How to buy crypto Get Started with Bitcoin com

how to purchase cryptocurrency

Centralized exchanges act as a third party overseeing transactions to give customers confidence that they are getting what they pay for. These exchanges typically sell crypto at market rates, and they make money on fees for various aspects of their services. Though centralized exchanges are relatively easy to use, they also can be an attractive target for hackers given the volume of crypto (and cash) that flows through them.

how to purchase cryptocurrency

The are several ways to invest in cryptocurrency, so if you’re interested and can accept the risks involved, you have many choices. However, it cannot be stressed enough how volatile crypto prices are because other cryptocurrency investors are afraid of missing out on the next big price movements. These movements cause large price, unpredictable price swings that can take out your investments in a matter of minutes or hours. Conversely, you may be able to double or triple your investment—but there are no guarantees.

Choose a crypto exchange and sign up

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. Cryptocurrency brokers take the complexity out of purchasing crypto, offering easy-to-use interfaces that interact with exchanges for you. Robinhood and SoFi are two of the most well-known crypto brokers. is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions.

  1. This influences which products we write about and where and how the product appears on a page.
  2. Here is a list of our partners and here’s how we make money.
  3. Author Andy Rosen owned Bitcoin and Ethereum at the time of publication.
  4. Layer 2 blockchain networks and their native tokens include Polygon (MATIC) and Arbitrum (ARB).
  5. Although Bitcoin is likely the best-known virtual money, thousands of cryptocurrencies already exist.
  6. 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.

You can use payment apps like CashApp, PayPal or Venmo to purchase Bitcoin and other crypto assets. However, only CashApp lets you transfer your Bitcoin or crypto out of its custody. These exchanges are where crypto investors can buy and sell their crypto assets through an interface provided by a third-party broker. Most centralized exchanges offer an easy method for making instant crypto purchases and include educational materials for beginners. Popular centralized crypto exchanges include Coinbase, Kraken and Gemini. Some brokerages through which you can purchase traditional assets like stocks and exchange-traded funds (ETFs) now support crypto coins and tokens, as well.

Create and Verify Your Account

Some of the most well-known cryptocurrency exchanges are Coinbase, Gemini and Binance.US. While these companies’ standard trading interfaces may overwhelm beginners, particularly those without a background trading stocks, they also offer user-friendly easy purchase options. If you already own crypto and want to trade it for other crypto assets without going through the KYC process, you might consider using a DEX like Uniswap or THORSwap. To do this, you’ll need to know how to use a browser extension crypto wallet like MetaMask or XDEFI Wallet, which can be a little tricky for newer users. The prices of cryptocurrencies, even the most established ones, are much more volatile than the prices of other assets like stocks. The prices of cryptocurrencies in the future could also be affected by regulatory changes, with the worst-case possibility that cryptocurrency becomes illegal and therefore worthless.

Also, keep in mind that fees for using credit and debit cards tend to be high. Most beginners use either a centralized crypto exchange, a traditional brokerage that supports crypto assets or a payments app to make their first crypto purchase. You can invest in Bitcoin, crypto and crypto-adjacent companies via crypto stocks like Block Inc (SQ), Coinbase Global (COIN) and Riot Platforms Inc (RIOT).

how to purchase cryptocurrency is an independent comparison platform and information service that aims to provide you with information to help you make better decisions. We may receive payment from our affiliates for featured placement of their products or services. We may also receive payment if you click on certain links posted on our site.

Select a storage method

In that case, simply check beforehand to make sure that the exchange you’d like to use supports the asset you want to buy. You can invest in Bitcoin or another cryptocurrency without spending much money. Using the Coinbase platform, for example, you can buy cryptocurrency with as little as two units of your local currency.

Cryptocurrency investors need to understand the tax consequences of using crypto, especially if they purchase something or sell their crypto investments. These are a type of hot wallet, which is a wallet that’s connected to the internet at all times. Software wallets are a good place to store or manage assets that you plan to use or trade in the near future. These wallets include MetaMask, Atomic Wallet and Exodus. Once you find a platform that accepts deposits, make sure it supports both the crypto you already own and the one you want to buy.

If you’re an investor who’s more accustomed to traditional brokerage accounts, there are a few online brokers that offer access to cryptocurrencies as well as stocks. Of the online brokers reviewed by NerdWallet, these include Robinhood, Webull and TradeStation. A cryptocurrency exchange is a platform where buyers and sellers meet to trade cryptocurrencies. If you’re new to the world of crypto, figuring out how to buy Bitcoin, Dogecoin, Ethereum and other cryptocurrencies can be confusing at first.

For more advanced investors, there are decentralized exchanges whose fees can be lower than those charged by centralized platforms. Those can be more difficult to use and demand more technical know-how, but they may also offer some security benefits because there is no single target for a cyberattack. Cryptocurrencies can also be traded through peer-to-peer transactions. While they’re undeniably convenient, you have to be careful with brokers because you may face restrictions on moving your cryptocurrency holdings off the platform.

Self-storage options are generally divided into two categories, hot wallets and cold wallets. Hot wallets have some internet connectivity, which may make them easier to use but could expose you to some security vulnerabilities. Cold wallets are unreachable to anyone who doesn’t have the physical device, but they do take more effort to use.

You’re our first priority.Every time.

For example, you can buy Bitcoin alongside shares of Apple stock on Uphold, eToro or SoFi. Keep in mind, though, that some traditional brokerages custody your crypto for you and don’t offer you the option of moving it to a wallet for which you hold the private keys. Most platforms let you deposit money from your bank account or via a wire transfer. You can also buy crypto with a debit or credit card or a payments app like PayPal or Apple Pay. With some crypto brokerages and exchanges, you can deposit cash instantly, whereas with others, you may have to wait a few days until the money transfer clears.

An investment strategy is a high-level overview of your investing outlook for assets of any type. Tethering individual investment decisions to a larger, comprehensive plan ensures they are working in concert as you work toward your goals. Our partners cannot pay us to guarantee favorable reviews of their products or services.