How to buy cryptocurrencies? Beginner's Guide
If you are new to the crypto world, you might still be trying to figure out how to buy cryptocurrencies like Bitcoin, Ether, Cardano, etc. So that you understand the procedure to follow, we have taken the time to create a step-by-step guide that will explain to you how to invest, buy, but also to trade cryptocurrencies.
Note that the guide that follows, although it is general, can be applied to any digital asset/token. Indeed the steps to follow will be the same whether you want to buy BTC, ETH, XRP, LTC, ADA, DOT, SOL.
1. Choose an exchange or a platform
A question often comes up these days on the Internet: where to buy crypto? It must be said that the number of services that exist and which make it possible to do such a thing is numerous (and more or less reliable). It is therefore not easy to navigate.
To make your job easier and above all to allow you to invest in secure and regulated platforms, we offer you a presentation of the two best platforms that allow you to trade ( eToro ) and buy ( Binance ) crypto-currencies.
eToro: the best crypto trading platform in 2021
As we could mentioned in our comparison of crypto platforms, we believe eToro is the benchmark in 2021. There is simply no better service for trading digital assets.
By opting for this platform over another, you will have access to a lot of different cryptocurrencies (more than thirty), relatively low fees, as well as a simple interface to understand and use (ideal for those who are just starting). Of course, eToro offers a mobile application that will allow you to trade any asset from your smartphone or tablet.
On the functionality side, the platform is a benchmark with the possibility of taking advantage of a leverage effect on its CFD trades, of doing social trading, or even of doing copy-trading (a practice which consists of following the actions of another trader of the platform who is recognized for his performance). On eToro, everything is done so that anyone can buy and trade cryptocurrencies, regardless of their level of knowledge.
Do you want to test eToro without taking any risks? This is possible thanks to its demo account which will allow you to invest up to $ 100,000 in virtual funds. Once you feel ready, you can invest real money in any crypto you want.
Binance: the alternative to buy cryptocurrencies
A great alternative to eToro if you want to buy cryptocurrency is Binance.
For what reasons? The first thing that is important to note is that, unlike eToro, you will be able to store and buy cryptocurrencies like BNB (Binance's coin), Bitcoin, Ether,… Indeed, Binance does not trade CFDs (Contract for Difference). Be careful, this still adds a layer of complexity: it will be necessary to provide external storage and master a more technical platform (see screenshot above). If you are just starting, this is not necessarily the most obvious platform.
Being able to buy and hold cryptocurrency is its big advantage over an eToro. Purists will appreciate it, but this involves notions of security and a real work of research. With an eToro, you won't have this and the result (if you are looking to make a profit) will be the same: you are exposed to the price of Bitcoin. If the latter rises by 1%, your portfolio will rise by 1%.
But Binance is more than that. It is above all a cryptocurrency exchange platform that provides access to an impressive number of assets. In total, you will be able to invest in several hundred digital assets. There is something for everyone, it's a real argument. But if you're starting, it's best to focus on the most popular virtual currencies.
On the fee side, Binance is not left out as it turns out to be the exchange with the lowest fees. Because it is the biggest exchange in the world, it can reduce them as much as possible. Even professionals (hedge funds…) use its platform for trading.
Binance also offers the possibility of staking (to generate returns with your cryptos), of obtaining a Binance Visa card to make purchases in cryptos, of taking advantage of a launchpad allowing you to participate in new projects. exclusive as well as many tools for trading with leverage. eToro offers it too, but it limits the leverage to x2 so as not to lose its customers.
If you are curious to learn more about this excellent platform for buying cryptocurrency, we recommend that you read our https://digitalskills541.blogspot.com/2021/12/how-to-buy-cryptocurrencies-beginners.html.
Before moving on to the rest of our guide on how to buy cryptocurrency, we would like to point out that we will be relying on eToro and Binance to complete the next steps. If you choose another platform (which must be regulated or recognized), the principle will be the same.
2. Create your account on the crypto platform
Until a few years ago, platforms for buying and selling cryptocurrencies did not verify the identity of their users. This has changed a lot in recent months following the tightening of regulatory requirements. Virtually all platforms have established an identity verification system for their users (KYC - Know Your Customer in English) to prevent money laundering. This requires sending several documents from you.
Why should you verify your account and prove your identity with a platform that allows the purchase and/or trading of crypto? For the simple reason that without it, you won't have a choice:
No access to the platform
You will understand, to buy cryptocurrency via the most reliable and secure services, you will have to go through this step. Today, no site that allows you to deposit funds (in euros or dollars) will spare you on this step. Indeed, they are all in partnership with a custodian bank, so they are obliged to know information about you to let you deposit funds.
Usually, the verification process is done easily and quickly. This is the case for the platform that we consider to be the best currently: eToro. How to verify your account? First, go to the eToro site.
Log in then go to your account settings. From there you will have the possibility to upload an identity document as well as a proof of address. The processing time for your request may vary from case to case. It can take a few minutes or even a few hours (rarely more). You will then be notified once the process is complete. This will then be the signal to buy cryptocurrency.
3. Deposit money into your account
Depending on the platform you choose to buy cryptocurrency, you will have access to more or fewer choices to make a deposit.
The most generous platform at this level remains eToro. It allows you to deposit funds using your bankcard (Visa, MasterCard, etc.), your PayPal account, a SEPA transfer, Neteller, Skrill, etc. To find the details of the methods supported, the processing time, as well as the deposit limit imposed, you can directly consult the eToro site.
Once logged into your eToro account, all you have to do is click on “Deposit funds” then enter the amount and select the currency. Everything is very well done, it is one of the most intuitive platforms on the market. If you are a beginner, this will be the easiest to access.
If you have chosen to use another platform to buy cryptocurrency, it is good to note that the process will not be much different. As said before, the only downside will be that the deposit methods offered will certainly be less numerous than at eToro. It should also be remembered that eToro is regulated in Europe (CySEC and ACPR Banque de France registered), which is not the case for all platforms. This is a reassuring point.
4. Buy the crypto of your choice
Are you looking to make a long-term investment? In this case, it is better to buy the cryptocurrencies that seem interesting and then store them.
To do this, and as mentioned earlier, we recommend that you go through the Binance exchange. In addition to offering low fees, it gives access to a lot of different digital assets. That said, eToro offers pretty much the same - except that you don't own a cryptocurrency per se, but rather a financial product that replicates its performance precisely. In the end, both will expose you to the purchased crypto.
The procedure for buying cryptocurrency is relatively straightforward. The first step is to go to the Binance site by clicking HERE or on the following button (you will be automatically redirected to the platform):
Then log into your account then go to the “Buy cryptos” section of the main menu. Here several choices will be available to you. If you followed the previous step of our tutorial (step 3: deposit money), then you will have to click on “Cash balance” (to buy crypto with your balance in euros). This solution is only available if you already have euros in your Binance account. You will then be redirected to the page below.
f you want to buy cryptocurrency directly with your bank card (because you don't have money by default on Binance), you will need to choose the “Credit / Debit Card” option. By opting for this option, Binance will also offer you the possibility to schedule a recurring purchase. For example, you can schedule the fact that every Wednesday at 11:00 is French time, an order to buy € 100 in Bitcoin is placed.
There you are, now you know how to buy cryptocurrency. We told you, there is nothing complicated. If you want to have more information regarding the purchase of a particular cryptocurrency, we would like to inform you that we have made detailed tutorials for the most popular assets of 2021. You can for example see our step-by-step tutorial by step guide explaining how to buy Bitcoin.
Which crypto to buy in 2021?
A lot of people are wondering what crypto to buy right now. We are already warning you, the following lines are in no way investment advice. Take the time to make up your mind before investing in any cryptocurrency and don't blindly follow the advice of pseudo-experts on the web. If you are a beginner, we would tend to advise you to focus on the Top 20 biggest crypto.
The avenues to explore if you want to know which cryptocurrency to buy:
Bitcoin (BTC)
Ether (ETH)
Cardano (ADA)
Ripple (XRP)
Solana (SOL)
Polkadot (DOT)
Uniswap (UNI)
Litecoin (LTC)
Chainlink (LINK)
Terra (LUNA)
They are currently safe values and among the largest caps on the market. That being said, no investment is risk-free. In any case, you will expose yourself to significant volatility. And this remark will be even more true if you decide to invest in less popular altcoins and less big in terms of capitalization. In short, buying crypto involves risks, you have been warned.
5. Trade cryptocurrencies
Are you not interested in owning cryptocurrencies and holding them for the long term? Prefer to actively trade cryptocurrency? It is a self-respecting choice that many investors are making. The reason for this is that the payoffs can be much bigger and the results faster. Now once again be careful because this type of practice is a double-edged sword: there are risks.
