5 Easy Ways to Buy Cryptocurrency
By The Cryptocurrency Consultant on ALTCOIN MAGAZINE
Don’t worry if you missed out on buying into Bitcoin during its early years; the rise of cryptocurrency has only just begun. The best time to invest was years ago, but the next best time is right now! With new cryptocurrencies constantly being released and massive real-world corporate partnerships being formed all the time, the crypto scene is about to blow up in a big way. So don’t worry, even if you invest now, there are still some great returns to be made — Here’s how you can join in. (I get commissions for purchases made through links in this post.)
Table of Contents
- 1. Buying an intermediate currency
- 1.1 Buying Ethereum from Coinbase
- 1.2 Buying Cryptocurrency from Bitpanda
- 2. Trading on cryptocurrency exchanges
- 2.1 Trading on Binance
- 2.2 Using Changelly to convert to other currencies
- 2.3 Trading on other exchanges
- 3. Store your newly bought cryptocurrency
1. Buying an intermediate currency
Many cryptocurrency exchanges don't support spending Euros or USD for cryptocurrency so to start you have to buy a big intermediate currency if you want to buy other coins (Altcoins). The biggest and most known currencies are Ethereum and Bitcoin so I will take a look at how to buy them. If you are satisfied with Bitcoin / Ethereum after your purchase you could skip over to Step 3.
1.1 Buying Ethereum from Coinbase
Coinbase is a website that allows you to purchase and sell Bitcoin, Litecoin, or Ethereum using your local currency with either a credit card or bank transfer. Like any other cryptocurrency exchanges that involve fiat (non-crypto) money, yes, you do have to get verified. But don’t worry, verification is simple and is processed almost instantly.
- Register on Coinbase
- Get verified. This is simple, just upload a picture of your driver’s license or similar ID and you will be quickly verified. While you wait, head to step 2 and set up your next account.
- Spend the money you want to invest in cryptocurrency on Ethereum. This is done by clicking the “Buy/Sell” tab, selecting Ethereum, and entering the amount you want to purchase before pressing “Buy Ethereum Instantly” as shown in the picture guide below. Ethereum is preferable over Bitcoin as the transfer fees and times for Bitcoin are much higher than Ethereum.
- Once you have Ethereum in your wallet you can progress to Step 2
1.2 Buying Cryptocurrency from Bitpanda
Bitpanda is a very good and modern website to buy cryptocurrency easily with your bank account or with a credit card. It offers multiple coins that you can buy instantly after getting some money in your account. It is an Austrian company so it has to be compliant with European laws, so there's nearly no chance that you are getting scammed. I still would encourage you to send your cryptocurrency to an external wallet.
- Register on Bitpanda
- Verify your account and bank account and load some money on it
- Select a cryptocurrency and buy it with your fiat money
- You could also make a savings plan or swap between currencies
2. Trading on cryptocurrency exchanges
After you got your first cryptocurrency you could trade it for something else. There are many good and bad projects out there so always do your own research to check if a project is worth your investment. Cryptocurrency exchanges offer the opportunity to buy those altcoins.
2.1 Trading on Binance
Binance is probably one of the biggest cryptocurrency exchanges out there and also popular due to so many coins being listed on their exchange. So, for the most part, you will be satisfied with what Binance offers.
- Register on Binance.com
- After registering, go to the “Balances” section under the “Funds” tab and search for the currency you wish to deposit.
- Press deposit on the crypto you purchased earlier and the site should display your deposit address. Copy this address to your clipboard.
- Go to your Coinbase Ethereum/Bitcoin wallet under the “Accounts” Tab and press send. Paste the deposit address into the “BTC/ETH address” box that pops up. After confirming, this will send your cryptocurrency to the Binance exchange, ready to be traded. The transfer may take some time, depending on how busy the exchanges are, so be patient.
- Once you have your BTC/ETH in your Binance wallet, head back to the main page and click either BTC markets or ETH markets, depending on which currency you have. In this list, find XRP/ETH or XRP/BTC (Replace XRP with the cryptocurrency you want to buy).
2.2 Using Changelly to convert to other currencies
I suggest using Changelly because they do not hold your assets or limit your ability to spend your money. When you trade with Changelly your assets are sent directly to your personal wallet that you control. If you trade altcoins on the following digital asset exchanges you do not truly own your assets and you could lose them at any time. I highly suggest trading with Changelly and maintaining ownership of your private keys!
You could also directly buy from Changelly with a Visa Card.
2.3 Trading on other exchanges
While Binance and Changelly remain a very good entry point for starters there are other exchanges out there. The biggest difference between them is their listed cryptocurrency coins. One good example is Kucoin.
3. Store your newly bought cryptocurrency
Letting your money rotting on an exchange that could be hacked or go extract is never a very good idea. Therefore you should always have your own wallet where only you have the private keys to them. Also never use a public password or key generator on the internet. History has shown those are often saving these and stealing your coins.
The best kind of wallet is a hardware wallet like Ledger or Trezor. They are like real wallets, you buy them and keep them at home and only use them if you want to access your coins. They are way more secure than software wallets. Here are some good examples:
Depending on the coin you choose there are multiple software wallets out there such as MyEtherWallet for Ethereum and Ethereum tokens. When searching for one make sure the URL is correct and the site is legit.
If you want to save your private key extra safe consider the Trezor Cryptosteel which is completely mechanical and the best option to protect your private key from 3rd parties: