Final Verdict

The right cryptocurrency exchange for you will strike an ideal balance between fees, security, and trading options. That’s why it’s important to determine what you want out of an exchange before you dive in. 

But if you aren’t sure exactly what you want, then Coinbase is a good place to get started. You can buy a variety of digital currencies with a fair pricing structure in a secure setting.

Compare the Best Places to Buy Bitcoin

Methodology

We looked at more than a dozen of the best places to buy and sell Bitcoin online and settled on the top six places based on a number of factors. These factors included the history of the exchange, customer reviews, the fees each charge, the strength of features for each digital wallet, and the speed at which you can buy Bitcoin.

Final Verdict

The right cryptocurrency exchange for you will strike an ideal balance between fees, security, and trading options. That’s why it’s important to determine what you want out of an exchange before you dive in. 

But if you aren’t sure exactly what you want, then Coinbase is a good place to get started. You can buy a variety of digital currencies with a fair pricing structure in a secure setting.

Compare the Best Places to Buy Bitcoin

Methodology

We looked at more than a dozen of the best places to buy and sell Bitcoin online and settled on the top six places based on a number of factors. These factors included the history of the exchange, customer reviews, the fees each charge, the strength of features for each digital wallet, and the speed at which you can buy Bitcoin.

Cryptocurrency – meaning and definition

Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.

What is cryptocurrency?

Cryptocurrency is a digital payment system that doesn't rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.

Cryptocurrency received its name because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. The aim of encryption is to provide security and safety.

The first cryptocurrency was Bitcoin, which was founded in and remains the best known today. Much of the interest in cryptocurrencies is to trade for profit, with speculators at times driving prices skyward.

How does cryptocurrency work?

Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.

Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.

If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.

Although Bitcoin has been around since , cryptocurrencies and applications of blockchain technology are still emerging in financial terms, and more uses are expected in the future. Transactions including bonds, stocks, and other financial assets could eventually be traded using the technology.

Cryptocurrency examples

There are thousands of cryptocurrencies. Some of the best known include:

Bitcoin:

Founded in , Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.

Ethereum:

Developed in , Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.

Litecoin:

This currency is most similar to bitcoin but has moved more quickly to develop new innovations, including faster payments and processes to allow more transactions.

Ripple:

Ripple is a distributed ledger system that was founded in Ripple can be used to track different kinds of transactions, not just cryptocurrency. The company behind it has worked with various banks and financial institutions.

Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original.

How to buy cryptocurrency

You may be wondering how to buy cryptocurrency safely. There are typically three steps involved. These are:

Step 1: Choosing a platform

The first step is deciding which platform to use. Generally, you can choose between a traditional broker or dedicated cryptocurrency exchange:

• Traditional brokers. These are online brokers who offer ways to buy and sell cryptocurrency, as well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower trading costs but fewer crypto features.
• Cryptocurrency exchanges. There are many cryptocurrency exchanges to choose from, each offering different cryptocurrencies, wallet storage, interest-bearing account options, and more. Many exchanges charge asset-based fees.

When comparing different platforms, consider which cryptocurrencies are on offer, what fees they charge, their security features, storage and withdrawal options, and any educational resources.

Step 2: Funding your account

Once you have chosen your platform, the next step is to fund your account so you can begin trading. Most crypto exchanges allow users to purchase crypto using fiat (i.e., government-issued) currencies such as the US Dollar, the British Pound, or the Euro using their debit or credit cards – although this varies by platform.

Crypto purchases with credit cards are considered risky, and some exchanges don't support them. Some credit card companies don't allow crypto transactions either. This is because cryptocurrencies are highly volatile, and it is not advisable to risk going into debt — or potentially paying high credit card transaction fees — for certain assets.

Some platforms will also accept ACH transfers and wire transfers. The accepted payment methods and time taken for deposits or withdrawals differ per platform. Equally, the time taken for deposits to clear varies by payment method.

An important factor to consider is fees. These include potential deposit and withdrawal transaction fees plus trading fees. Fees will vary by payment method and platform, which is something to research at the outset.

Step 3: Placing an order

You can place an order via your broker's or exchange's web or mobile platform. If you are planning to buy cryptocurrencies, you can do so by selecting "buy," choosing the order type, entering the amount of cryptocurrencies you want to purchase, and confirming the order. The same process applies to "sell" orders.

There are also other ways to invest in crypto. These include payment services like PayPal, Cash App, and Venmo, which allow users to buy, sell, or hold cryptocurrencies. In addition, there are the following investment vehicles:

• Bitcoin trusts: You can buy shares of Bitcoin trusts with a regular brokerage account. These vehicles give retail investors exposure to crypto through the stock market. 
• Bitcoin mutual funds: There are Bitcoin ETFs and Bitcoin mutual funds to choose from. 
• Blockchain stocks or ETFs: You can also indirectly invest in crypto through blockchain companies that specialize in the technology behind crypto and crypto transactions. Alternatively, you can buy stocks or ETFs of companies that use blockchain technology.

The best option for you will depend on your investment goals and risk appetite.

How to store cryptocurrency

Once you have purchased cryptocurrency, you need to store it safely to protect it from hacks or theft. Usually, cryptocurrency is stored in crypto wallets, which are physical devices or online software used to store the private keys to your cryptocurrencies securely. Some exchanges provide wallet services, making it easy for you to store directly through the platform. However, not all exchanges or brokers automatically provide wallet services for you.

There are different wallet providers to choose from. The terms “hot wallet” and “cold wallet” are used:

• Hot wallet storage: "hot wallets" refer to crypto storage that uses online software to protect the private keys to your assets.
• Cold wallet storage: Unlike hot wallets, cold wallets (also known as hardware wallets) rely on offline electronic devices to securely store your private keys.

Typically, cold wallets tend to charge fees, while hot wallets don't.

What can you buy with cryptocurrency?

When it was first launched, Bitcoin was intended to be a medium for daily transactions, making it possible to buy everything from a cup of coffee to a computer or even big-ticket items like real estate. That hasn’t quite materialized and, while the number of institutions accepting cryptocurrencies is growing, large transactions involving it are rare. Even so, it is possible to buy a wide variety of products from e-commerce websites using crypto. Here are some examples:

Technology and e-commerce sites:

Several companies that sell tech products accept crypto on their websites, such as www.oldyorkcellars.com, AT&T, and Microsoft. Overstock, an e-commerce platform, was among the first sites to accept Bitcoin. Shopify, Rakuten, and Home Depot also accept it.

Luxury goods:

Some luxury retailers accept crypto as a form of payment. For example, online luxury retailer Bitdials offers Rolex, Patek Philippe, and other high-end watches in return for Bitcoin.

Cars:

Some car dealers – from mass-market brands to high-end luxury dealers – already accept cryptocurrency as payment.

Insurance:

In April , Swiss insurer AXA announced that it had begun accepting Bitcoin as a mode of payment for all its lines of insurance except life insurance (due to regulatory issues). Premier Shield Insurance, which sells home and auto insurance policies in the US, also accepts Bitcoin for premium payments.

If you want to spend cryptocurrency at a retailer that doesn’t accept it directly, you can use a cryptocurrency debit card, such as BitPay in the US.

Cryptocurrency fraud and cryptocurrency scams

Unfortunately, cryptocurrency crime is on the rise. Cryptocurrency scams include:

Fake websites: Bogus sites which feature fake testimonials and crypto jargon promising massive, guaranteed returns, provided you keep investing.

Virtual Ponzi schemes: Cryptocurrency criminals promote non-existent opportunities to invest in digital currencies and create the illusion of huge returns by paying off old investors with new investors’ money. One scam operation, BitClub Network, raised more than $ million before its perpetrators were indicted in December

"Celebrity" endorsements: Scammers pose online as billionaires or well-known names who promise to multiply your investment in a virtual currency but instead steal what you send. They may also use messaging apps or chat rooms to start rumours that a famous businessperson is backing a specific cryptocurrency. Once they have encouraged investors to buy and driven up the price, the scammers sell their stake, and the currency reduces in value.

Romance scams: The FBI warns of a trend in online dating scams, where tricksters persuade people they meet on dating apps or social media to invest or trade in virtual currencies. The FBI’s Internet Crime Complaint Centre fielded more than 1, reports of crypto-focused romance scams in the first seven months of , with losses reaching $ million.

Otherwise, fraudsters may pose as legitimate virtual currency traders or set up bogus exchanges to trick people into giving them money. Another crypto scam involves fraudulent sales pitches for individual retirement accounts in cryptocurrencies. Then there is straightforward cryptocurrency hacking, where criminals break into the digital wallets where people store their virtual currency to steal it.

Is cryptocurrency safe?

Cryptocurrencies are usually built using blockchain technology. Blockchain describes the way transactions are recorded into "blocks" and time stamped. It's a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that's hard for hackers to tamper with.

In addition, transactions require a two-factor authentication process. For instance, you might be asked to enter a username and password to start a transaction. Then, you might have to enter an authentication code sent via text to your personal cell phone.

While securities are in place, that does not mean cryptocurrencies are un-hackable. Several high-dollar hacks have cost cryptocurrency start-ups heavily. Hackers hit Coincheck to the tune of $ million and BitGrail for $ million, making them two of the biggest cryptocurrency hacks of

Unlike government-backed money, the value of virtual currencies is driven entirely by supply and demand. This can create wild swings that produce significant gains for investors or big losses. And cryptocurrency investments are subject to far less regulatory protection than traditional financial products like stocks, bonds, and mutual funds.

Four tips to invest in cryptocurrency safely

According to Consumer Reports, all investments carry risk, but some experts consider cryptocurrency to be one of the riskier investment choices out there. If you are planning to invest in cryptocurrencies, these tips can help you make educated choices.

Research exchanges:

Before you invest, learn about cryptocurrency exchanges. It’s estimated that there are over exchanges to choose from. Do your research, read reviews, and talk with more experienced investors before moving forward.

Know how to store your digital currency:

If you buy cryptocurrency, you have to store it. You can keep it on an exchange or in a digital wallet. While there are different kinds of wallets, each has its benefits, technical requirements, and security. As with exchanges, you should investigate your storage choices before investing.

Diversify your investments:

Diversification is key to any good investment strategy, and this holds true when you are investing in cryptocurrency. Don't put all your money in Bitcoin, for example, just because that's the name you know. There are thousands of options, and it's better to spread your investment across several currencies.

Prepare for volatility:

The cryptocurrency market is highly volatile, so be prepared for ups and downs. You will see dramatic swings in prices. If your investment portfolio or mental wellbeing can't handle that, cryptocurrency might not be a wise choice for you.

Cryptocurrency is all the rage right now, but remember, it is still in its relative infancy and is considered highly speculative. Investing in something new comes with challenges, so be prepared. If you plan to participate, do your research, and invest conservatively to start.

One of the best ways you can stay safe online is by using a comprehensive antivirus. Kaspersky Internet Security defends you from malware infections, spyware, data theft and protects your online payments using bank-grade encryption.

Related articles:

What is cryptocurrency and how does it work?

Cryptocurrency is a digital currency using cryptography to secure transactions. Learn about buying cryptocurrency and cryptocurrency scams to look out for.

Coinbase: the simple, safe way to buy, store, trade and sell your crypto. The leading cryptocurrency exchange for you to build your portfolio, earn yield and stay up-to-date on crypto news.

Put your tax return to work with Coinbase! File taxes with TurboTax, transfer to the Coinbase app, and convert your USD to + cryptocurrencies.

SUPPORTED ASSETS
Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Dogecoin (DOGE), Shiba Inu (SHIB), Cardano (ADA), Solana (SOL), Tether (USDT), USD Coin (USDC)*, and many more.

We’re the world’s most trusted cryptocurrency exchange, with over 89 million users across + countries worldwide. Coinbase allows you to securely buy, hold and sell cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin and many more on our easy, user-friendly app and web platform.

Here’s a little taste of what our app does:

BUY AND SELL CRYPTO EASILY
- Own crypto in an instant. All it takes is linking a bank account or debit card.
- Buy and sell, convert crypto coins and securely send/receive crypto with external digital wallets.
- Earn yield on cryptocurrency like Ethereum.
- Buy crypto securely: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Dogecoin, Cardano, Solana, Shiba Inu, Litecoin, USDT and more.

SMART TOOLS TO BECOME A CRYPTO PRO
- Brand new to crypto? We’ve got you covered.
- Crypto news and articles: stay up-to-date on the latest news and build your crypto knowledge.
- Portfolio management: Easy-to-use and customizable, from market insights to automatic buys and price alerts.
- Crypto tracker & dashboard: Clear and user-friendly, helps you see crypto prices and asset values, any time of day, anywhere you are.
- Track prices with our crypto watchlist: Add Bitcoin, Ethereum, and other crypto to your watchlist to see live prices and trends.
- Bitcoin ticker: Track the latest trends in Bitcoin. See which cryptocurrencies have moved the most in the last 24 hours.

SECURE CRYPTOCURRENCY EXCHANGE
- Over 98% of cryptocurrency is stored securely offline and the rest is protected by industry-leading online security.
- Crypto accounts are subject to the same scrupulous safety standards, including multi-stage verification and bank-level security.
- Add a passcode to your crypto profile or remotely disable your phone’s access to the app if it gets lost or stolen.
- Blockchains enable crypto to be bought and sent across the planet quickly and securely.
- Transfer crypto: Safe and secure asset movement to crypto wallets outside of the app.

BEGINNER TO CRYPTO MASTER, WE’RE HERE
- Manage crypto portfolios on Coinbase. Whether you’re just starting your crypto journey, or are a crypto pro, you’ll find everything you need to build your crypto portfolio.
- Learn about blockchain, NFTs and crypto with articles on a breadth of topics: bitcoin mining, Ethereum games, bitcoin trading and more.

Interested in getting into cryptocurrency? Begin your crypto journey with Coinbase.
--
*Available in select territories.

NEED MORE HELP?
Visit www.oldyorkcellars.com for information and to contact Coinbase Support.

PRIVACY
View Coinbase’s legal privacy policy at www.oldyorkcellars.com

The process of buying Bitcoin from the comfort of your home should take you no more than 10 minutes from start to finish.  All you need to do is open an account with a regulated Bitcoin broker, deposit some funds, and enter your stake. 

If you’re completely new to the process, this guide will show you how to buy Bitcoin in a safe and cost-effective way. 

How to Buy Bitcoin Easily & Safely

The quickfire guide below will show you how to buy Bitcoin in the US right now. For this tutorial, we’ll explain the required steps with eToro &#; an SEC-regulated broker that supports low-cost Bitcoin purchases from $  

If you need a more detailed explanation of how to buy Bitcoin in the US with eToro &#; you’ll find a full walkthrough further down. 