The platform we recommend using to trade cryptocurrency is eToro. After having tested more than a dozen different services, this is the one that has brought us the greatest satisfaction, whether in terms of interface, trading functionality, fees, or even choice of assets. It is the one that is the most accessible to the general public.
You will see a list of all the cryptos and pairs that you will be able to trade with eToro. In total, more than 30 different choices are offered. As you can see below, there are all of the most popular cryptocurrencies around. The regulated platform has chosen to focus on the most important so as not to disperse its customers too much. It's very good like that.
Select the crypto or pair you are interested in, then click the “Buy” or “Sell” button. All you have to do is enter the amount you want to trade and let's get started! Once all of this is done, you will receive a confirmation message notifying you that the order has been placed. There is the possibility of placing conditional orders if you are a trading ace (limits, stop loss, take profit, etc.).
As we were able to mention in our analysis of eToro, the platform allows you to trade cryptocurrencies as well on a computer, smartphone, or tablet thanks to its different interfaces and applications. They are all well done and allow you to easily read the information.
6. Select a storage system for your crypto-currencies
If you have followed our tutorial from A to Z on how to buy cryptocurrency, you might want to learn how to store it securely. This only applies to you if you have purchased crypto on Binance. Indeed, eToro offers you a crypto CFD (which replicates the performance of the crypto) but you do not need to store them.
There are several ways to store and secure your investment:
Leave your cryptos on the wallets of the exchange you are using: in this case, you have nothing to do. That said, there are sometimes hacks of these exchanges that can put your capital at risk. In 2019, Binance was hacked ($ 40 million in crypto vanished). CoinCheck was robbed of $ 584 million in 2018. And there are a lot of stories like this.
Wallet with online storage: these are wallets that work online and rely on browser software/extension. They are very practical but the risk of theft or scams remains high because it is connected to the Internet.
Offline wallet (cold wallet): this term refers to wallets that are not connected to the Internet, making them more secure to store cryptocurrencies. They very often take the form of an external device similar to a USB key or an external hard drive. In the world, a French start-up is a reference: Ledger.
It's up to you to assess your storage needs and expectations. Each solution cited will not necessarily suit everyone. In any case, if you are investing large sums of money through Binance, we strongly recommend that you store these in a cold wallet. For those who use eToro, the question of storage will not arise.
To find more information on the subject and thus determine the best type of wallet to favor, you can take a look at our article which explains how to store your cryptos securely.
How to choose the platform on which to buy crypto? Our advice
Still, having doubts about which cryptocurrency exchange to choose? We advise you to read the following lines carefully. Now that you know how to buy crypto, we'll give you some tips on how to best refine your choice and thus make the best possible decision about which service to use.
The most important thing for us to choose the right exchange (or the right crypto platform) is to ensure the level of security. Due to the popularity of this type of asset, hackers particularly target platforms dedicated to this type of investment. For this reason, it is good to invest through a reputable service, which has existed for several years, and which has proven itself.
Besides this crucial point, before buying any cryptocurrency, it is good to make sure that the asset in question is indeed available on the platform that you plan to use. Also, remember to look at the other assets that are on offer. The more there are, the greater the possibilities will be to diversify.
It is impossible not to mention the transaction fees associated with the purchase, trading, and sale of cryptocurrencies. Of course, special attention must be paid to this point if you want your investments to be as profitable as possible. Indeed, fees that are too high can make you lose tens or even hundreds of euros in the long term.
Also remember to take into account the functionalities to which you will have access (staking, trading tools, copy-trading, social trading, etc.), as well as the ease of use of the platform, whether on a web browser or through its application. . If you are new to cryptocurrency and want to buy a cryptocurrency for the first time, it is better if the whole thing is accessible and not that it becomes a headache every time you want to take an action ... or simply view the performance of your investment. At this level, it is clear to us that eToro is the ideal choice.
So which crypto platform to choose to invest in? Which one offers the most guarantees about all the points that we have been able to mention? Here are our two recommendations for 2021. eToro is one of the few players that is regulated and its experience (since 2007) is an argument in its favor. Binance is admittedly unregulated, but it is a good platform to buy crypto. However, it is less easy to learn.
Buy cryptocurrency: FAQ
Is Buying Crypto Legal?
The question of the legality of investing in cryptocurrencies comes up regularly, whether in France or any other country. So what is the current situation in France? It is an investment that is accepted and that is not illegal. Proof of this is that the AMF (Autorité des Marchés Financiers) has been granting registrations as a “digital asset service provider (PSAN)” for several months now to crypto exchange platforms.
