Do you want to know how to buy cryptocurrency for the first time? If yes, you have come to the right place.
Cryptocurrency has become a popular investment opportunity in recent years.
However, for those new to the world of cryptocurrency, buying their first coins can be a daunting task.
While some people don’t know how to start, others are familiar with the popular places to buy but don’t know which one is ideal.
But in this beginner guide, I will provide a step-by-step guide on how to buy any cryptocurrency for the first time, as well as some tips to help make the process smoother and less intimidating.
This post will provide you with the essential information you need to get started.
Your age and country do not matter.
What you need is just a phone and an internet connection.
Best Explanation of What Cryptocurrency is
Cryptocurrency is a digital or virtual currency that uses cryptography (the practice of secure communication) for security and operates independently of a central bank.
Unlike traditional currencies, which are physical and have a physical form, cryptocurrencies exist only in digital form and are secured by a decentralized system known as blockchain.
Cryptocurrencies are created through a process called mining, where powerful computers solve complex mathematical equations to verify and validate transactions on the blockchain.
This process ensures the security and integrity of the network, as well as regulates the creation and supply of the currency.
Cryptocurrencies are decentralized, meaning they are not controlled by a single entity or government, and transactions are conducted directly between individuals without the need for intermediaries like banks or payment processors.
This makes transactions faster, cheaper, and more secure.
Bitcoin is the first established and most well-known cryptocurrency, but since its creation in 2009, thousands of other cryptocurrencies have been developed.
Importance of buying cryptocurrency
There are several reasons buying cryptocurrency can be important.
Here are some:
- Potential for high returns
- Protection against inflation
- Independence from a central authority
- Fast transfers and low fees
- Diversification
1 Bitcoin for example was below $1 when it started in 2009. Fast forward to November 2021, and 1 Bitcoin was over $60,000.
Understanding cryptocurrency exchanges
A cryptocurrency exchange is an online platform that allows users to buy, sell, store, and trade cryptocurrencies.
There are several types of crypto exchanges, including centralized exchanges, decentralized exchanges, and peer-to-peer exchanges.
Centralized exchanges are the most popular type of cryptocurrency exchange. These exchanges offer high liquidity, a wide range of trading pairs, and user-friendly interfaces.
Decentralized exchanges (DEXs) operate on a blockchain network and do not require a central authority to manage the exchange. Users retain control of their private keys and funds, providing greater security and privacy.
However, DEXs can be slower and have lower liquidity, which is one of the reasons people choose centralized exchanges.
Peer-to-peer (P2P) exchanges connect buyers and sellers directly without an intermediary.
When choosing a cryptocurrency exchange, there are several factors to consider, including the exchange’s reputation, security features, fees, user interface, and the number of cryptocurrencies available in the exchange.
Step-by-Step Guide on How to Buy Cryptocurrency for The First Time
Here are the basic steps to buying cryptocurrency as a beginner.
1. Choose a cryptocurrency exchange
Research and compare different crypto exchanges to find one that meets your needs.
Consider factors such as fees, security features, and available cryptocurrencies.
But you can start from the crypto exchanges below. They are the most popular and trusted in the industry:
Coinbase
Go check them out.
2. Create an account
Sign up for an account on your chosen crypto exchange.
Some exchanges may require that you verify your identity by providing additional documentation like a government-approved ID to comply with anti-money laundering regulations.
3. Deposit funds
You can deposit funds to your exchange account through bank transfers, debit, or credit cards.
Some crypto exchanges will also allow you to deposit funds using third-party payment processors like Paypal, Apple pay, etc.
4. Place an order
Select the cryptocurrency you want to buy and place an order on the exchange.
The most popular cryptocurrencies include Bitcoin, Ethereum, and Litecoin.
You can start with Bitcoin unless you have a preferred crypto.
That is it, but there are other ways you can buy cryptocurrency.
But before that, you should know you don’t have to buy 1 Bitcoin, as you can start with as little as $50 worth of Bitcoin.
Other Ways to Buy Cryptocurrency for The First Time
In addition to using a crypto exchange, there are other ways to buy cryptocurrency.
1. From Friends and Family
Buying crypto from friends and family who own crypto already can also be a simple and convenient way to buy cryptocurrencies.
Here are the basic steps for buying cryptocurrency from friends or family:
- Agree on the cryptocurrency and price: First, you and your friend or family member need to agree on the cryptocurrency you want to buy and the price you’ll pay. To see live prices of all cryptocurrencies click here.
- Set up a crypto account: Before buying cryptocurrency, you’ll need to set up a crypto exchange or wallet account to receive and store your digital assets. To see my recommended crypto exchange click here.
- Receive cryptocurrency: Your friend or family member can send the cryptocurrency directly to your wallet address which you will generate from your crypto exchange account. To see how to get a Bitcoin wallet address Click Here.
- Confirm transaction: Once you receive the cryptocurrency, confirm the transaction with your friend or family member to ensure that both parties are satisfied. You can send money to them before or after you receive the crypto.
But I recommend you buy crypto from only friends and family you trust. And never from a friend you meet on the internet.
[READ: How to Receive Bitcoin from Someone Else]
2. Buy Cryptocurrency with Bitcoin ATMs
You can also buy cryptocurrencies using Bitcoin ATMs.
However, you will need to have a wallet address to receive and store the crypto.
Here are the basic steps on how to buy cryptocurrency with Bitcoin ATMs:
- Find a Bitcoin ATM: A website like CoinATMRadar.com can help you to find a Bitcoin ATM near you.