Where to Buy Bitcoin

If you’re wondering where to buy Bitcoin online, there are dozens of cryptocurrency trading platforms that support instant payment methods. This means you can choose your preferred payment option when funding your long term crypto investments.  

However, you need to be wary about what fees the platform in question charges &#; and whether or not it is regulated by a reputable financial body. 

When deciding where to buy Bitcoin today, consider the five platforms reviewed below. 

1. eToro &#; Overall Best Place to Buy Bitcoin in

eToro is a popular investment platform that was launched in and now serves over 20 million clients. You can buy Bitcoin with eToro with low fees and you can then store your BTC in the eToro money crypto wallet. The platform is regulated by the SEC, FCA, ASIC, and CySEC &#; and registered with FINRA. You can easily open an account in less than five minutes and deposit US dollars with a debit/credit card, ACH, or a bank wire. E-wallets are supported too and all USD deposits are fee-free. eToro is also one of the best places to buy new altcoins such as Sandbox with tight spreads. 

This makes eToro a super low-cost option when thinking about where to buy Bitcoin with fiat money. Once you have made a deposit, you can then buy cryptocurrency on a spread-only basis &#; which is the difference between the bid and ask price. 

If you want to invest in cryptocurrencies in addition to Bitcoin, eToro supports over 50+ coins adn tokens. This means you can buy Solana, Binance Coin, Ethereum, Dogecoin, Axie Infinity, AAVE, Decentraland, Quant, Litecoin, the Graph, Cardano, Polkadot and more.      

You can also invest in a cryptocurrency-centric Smart Portfolio &#; which is managed by eToro and contains a wide basket of digital tokens. Moreover, you can also invest in the Copy Trading tool, which allows you to copy successful eToro Bitcoin traders automatically which is perfect for beginners. In terms of account minimums, you can deposit from just $10 as a US client. $10 is also the minimum amount of Bitcoin that you can buy. You&#;ll also be pleased to learn that eToro also offers one of the best crypto credit cards on the market. 

Buy Bitcoin on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Coinbase &#; Good Place to Buy Bitcoin as a Beginner      

If you’re wondering where to buy Bitcoin in the easiest way possible, Coinbase is a top-rated user-friendly broker that is based in the US. With its clean and jargon-free interface, Coinbase allows you to open an account with ease. Once you are verified, you can then transfer funds via ACH for free. 

Then, when the money is credited to your Coinbase account, you can proceed to buy Bitcoin at a commission of %. Although this is deemed expensive, Coinbase charges even more when you buy Bitcoin with a debit/credit card &#; with the commission amounting to almost 4%. This option does, however, allow you to buy Bitcoin instantly. Other digital currency markets are available on Coinbase &#; should you wish to diversify. This means you can gain exposure to the most undervalued cryptos on the market in from the comfort of your own home.   

Coinbase is also a good option when it comes to storing your Bitcoin tokens. The platform requires all users to pass a two-step verification process in order to log in. Moreover, 98% of all client funds are kept in cold wallets &#; and attempting to log in from a new device or IP address requires an extra verification step. 

Additionally, Coinbase supports a wide range of digital assets which means you can buy Ethereum, Dogecoin and other popular altcoins from your smartphone device.

Buy Bitcoin on Coinbase Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance &#; Popular Bitcoin Exchange Offering 60+ Markets  

Binance is a cryptocurrency exchange that was launched in The platform is used by more than + million people and it facilitates billions of dollars worth of trading volume every day. When it comes to buying Bitcoin here, Binance supports US debit/credit card deposits. You will be charged a rather pricey fee, however, at % of the transaction amount. 

And, when you proceed to buy Bitcoin with your deposited funds, you will be charged an instant buy fee of %. On the other hand, spot trading commissions on the main Binance exchange amount to just %. This is very competitive, so Binance could be a good option if you find yourself trading crypto-to-crypto pairs. 

When it comes to supported markets, the US version of Binance offers 60+ markets. This covers a relatively broad selection of digital tokens &#; covering both large and mid-cap projects. For seasoned investors, Binance offers over-the-counter services as well as an advanced trading platform with enhanced tools and analysis features. 

As one of the largest crypto exchanges across the board, did you know that you can buy Celo and other popular new cryptocurrencies including Terra Luna with some of the industry&#;s lowest transaction fee rates when compared to the likes of Coinbase and Kraken?

Buy Bitcoin on Binance

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Webull &#; Buy Bitcoin From Just $1  

Webull was designed for US-based investors to trade stocks, ETFs, options, and cryptocurrencies in a simple and user-friendly manner. Whether you decide to trade online or via the Webull crypto trading app, accounts can be opened in a matter of minutes. You will need to transfer funds via ACH or a bank wire before you can buy Bitcoin &#; as debit/credit cards or e-wallets are not supported.   

In terms of fees, Webull does not charge traditional trading commissions. But, spreads of 1% or more will need to be factored in. Nevertheless, perhaps the stand-out feature of Webull is that it allows you to invest from just $1 when buying Bitcoin. This is also the case with other cryptocurrencies available at Webull.

Furthermore, when you open an account here, you can get started without needing to meet a minimum deposit. Webull is also a good option if you’re looking to invest money for your retirement, as several IRAs are supported. Finally &#; and providing you meet the standard $2, minimum balance requirement, Webull allows you to trade on margin.   

Buy Bitcoin on Webull Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Kraken &#; Safe Cryptocurrency Exchange to Buy Bitcoin via a Bank Wire 

The final platform to consider when thinking about where to buy Bitcoin is Kraken. This online exchange was first launched in &#; which makes it one of the most established platforms in this industry. US clients can open an account in minutes and then deposit funds via a domestic bank wire. ACH is only supported for withdrawals. The minimum deposit to get started at Kraken depends on the financial institution that you bank with.   

For instance, payments sent from MVB Bank require just $1 while at Etana Custody, the minimum is $ Nevertheless, once your bank wire arrives in your Kraken account &#; which usually takes business days, you can buy Bitcoin at a commission of just %. If you trade large amounts, your commission will be reduced. In addition to Bitcoin, Kraken supports more than 50 other digital currencies.

Should I Buy Bitcoin Now?

Bitcoin is often widely considered to be the best cryptocurrency to invest in. However, If you’re wondering whether to buy Bitcoin right now &#; your investment decision should be based on independent research. 

While you might try to time the market well, the best way to enter the market is through a dollar-cost averaging strategy &#; which we explain in more detail further down. 

Another thing to consider is that Bitcoin is extremely volatile, so you are likely to experience rapid pricing swings. On that note, if you have a high risk tolerance then you might be interested in Bitcoin robots. The best crypto bots such as Bitcoin Prime allow you to speculate on the price movements of cryptos via Bitcoin CFDs. If you&#;d like to learn more about Bitcoin robots then we recommend checking out or in-depth Bitcoin Prime review now. 

The best way to counter this is to engage with a buy-and-hold strategy, which means that you will keep hold of your BTC tokens in the long run. In doing so, you can ride out the volatile waves that the cryptocurrency markets regularly encounter. 

You may also want to consider another exciting altcoin, LBLOCK, which is set to revolutionize the lottery industry as we know it. For more details you can also read our in-depth how to buy Lucky Block guide.

Buy Bitcoin on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Benefits of Buying Bitcoin

Before you learn the ropes of how to buy Bitcoin, you should consider whether or not this asset class is right for your portfolio goals. 

In the sections below, we discuss five key reasons why so many investors in the US and further afield are looking to gain exposure to Bitcoin.     

Huge Growth Since

If you’re looking to buy Bitcoin today, then you are likely doing so because you hope to make significant returns on your investment. This is something that Bitcoin has achieved since it was launched in  

During its first few years, for instance, Bitcoin could be purchased at less than a dollar per token. Even in early , this digital currency was trading at just $1, 

This means that had you invested just over five years ago and held on until Bitcoin hit its all-time high of $69, in , your money would have been worth almost 7,% more.     

Buy the Dip

Perhaps the best way to buy Bitcoin is when the broader cryptocurrency markets go through a dip. This happens when the price of Bitcoin goes through a downward trend. 

Although this often scares inexperienced investors away, buying the dip will allow you to enter the market at a discount. 

For example, we mentioned above that Bitcoin hit $69, in However, by January , the digital token hit lows of $33,    

Crucially, if you were to buy Bitcoin at a price of $33, as opposed to $69, &#; you would be doing so at a discounted price of over 50%.  

There are plenty of opportunities to buy the dip in this marketplace, as Bitcoin and other cryptocurrencies regularly go through volatile pricing swings. 

Limited Supply

All global currencies &#; whether it&#;s the US dollar, euro, or British pound, experience inflation. This is largely because of central bank monetary and fiscal policies, which result in so-called money printing. 

However, in the case of Bitcoin, its supply cannot be manipulated by any single person or authority. On the contrary, new Bitcoin is minted automatically every 10 minutes. 

This will continue to be the case until approximately &#; when the total supply will be capped to 21 million tokens. From an investment perspective, this means that you are purchasing an asset that in many ways, is not too dissimilar to gold. 

After all, both Bitcoin and gold have a fixed supply, and thus &#; they are both referred to as stores of value by many market commentators. 

Fast and Decentralized Transactions 

Although Bitcoin isn’t the most efficient blockchain network, cross-border transactions are still a lot faster than traditional payment methods. For instance, no matter where the sender and receiver are located, Bitcoin transactions take just 10 minutes to arrive. 

Moreover, fees typically amount to less than $5 per transaction. This is the case regardless of how much is being sent. 

Another major benefit of sending and receiving transactions via the Bitcoin network is that the system is entirely decentralized. Once again, this means that no person, authority, central bank, or government can control the network. 

Small Unit Purchases 

Another core benefit of buying Bitcoin is that the digital currency can be fractionated. This means that you can buy just a small fraction of one Bitcoin unit. 

For example, if Bitcoin was priced at $40, and you decided to invest $40 &#; you would be purchasing % of one token. 

This is ideal for those looking to gain exposure to Bitcoin for the first time without risking large sums of money. This allows you to engage in a dollar-cost averaging strategy. 

Methods of Buying Bitcoin

Once you have researched Bitcoin from top to bottom and made the decision to proceed with an investment, you then need to think about which payment method to opt for. 

The best ways to buy Bitcoin in the US are discussed below. 

Buying Bitcoin With Paypal 

A selection of online brokers allow you to buy Bitcoin with Paypal. However, as Paypal has since entered the cryptocurrency market itself, you won’t have many platforms to choose from. 

With that said, eToro enables Paypal deposits at a minimum of just $10 and USD payments are credited fee-free.  

Buy Bitcoin With Credit Card or Debit Card 

Some of the cryptocurrency exchanges and brokers that we discussed today allow you to buy Bitcoin instantly with a credit/debit card. 

Although this is perhaps the most convenient payment method to choose from, credit/debit card transactions are known to be expensive when buying Bitcoin. 

For example, we mentioned earlier that Coinbase and Binance charge % and % on credit/debit card payments. 

eToro, on the other hand, permits fee-free credit/debit card deposits that are funded in US dollars. 

Buy Bitcoin With Neteller or Skrill  

Another option to consider when thinking about how to buy Bitcoin instantly is to use an e-wallet like Neteller or Skrill. 

As noted in the sections above, eToro allows e-wallet deposits from just $10 and your payment will be credited instantly. 

What is the Best Way to Buy Bitcoin?  

You should also consider the different platforms that are present in the Bitcoin investment landscape. 

For instance, many inexperienced investors confuse Bitcoin exchanges and brokers as two of the same things. 

Although both platform types give you access to the Bitcoin markets, the way in which your transaction is carried out is actually different.   

What about crypto signals? 

Ever wondered how to buy BTC using the best crypto signals? Crypto signals are trading ideas sent out by advanced crypto investors that tell you whether you should buy or sell a specific crypto at a specific price and time.

The best crypto signals are based on a variety of metrics, such as trending news, technical and fundamental analysis, bullish and bearish markets, and investor sentiment.

Bitcoin Exchange   

The vast majority of Bitcoin platforms operate as a cryptocurrency exchange. In simple terms, this means that the exchange in question operates as a middleman between buyers and sellers. 

For example, let’s suppose that you want to buy Bitcoin with US dollars. For this transaction to occur at a cryptocurrency exchange, a user would need to sell their BTC tokens to you in exchange for USD.   

In turn, your chosen Bitcoin exchange would charge a commission once the trade has been executed. The key problem with Bitcoin exchanges is that many platforms are unregulated.

While this might appeal to those seeking to buy Bitcoin in an anonymous manner, you can never be quite sure that your money and digital tokens are safe. 

Moreover, unregulated Bitcoin exchanges will often only allow you to deposit funds in cryptocurrency &#; meaning that you won’t be able to use a debit/credit card or perform a bank transfer.  

Bitcoin Broker    

If you’re learning how to buy Bitcoin in the US for the first time, then it might be best to use a broker. Unlike exchanges, brokers sit between you and the cryptocurrency markets. And as such, you can buy Bitcoin instantly, directly with the broker. 

Using a broker is by far the easiest and more importantly safest way to buy Bitcoin online. For instance, brokers like eToro are regulated by several licensing bodies &#; which includes the SEC. This means that you can be sure that your funds and digital assets are in safe hands.  

• Another core benefit of using a broker to buy Bitcoin is that you can deposit US dollars via a range of payment methods. 
• Kraken, for example, supports bank wire deposits. eToro, Coinbase, and Binance also offer support for debit/credit card payments. 

And finally, you need to consider storage options when you buy Bitcoin. When using an exchange, you are encouraged to withdraw your digital assets to a private wallet &#; which can be confusing for beginners. 

On the other hand, when using an SEC-regulated broker like eToro to buy Bitcoin, you can safely leave your tokens in your portfolio. This simply means that eToro will be tasked with keeping your tokens safe.      

Decentralized Exchange (DEX)    

Although the vast majority of Bitcoin trading goes through centralized exchanges and brokers, it is also worth making reference to the rise of decentralized exchanges (DEXs). In a nutshell, these platforms allow you to buy Bitcoin directly from a seller without going through a third party. 

The key issue with decentralized exchanges is that they are not regulated. Moreover, trading volumes at DEXs are still very low in comparison to traditional exchanges and brokers. As such, this means that liquidity levels are often insufficient to facilitate trades.    

Bitcoin Price  

When researching the price of Bitcoin, you will quickly notice that the digital asset is typically traded and quoted in US dollars. This is not too dissimilar to how commodities are priced, such as gold, silver, wheat, oil, and natural gas. 

And, just like the aforementioned hard and soft commodities, the price of digital currencies like Bitcoin is dictated by demand and supply. 

That is, when more and more people buy Bitcoin, its value will rise. But, when selling pressure outweighs new buy orders, its price will decline.

In terms of its historical price action, we mentioned earlier that Bitcoin initially traded at less than $1. As of writing, Bitcoin last hit an all-time high of just under $69, in August

Another thing to note about the price of Bitcoin is that it does not trade on centralized exchanges. This is in stark contrast to traditional stocks &#; which are listed on centralized-controlled exchanges like the NYSE or NASDAQ. 

As a result of this, you will notice that Bitcoin prices may fluctuate slightly across different exchanges. This differentiation will be minute and any gap in pricing will quickly be taken advantage of by market arbitrators.  

Bitcoin Price Prediction 

If you’re looking to research Bitcoin price predictions, you won’t be short of options. That is, the internet is packed with analysis of which direction the price of Bitcoin is likely to take in the near future. 

However, make no mistake about it, rarely do Bitcoin predictions come to fruition. Moreover, while you will easily find articles explaining that Bitcoin is set to increase in value, equally, you’ll also find price predictions arguing for the exact opposite. 

With this in mind, rather than focusing on Bitcoin price predictions, it’s best to approach digital currencies through a long-term strategy. 

In other words, if you believe that Bitcoin will continue to rise over the course of time, then holding long-term will allow you to ride out volatility pricing spikes.  

When to Buy Bitcoin 

We briefly mentioned earlier that rather than attempting to time the market, it’s best to consider dollar-cost averaging your investments. 

In its most basic form, this means committing to an investment schedule of regular, smaller purchases. For example, you might consider buying $ worth of Bitcoin at the end of each month. Or, $75 worth of Bitcoin every week. 

Here’s a quick example to help clear the mist:

• In month 1, you buy $ worth of Bitcoin at a token price of $40,
• In month 2, you buy $ worth of Bitcoin at a token price of $50,
• In month 3, you buy $ worth of Bitcoin at a token price of $30,
• In month 4, you buy $ worth of Bitcoin at a token price of $30,

Across your four monthly investments of $, you now have an average purchase price of $37, The good thing about dollar-cost averaging is that you are following the broader market sentiment over the course of time. 

That is, when Bitcoin goes through a downward trend, you will be reducing the average cost of your investment portfolio through cheaper purchases. On the other hand, when Bitcoin is going through an upward trend, you will be investing when prices are on the rise. 

Buying the BTC Dip

We discussed buying the dip earlier in this guide. To recap, this is the way that some investors look to time the market.

More specifically, you might consider buying Bitcoin during a downward trend with the view of paying a lower cost price. 

However &#; and much like in the traditional stock markets, history suggests that dollar-cost averaging is a lot more effective from a profit perspective than that of constantly buying the dip. 

This is because when Bitcoin goes through a prolonged upward trend, you are potentially missing out. After all, you likely will not make another purchase until the price drops again. 

How to Buy Bitcoin Safely

There are several ways that you can ensure that you buy Bitcoin safely. Not only in terms of using regulated brokers to complete your purchase, but in terms of wallet security. 

Here’s what you need to know to buy and hold Bitcoin in a secure manner. 

Regulated Brokers

It goes without saying that the safest way to buy Bitcoin online is through a regulated online broker. 

If you’re from the US, then your chosen Bitcoin broker should hold a license with the SEC and be a member of FINRA. 

This is one of the reasons why we prefer eToro for the Bitcoin investment process &#; not least because the platform meets the aforementioned criteria. For even greater scrutiny, eToro is also licensed by regulators in Europe and Australia.  

When using a regulated broker, you won’t be able to buy Bitcoin anonymously. This is because the broker in question will need to comply with anti-money laundering regulations by verifying your identity. 

This can be achieved easily by uploading a copy of your government-issued ID. 

Be Wary of Fees 

In order to buy Bitcoin in the US safely, you need to have a firm understanding of what fees you are paying. This is because some methods of buying Bitcoin can be costly. 

The most important fees to look for include:

• Commission: This is the fee charged by brokers and exchanges when you both buy and sell Bitcoin. This is usually a percentage 
• Spread: This is the most difficult fee to assess, and it considers the mark-up between the buy and sell price offered by your chosen platform. At eToro, for example, the spread starts from just %. 
• Debit/Credit Cards: If you decide to buy Bitcoin with a debit/credit card, then expect to pay between % with your chosen broker. With that said, you can avoid paying a transaction fee entirely when using eToro when depositing funds in US dollars.  

Another thing to know about fees when buying Bitcoin is that you should avoid cryptocurrency ATMs &#; of which there are many thousands scattered across the US. This is because on average, you will be charged between %. 

Moreover, this fee often isn’t advertised. Instead, the fee is quoted in terms of the total amount of BTC that you will get. 

For example, if the actual market price is $40, and the Bitcoin ATM charges a 20% fee, you are effectively paying $48, per token. And as such, you would need Bitcoin to increase by 20% just to break even. 

Storage  

Once you have completed your Bitcoin purchase, you then need to decide how you intend on storing your tokens. In many cases, other than the odd exception &#; such as Coinmama, you will have the option of leaving your BTC tokens on the platform that you made the purchase from. 

This can be a safe and convenient option if you are using a regulated and trusted broker like eToro or Coinbase. However, if you leave your tokens on an unlicensed platform, then you are putting your funds at risk. 

For instance, in alone, it is estimated that over $4 billion worth of digital assets were stolen from both centralized and decentralized exchanges. 

Bitcoin Wallet Security   

Although keeping your Bitcoin tokens at a regulated broker like eToro is perhaps the best storage option, some of you might prefer to retain % control over your digital assets. If this is the case, then you might look to withdraw your tokens to a private wallet. 

Regardless of which wallet type you opt for (mobile, desktop, etc.), you will need to ensure that you follow a set of safety protocols. This includes creating a strong password/PIN and ensuring that you keep your private keys written down on a piece of paper somewhere safe. 

Moreover, it is important that you avoid clicking on unknown links on the device that your Bitcoin wallet is kept on. 

Keep Stakes Sensible    

Another tip to ensure you buy Bitcoin safely is to be sensible with your investment stakes. Put simply this means never investing more than you can afford to lose. 

In order to do this, you will need to use a broker that supports small minimum deposits and low investments. At eToro, for example, you only need to deposit and invest $10 into Bitcoin. 

Can You Buy Bitcoin Without ID?    

We mentioned earlier that by using a regulated broker to buy Bitcoin online, you will need to go through an identity verification process by uploading a copy of your government-issued ID.  

This is also the case with unregulated exchanges that accept deposits in the form of US dollars. With that said, many cryptocurrency exchanges allow you to trade anonymously. The only caveat here is that you will need to deposit funds with cryptocurrency. 

This means that in order to buy Bitcoin with no verification documents, you would need to fund your account with another digital asset like Ethereum. Then, you would need to swap your ETH tokens for BTC.  

How to Buy Bitcoin Online &#; Tutorial    

If the earlier quickfire guide on how to buy Bitcoin in the US wasn’t quite elaborate enough for you, below we explain the step-by-step process in a more detailed way.  

Step 1: Open an Account 

First, you need to register an account with eToro. This requires entering some basic information about who you are &#; such as your name, date of birth, and nationality. 

You also need to enter and verify your email address and cell phone number.    

Step 2: Upload ID 

Once again, in using a regulated online broker like eToro, you will have access to deposits and withdrawals in US dollars. 

However, this also means that you need to upload a copy of your government-issued ID. Once you upload a clear copy of your document, eToro should be able to verify it straightaway.    

Step 3: Deposit Funds 

You can now make a deposit into your eToro account &#; with the broker supporting plenty of payment methods. This includes everything from debit/credit cards and ACH to Paypal and bank wires. 

And, not only is the minimum deposit threshold set to a very reasonable $10 &#; but no fees are charged on USD deposits &#; regardless of the payment type being used.  

Step 4: Search for BTC 

In the search bar &#; which is located at the top of the screen, enter ‘BTC’. 

When you see Bitcoin appear below the search bar, which in the image above, you can click on the ‘Trade’ button.  

Step 5: Buy Bitcoin 

And finally, you will now need to place a buy order so that eToro knows you wish to invest in Bitcoin. For this part of the process, you simply need to specify your total stake. This can be stated in US dollars from $10 upwards.

In our example above, we are looking to buy Bitcoin at a total stake of $ Once you press the ‘Open Trade’ button, eToro will instantly carry out your trade, and the tokens will be added to your portfolio. 

How to Sell Bitcoin 

If you decide to leave your BTC tokens in your eToro account, then the process of cashing out is instant. All you need to do is create a sell order from within your portfolio &#; which you can do by clicking on the red cross button located next to your Bitcoin investment. 

Then, you can click on the ‘Close Trade’ button. In doing so, eToro will instantly sell your tokens and add the cash proceeds to your account balance &#; which you can withdraw. 

On the other hand, if you currently have Bitcoin stored in a private wallet, in order to cash out you will first need to transfer the tokens to a cryptocurrency exchange. 

Latest Bitcoin News

Finally, let’s take a quick look at the latest Bitcoin news for the week beginning March 21st , to ensure you’re up-to-date with any significant developments or price movements:

• It was a relatively positive week for BTC investors, as the coin&#;s price rose by over 12% between Monday and Saturday before pulling back slightly on Sunday. Notably, Bitcoin has closed past the $40, level in the last few days and is now re-testing it as support – which could provide the impetus needed for a sustained upwards push.
• The proposed regulation to ban Proof-of-Work (PoW) cryptos, dubbed MiCA, was rejected last Monday – which was met with a huge sigh of relief from BTC investors. However, the European Parliament is still intent on regulating crypto-assets and will be including them in the taxonomy process from here onwards.
• Finally, the South by Southwest (SXSW) conference ended on Sunday, with many left disappointed by the lack of Bitcoin-based discussion. Much of the conference’s content was focused on NFTs and Web3 topics, although there were still talks from people affiliated with Kraken, Celsius, and the World Economic Forum.

Conclusion  

This beginner’s guide has left no stone unturned when it comes to learning about how to buy Bitcoin in the US. 

We’ve covered everything from reviews of top Bitcoin exchanges to a discussion on which payment methods are best to use. 

And, of course, we have also walked you through the process of how to buy Bitcoin via SEC-regulated broker eToro in a super-safe and secure way. 

At eToro, you can use a debit/credit card, e-wallet bank transfer to pay for your BTC investment and the minimum deposit requirement is just $  

FAQs  

How do I buy Bitcoin stock?

What is the best site to buy Bitcoin?

What can I buy with Bitcoin?

What is the cheapest way to buy Bitcoin?

Is it too late to buy Bitcoin?

How to buy and sell Bitcoin without fees?

How do you buy Bitcoin with Paypal?

Buying digital currencies like Bitcoin, Dogecoin, and Cardano is now a simple and burden-free process. 

All you need to do is open an account with a trusted cryptocurrency broker that offers low fees &#; make a deposit, and decide how many tokens you wish to buy. 

In this beginner’s guide, we explain how to buy cryptocurrency in great detail &#; covering the step-by-step investment process alongside an overview of the best exchanges to consider.

In the following sections of this guide, we explain the process of how to buy crypto in a more detailed way. 

Where to Buy Cryptocurrency

It goes without saying that in order to buy cryptocurrency online, you need to have an account with a broker or exchange. 

When deciding where to buy cryptocurrency &#; your chosen platform should offer low fees, your preferred payment method, small account minimums, and of course &#; a strong regulatory framework. So, whether you&#;re looking to buy the Graph, XRP, or Ethereum, you&#;ll need to choose an exchange or broker that matches your trading needs and financial goals. 

Below, we review a selection of top-rated platforms that allow you to buy cryptocurrency safely and cost-effectively. 

1. eToro &#; Overall Best Platform to Buy Cryptocurrency in

You won’t find a better online broker to buy cryptocurrency than eToro &#; which offers a safe, low-cost, and budget-friendly way to invest. First, this innovative social trading platform is regulated by several tier-one licensing bodies &#; which include the SEC in addition to the FCA, ASIC, and CySEC. Moreover, eToro is a member of FINRA. 

You only need to deposit $10 to open an account at this broker &#; which is ideal for those wishing to invest small amounts of money. Similarly, the minimum cryptocurrency purchase permitted at eToro is also $ Supported cryptocurrencies are plentiful at eToro, with more than 50+ digital assets available to buy. Therefore you can buy Dogecoin on eToro as well as other popular altcoins with low fees. 

This covers large-cap tokens as well as several DeFi coins. For instance, you could buy Solana or you could buy Axie Infinity with a tight transaction fee of just 1% on eToro. 

eToro really stands out when it comes to fees. For instance, US clients can deposit funds without paying any fees at all &#; which covers debit/credit cards, e-wallets, and bank transfers. When you buy and sell cryptocurrency here, you only need to cover the spread &#; which starts at just %. Furthermore, USD withdrawals are also free. 

If you’re interested in cryptocurrency but have little experience in this space &#; eToro offers a Smart Portfolio that manages your investments on your behalf. The portfolio in question will cover more than a dozen digital assets &#; which will be rebalanced regularly by the eToro team.

Alternatively, you can choose to copy top crypto traders on the eToro platform. The copy trading tool allows you to instantly copy the portfolios of any crypto trader on the platform, and you can access in-depth statistics on their performance all for no extra cost! Finally, eToro also offers a top-rated mobile app &#; which is available on both iOS and Android. This means you can gain exposure to the crypto market directly from your smartphone device and buy Celo and other exciting new altcoins with tight spreads and low fees. 

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Coinbase &#; Good Place to Buy Cryptocurrency for Beginners

Launched in , Coinbase is a large cryptocurrency exchange and broker based in the US. With millions of customers using Coinbase to buy and sell cryptocurrency &#; the platform is often the preferred provider for beginners. This is because Coinbase is simple to use and it supports small investments. 

On the other hand, Coinbase is expensive &#; especially when it comes to debit/credit card payments. That is, by using your Visa or MasterCard to buy cryptocurrency instantly, Coinbase will charge you almost 4%. Standard commissions at this platform are also pricey at % per slide.     

On the flip side, you can deposit US dollars via ACH without paying any fees. Moreover, Coinbase offers a relatively broad selection of cryptocurrencies to choose from &#; you can diversify well here. We also like that Coinbase is regulated &#; and that it keeps 98% of client digital funds in cold storage. 

Buy Crypto on Coinbase Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance &#; Popular Place to Buy Bitcoin for Asset Diversity

Binance is larger than Coinbase &#; with a global user base of over million clients. The platform is also the biggest in terms of daily trading volume. As such, Binance is popular with those seeking high levels of liquidity and a wide selection of digital currency markets. 

