to use Coinbase due to the fees.

LocalBitcoins

One of the best ways to buy crypto is through a peer-to-peer marketplace such as LocalBitcoins. Here, you can buy and sell bitcoins and other cryptocurrencies without going through a centralized exchange. The platform users themselves set prices, so they can be much higher than what you can find on centralized exchanges. You need to input your desired amount and set the price. If you're interested in buying or selling bitcoin, LocalBitcoins can help you find a suitable seller.

SEPA

If you want to buy cryptocurrency in the EU, SEPA is the way to go. SEPA transactions are focused on the European Union and would be most beneficial when you buy Bitcoin from a website that supports SEPA. In addition to the benefits of SEPA, you'll also get the best exchange rates available in the industry. SEPA enables you to buy and sell multiple currencies instantly. The best way to use SEPA to purchase cryptocurrency in the EU is by using services such as Cabital.

Cash

There are several ways to buy crypto cash, including a prepaid card, bank transfer, or peer-to-peer. Prepaid cards can have high transaction fees, but peer-to-peer cash in hand is completely free. You can deposit money directly into your wallet using a bitcoin ATM, although you may incur significant fees. If you're in the market for some crypto cash, you can use an ATM to purchase it, which is an excellent option if you don't have a bank account.

BlockFi

BlockFi is a cryptocurrency investment platform that enables you to lend and earn interest on your cryptocurrency holdings. In addition, rather than selling your coins and tokens, you can borrow against them. If you just want to keep your tokens, you can let them earn interest for you.

Uphold

Uphold provides a simple solution for trading multiple assets: open a single account and trade multiple purchases without returning to cash. If you've ever traded cryptocurrency, you'll know that many coins and tokens only sell in specific pairs, so you're always returning to BTC or ETH. However, on Uphold, you can trade multiple assets simultaneously.

Kraken

Kraken is one of the first cryptocurrency trading platforms, and they offer a wide range of coins and tokens to trade and invest in. Margin trading is also permitted. It is, however, a genuine exchange that is not as simple to use as some of the top platforms on this list. Kraken is one of the few platforms on this list that allow you to trade in DOGE and other, more risky, tokens.

Bottomline

When you buy Bitcoin, Ethereum, or other digital currencies as an investment, you should keep your costs as low as possible. Given the developing nature of the cryptocurrency market, many brokers would like to maximize their commissions (in contrast to the stock market, where trading fees have gone to zero). These fees eat into your profits, so look for ways to reduce frictional costs.

If you want to improve your cryptocurrency trading skills, try Coinrule. Coinrule allows you to create customizable trading rules, access templates, and take advantage of low-cost trading plans. If you are a new cryptocurrency trader, you can test your strategies with paper trading and backtesting.

LEARN THE BEST WAY TO BUY CRYPTO