This is proof that this type of investment is democratizing and that it is perfectly legal in France. Note that you are also subject to the single flat-rate levy (PFU) of 30% on any possible capital gain that you make with crypto-currencies. You must therefore declare your earnings to the tax authorities to be within the legal framework.
Which crypto to buy in 2021?
A lot of people are wondering what crypto to buy right now. We are already warning you, the following lines are in no way investment advice. Take the time to make up your mind before investing in any cryptocurrency and don't blindly follow the advice of pseudo-experts on the web. If you are a beginner, we would tend to advise you to focus on the Top 20 biggest crypto.
The avenues to explore if you want to know which cryptocurrency to buy:
Bitcoin (BTC)
Ether (ETH)
Cardano (ADA)
Ripple (XRP)
Solana (SOL)
Polkadot (DOT)
Uniswap (UNI)
Litecoin (LTC)
Chainlink (LINK)
Terra (LUNA)
They are currently safe values and among the largest caps on the market. That being said, no investment is risk-free. In any case, you will expose yourself to significant volatility. And this remark will be even more true if you decide to invest in less popular altcoins and less big in terms of capitalization. In short, buying crypto involves risks, you have been warned.
5. Trade cryptocurrencies
Are you not interested in owning cryptocurrencies and holding them for the long term? Prefer to actively trade cryptocurrency? It is a self-respecting choice that many investors are making. The reason for this is that the payoffs can be much bigger and the results faster. Now once again be careful because this type of practice is a double-edged sword: there are risks.
The platform we recommend using to trade cryptocurrency is eToro. After having tested more than a dozen different services, this is the one that has brought us the greatest satisfaction, whether in terms of interface, trading functionality, fees, or even choice of assets. It is the one that is the most accessible to the general public.
You will see a list of all the cryptos and pairs that you will be able to trade with eToro. In total, more than 30 different choices are offered. As you can see below, there are all of the most popular cryptocurrencies around. The regulated platform has chosen to focus on the most important so as not to disperse its customers too much. It's very good like that.
Select the crypto or pair you are interested in, then click the “Buy” or “Sell” button. All you have to do is enter the amount you want to trade and let's get started! Once all of this is done, you will receive a confirmation message notifying you that the order has been placed. There is the possibility of placing conditional orders if you are a trading ace (limits, stop loss, take profit, etc.).
As we were able to mention in our analysis of eToro, the platform allows you to trade cryptocurrencies as well on a computer, smartphone, or tablet thanks to its different interfaces and applications. They are all well done and allow you to easily read the information.
6. Select a storage system for your crypto-currencies
If you have followed our tutorial from A to Z on how to buy cryptocurrency, you might want to learn how to store it securely. This only applies to you if you have purchased crypto on Binance. Indeed, eToro offers you a crypto CFD (which replicates the performance of the crypto) but you do not need to store them.
There are several ways to store and secure your investment:
Leave your cryptos on the wallets of the exchange you are using: in this case, you have nothing to do. That said, there are sometimes hacks of these exchanges that can put your capital at risk. In 2019, Binance was hacked ($ 40 million in crypto vanished). CoinCheck was robbed of $ 584 million in 2018. And there are a lot of stories like this.
Wallet with online storage: these are wallets that work online and rely on browser software/extension. They are very practical but the risk of theft or scams remains high because it is connected to the Internet.
Offline wallet (cold wallet): this term refers to wallets that are not connected to the Internet, making them more secure to store cryptocurrencies. They very often take the form of an external device similar to a USB key or an external hard drive. In the world, a French start-up is a reference: Ledger.
It's up to you to assess your storage needs and expectations. Each solution cited will not necessarily suit everyone. In any case, if you are investing large sums of money through Binance, we strongly recommend that you store these in a cold wallet. For those who use eToro, the question of storage will not arise.
To find more information on the subject and thus determine the best type of wallet to favor, you can take a look at our article which explains how to store your cryptos securely.
How to choose the platform on which to buy crypto? Our advice
Still, having doubts about which cryptocurrency exchange to choose? We advise you to read the following lines carefully. Now that you know how to buy crypto, we'll give you some tips on how to best refine your choice and thus make the best possible decision about which service to use.
The most important thing for us to choose the right exchange (or the right crypto platform) is to ensure the level of security. Due to the popularity of this type of asset, hackers particularly target platforms dedicated to this type of investment. For this reason, it is good to invest through a reputable service, which has existed for several years, and which has proven itself.