If you’re based in the US, you will have access to a dedicated US version of Binance. This gives you access to over 50+ currencies &#; all of which you can buy with a debit/credit card. Much like Coinbase, the fees here are expensive &#; with Binance charging % to use Visa or MasterCard, in addition to a buy commission of %. This means you could buy Polkadot with a small commission of %. 

With that said, if you are able to deposit funds with ACH or a domestic wire transfer, you will not be charged any fees. When it comes to trading commissions, Binance is very competitive. In fact, you&#;ll pay a maximum commission of % per slide to trade crypto-crypto pairs. If you’re a seasoned investor, Binance offers advanced trading tools and OTC services.

Buy Crypto on Binance

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Webull &#; Buy Cryptocurrency From Just $1

Webull is one of the most popular brokerage sites in the US, with the platform offering thousands of stocks, ETFs, and even options. However, Webull is also known for offering low-cost cryptocurrency services. In fact, you can buy cryptocurrency here at a minimum of just $1 &#; which is ideal for casual traders. 

When it comes to fees, Webull does not charge any commissions when you buy or sell cryptocurrency. You do, however, need to be aware that cryptocurrency spreads here start from 1%. You can trade a variety of digital currencies here &#; including but not limited to Bitcoin, Chainlink, Uniswap, Zcash, Bitcoin Cash, Litecoin, Ethereum, and more.  

Webull also offers a fully-fledged trading app that gives you access to your investment account on the move. You can deposit funds at this brokerage without needing to meet a minimum. Although you won’t be able to deposit via a debit/credit card, you can fund your account with ACH or bank wire. The latter comes with a deposit/withdrawal fee of $8/$25 respectively.   

Buy Crypto on Webull Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Gemini &#; Solid Cryptocurrency Exchange for Seasoned Investors

Gemini offers one of the most secure places to buy cryptocurrency &#; especially if you are a large-scale investor. The platform is authorized and regulated by the New York State Department of Financial Services and is structured as a trust company. Moreover, in addition to institutional-grade security &#; Gemini has also secured $ million of cold storage insurance. 

 Although Gemini offers a rock-solid place to buy cryptocurrency safely, the platform does charge a rather pricey commission of % per slide. Nevertheless, when it comes to supported markets, you will have access to over 70+ cryptocurrencies at Gemini. This includes a wide selection of large caps, ERCs, and DeFi coins.

Another top-rated feature at Gemini is its crypto interest offering. In a nutshell, by depositing your idle digital tokens into the Gemini exchange, you will be paid a rate of interest &#; which will depend on the respective asset. For example, you can earn % APY on the Gemini Dollar and % on Bitcoin Cash.

Should I Buy Cryptocurrency?

When learning how to buy cryptocurrency for the first time &#; you will quickly figure out that this marketplace is extremely volatile. 

• For example, across the 12 months prior to writing this guide, Bitcoin has experienced week lows and highs of $29, and $69, respectively. 
• In simple terms, this amounts to a volatility spread of over 80%.   

Taking this into account, it’s important to do plenty of research before you buy Bitcoin. 

On the flip side, and as we cover in more detail shortly, it is important to note that 10 years prior to writing, Bitcoin was available to buy at just $1 per token. This means that the cryptocurrency has since grown by over 7 million percent. 

• And, don’t forget that Bitcoin isn’t the only cryptocurrency that you can buy. 
• On the contrary, CoinMarketCap now lists over 17, different digital currencies &#; all of which freely trade online. 

Crucially, some cryptocurrencies have performed significantly better than Bitcoin in recent years.

Examples include the likes of Dogecoin, Shiba Inu, Ethereum, Binance Coin, and Solana &#; all of which have outperformed Bitcoin since each respective project was launched.

Beginner crypto traders often find choosing which altcoin to buy and how much to invest in very challenging. Something that could potentially help is to use the best crypto signals. Crypto signals do exactly what they say on the tin. Simply put, they&#;re trading ideas from experienced cryptocurrency traders indicating whether you should buy or sell specific cryptos at a certain time and price. 

You could also consider trading crypto CFDs with a Bitcoin robot such as Bitcoin Prime. Trading via a Bitcoin bot means you&#;ll be speculating on the price movements of crypto CFDs and will not gain ownership of the underlying assets.

Benefits of Buying Cryptocurrency

The most important thing to consider when learning how to buy cryptocurrency is whether or not this volatile and speculative asset class is right for your financial goals. 

If you’re still undecided, below we discuss some of the main benefits of buying cryptocurrency in  

Monumental Price Increases

Before we give some examples of just how successful some cryptocurrencies have been since they were launched &#; it is important to note that not all digital assets have performed well. On the contrary, many tokens have seen huge losses in terms of their token value. 

Nevertheless, it goes without saying that the overwhelming majority of people will look to buy cryptocurrency because of the huge returns that have been generated in recent years. 

For example:

• When BNB was launched in , it carried a token price of just $ 
• Fast forward to and BNB has hit highs of $ 
• This means that in just over five years, early BNB investors have made returns of over ,%
• In other words, had you invested just $1, into BNB when it was first launched, your portfolio would now be worth over $ million

In another example:

• When Ethereum &#; which is the world&#;s second-largest cryptocurrency in terms of market capitalization, was first launched in &#; it was trading at approximately $ 
• Towards the end of , Ethereum hit highs of just under $4, 
• This means that in just over six years, the value of Ethereum grew by more than ,%
• As such, an initial investment of $1, in would have since grown to over $ million

Although the above examples are just two of many &#; the key point here is that in buying cryptocurrency for your portfolio, you stand the chance of making sizable returns. Of course, you also stand the chance of losing money &#; so bear this in mind. 

Diversification 

Another benefit of buying cryptocurrency is that it is really easy to diversify. This is because of two key reasons. 

First and as noted earlier, you can now choose from more than 17, tradable digital assets. As such, to reduce the risk of being overexposed to one or two cryptocurrencies, you could invest in a large basket of tokens. 

Second, all cryptocurrencies can be fractionated into tiny units. For example, you don’t need to buy one full Ethereum token for several thousands of dollars. Instead, you can invest any amount of your choosing &#; even a couple of dollars.  

This diversification strategy is particularly effective when you use a low-cost cryptocurrency broker that supports small investments. At eToro, for instance, you can diversify across more than 40 digital currencies at a minimum investment of just $10 per asset. 

Limited Supply 

Some, but not all, cryptocurrencies have a limited supply that is determined by immutable mathematical code. 

For example, the total supply of Bitcoin will never surpass 21 million tokens &#; which is expected to happen by the year  

• Crucially, this framework ensures that cryptocurrencies cannot be manipulated by central banks or governments &#; which is the case with all fiat currencies in circulation. 
• For instance, the US Federal Reserve has printed trillions of dollars out of thin air since COVID came to fruition. 

Another benefit of investing in a cryptocurrency that has a limited supply is that finite assets typically perform well over the course of time. 

Gold is a prime example here, its finite characteristics ensure that demand will always surpass supply. 

Perfect for Cross-Currency Payments 

If you have ever transferred money overseas &#; especially if the beneficiary was based in an emerging or third-world country, then you will know that the process can be both slow and expensive. 

• Cryptocurrencies, however, offer a real solution to this problem, not least because the underlying blockchain is not restricted by jurisdictional borders. 
• For example, if you were to buy XRP and transfer it &#; the transaction would take less than 5 seconds to process, regardless of where the sender and receiver are located. 
• Furthermore, the transaction would cost you a small fraction of a cent in fees. 

These benefits are not exclusive to XRP &#; but many other digital currencies that are currently in circulation. 

Hedging Against Inflation and Stagnant Stock Markets   

One of the biggest economic consequences that countries around the world are now facing as a result of COVID-related stimulus packages is that inflation levels are rising rapidly. 

• In simple terms, this means that the value of your money becomes weaker &#; as prices for goods and services increase. 
• To counter the very real threat of rising inflation, some investors are turning to stores of value like Bitcoin. 
• After all, when you compare Bitcoin to broader inflation levels, the former has performed excellently as a hedging tool. 

Additionally, cryptocurrency can also be a useful tool in hedging against the wider stock markets. For example, over the prior five years, the S&P has grown by nearly 90%. Bitcoin, however, has increased in value by over 3,% during the same period.   

When to Buy Cryptocurrency

When you consider that cryptocurrency is a volatile asset class &#; you might be tempted to try and time the market in terms of when to buy and sell. 

As noted earlier, in the 52 weeks prior to writing this guide, Bitcoin has carried a volatility spread of 80% &#; which is huge. 

On the one hand, timing the cryptocurrency markets correctly is no easy feat &#; as the industry is both volatile and unpredictable. 

With that said, there are a couple of proven strategies that you can take to ensure that you enter the cryptocurrency market at the most favorable time possible.  

Buy the Dip

The first strategy that you might consider in your attempt to time the cryptocurrency markets is to ‘buy the dip’. This is a strategy widely used in the traditional stock trading industry and it simply means that you will buy cryptocurrency when it goes through a market dip. 

• For example, moving into , Bitcoin was priced at approximately $46,  
• Just over three weeks later, Bitcoin was valued at $33,
• This means that in buying this market dip, you can buy Bitcoin at a huge discount of 25% &#; compared to its price three weeks prior

The overarching concept here is that while inexperienced investors are fraught with fear and panic when cryptocurrency prices decline, seasoned traders will view this as an opportunity to increase their holdings by purchasing more tokens but at a discounted price.  

Dollar-Cost Averaging 

Various researchers argue that buying the dip is not a viable strategy in the long-term &#; at least in the traditional stock markets. 

The reason for this is that by only buying the dip, you are missing out on prolonged upward pricing swings. With that in mind, you might instead consider a dollar-cost averaging strategy. 

The main concept here is that you will engage in a long-term investment strategy that will see you buy cryptocurrency at fixed amounts, at specific intervals. 

For example:

• Let’s suppose that you have $ to invest in digital currencies every Friday
• This means that on Friday, you will buy cryptocurrency at a different price &#; baring in mind market fluctuations 
• Over the course of time, your cost price will average out in line with the broader markets
• In other words, when prices are going down &#; you get to buy cryptocurrency at a lower cost
• And, when prices are going up, you will buy cryptocurrency during an upward trend

The key point here is that dollar-cost averaging removes the need to try and time the market. Instead, you will slowly but surely build your portfolio through systematic investments. In doing so, you should have little interest in shorter-term pricing swings. 

Which is the Best Cryptocurrency to Buy ? 

So now that we have covered investment strategies and market timing, we can now talk about which cryptocurrency to buy in  

Once again, you’ve got thousands of options to choose from &#; so independent research is crucial.  

We, however, will discuss five of the best cryptocurrencies to buy right now, as per our own subjective analysis. 

Bitcoin &#; Best Crypto to Buy Now for Beginners 

Out of more than 17, digital currencies listed on CoinMarketCap &#; more than 40% of all cryptocurrency investments are held in Bitcoin. This clearly highlights that across the board &#; Bitcoin is the most popular cryptocurrency. 

Bitcoin is also the de-facto cryptocurrency in terms of market capitalization and mass awareness. Taking these points into account, Bitcoin is arguably the best cryptocurrency to buy for beginners. 

Although it trades for tens of thousands of dollars, you can invest in Bitcoin in fractional amounts. At eToro, you only need to invest $ In terms of growth, we mentioned earlier that Bitcoin was worth just $1 a decade prior to writing this guide. 

Buy Bitcoin on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

BNB &#; Top Cryptocurrency to Buy for Long-Term Growth 

The next cryptocurrency that we like is BNB &#; which is a top digital asset to consider for long-term growth. This digital asset is backed by Binance &#; the largest cryptocurrency exchange globally. 

When the token was first launched in &#; its primary purpose was to allow users of the Binance exchange to reduce their trading commission. But, since then, BNB has grown to a whole new level. 

For example, the digital token is now the primary currency of the Binance Smart Chain. This decentralized blockchain network is home to tens of thousands of cryptocurrencies &#; and most transaction fees are paid in BNB. 

Buy BNB on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Decentraland &#; Great Cryptocurrency to Buy to Invest in the MetaVerse 

Another cryptocurrency to consider buying for your investment portfolio is Decentraland &#; which is focused on creating a global MetaVerse via its decentralized 3D gaming world. Players within the Decentraland virtual world can build characters, wearables, and even real estate. 

These digital products can then be traded with other users &#; with MANA the native digital currency backing the Decentraland project. To illustrate how lucrative this game can be, a virtual plot of land was sold for over $2 million in late &#; with the transaction settled in MANA. 

In terms of performance, MANA was priced at just in When the token last hit all-time highs of , MANA surpassed a value of $ This means that in just over three years of trading, Decentraland and its MANA token grew by more than 20,%.

Buy Decentraland on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Ethereum &#; Leading Cryptocurrency to Buy for Smart Contracts

Ever wondered if you should buy Ethereum right now? As noted earlier, Ethereum is the second-largest cryptocurrency for market capitalization &#; behind Bitcoin. This project was launched back in and it dominates the smart contract niche. These are pre-programmed blockchain contracts that facilitate trustless agreements. 

On the one hand, there are actually better-performing smart contract blockchains in this space &#; namely Neo and Solana. This is in terms of transaction speed, fees, and scalability. However, Ethereum is getting close to its migration &#; which will see it move to Proof-of-Stake. 

And, in doing so, Ethereum will take its smart contract blockchain to the very next level. Not only in terms of lower fees and even faster transactions &#; but being able to scale on a much larger level. As such, Ethereum is still one of the best cryptocurrency to buy in  

Buy Ethereum on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

www.oldyorkcellars.come &#; Promising Cryptocurrency to Buy for Decentralized Financial Services 

Another area of the cryptocurrency arena that is growing in prominence is the availability of decentralized financial services. More specifically, there are platforms in existence that allow users to engage with traditional financial products on a peer-to-peer basis. 

One of the best decentralized platforms in this regard is www.oldyorkcellars.come. In a nutshell, the www.oldyorkcellars.come protocol allows users to take out loans &#; in return for putting up a percentage of the financing agreement as collateral.  

At the other end of the agreement are investors. That is, those holding idle cryptocurrencies can loan their funds to borrowers. And, as a result, investors will earn interest. The YFI token &#; which backs www.oldyorkcellars.come, is, therefore, a top cryptocurrency to keep an eye on this year.

Buy www.oldyorkcellars.come on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Guides to Investing in Cryptocurrency

Are you looking for guidance on buying cryptos, the best exchanges, or how to invest in NFTs? Check out our expert guides below.

Risks of Buying Cryptocurrency

Now that we have talked about the benefits of buying cryptocurrency, we need to discuss some of the main risks that need to be considered. 

The most pressing risks of buying cryptocurrency are outlined below. 

Volatility 

We have mentioned several times throughout this guide that cryptocurrencies are extremely volatile. This means that the value of your investment can go up or down by a large percentage in a very small period of time. 

For example, had you bought Dogecoin at the start of and sold just seven months later, your investment would have increased in value by more than 10,%. 

On the other hand, if you had bought Dogecoin in July and held on until the start of &#; you would be looking at losses of over 75%. 

As a result, before you buy cryptocurrency for your portfolio &#; you must be prepared for rapid pricing swings.  

Oversaturated Market 

The next risk that you need to consider when learning how to buy cryptocurrency is that this marketplace is now oversaturated. 

As noted, more than 17, cryptocurrencies are listed on CoinMarketCap &#; and even more that are yet to be added to the platform. 

This means that outside of the top projects, the cryptocurrency market is extremely fragmented. In simple terms, this means that the total amount of money being injected into the markets is now being allocated across a huge number of tokens.

As such, your chosen cryptocurrency might struggle to make an impact when you consider the amount of competition in this space. 

Hacks and Security 

Another major risk to consider is that over the course of the past few years &#; billions of dollars worth of digital assets have been stolen from cryptocurrency exchanges. If you had funds at one of these platforms, you might have had your tokens stolen with nowhere to turn.

As such, it is crucial that you stay away from unlicensed platforms and only buy cryptocurrency from a regulated exchange or broker &#; of which there are very few. Additionally, if you are looking to store your cryptocurrency tokens in a private wallet &#; further risks are at play. 

This is because if you lose your private keys and do not back your wallet up with a recovery passphrase, your funds will be lost forever. Moreover, if your cryptocurrency wallet is hacked, this will also result in a loss of funds. 

Ways of Buying Cryptocurrency

The next thing to consider when learning about digital asset investments is the many ways to buy cryptocurrency. 

By this, we mean the specific payment method that you will use to fund your cryptocurrency purchase. 

The best ways to buy cryptocurrency in are discussed below. 

Buy Cryptocurrency With Paypal

You can buy cryptocurrency with Paypal at a very select number of online exchanges and brokers. In most cases, you will be charged a premium &#; as Paypal offers users the ability to execute a chargeback request. 

This is, of course, a big risk for exchanges and brokers &#; which is why fees are typically high. With that being said, if you are depositing funds in US dollars, eToro allows you to buy cryptocurrency with Paypal on a fee-free basis. 

If you’re using an alternative currency &#; then you will simply pay an FX fee of %.  

Buy Cryptocurrency With Credit Card or Debit Card

The best way to buy cryptocurrency online is with a debit or credit card. This is because your purchase will usually be completed instantly.  

For instance, if you buy crypto with a debit card at eToro, you will not only benefit from an instant deposit, but USD payments are fee-free. 

This is also the case with credit cards, but the respective issuer might charge a premium &#; so be sure to check this yourself. 

Buy Cryptocurrency With Neteller or Skrill

Another way to buy cryptocurrency online is with an e-wallet like Neteller or Skrill. You can use both of these popular e-wallets at eToro at a fee of just %. Or, if you’re funding your account in USD, this fee is waived. 

Buy Cryptocurrency with Bank Transfer

Many exchanges and brokers allow you to buy cryptocurrency with a bank transfer &#; not least because this option is more cost-effective for platforms to process.

From your perspective, you will likely be able to deposit funds via ACH for free &#; albeit, the transaction might take a few days to arrive. Bank wires are usually supported too &#; but some platforms will charge a small fee.

How to Buy Cryptocurrency Safely

The most important part of this guide is the safety aspect of buying cryptocurrency. Not only in terms of staying away from unregulated platforms but how you intend to store your tokens. 

With this in mind, below we explain the fundamentals of how to buy cryptocurrency safely. 

Regulated Brokers

When you buy cryptocurrency from a broker that is regulated by a tier-one licensing body &#; you can be confident that you are using a trusted provider. 

• For instance, eToro is regulated by the SEC and registered with FINRA. 
• eToro is also licensed by the FCA, ASIC, and CySEC. 

At the other end of the scale, you have Binance. Although Binance is the largest cryptocurrency exchange for volume and registered users, the platform is currently being investigated by a number of national regulatory bodies for operating without the required approval.  

Avoid Peer-to-Peer Trades

You might be tempted to buy cryptocurrency on a peer-to-peer basis. This means that you will be purchasing your chosen digital currencies directly from the seller &#; as opposed to going through a centralized exchange. 

Peer-to-peer cryptocurrency trades are extremely risky, especially for buyers &#; as you will be required to pay for your purchase before you receive the tokens. As such, you should never buy cryptocurrency from a peer-to-peer website. 

Check Fees

Another thing to consider when learning how to buy cryptocurrency safely is to make sure that you have a firm understanding of what fees you are paying. 

• As an example, there are now thousands of Bitcoin ATMs scattered around the world. 
• These are targeted at the Average Joe who wishes to buy Bitcoin in exchange for cold-hard cash. 
• However, buyers are often unaware that Bitcoin ATMs charge huge fees &#; which will oftentimes average %. 
• The fee is often not shown in percentage terms. 
• Rather, you are shown how many BTC tokens you will receive for the amount of cash you are looking to invest. 

For those without knowledge of cryptocurrency prices &#; this can be difficult to recognize. 

On the other hand, if you buy cryptocurrency from an online broker like eToro  -which is regulated by the SEC &#; you can be sure that the platform is transparent in what it charges. 

In fact, at eToro, you only need to cover the difference between the buy and sell price &#; which starts at just %.  

Cryptocurrency Wallets

When it comes to keeping your cryptocurrency funds safe, you generally have two options. First, many investors will look to withdraw their tokens to a private wallet &#; perhaps on their mobile phone or desktop device. 

These private wallets are typically non-custodial &#; which means that you are % responsible for keeping your tokens safe. 

You then have custodial wallets, which are usually offered by online brokers and exchanges. On the one hand, trusting an unlicensed exchange with your tokens is not a good idea. 

However, in using a regulated broker like eToro, Coinbase, or Gemini &#; you can be sure that the platform has a range of institutional-grade security tools in place to keep your cryptocurrency safe. 

How to Buy Cryptocurrency  &#; Tutorial

This ultimate guide on buying cryptocurrency has covered each and every metric that you need to consider before you proceed with an investment. 

• If you have considered the risks involved and decided which digital asset interests you &#; then we are now going to walk you through the step-by-step process of how to buy cryptocurrency at eToro. 
• In using this SEC-regulated broker in our tutorial, this will allow you to buy cryptocurrency on a spread-only basis from just $10 &#; and you can deposit funds instantly with a debit/credit card. 

Here&#;s&#; what you need to do:

Step 1: Open an Account 

The first part of the process will require you to visit the eToro website and open an account. 

This will take you less than a couple of minutes and will simply require the following information from you:

• First and Last Name
• Email Address
• Cell Phone Number
• Home Address
• Date of Birth
• Social Security Number

Next, you will need to confirm your cell phone number. You can do this by entering the PIN that eToro sends to your phone via SMS.   

Step 2: Upload ID 

The final part of the registration process will require you to upload some ID. 

This is standard across all regulated brokers &#; as eToro is required to comply with AML laws set out by its licensing bodies. 

To complete this step near-instantly, you can upload a copy of your passport or driver’s license. 

Step 3: Deposit Funds 

Now you will need to add some capital to your eToro brokerage account. US clients only need to deposit $10 and no transaction fees will be charged. 

You can choose from a bank wire, ACH, Paypal, Skrill, Neteller, or a debit/credit card. 

Step 4: Search for Cryptocurrency 

Assuming that you already know which cryptocurrency to buy for your portfolio &#; you can now complete the investment process. 

To get the ball rolling, enter the name of the digital asset into the search box at the top of the page. 

In our example above, we are searching for ‘Decentraland.’ When we see the relevant token pop up &#; we click on ‘Trade’. 

Step 5: Buy Cryptocurrency From $10  

The final step is to create an order. As you will see from the image below, we are looking to buy $75 worth of Decentraland (MANA) tokens. 

However, you can invest any amount of your choosing &#; from just $10 upwards. Once you have entered your investment stake &#; you can complete your cryptocurrency purchase by clicking on the ‘Open Trade’ button.

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Conclusion

This beginner’s guide on how to buy and sell cryptocurrency online has covered every nut and bolt that you need to know to start your investment journey safely. 

To recap, it’s important to do plenty of research before proceeding &#; both in terms of the cryptocurrency you decide to add to your portfolio and the exchange or broker you plan to open an account with. 

If you’re ready to buy cryptocurrency today &#; eToro is a safe and regulated platform that allows you to invest from just $10 across more than 40+ digital assets. 

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Frequently Asked Questions on How to Buy Cryptocurrency

Buying digital currencies like Bitcoin, Dogecoin, and Cardano is now a simple and burden-free process. 

All you need to do is open an account with a trusted cryptocurrency broker that offers low fees &#; make a deposit, and decide how many tokens you wish to buy. 

In this beginner’s guide, we explain how to buy cryptocurrency in great detail &#; covering the step-by-step investment process alongside an overview of the best exchanges to consider.

In the following sections of this guide, we explain the process of how to buy crypto in a more detailed way. 

Where to Buy Cryptocurrency

It goes without saying that in order to buy cryptocurrency online, you need to have an account with a broker or exchange. 

When deciding where to buy cryptocurrency &#; your chosen platform should offer low fees, your preferred payment method, small account minimums, and of course &#; a strong regulatory framework. So, whether you&#;re looking to buy the Graph, XRP, or Ethereum, you&#;ll need to choose an exchange or broker that matches your trading needs and financial goals. 

Below, we review a selection of top-rated platforms that allow you to buy cryptocurrency safely and cost-effectively. 

1. eToro &#; Overall Best Platform to Buy Cryptocurrency in

You won’t find a better online broker to buy cryptocurrency than eToro &#; which offers a safe, low-cost, and budget-friendly way to invest. First, this innovative social trading platform is regulated by several tier-one licensing bodies &#; which include the SEC in addition to the FCA, ASIC, and CySEC. Moreover, eToro is a member of FINRA. 

You only need to deposit $10 to open an account at this broker &#; which is ideal for those wishing to invest small amounts of money. Similarly, the minimum cryptocurrency purchase permitted at eToro is also $ Supported cryptocurrencies are plentiful at eToro, with more than 50+ digital assets available to buy. Therefore you can buy Dogecoin on eToro as well as other popular altcoins with low fees. 

This covers large-cap tokens as well as several DeFi coins. For instance, you could buy Solana or you could buy Axie Infinity with a tight transaction fee of just 1% on eToro. 

eToro really stands out when it comes to fees. For instance, US clients can deposit funds without paying any fees at all &#; which covers debit/credit cards, e-wallets, and bank transfers. When you buy and sell cryptocurrency here, you only need to cover the spread &#; which starts at just %. Furthermore, USD withdrawals are also free. 

If you’re interested in cryptocurrency but have little experience in this space &#; eToro offers a Smart Portfolio that manages your investments on your behalf. The portfolio in question will cover more than a dozen digital assets &#; which will be rebalanced regularly by the eToro team.

Alternatively, you can choose to copy top crypto traders on the eToro platform. The copy trading tool allows you to instantly copy the portfolios of any crypto trader on the platform, and you can access in-depth statistics on their performance all for no extra cost! Finally, eToro also offers a top-rated mobile app &#; which is available on both iOS and Android. This means you can gain exposure to the crypto market directly from your smartphone device and buy Celo and other exciting new altcoins with tight spreads and low fees. 

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Coinbase &#; Good Place to Buy Cryptocurrency for Beginners

Launched in , Coinbase is a large cryptocurrency exchange and broker based in the US. With millions of customers using Coinbase to buy and sell cryptocurrency &#; the platform is often the preferred provider for beginners. This is because Coinbase is simple to use and it supports small investments. 

On the other hand, Coinbase is expensive &#; especially when it comes to debit/credit card payments. That is, by using your Visa or MasterCard to buy cryptocurrency instantly, Coinbase will charge you almost 4%. Standard commissions at this platform are also pricey at % per slide.     

On the flip side, you can deposit US dollars via ACH without paying any fees. Moreover, Coinbase offers a relatively broad selection of cryptocurrencies to choose from &#; you can diversify well here. We also like that Coinbase is regulated &#; and that it keeps 98% of client digital funds in cold storage. 

Buy Crypto on Coinbase Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance &#; Popular Place to Buy Bitcoin for Asset Diversity

Binance is larger than Coinbase &#; with a global user base of over million clients. The platform is also the biggest in terms of daily trading volume. As such, Binance is popular with those seeking high levels of liquidity and a wide selection of digital currency markets. 

If you’re based in the US, you will have access to a dedicated US version of Binance. This gives you access to over 50+ currencies &#; all of which you can buy with a debit/credit card. Much like Coinbase, the fees here are expensive &#; with Binance charging % to use Visa or MasterCard, in addition to a buy commission of %. This means you could buy Polkadot with a small commission of %. 

With that said, if you are able to deposit funds with ACH or a domestic wire transfer, you will not be charged any fees. When it comes to trading commissions, Binance is very competitive. In fact, you&#;ll pay a maximum commission of % per slide to trade crypto-crypto pairs. If you’re a seasoned investor, Binance offers advanced trading tools and OTC services.

Buy Crypto on Binance

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Webull &#; Buy Cryptocurrency From Just $1

Webull is one of the most popular brokerage sites in the US, with the platform offering thousands of stocks, ETFs, and even options. However, Webull is also known for offering low-cost cryptocurrency services. In fact, you can buy cryptocurrency here at a minimum of just $1 &#; which is ideal for casual traders. 

When it comes to fees, Webull does not charge any commissions when you buy or sell cryptocurrency. You do, however, need to be aware that cryptocurrency spreads here start from 1%. You can trade a variety of digital currencies here &#; including but not limited to Bitcoin, Chainlink, Uniswap, Zcash, Bitcoin Cash, Litecoin, Ethereum, and more.  

Webull also offers a fully-fledged trading app that gives you access to your investment account on the move. You can deposit funds at this brokerage without needing to meet a minimum. Although you won’t be able to deposit via a debit/credit card, you can fund your account with ACH or bank wire. The latter comes with a deposit/withdrawal fee of $8/$25 respectively.   

Buy Crypto on Webull Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Gemini &#; Solid Cryptocurrency Exchange for Seasoned Investors

Gemini offers one of the most secure places to buy cryptocurrency &#; especially if you are a large-scale investor. The platform is authorized and regulated by the New York State Department of Financial Services and is structured as a trust company. Moreover, in addition to institutional-grade security &#; Gemini has also secured $ million of cold storage insurance. 

 Although Gemini offers a rock-solid place to buy cryptocurrency safely, the platform does charge a rather pricey commission of % per slide. Nevertheless, when it comes to supported markets, you will have access to over 70+ cryptocurrencies at Gemini. This includes a wide selection of large caps, ERCs, and DeFi coins.

Another top-rated feature at Gemini is its crypto interest offering. In a nutshell, by depositing your idle digital tokens into the Gemini exchange, you will be paid a rate of interest &#; which will depend on the respective asset. For example, you can earn % APY on the Gemini Dollar and % on Bitcoin Cash.

Should I Buy Cryptocurrency?

When learning how to buy cryptocurrency for the first time &#; you will quickly figure out that this marketplace is extremely volatile. 

• For example, across the 12 months prior to writing this guide, Bitcoin has experienced week lows and highs of $29, and $69, respectively. 
• In simple terms, this amounts to a volatility spread of over 80%.   

Taking this into account, it’s important to do plenty of research before you buy Bitcoin. 

On the flip side, and as we cover in more detail shortly, it is important to note that 10 years prior to writing, Bitcoin was available to buy at just $1 per token. This means that the cryptocurrency has since grown by over 7 million percent. 

• And, don’t forget that Bitcoin isn’t the only cryptocurrency that you can buy. 
• On the contrary, CoinMarketCap now lists over 17, different digital currencies &#; all of which freely trade online. 

Crucially, some cryptocurrencies have performed significantly better than Bitcoin in recent years.

Examples include the likes of Dogecoin, Shiba Inu, Ethereum, Binance Coin, and Solana &#; all of which have outperformed Bitcoin since each respective project was launched.

Beginner crypto traders often find choosing which altcoin to buy and how much to invest in very challenging. Something that could potentially help is to use the best crypto signals. Crypto signals do exactly what they say on the tin. Simply put, they&#;re trading ideas from experienced cryptocurrency traders indicating whether you should buy or sell specific cryptos at a certain time and price. 

You could also consider trading crypto CFDs with a Bitcoin robot such as Bitcoin Prime. Trading via a Bitcoin bot means you&#;ll be speculating on the price movements of crypto CFDs and will not gain ownership of the underlying assets.

Benefits of Buying Cryptocurrency

The most important thing to consider when learning how to buy cryptocurrency is whether or not this volatile and speculative asset class is right for your financial goals. 

If you’re still undecided, below we discuss some of the main benefits of buying cryptocurrency in  

Monumental Price Increases

Before we give some examples of just how successful some cryptocurrencies have been since they were launched &#; it is important to note that not all digital assets have performed well. On the contrary, many tokens have seen huge losses in terms of their token value. 

Nevertheless, it goes without saying that the overwhelming majority of people will look to buy cryptocurrency because of the huge returns that have been generated in recent years. 

For example:

• When BNB was launched in , it carried a token price of just $ 
• Fast forward to and BNB has hit highs of $ 
• This means that in just over five years, early BNB investors have made returns of over ,%
• In other words, had you invested just $1, into BNB when it was first launched, your portfolio would now be worth over $ million

In another example:

• When Ethereum &#; which is the world&#;s second-largest cryptocurrency in terms of market capitalization, was first launched in &#; it was trading at approximately $ 
• Towards the end of , Ethereum hit highs of just under $4, 
• This means that in just over six years, the value of Ethereum grew by more than ,%
• As such, an initial investment of $1, in would have since grown to over $ million

Although the above examples are just two of many &#; the key point here is that in buying cryptocurrency for your portfolio, you stand the chance of making sizable returns. Of course, you also stand the chance of losing money &#; so bear this in mind. 

Diversification 

Another benefit of buying cryptocurrency is that it is really easy to diversify. This is because of two key reasons. 

First and as noted earlier, you can now choose from more than 17, tradable digital assets. As such, to reduce the risk of being overexposed to one or two cryptocurrencies, you could invest in a large basket of tokens. 

Second, all cryptocurrencies can be fractionated into tiny units. For example, you don’t need to buy one full Ethereum token for several thousands of dollars. Instead, you can invest any amount of your choosing &#; even a couple of dollars.  

This diversification strategy is particularly effective when you use a low-cost cryptocurrency broker that supports small investments. At eToro, for instance, you can diversify across more than 40 digital currencies at a minimum investment of just $10 per asset. 

Limited Supply 

Some, but not all, cryptocurrencies have a limited supply that is determined by immutable mathematical code. 

For example, the total supply of Bitcoin will never surpass 21 million tokens &#; which is expected to happen by the year  

• Crucially, this framework ensures that cryptocurrencies cannot be manipulated by central banks or governments &#; which is the case with all fiat currencies in circulation. 
• For instance, the US Federal Reserve has printed trillions of dollars out of thin air since COVID came to fruition. 

Another benefit of investing in a cryptocurrency that has a limited supply is that finite assets typically perform well over the course of time. 

Gold is a prime example here, its finite characteristics ensure that demand will always surpass supply. 

Perfect for Cross-Currency Payments 

If you have ever transferred money overseas &#; especially if the beneficiary was based in an emerging or third-world country, then you will know that the process can be both slow and expensive. 

• Cryptocurrencies, however, offer a real solution to this problem, not least because the underlying blockchain is not restricted by jurisdictional borders. 
• For example, if you were to buy XRP and transfer it &#; the transaction would take less than 5 seconds to process, regardless of where the sender and receiver are located. 
• Furthermore, the transaction would cost you a small fraction of a cent in fees. 

These benefits are not exclusive to XRP &#; but many other digital currencies that are currently in circulation. 

Hedging Against Inflation and Stagnant Stock Markets   

One of the biggest economic consequences that countries around the world are now facing as a result of COVID-related stimulus packages is that inflation levels are rising rapidly. 

• In simple terms, this means that the value of your money becomes weaker &#; as prices for goods and services increase. 
• To counter the very real threat of rising inflation, some investors are turning to stores of value like Bitcoin. 
• After all, when you compare Bitcoin to broader inflation levels, the former has performed excellently as a hedging tool. 

Additionally, cryptocurrency can also be a useful tool in hedging against the wider stock markets. For example, over the prior five years, the S&P has grown by nearly 90%. Bitcoin, however, has increased in value by over 3,% during the same period.   

When to Buy Cryptocurrency

When you consider that cryptocurrency is a volatile asset class &#; you might be tempted to try and time the market in terms of when to buy and sell. 

As noted earlier, in the 52 weeks prior to writing this guide, Bitcoin has carried a volatility spread of 80% &#; which is huge. 

On the one hand, timing the cryptocurrency markets correctly is no easy feat &#; as the industry is both volatile and unpredictable. 

With that said, there are a couple of proven strategies that you can take to ensure that you enter the cryptocurrency market at the most favorable time possible.  

Buy the Dip

The first strategy that you might consider in your attempt to time the cryptocurrency markets is to ‘buy the dip’. This is a strategy widely used in the traditional stock trading industry and it simply means that you will buy cryptocurrency when it goes through a market dip. 

• For example, moving into , Bitcoin was priced at approximately $46,  
• Just over three weeks later, Bitcoin was valued at $33,
• This means that in buying this market dip, you can buy Bitcoin at a huge discount of 25% &#; compared to its price three weeks prior

The overarching concept here is that while inexperienced investors are fraught with fear and panic when cryptocurrency prices decline, seasoned traders will view this as an opportunity to increase their holdings by purchasing more tokens but at a discounted price.  

Dollar-Cost Averaging 

Various researchers argue that buying the dip is not a viable strategy in the long-term &#; at least in the traditional stock markets. 

The reason for this is that by only buying the dip, you are missing out on prolonged upward pricing swings. With that in mind, you might instead consider a dollar-cost averaging strategy. 

The main concept here is that you will engage in a long-term investment strategy that will see you buy cryptocurrency at fixed amounts, at specific intervals. 

For example:

• Let’s suppose that you have $ to invest in digital currencies every Friday
• This means that on Friday, you will buy cryptocurrency at a different price &#; baring in mind market fluctuations 
• Over the course of time, your cost price will average out in line with the broader markets
• In other words, when prices are going down &#; you get to buy cryptocurrency at a lower cost
• And, when prices are going up, you will buy cryptocurrency during an upward trend

The key point here is that dollar-cost averaging removes the need to try and time the market. Instead, you will slowly but surely build your portfolio through systematic investments. In doing so, you should have little interest in shorter-term pricing swings. 

Which is the Best Cryptocurrency to Buy ? 

So now that we have covered investment strategies and market timing, we can now talk about which cryptocurrency to buy in  

Once again, you’ve got thousands of options to choose from &#; so independent research is crucial.  

We, however, will discuss five of the best cryptocurrencies to buy right now, as per our own subjective analysis. 

Bitcoin &#; Best Crypto to Buy Now for Beginners 

Out of more than 17, digital currencies listed on CoinMarketCap &#; more than 40% of all cryptocurrency investments are held in Bitcoin. This clearly highlights that across the board &#; Bitcoin is the most popular cryptocurrency. 

Bitcoin is also the de-facto cryptocurrency in terms of market capitalization and mass awareness. Taking these points into account, Bitcoin is arguably the best cryptocurrency to buy for beginners. 

Although it trades for tens of thousands of dollars, you can invest in Bitcoin in fractional amounts. At eToro, you only need to invest $ In terms of growth, we mentioned earlier that Bitcoin was worth just $1 a decade prior to writing this guide. 

Buy Bitcoin on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

BNB &#; Top Cryptocurrency to Buy for Long-Term Growth 

The next cryptocurrency that we like is BNB &#; which is a top digital asset to consider for long-term growth. This digital asset is backed by Binance &#; the largest cryptocurrency exchange globally. 

When the token was first launched in &#; its primary purpose was to allow users of the Binance exchange to reduce their trading commission. But, since then, BNB has grown to a whole new level. 

For example, the digital token is now the primary currency of the Binance Smart Chain. This decentralized blockchain network is home to tens of thousands of cryptocurrencies &#; and most transaction fees are paid in BNB. 

Buy BNB on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Decentraland &#; Great Cryptocurrency to Buy to Invest in the MetaVerse 

Another cryptocurrency to consider buying for your investment portfolio is Decentraland &#; which is focused on creating a global MetaVerse via its decentralized 3D gaming world. Players within the Decentraland virtual world can build characters, wearables, and even real estate. 

These digital products can then be traded with other users &#; with MANA the native digital currency backing the Decentraland project. To illustrate how lucrative this game can be, a virtual plot of land was sold for over $2 million in late &#; with the transaction settled in MANA. 

In terms of performance, MANA was priced at just in When the token last hit all-time highs of , MANA surpassed a value of $ This means that in just over three years of trading, Decentraland and its MANA token grew by more than 20,%.

Buy Decentraland on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Ethereum &#; Leading Cryptocurrency to Buy for Smart Contracts

Ever wondered if you should buy Ethereum right now? As noted earlier, Ethereum is the second-largest cryptocurrency for market capitalization &#; behind Bitcoin. This project was launched back in and it dominates the smart contract niche. These are pre-programmed blockchain contracts that facilitate trustless agreements. 

On the one hand, there are actually better-performing smart contract blockchains in this space &#; namely Neo and Solana. This is in terms of transaction speed, fees, and scalability. However, Ethereum is getting close to its migration &#; which will see it move to Proof-of-Stake. 

And, in doing so, Ethereum will take its smart contract blockchain to the very next level. Not only in terms of lower fees and even faster transactions &#; but being able to scale on a much larger level. As such, Ethereum is still one of the best cryptocurrency to buy in  

Buy Ethereum on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

www.oldyorkcellars.come &#; Promising Cryptocurrency to Buy for Decentralized Financial Services 

Another area of the cryptocurrency arena that is growing in prominence is the availability of decentralized financial services. More specifically, there are platforms in existence that allow users to engage with traditional financial products on a peer-to-peer basis. 

One of the best decentralized platforms in this regard is www.oldyorkcellars.come. In a nutshell, the www.oldyorkcellars.come protocol allows users to take out loans &#; in return for putting up a percentage of the financing agreement as collateral.  

At the other end of the agreement are investors. That is, those holding idle cryptocurrencies can loan their funds to borrowers. And, as a result, investors will earn interest. The YFI token &#; which backs www.oldyorkcellars.come, is, therefore, a top cryptocurrency to keep an eye on this year.

Buy www.oldyorkcellars.come on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Guides to Investing in Cryptocurrency

Are you looking for guidance on buying cryptos, the best exchanges, or how to invest in NFTs? Check out our expert guides below.

Risks of Buying Cryptocurrency

Now that we have talked about the benefits of buying cryptocurrency, we need to discuss some of the main risks that need to be considered. 

The most pressing risks of buying cryptocurrency are outlined below. 

Volatility 

We have mentioned several times throughout this guide that cryptocurrencies are extremely volatile. This means that the value of your investment can go up or down by a large percentage in a very small period of time. 

For example, had you bought Dogecoin at the start of and sold just seven months later, your investment would have increased in value by more than 10,%. 

On the other hand, if you had bought Dogecoin in July and held on until the start of &#; you would be looking at losses of over 75%. 

As a result, before you buy cryptocurrency for your portfolio &#; you must be prepared for rapid pricing swings.  

Oversaturated Market 

The next risk that you need to consider when learning how to buy cryptocurrency is that this marketplace is now oversaturated. 

As noted, more than 17, cryptocurrencies are listed on CoinMarketCap &#; and even more that are yet to be added to the platform. 

This means that outside of the top projects, the cryptocurrency market is extremely fragmented. In simple terms, this means that the total amount of money being injected into the markets is now being allocated across a huge number of tokens.

As such, your chosen cryptocurrency might struggle to make an impact when you consider the amount of competition in this space. 

Hacks and Security 

Another major risk to consider is that over the course of the past few years &#; billions of dollars worth of digital assets have been stolen from cryptocurrency exchanges. If you had funds at one of these platforms, you might have had your tokens stolen with nowhere to turn.

As such, it is crucial that you stay away from unlicensed platforms and only buy cryptocurrency from a regulated exchange or broker &#; of which there are very few. Additionally, if you are looking to store your cryptocurrency tokens in a private wallet &#; further risks are at play. 

This is because if you lose your private keys and do not back your wallet up with a recovery passphrase, your funds will be lost forever. Moreover, if your cryptocurrency wallet is hacked, this will also result in a loss of funds. 

Ways of Buying Cryptocurrency

The next thing to consider when learning about digital asset investments is the many ways to buy cryptocurrency. 

By this, we mean the specific payment method that you will use to fund your cryptocurrency purchase. 

The best ways to buy cryptocurrency in are discussed below. 

Buy Cryptocurrency With Paypal

You can buy cryptocurrency with Paypal at a very select number of online exchanges and brokers. In most cases, you will be charged a premium &#; as Paypal offers users the ability to execute a chargeback request. 

This is, of course, a big risk for exchanges and brokers &#; which is why fees are typically high. With that being said, if you are depositing funds in US dollars, eToro allows you to buy cryptocurrency with Paypal on a fee-free basis. 

If you’re using an alternative currency &#; then you will simply pay an FX fee of %.  

Buy Cryptocurrency With Credit Card or Debit Card

The best way to buy cryptocurrency online is with a debit or credit card. This is because your purchase will usually be completed instantly.  

For instance, if you buy crypto with a debit card at eToro, you will not only benefit from an instant deposit, but USD payments are fee-free. 

This is also the case with credit cards, but the respective issuer might charge a premium &#; so be sure to check this yourself. 

Buy Cryptocurrency With Neteller or Skrill

Another way to buy cryptocurrency online is with an e-wallet like Neteller or Skrill. You can use both of these popular e-wallets at eToro at a fee of just %. Or, if you’re funding your account in USD, this fee is waived. 

Buy Cryptocurrency with Bank Transfer

Many exchanges and brokers allow you to buy cryptocurrency with a bank transfer &#; not least because this option is more cost-effective for platforms to process.

From your perspective, you will likely be able to deposit funds via ACH for free &#; albeit, the transaction might take a few days to arrive. Bank wires are usually supported too &#; but some platforms will charge a small fee.

How to Buy Cryptocurrency Safely

The most important part of this guide is the safety aspect of buying cryptocurrency. Not only in terms of staying away from unregulated platforms but how you intend to store your tokens. 

With this in mind, below we explain the fundamentals of how to buy cryptocurrency safely. 

Regulated Brokers

When you buy cryptocurrency from a broker that is regulated by a tier-one licensing body &#; you can be confident that you are using a trusted provider. 

• For instance, eToro is regulated by the SEC and registered with FINRA. 
• eToro is also licensed by the FCA, ASIC, and CySEC. 

At the other end of the scale, you have Binance. Although Binance is the largest cryptocurrency exchange for volume and registered users, the platform is currently being investigated by a number of national regulatory bodies for operating without the required approval.  

Avoid Peer-to-Peer Trades

You might be tempted to buy cryptocurrency on a peer-to-peer basis. This means that you will be purchasing your chosen digital currencies directly from the seller &#; as opposed to going through a centralized exchange. 

Peer-to-peer cryptocurrency trades are extremely risky, especially for buyers &#; as you will be required to pay for your purchase before you receive the tokens. As such, you should never buy cryptocurrency from a peer-to-peer website. 

Check Fees

Another thing to consider when learning how to buy cryptocurrency safely is to make sure that you have a firm understanding of what fees you are paying. 

• As an example, there are now thousands of Bitcoin ATMs scattered around the world. 
• These are targeted at the Average Joe who wishes to buy Bitcoin in exchange for cold-hard cash. 
• However, buyers are often unaware that Bitcoin ATMs charge huge fees &#; which will oftentimes average %. 
• The fee is often not shown in percentage terms. 
• Rather, you are shown how many BTC tokens you will receive for the amount of cash you are looking to invest. 

For those without knowledge of cryptocurrency prices &#; this can be difficult to recognize. 

On the other hand, if you buy cryptocurrency from an online broker like eToro  -which is regulated by the SEC &#; you can be sure that the platform is transparent in what it charges. 

In fact, at eToro, you only need to cover the difference between the buy and sell price &#; which starts at just %.  

Cryptocurrency Wallets

When it comes to keeping your cryptocurrency funds safe, you generally have two options. First, many investors will look to withdraw their tokens to a private wallet &#; perhaps on their mobile phone or desktop device. 

These private wallets are typically non-custodial &#; which means that you are % responsible for keeping your tokens safe. 

You then have custodial wallets, which are usually offered by online brokers and exchanges. On the one hand, trusting an unlicensed exchange with your tokens is not a good idea. 

However, in using a regulated broker like eToro, Coinbase, or Gemini &#; you can be sure that the platform has a range of institutional-grade security tools in place to keep your cryptocurrency safe. 

How to Buy Cryptocurrency  &#; Tutorial

This ultimate guide on buying cryptocurrency has covered each and every metric that you need to consider before you proceed with an investment. 

• If you have considered the risks involved and decided which digital asset interests you &#; then we are now going to walk you through the step-by-step process of how to buy cryptocurrency at eToro. 
• In using this SEC-regulated broker in our tutorial, this will allow you to buy cryptocurrency on a spread-only basis from just $10 &#; and you can deposit funds instantly with a debit/credit card. 

Here&#;s&#; what you need to do:

Step 1: Open an Account 

The first part of the process will require you to visit the eToro website and open an account. 

This will take you less than a couple of minutes and will simply require the following information from you:

• First and Last Name
• Email Address
• Cell Phone Number
• Home Address
• Date of Birth
• Social Security Number

Next, you will need to confirm your cell phone number. You can do this by entering the PIN that eToro sends to your phone via SMS.   

Step 2: Upload ID 

The final part of the registration process will require you to upload some ID. 

This is standard across all regulated brokers &#; as eToro is required to comply with AML laws set out by its licensing bodies. 

To complete this step near-instantly, you can upload a copy of your passport or driver’s license. 

Step 3: Deposit Funds 

Now you will need to add some capital to your eToro brokerage account. US clients only need to deposit $10 and no transaction fees will be charged. 

You can choose from a bank wire, ACH, Paypal, Skrill, Neteller, or a debit/credit card. 

Step 4: Search for Cryptocurrency 

Assuming that you already know which cryptocurrency to buy for your portfolio &#; you can now complete the investment process. 

To get the ball rolling, enter the name of the digital asset into the search box at the top of the page. 

In our example above, we are searching for ‘Decentraland.’ When we see the relevant token pop up &#; we click on ‘Trade’. 

Step 5: Buy Cryptocurrency From $10  

The final step is to create an order. As you will see from the image below, we are looking to buy $75 worth of Decentraland (MANA) tokens. 

However, you can invest any amount of your choosing &#; from just $10 upwards. Once you have entered your investment stake &#; you can complete your cryptocurrency purchase by clicking on the ‘Open Trade’ button.

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Conclusion

This beginner’s guide on how to buy and sell cryptocurrency online has covered every nut and bolt that you need to know to start your investment journey safely. 

To recap, it’s important to do plenty of research before proceeding &#; both in terms of the cryptocurrency you decide to add to your portfolio and the exchange or broker you plan to open an account with. 

If you’re ready to buy cryptocurrency today &#; eToro is a safe and regulated platform that allows you to invest from just $10 across more than 40+ digital assets. 

Buy Crypto on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Frequently Asked Questions on How to Buy Cryptocurrency

You can buy and sell Bitcoin in South Africa through a reputable Bitcoin exchange. Access the exchanges via your personal computer or Smartphone using the relevant mobile app.

Once you have signed up for an account and it is verified, you need to obtain a Bitcoin wallet which you use for your Bitcoin transactions.

A Quick Overview of How To Buy Bitcoin:

✔️Is it legal to buy and sell bitcoin in SA?
✔️6 Ways to buy Bitcoin in SA
✔️Bitcoin exchanges in SA
Step-by-step guide to buying Bitcoin in SA?
How to get a Bitcoin promo code
How to get a Bitcoin Wallet Address
Bitcoin in SA
Is Bitcoin legal in SA?
Regulations Governing Bitcoin in SA

It’s possible to transfer funds from any of the major financial institutions in South Africa to a Bitcoin exchange and you can start trading as soon as the funds are cleared. You have the choice of keeping your bitcoins in the exchange or transferring them to your personal Bitcoin wallet.

👉Best Upcoming Solana Project to invest in: 

Is it legal to buy and sell Bitcoin in South Africa?

Yes, it is legal to buy and sell Bitcoin in South Africa. The South African Reserve Bank (SARB) has issued warnings regarding the risks associated with trading in Bitcoin but there is no actual ban on any form of cryptocurrency trading. SARS makes it clear that any earnings from these trades are subject to taxation.

Cryptocurrency trading in South Africa is currently unregulated but the government is working on a new regulatory framework to control the cyber-banking industry.

6 Ways to buy Bitcoin in South Africa

Buy Bitcoin using a Bitcoin exchange

Do your research and select a Bitcoin exchange that is regarded as reliable, secure, and trustworthy. Bitcoin exchanges such as Luno allow you to deposit fiat funds from a bank account into a Bitcoin wallet to transact in the digital currency. Bitcoin exchanges are regarded as the safest and most secure way to buy and sell Bitcoin and other cryptocurrencies such as Ethereum.

Buy Bitcoin with a credit or debit card

It’s possible now to buy Bitcoin using a credit or debit card. You still need to go through a reputable Bitcoin exchange such as Luno where you add your card details in the system and transfer money electronically once the card details have been verified. Credit card fees apply which makes it a slightly more expensive way to buy Bitcoin.

Use a BTM/VTM (Bitcoin ATM)

There are not many BTMs in South Africa currently but they are available in some of the major cities. This is a vending machine that works in much the same way as an ATM. You need to have a Bitcoin wallet loaded on your Smartphone which generates a QR code that the BTM reads. You can use a BTM to deposit funds to purchase Bitcoin but you can’t use a BTM to withdraw the money earned from selling Bitcoin.

Get paid in Bitcoin

Bitcoin is growing in popularity as a payment method for goods sold and services rendered. Money owed is paid into a Bitcoin wallet which you obtain through a reputable exchange such as Luno. The most popular payment gateway provider for Bitcoin transactions is PayFast. This facility allows people to pay in Bitcoin which is then converted to Rands.

Join a Bitcoin trading community site

There are a few reputable cryptocurrency platforms that provide you with the opportunity to connect with people who are buying and selling Bitcoin privately. You can trade through a reputable website or meet in person and pay cash for the purchase. Be careful of falling victim to a Bitcoin scam.

Mine Bitcoin

Many South Africans have got into the complex process of mining Bitcoin. This is largely done through Bitcoin syndicates as massive investment in the processing technology is required for Bitcoin mining. Bitcoin mining involves securing the network and verifying transactions and successful miners are paid in Bitcoin. It’s not hugely profitable but if you’re technologically inclined, you’ll find the process fascinating.

You might also like: What is forex trading?

Bitcoin exchanges in South Africa

The two oldest exchanges in South Africa that have stood the test of time and can be trusted with Bitcoin transactions are Luno and ice3X (IceCube). Both exchanges accept deposits from your bank account or card payments. Once the funds are cleared, you can immediately buy or sell Bitcoin through the exchange.

Bitcoin is slowly being accepted by vendors as a method of payment but it’s a long way off from being used for daily transactions. Any customer who is registered with PayFast (www.oldyorkcellars.com) can accept Bitcoin through the PayFast gateway for a fee and South African Rands are deposited into a bank account.

There are less than 10 Bitcoin ATMs in South Africa but the number is growing. These cash machines have been dubbed BTMS (Bitcoin Teller Machine) or VTMS (Virtual Teller Machine). At this stage, you can use a BTM to deposit funds in your digital account but you can use it to withdraw funds. BTM fees are high, at around 10% per transaction.

Luno regularly updates its list of merchants in South Africa that accept Bitcoin as a method of payment. You can see from the diverse spread of merchants that Bitcoin is becoming more widely accepted in South Africa for regular transactions.

www.oldyorkcellars.com was an early adopter of Bitcoin and allows its customers to use digital currency to buy products on the massive online shopping site. This is done through PayFast which is the instant EFT payment method that Takealot uses. Other large online shopping sites have followed in its lead.

A step-by-Step guide to buying Bitcoin in South Africa

Luno is one of the most popular and trustworthy Bitcoin exchanges in South Africa so let’s look at their process as an example of how to set up an account and start trading in Bitcoin.

Luno is a digital platform where you can buy, sell, store and trade Bitcoin and Ethereum. Through Luno, you can buy Bitcoin using fiat money electronically transferred from your bank account and you can sell your Bitcoin and transfer the money directly to your bank account.

Step 1: Sign up for an account with Luno

Sign up for a free Luno Wallet via the web, iOS, or Android and follow easy instructions to register, set up your profile and redeem the promo code.

You sign up by using your personal/business email address and password. Input the latter and then go to your email inbox to pick up a confirmation email sent to you by Luno.

Select ‘Confirm email address. You are then taken back to the Luno website.

Select ‘Continue’. You are now registered for a Luno account.

Step 2: Verify your account

Select ‘Settings’ in the menu bar

Select ‘Upgrade’ to link to the Personal details page

Complete the steps by adding your details. This involves submitting digital copies of your ID, proof of residence and bank statement.

When your personal details have been verified by Luno, your account will be upgraded from Level 0 to Level 1, 2 or 3 depending on the deposit and withdrawal level you specify.

• Level 0: your account and personal details have not yet been verified
• Level 1: your account is verified and limited to a total of R15 for deposits and withdrawals
• Level 2: your account is verified and limited to R50 for deposits and withdrawals
• Level 3: your account is verified and no limit is set for deposits and withdrawals

Step 3: Deposit money into your account

When your account has been verified, you are able to immediately deposit money into the account and buy Bitcoin. When your deposit has cleared in your Luno account, it will show up in the digital wallet.

Select ‘Wallets’ to make a deposit.

Select ‘Deposits’ at the bottom of the wallet link.

Select your preferred bank from the list of main banks in South Africa listed on the site.

Select ‘Next’ to instruct Luno on how much money you will deposit into your account.

A reference number will appear on the screen. You need this reference number as well as the Luno banking details to proceed with making a deposit. Use the Luno banking account and reference number (beneficiary reference) to do an electronic transfer from your regular bank account to your Luno bank account.

The funds you transfer will appear in your Bitcoin wallet once they have been cleared. This usually takes 2 working days. Once the funds appear in you Bitcoin wallet, you can buy Bitcoin.

Step 4: Buy Bitcoin with ‘Instant Buy’

The ‘Instant Buy’ feature on Luno is the fastest and easiest way to buy Bitcoin in South Africa. However, there is a fee for this facility so it does cost you more. A cheaper option is to place a ‘Buy order’ through Luno.

Select the ‘Buy/Sell’ button on the Luno screen. You are able to switch between Bitcoin (BTC) and Rand to transact. Use BTC to indicate the amount you want to buy, and ZAR to indicate the amount you want to spend.

Select ‘Buy’ to complete the order.

Step 5: Place a ‘Buy Order’ on the exchange to buy Bitcoin

Select ‘Exchange’ to go through to the ‘Buy Order’ feature.