- Verify your identity: Depending on the location, amount, and type of Bitcoin ATM, you may be required to verify your identity by providing your phone number, email address, or government-issued ID.
- Choose a cryptocurrency: Select the cryptocurrency you want to buy from the available options.
- Enter the amount: Enter the amount of cryptocurrency you want to buy, either in cryptocurrency units or fiat currency.
- Enter your wallet address: You can input your wallet address manually or scan the QR code of your address.
- Insert cash: Follow the instructions on the ATM screen to insert cash to complete the transaction.
- Confirm transaction: Confirm the details of the transaction, including the amount, fees, and wallet address.
- Receive cryptocurrency: Once the transaction is confirmed, the Bitcoin ATM will send the cryptocurrency to your wallet.
- Print receipt: Print your transaction receipt as proof of purchase.
NOTE: Bitcoin ATMs carry higher fees compared to cryptocurrency exchanges and the P2P marketplace. Additionally, Bitcoin ATMs may have lower transaction limits and may not support all cryptocurrencies.
3. How to Buy Crypto on Paxful
Paxful is a top P2P cryptocurrency exchange, and buying crypto with Paxful can be easy.
In fact, with Paxful you have over 350 different payment methods to buy cryptocurrency.
Follow these steps below to buy cryptocurrency on Paxful:
- Sign up: First, create an account on the Paxful website by providing your email address and creating a password.
- Select payment method: Paxful supports over 300 payment methods, including bank transfers, debit and credit cards, gift cards, and digital wallets. Select the payment method that you prefer.
- Choose cryptocurrency: Select the cryptocurrency you want to buy, such as Bitcoin, Ethereum, or Litecoin.
- Search for offers: Once you’ve selected your payment method and cryptocurrency, browse the available offers on the Paxful marketplace. You can filter the offers by payment method, currency, and location.
- Choose a seller: Choose a seller with a good reputation and a high trading volume. You can also view the seller’s terms and conditions before making a purchase.
- Start a trade: Click on the “Buy” button to start a trade with the seller. You’ll be taken to a chat window where you can communicate with the seller and exchange payment and cryptocurrency details.
- Complete the transaction: Once you’ve agreed on the details of the trade, make the payment using your chosen payment method. The seller will then transfer the cryptocurrency to your Paxful wallet.
- Confirm receipt: After receiving the cryptocurrency in your Paxful wallet, confirm receipt of the payment to the seller. The cryptocurrency will then be released from escrow and transferred to your wallet.
At this point, you can choose to store your crypto with Paxul. But I will recommend moving it to your crypto exchange account or crypto wallet.
NOTE: Paxful is a peer-to-peer marketplace, so always use caution when buying from individual sellers. Make sure to choose a verified seller, click on the seller’s profile for more information about them, and never communicate with sellers outside the platform.
4. How to Buy Cryptocurrency on CoinMama
CoinMama is one of the leading names you cannot take away when talking about how to sell or buy cryptocurrency.
Like every other name listed here, they are big, safe, and reliable.
To buy cryptocurrency on Coinmama, follow these steps:
- Sign up: Create an account on the Coinmama website.
- Verify your account: To buy cryptocurrency on Coinmama, you’ll need to verify your account by providing a valid government-issued ID and a selfie of you holding the ID. This process is necessary for security reasons and to comply with regulations.
- Select cryptocurrency: Once your account is verified, select the cryptocurrency you want to buy, such as Bitcoin, Ethereum, or Litecoin.
- Choose payment method: Coinmama accepts a range of payment methods, including credit and debit cards, bank transfers, and Apple Pay. Choose the payment method that you prefer.
- Enter amount: Enter the amount of cryptocurrency you want to buy or the amount of fiat currency you want to spend.
- Review order: Review your order details, including the exchange rate and fees, before proceeding.
- Provide wallet address: Coinmama is not a wallet provider. So, to buy crypto from the platform you will provide your wallet address where you want to receive the cryptocurrency. Check my guide on how to get a crypto wallet address.
- Make payment: If you’re paying with a credit or debit card, enter your card details and click “Buy Now.” If you’re paying with a bank transfer, follow the instructions provided by Coinmama to complete the transfer.
- Receive cryptocurrency: Once your payment is processed, the cryptocurrency will be sent to your wallet address.
Coinmama is a reputable crypto exchange, but it’s important to note that their fees can be high compared to other exchanges.
Conclusion
These are the different ways to buy cryptocurrency for the first time.
But above all, I recommend you buy from crypto exchanges or sign up for a crypto exchange account, then buy from a trusted friend or family member who already owns some crypto.
And as I said, never buy crypto from a friend you met on the internet to avoid getting scammed.
I hope you found the post helpful.
Kindly share it with your friends and follow us on Twitter and on Instagram.
You should also check out other content from us below to learn and understand Bitcoin and the cryptocurrency market better.
read also:
- How to be Successful in Cryptocurrency
- 5 Best Crypto Exchanges for Beginners
- How to Secure your Crypto from Being Stolen
- 10 Best Cryptocurrency to Buy which I Recommend
IMPORTANT; you must never send money to anyone you meet online asking to help you invest in cryptocurrency. They are scammers. Crypto is easy, and you can do it all by yourself.
DISCLAIMER:
The information presented here should not be used as the sole basis of any investment decisions, nor should it be construed as financial, tax, legal, or accounting advice. I will also advise that you invest in cryptocurrency only what you are comfortable living without, at least temporarily.