Besides this crucial point, before buying any cryptocurrency, it is good to make sure that the asset in question is indeed available on the platform that you plan to use. Also, remember to look at the other assets that are on offer. The more there are, the greater the possibilities will be to diversify.
It is impossible not to mention the transaction fees associated with the purchase, trading, and sale of cryptocurrencies. Of course, special attention must be paid to this point if you want your investments to be as profitable as possible. Indeed, fees that are too high can make you lose tens or even hundreds of euros in the long term.
Also remember to take into account the functionalities to which you will have access (staking, trading tools, copy-trading, social trading, etc.), as well as the ease of use of the platform, whether on a web browser or through its application. . If you are new to cryptocurrency and want to buy a cryptocurrency for the first time, it is better if the whole thing is accessible and not that it becomes a headache every time you want to take an action ... or simply view the performance of your investment. At this level, it is clear to us that eToro is the ideal choice.
So which crypto platform to choose to invest in? Which one offers the most guarantees about all the points that we have been able to mention? Here are our two recommendations for 2021. eToro is one of the few players that is regulated and its experience (since 2007) is an argument in its favor. Binance is admittedly unregulated, but it is a good platform to buy crypto. However, it is less easy to learn.
Buy cryptocurrency: FAQ
Is Buying Crypto Legal?
The question of the legality of investing in cryptocurrencies comes up regularly, whether in France or any other country. So what is the current situation in France? It is an investment that is accepted and that is not illegal. Proof of this is that the AMF (Autorité des Marchés Financiers) has been granting registrations as a “digital asset service provider (PSAN)” for several months now to crypto exchange platforms.
This is proof that this type of investment is democratizing and that it is perfectly legal in France. Note that you are also subject to the single flat-rate levy (PFU) of 30% on any possible capital gain that you make with crypto-currencies. You must therefore declare your earnings to the tax authorities to be within the legal framework.
What is the best exchange to buy crypto?
The best exchange to buy, sell, or store crypto is Binance. The international platform indeed offers the largest variety of crypto-assets, which will allow you to invest in BTC, ETH, or even altcoins. The advantage that Binance has is that it will allow you to buy, sell, but also store your crypto-currencies wherever you want.
What is the best platform for trading crypto?
If your goal is to actively trade cryptocurrencies (and not to buy them to store them), we strongly recommend that you opt for the eToro platform. It is in our experience the best when it comes to trading digital assets. You will have access to a complete but easy-to-use interface for beginners. You do not officially own the crypto but it's just like: your portfolio will follow the performance of the latter.
Are cryptocurrencies a good investment?
Buying and selling cryptocurrency is a good investment, just like the stock market, real estate ... Now you have to be aware of the risks that such an investment represents. The crypto market is still young and extremely volatile. You have to be careful, take the time to do your research, and then finally buy the cryptocurrency you believe in.
How to buy crypto through PayPal?
The best way to invest in cryptocurrencies using your PayPal account is to go through a platform like eToro. By opting for the latter, it will be possible to deposit money from your PayPal account to eToro. Your money will arrive quickly and you can then invest and trade the cryptocurrencies of your choice. Why eToro and not another platform/exchange? For the simple reason that he is one of the only ones to support deposits through PayPal
The best exchange to buy, sell, or store crypto is Binance. The international platform indeed offers the largest variety of crypto-assets, which will allow you to invest in BTC, ETH, or even altcoins. The advantage that Binance has is that it will allow you to buy, sell, but also store your crypto-currencies wherever you want.
What is the best platform for trading crypto?
If your goal is to actively trade cryptocurrencies (and not to buy them to store them), we strongly recommend that you opt for the eToro platform. It is in our experience the best when it comes to trading digital assets. You will have access to a complete but easy-to-use interface for beginners. You do not officially own the crypto but it's just like: your portfolio will follow the performance of the latter.
Are cryptocurrencies a good investment?
Buying and selling cryptocurrency is a good investment, just like the stock market, real estate ... Now you have to be aware of the risks that such an investment represents. The crypto market is still young and extremely volatile. You have to be careful, take the time to do your research, and then finally buy the cryptocurrency you believe in.
How to buy crypto through PayPal?
The best way to invest in cryptocurrencies using your PayPal account is to go through a platform like eToro. By opting for the latter, it will be possible to deposit money from your PayPal account to eToro. Your money will arrive quickly and you can then invest and trade the cryptocurrencies of your choice. Why eToro and not another platform/exchange? For the simple reason that he is one of the only ones to support deposits through PayPal
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