Select ‘Place Order’ to activate a ‘Buy Order’ request where your order to buy will be matched by a person’s order to sell.

Any outstanding amount that is not matched in a ‘buy/sell order will remain in your account and is available to be matched with other ‘buy/sell orders’ until the whole amount has been spent.

Select ‘Place Buy Order’ when you are ready to buy the Bitcoin. When you have confirmed the transaction, your Bitcoin and ZAR balance will be updated. The BTC indicates how much Bitcoin you have purchased and ZAR indicates how much you spent.

How to get a Bitcoin Promo Code

Sign into your Luno account and select ‘Rewards’. &#; click here

A personal invitation code will appear as well as an instruction to ‘Invite Friends’.

Select ‘Invite Friends’ and the social media platform you’d like to share the invitation on (either Facebook or Twitter).

You can also copy the unique ‘Invite Friends’ link and share it via email, on your personal website or WhatsApp.

If the friend(s) you sent the link to registers an account with Luno, you are rewarded in Bitcoins.

How to get a Bitcoin wallet address 

You can generate as many Bitcoin wallet addresses on Luno as you want. Follow these simple steps to obtain a Bitcoin wallet which you need to buy, sell, store and transact the digital currency.

Step 1:

Log into your Luno account

Step 2:

Click on ‘Receive’ if you are accessing Luno from the website

Click on ‘More’ if you are using the Luno mobile app before you can click on ‘Receive’

Step 3:

Select the digital currency you want (Bitcoin or Ethereum)

Step 4

Click on ‘Add address’ if you are accessing Luno from the website

Click on the ‘+’ sign if you are using the Luno mobile app

You will be instructed to label the address you require. Input a relevant name.

Step 5

Click on ‘Create’ and a BTC address will be generated for you by Luno.

A BTC address is a string of letters and numbers that identifies your Bitcoin wallet. It begins with either a 1 or a 3 and is case-sensitive. This is the address you provide people who transact using Bitcoin.

Bitcoin in South Africa 

South Africa has adopted Bitcoin as an alternative currency on an impressive scale. It’s believed to be largely due to the political and economic uncertainty in the country, where South Africans are looking for an alternative investment option to protect themselves. In particular, one that is not heavily regulated and can be transacted instantaneously.

In fact, Africa as a whole has taken a big interest in Bitcoin as well as other popular cryptocurrencies such as Ethereum and Litecoin. Nigeria and South Africa are ranked as first and second-most heaviest consumers of Bitcoin respectively. A study conducted by Luno revealed that South Africa leads many European countries in crypto adoption.

According to Luno’s study, close to 70% of the South African respondents surveyed were aware of the digital currency trend and almost 30% had bought Bitcoin. This dwarfed awareness and purchase levels in other countries surveyed, such as Germany (49% and 9% respectively) and France (37% and 19% respectively).

Is Bitcoin legal in South Africa?

Buying and selling cryptocurrency in South Africa is legal but it is currently not regulated.

The South African Reserve Bank (SARB) has issued a formal statement that it “does not oversee, supervise or regulate the virtual currency landscape, systems and intermediaries for effectiveness, soundness, integrity or robustness” and has issued a warning highlighting the risks associated with investing in virtual currencies such as Bitcoin and Ethereum.

SARB notes that Bitcoin falls outside of the definition of legal tender and any payments made via Bitcoin in South Africa “may not discharge a debtor of a monetary obligation and purchasers run the risk that their Bitcoin payments are not recognized by South African law”. In short, SARB deems transactions performed to be “at the end-user’s sole and independent risk and have no recourse to SARB”.

SARB further notes that Bitcoin and all other virtual currencies are “not defined as securities in terms of the Financial Markets Act, (Act no. 19 of ) and are not subject to regulatory standards that apply to the trading of securities”.

SARB also issues a warning that any profits made through Bitcoin transactions are subject to taxation.

Regulations governing Bitcoin in South Africa 

As of end , strict regulatory laws governing cryptocurrency trading in South Africa were largely non-existent. This stands apart from tax regulations and AML/KYC compliance (AML meaning Anti-Money Laundering and KYC meaning Know Your Customer).

A consultation paper has been drafted by SARB that promises to enforce hefty regulations surrounding Bitcoin exchanges and BTM/VTMs but the country appears to still be a long way from nailing down the specifics. It’s argued that a new regulatory framework will need to be developed as virtual currencies do not fit in with the current regulatory framework.

Frequently Asked Questions

Can I buy less than 1 Bitcoin in South Africa?

Yes, a common misconception among South Africans is that you cannot buy less than 1BTC. You can buy as little as as $30 / R ZAR Bitcoin and you will still be regarded as a Bitcoin owner.

Should I buy Bitcoin?

Bitcoin is a risky and volatile asset;  however many investors in South Africa take the risk of buying Bitcoin because of the potential high returns based on Bitcoin's historical outperformance to the S&P.

What are the Bitcoin wallets mostly used by South Africans?

A large percentage of South Africans (about 75%) prefer to maintain their coins on the exchange where they originally bought it. Top Bitcoin wallets favored by South Africans are: Exocus, Trezor One and Exocus.

Where can I find a Bitcoin ATM in South Africa?

Bitcoin ATMS in South Africa can be located in Pretoria, Johannesburg, Cape Town and Nelspruit

How much money should I invest in Bitcoin?

Many Bitcoin investors in South Africa consider around 5% &#; 30% of their investment capital to be safe, while there are others that are comfortable with an investment of between 15% &#; 30%

Is Bitcoin a good investment for beginners?

If you are looking for short-term profit, the high liquidity that is associated with Bitcoin makes it a good investment, but bear in mind that Bitcoin is also a very high-risk investment because of its volatile assets.

Final Verdict

The right cryptocurrency exchange for you will strike an ideal balance between fees, security, and trading options. That’s why it’s important to determine what you want out of an exchange before you dive in. 

But if you aren’t sure exactly what you want, then Coinbase is a good place to get started. You can buy a variety of digital currencies with a fair pricing structure in a secure setting.

Compare the Best Places to Buy Bitcoin

Methodology

We looked at more than a dozen of the best places to buy and sell Bitcoin online and settled on the top six places based on a number of factors. These factors included the history of the exchange, customer reviews, the fees each charge, the strength of features for each digital wallet, and the speed at which you can buy Bitcoin.

Coinbase: the simple, safe way to buy, store, trade and sell your crypto. The leading cryptocurrency exchange for you to build your portfolio, earn yield and stay up-to-date on crypto news.

Put your tax return to work with Coinbase! File taxes with TurboTax, transfer to the Coinbase app, and convert your USD to + cryptocurrencies.

SUPPORTED ASSETS
Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC), Dogecoin (DOGE), Shiba Inu (SHIB), Cardano (ADA), Solana (SOL), Tether (USDT), USD Coin (USDC)*, and many more.

We’re the world’s most trusted cryptocurrency exchange, with over 89 million users across + countries worldwide. Coinbase allows you to securely buy, hold and sell cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin and many more on our easy, user-friendly app and web platform.

Here’s a little taste of what our app does:

BUY AND SELL CRYPTO EASILY
- Own crypto in an instant. All it takes is linking a bank account or debit card.
- Buy and sell, convert crypto coins and securely send/receive crypto with external digital wallets.
- Earn yield on cryptocurrency like Ethereum.
- Buy crypto securely: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Dogecoin, Cardano, Solana, Shiba Inu, Litecoin, USDT and more.

SMART TOOLS TO BECOME A CRYPTO PRO
- Brand new to crypto? We’ve got you covered.
- Crypto news and articles: stay up-to-date on the latest news and build your crypto knowledge.
- Portfolio management: Easy-to-use and customizable, from market insights to automatic buys and price alerts.
- Crypto tracker & dashboard: Clear and user-friendly, helps you see crypto prices and asset values, any time of day, anywhere you are.
- Track prices with our crypto watchlist: Add Bitcoin, Ethereum, and other crypto to your watchlist to see live prices and trends.
- Bitcoin ticker: Track the latest trends in Bitcoin. See which cryptocurrencies have moved the most in the last 24 hours.

SECURE CRYPTOCURRENCY EXCHANGE
- Over 98% of cryptocurrency is stored securely offline and the rest is protected by industry-leading online security.
- Crypto accounts are subject to the same scrupulous safety standards, including multi-stage verification and bank-level security.
- Add a passcode to your crypto profile or remotely disable your phone’s access to the app if it gets lost or stolen.
- Blockchains enable crypto to be bought and sent across the planet quickly and securely.
- Transfer crypto: Safe and secure asset movement to crypto wallets outside of the app.

BEGINNER TO CRYPTO MASTER, WE’RE HERE
- Manage crypto portfolios on Coinbase. Whether you’re just starting your crypto journey, or are a crypto pro, you’ll find everything you need to build your crypto portfolio.
- Learn about blockchain, NFTs and crypto with articles on a breadth of topics: bitcoin mining, Ethereum games, bitcoin trading and more.

Interested in getting into cryptocurrency? Begin your crypto journey with Coinbase.
--
*Available in select territories.

NEED MORE HELP?
Visit www.oldyorkcellars.com for information and to contact Coinbase Support.

PRIVACY
View Coinbase’s legal privacy policy at www.oldyorkcellars.com

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. Thankfully, it’s pretty simple to learn the ropes. You can start investing in cryptocurrency by following these five easy steps.

1. Choose a Broker or Crypto Exchange

To buy cryptocurrency, first you need to pick a broker or a crypto exchange. While either lets you buy crypto, there are a few key differences between them to keep in mind.

What Is a Cryptocurrency Exchange?

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.

Some of the most well-known cryptocurrency exchanges are Coinbase, Gemini and www.oldyorkcellars.com While these companies’ standard trading interfaces may overwhelm beginners, particularly those without a background trading stocks, they also offer user-friendly easy purchase options.

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.

An important note: As someone new to crypto, you’ll want to make sure your exchange or brokerage of choice allows fiat currency transfers and purchases made with U.S. dollars. Some exchanges only allow you to buy crypto using another crypto, meaning you’d have to find another exchange to buy the tokens your preferred exchange accepts before you could begin trading crypto on that platform.

What Is a Cryptocurrency Broker?

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 “free” 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. Robinhood and SoFi are two of the most well-known crypto brokers.

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. At Robinhood and SoFi, for instance, you cannot transfer your crypto holdings out of your account. 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.

2. Create and Verify Your Account

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 federal regulatory requirements.

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.

3. Deposit Cash to Invest

To buy crypto, you’ll need to make sure you have funds in your account. You might deposit money into your crypto account by linking your bank account, authorizing a wire transfer or even making a payment with a debit or credit card. 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.

Here’s one big buyer beware: While some exchanges or brokers allow you to deposit money from a credit card, doing so is extremely risky—and expensive. Credit card companies process cryptocurrency purchases with credit cards as cash advances. This means they’re subject to higher interest rates than regular purchases, and you’ll also have to pay additional cash advance fees. 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; these can run up to 5% themselves, meaning you might lose 10% of your crypto purchase to fees.

4. Place Your Cryptocurrency Order

Once there is money in your account, you’re ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin and Ethereum to more obscure cryptos like Theta Fuel or Holo.

When you decide on which cryptocurrency to purchase, you can enter its ticker symbol—Bitcoin, for instance is BTC—and how many coins you’d 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 to own.

The symbols for the 10 biggest cryptocurrencies based on market capitalization* are as follows:

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Tether (USDT)
4. Binance Coin (BNB)
5. Cardana (ADA)
6. Dogecoin (DOGE)
7. XRP (XRP)
8. USD Coin (USDC)
9. Polkadot (DOT)
10. Uniswap (UNI)

*Based on market capitalization as of June 28,

5. Select a Storage Method

Cryptocurrency exchanges are not backed by protections like the Federal Deposit Insurance Corp. (FDIC), and they’re at risk of theft or hacking. You could even lose your investment if you forget or lose the codes to access your account, as millions of dollars of Bitcoin already has been. That’s why it’s so important to have a secure storage place for your cryptocurrencies.

As noted above, if you’re 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:

• Leave the crypto on the exchange. When you buy cryptocurrency, it’s typically stored in a so-called crypto wallet attached to the exchange. If you don’t like the provider your exchange partners with or you want to move it to a more secure location, you might transfer it off of the exchange to a separate hot or cold wallet. Depending on the exchange and the size of your transfer, you may have to pay a small fee to do this.
• Hot wallets. These are crypto wallets that are stored online and run on internet-connected devices, such as tablets, computers or phones. Hot wallets are convenient, but there’s a higher risk of theft since they’re still connected to the internet.
• Cold wallets. Cold crypto wallets aren’t connected to the internet, making them your most secure option for holding cryptocurrency. They take the form of external devices, like a USB drive or a hard drive. You have to be careful with cold wallets, though—if you lose the keycode associated with them or the device breaks or fails, you may never be able to get your cryptocurrency back. While the same could happen with certain hot wallets, some are run by custodians who can help you get back into your account if you get locked out.

Alternatives Ways to Buy Cryptocurrency

While buying cryptocurrency is a major trend right now, it’s a volatile and risky investment choice. If investing in crypto on an exchange or via a broker doesn’t feel like the right choice for you, here’s are a few options to indirectly invest in Bitcoin and other cryptocurrencies:

1. Wait for Crypto Exchange-Traded Funds (ETFs)

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.

There is a huge appetite for cryptocurrency ETFs, which would allow you to invest in many cryptocurrencies at once. No cryptocurrency ETFs are available for everyday investors quite yet, but there may be some soon. As of June , the U.S. Securities and Exchange Commission (SEC) is reviewing three cryptocurrency ETF applications from Kryptcoin, VanEck and WisdomTree.

2. Invest in Companies Connected to Cryptocurrency

If you’d rather invest in companies with tangible products or services and that are subject to regulatory oversight—but still want exposure to the cryptocurrency market—you can buy stocks of companies that use or own cryptocurrencies and the blockchain that powers them. You’ll need an online brokerage account to buy shares of public companies like:

• Nvidia (NVDA). This technology company designs and sells graphics processing units, which are at the heart of the systems used to mine cryptocurrency.
• PayPal (PYPL). Already a popular choice for people buying items online or transferring money to family and friends, this payments platform recently expanded to allow customers to buy and sell select cryptocurrencies with their PayPal and Venmo accounts.
• Square (SQ). This payment services provider for small businesses has purchased over $ million in Bitcoin since October In February , the firm disclosed that Bitcoin made up around 5% of the cash on its balance sheet. In addition, Square’s Cash App allows people to buy, sell and store cryptocurrency.

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—a single tweet can make its price plummet—and it’s still a very speculative investment. This means you should invest carefully and with caution.