How to buy crypto: A comprehensive guide for beginners

Are you considering new investment avenues and wondering how to buy crypto? Well, cryptocurrency can seem confusing at first, with all the jargon, exchanges, wallets, and digital coins floating around. But you don’t worry; you don’t need to be a tech wizard to get started.

This guide will take you step by step through the process of buying crypto safely and confidently, whether you’re investing $5, $100, $1000, or more.

Steps to follow if you want to buy crypto

Before diving into the details, let’s look at the journey you’ll take when buying crypto:

1. Choose a platform – Decide where you want to buy your crypto: a cryptocurrency exchange, broker, or other options.
2. Create and verify an account – Most platforms require identity verification to keep your funds safe.
3. Link a payment method – Connect your bank, card, or other payment method.
4. Choose the cryptocurrency – Pick the coin or token you want to buy.
5. Make the purchase – Place your order, whether it’s a market or limit order.
6. Store and manage your crypto – Keep your investment safe with a wallet and security measures.

By understanding the full picture first, you’ll see how each step fits together and why it matters.

Choosing the right cryptocurrency platform

The first decision you need to make is where to buy your crypto. Different platforms offer different levels of security, convenience, and supported cryptocurrencies. Here’s what to know:

• Cryptocurrency Exchanges – These are platforms, such as Coinbase, Binance, and Crypto.com, that enable you to buy, sell, and trade a wide range of cryptocurrencies. Look for an exchange with strong security, easy-to-use interfaces, and helpful tutorials.
• Brokers – These are broker apps, such as Robinhood or eToro, that allow you to buy crypto alongside stocks and ETFs. Convenient, but they may not give you full control over your private keys.
• Peer-to-Peer (P2P) Exchanges – These are platforms like Binance P2P, Bybit P2P, OKX P2P, and HTX P2P that let you buy directly from other users using local payment methods like M-Pesa if you are in Kenya, for instance. Flexible but requires extra caution to avoid scams.
• Bitcoin ATMs – These are ATMs that let you purchase Bitcoin with cash or a card and send it to your digital wallet.

Tip: Always check platform reputation, fees, security features like two-factor authentication (2FA), and supported cryptocurrencies before deciding.

Creating and verifying your account

Once you’ve chosen a platform, you’ll need to set up and verify your account. This process usually involves:

• Submitting personal information: full name, email, and phone number.
• Completing KYC (Know Your Customer) verification: uploading a government-issued ID and sometimes a proof of address.
• Taking a live photo or selfie to match your ID.

Verification can take anywhere from a few minutes to a few hours, depending on the platform. It’s a crucial step — it protects your funds, ensures regulatory compliance, and often unlocks higher transaction limits.

Funding your account

Before you can buy crypto, you’ll need to deposit funds. Common methods include:

• Bank transfers – Usually low fees but slower, taking 1–3 days to process.
• Credit or debit cards – Instant deposits, but may carry higher fees.
• Mobile payment services – Apple Pay, Google Pay, or local alternatives like M-Pesa.
• Crypto transfers – If you already own cryptocurrency, you can often swap or trade it for another coin.

Tip for beginners: Start with a small amount — say $50–$200 — to learn how deposits, fees, and trading work. This reduces your financial risk while you gain experience.

Choosing the right cryptocurrency

With funds in your account, it’s time to decide which crypto to buy. While thousands of coins exist, beginners usually start with well-known options like:

• Bitcoin (BTC) – Digital gold and the most widely recognized cryptocurrency.
• Ethereum (ETH) – Powers smart contracts and decentralized apps.
• Litecoin (LTC) – Faster transactions and lower fees than Bitcoin.
• Binance Coin (BNB) – Widely used within the Binance ecosystem.
• Cardano (ADA) – Research-driven, scalable, and sustainable blockchain.

When evaluating coins, consider:

• Utility: Can it be used for payments, smart contracts, or other applications?
• Tokenomics: Supply, distribution, inflation, or burn mechanisms.
• Community & Team: Transparent developers and active user communities are good signs.

Avoid coins that are purely hype or lack a clear purpose, especially when starting out.

If you want to buy a cryptocurrency that is in its presale stage, you can look at our guide on crypto presales.

Making your first purchase

Now comes the exciting part — buying crypto. Here’s how it works:

1. Choose your order type:
   • Market order: Buy instantly at the current price.
   • Limit order: Set a price you’re willing to pay; the order executes when the market reaches it.
2. Fractional ownership: You don’t need a whole Bitcoin — buy fractions as small as $1 or $10.
3. Dollar-cost averaging (DCA): Invest small amounts regularly (e.g., weekly or monthly) to reduce risk from market volatility.

Tip: Start small and treat your first purchase as a learning experience, not a get-rich-quick attempt.

Storing and securing your cryptocurrency

Buying crypto is only half the battle — keeping it safe is crucial. Here’s what you need to know:

• Hot wallets – Connected to the internet, convenient for trading, but exposed to cyber risks.
• Cold wallets – Offline storage, like hardware wallets, offering maximum security.
• Custodial vs. self-custody wallets:
  • Custodial wallets are managed by the exchange (convenient).
  • Self-custody wallets give you full control via private keys or seed phrases (more secure but requires responsibility).
• Security practices:
  • Enable 2FA
  • Use strong, unique passwords
  • Set up withdrawal whitelists
  • Keep backup copies of seed phrases offline

For more information on how to store your cryptocurrency safely, you can read our guide on how to securely store crypto.

Managing your investment

Once your crypto is safely stored, you’ll want to monitor and manage your portfolio:

• Use apps like CoinStats or Delta for portfolio tracking.
• Set price alerts but avoid obsessing over every swing — the market is volatile.
• Decide your strategy:
  • Long-term investing (HODLing): Holding coins for years.
  • Active trading: Buying and selling frequently to capture short-term gains. If you want to buy Bitcoin (BTC), for instance, you can look at our Bitcoin trading guide for insights on how to trade Bitcoin.
• Diversify your holdings to reduce risk. Don’t put all your money into a single coin.

Understanding the risks

Cryptocurrency comes with unique risks, including:

• High volatility – Prices can change 10–20% in hours.
• Regulatory changes – Laws may impact trading, taxation, or legality.
• Security risks – Hacks, phishing, scams, or lost keys.
• Platform fees – Trading, withdrawal, or network fees can add up.

Mitigation strategies: Educate yourself, invest only what you can afford to lose, diversify, and use secure wallets.

Tax implications and legal considerations

Even though crypto is digital, taxes still apply. In the US, for instance, cryptocurrency is considered property, meaning:

• You may owe capital gains tax when you sell, trade, or spend crypto.
• Keep detailed records of purchases, sales, and transfers.
• Consult a tax professional for personalized advice.

Other countries have different regulations. So, always check local laws before investing.

Final tips for beginners

• Start small – Learn before committing large amounts.
• Do your research – Understand the coin, platform, and market dynamics.
• Secure your crypto – Wallets and strong passwords are non-negotiable.
• Diversify – Spread your investment across multiple assets to reduce risk.
• Stick to a plan – Avoid making decisions based on hype or emotion.
• Enjoy the journey – Even small investments provide valuable learning and experience.

Remember, the knowledge and habits you build while investing in crypto are just as important—if not more so—than immediate financial returns.

Frequently asked questions (FAQs)