If you\u2019re new to the world of crypto, figuring out how to buy Bitcoin, Dogecoin, Ethereum and other cryptocurrencies can be confusing at first. Thankfully, it\u2019s pretty simple to learn the ropes. You can start investing in cryptocurrency by following these five easy steps.<\/p>\n
Buy And Sell Cryptocurrency With Coinbase<\/h2>\n
The world’s largest and easiest place to buy cryptocurrency<\/p>\n<\/p><\/div><\/div>\n<\/div>\n
1. Choose a Broker or Crypto Exchange<\/h2>\n
To buy cryptocurrency<\/a>, first you need to pick a broker or a crypto exchange. While either lets you buy crypto, there are key differences between them to keep in mind.<\/p>\n A cryptocurrency exchange is a platform where buyers and sellers meet to trade cryptocurrencies. Exchanges often have relatively low fees, but they tend to have more complex interfaces with multiple trade types and advanced performance charts, all of which can make them intimidating for new crypto investors.<\/p>\n Some of the most well-known cryptocurrency exchanges are Coinbase, Gemini, Binance and eToro. While these companies\u2019 standard trading interfaces may overwhelm beginners, particularly those without a background trading stocks, they also offer user-friendly easy purchase options.<\/p>\n 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\u2019s standard trading interface. To save on costs, you might aim to learn enough to utilise the standard trading platforms before you make your first crypto purchase \u2013 or not long after.<\/p>\n An important note: as someone new to crypto, you\u2019ll want to make sure your exchange or brokerage of choice allows fiat currency (such as sterling and dollar) transfers and purchases made with sterling. Some exchanges only allow you to buy crypto using another crypto, meaning you\u2019d have to find another exchange to buy the tokens your preferred exchange accepts before you could begin trading crypto on that platform.<\/p>\n Cryptocurrency brokers take the complexity out of purchasing crypto, offering easy-to-use interfaces that interact with exchanges for you. Some charge higher fees than exchanges. Others claim to be \u201cfree\u201d while making money by selling information about what you and other traders are buying and selling to large brokerages or funds or not executing your trade at the best possible market price.<\/p>\n While they\u2019re undeniably convenient, you have to be careful with brokers because you may face restrictions on moving your cryptocurrency holdings off the platform. With some, for example, you cannot transfer your crypto holdings out of your account.<\/p>\n This may not seem like a huge deal, but advanced crypto investors prefer to hold their coins in crypto wallets for extra security. Some even choose hardware crypto wallets that are not connected to the internet for even more security.<\/p>\n Once you decide on a cryptocurrency broker or exchange, you can sign up to open an account. Depending on the platform and the amount you plan to buy, you may have to verify your identity. This is an essential step to prevent fraud and meet regulatory requirements.<\/p>\n 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\u2019s licence or passport, and you may even be asked to upload a selfie to prove your appearance matches the documents you submit.<\/p>\n To buy crypto, you\u2019ll need to make sure you have funds in your account. You might deposit money into your crypto account by linking your bank account or making a payment with a debit or credit card (watch out for high charges from your card provider with the credit card option \u2013 see below).<\/p>\n Depending on the exchange or broker and your funding method, you may have to wait a few days before you can use the money you deposit to buy cryptocurrency.<\/p>\n Here\u2019s one big buyer beware: while some exchanges or brokers allow you to deposit money from a credit card, doing so is extremely risky \u2013 and expensive. Credit card companies process cryptocurrency purchases with credit cards as cash advances. This means they\u2019re subject to higher interest rates than regular purchases, and you\u2019ll also have to pay additional cash advance fees.<\/p>\n For example, you may have to pay 5% of the transaction amount when you make a cash advance. This is on top of any fees that your crypto exchange or brokerage may charge, and these can run up to 5% themselves, meaning you might lose 10% of your crypto purchase to fees.<\/p>\n Once there is money in your account, you\u2019re ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin <\/a>and Ethereum<\/a> to more obscure cryptos like Theta Fuel or Holo.<\/p>\n When you decide on which cryptocurrency to purchase, you can enter its ticker symbol \u2013 Bitcoin, for instance is BTC \u2013 and how many coins you\u2019d like to purchase. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like Bitcoin or Ethereum that otherwise take thousands of pounds to own.<\/p>\n Cryptocurrency exchanges are not backed by protections like the UK\u2019s Financial Services Compensation Scheme, and they\u2019re at risk of theft or hacking. You could even lose your investment if you forget or lose the codes to access your account. That\u2019s why it\u2019s so important to have a secure storage place for your cryptocurrencies.<\/p>\n As noted above, if you\u2019re buying cryptocurrency via a broker, you may have little to no choice in how your cryptocurrency is stored. If you purchase cryptocurrency through an exchange, you have more options:<\/p>\n While buying cryptocurrency is a major trend right now, it\u2019s a volatile and risky investment choice. If investing in crypto on an exchange or via a broker doesn\u2019t feel like the right choice for you, here\u2019s are a few options to indirectly invest in Bitcoin and other cryptocurrencies:<\/p>\n Exchange traded funds are popular investments that let you buy exposure to hundreds of individual holdings in one fell swoop. This means they provide immediate diversification and are less risky than selecting individual investments.<\/p>\n There is a huge appetite for cryptocurrency ETFs, which allow you to invest in many cryptocurrencies at once. The first cryptocurrency ETFs started to be rolled out to private investors in Autumn 2021.<\/p>\n If you\u2019d rather invest in companies with tangible products or services and that are subject to regulatory oversight\u2014but still want exposure to the cryptocurrency market\u2014you can buy shares in companies that use or own cryptocurrencies and the blockchain that powers them. You\u2019ll need an online brokerage account to buy shares in publicly-listed companies such as:<\/p>\n As with any investment, make sure you consider your investment goals and current financial situation before investing in cryptocurrency or individual companies that have a heavy stake in it. Cryptocurrency can be extremely volatile \u2013 a single tweet can make its price plummet \u2013 and it\u2019s still a very speculative investment. This means you should invest carefully and with caution.<\/p>\nWhat Is a Cryptocurrency Exchange?<\/h3>\n
What Is a Cryptocurrency Broker?<\/h3>\n
2. Create and Verify Your Account<\/h2>\n
3. Deposit Cash to Invest<\/h2>\n
4. Place Your Cryptocurrency Order<\/h2>\n
5. Select a Storage Method<\/h2>\n
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Alternatives Ways to Buy Cryptocurrency<\/h2>\n
1. Wait for Crypto Exchange-Traded Funds (ETFs)<\/h3>\n
2. Invest in Companies Connected to Cryptocurrency<\/h3>\n
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