Quick Look
Looking to buy crypto? This is our guide on how to purchase cryptocurrency in the safest and most affordable way possible for a beginner. Follow these simple steps below to get started – also learn how to redeem some free crypto in the process!
We’ve highlighted the information below to ensure you have the smoothest onboarding experience, as you begin your journey as a first-time, retail investor, in cryptocurrency. Please make sure to read the full guide before you start.
Choose a Platform
To buy Crypto Currency (such as Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and others) using Fiat Currency (such as The United States Dollar (USD), Euro (EUR), New Zealand Dollar (NZD), Australia Dollars (AUD) and others), you’ll first need to pick an online Exchange or Broker that deals in Crypto. Both are essentially online platforms that connect new users (or connects for the user) with the blockchain.
Crypto exchanges
A Cryptocurrency Exchange is an online platform where buyers and sellers can interact digitally to trade cryptocurrencies – some popular exchanges include Coinbase, Crypto.com, FTX, and Binance. While they all serve the same purpose, each has set different fees and limits, with varying interest rates (APY), DeFi services, and features. Some even offer Free Crypto and Cashback on Trading Fees to new users!
You can easily learn and compare the fees, new user bonuses, and other important information about popular crypto exchanges with Coinfall.
Crypto brokers
A Cryptocurrency Broker is an online platform that interacts with an exchange for you. Users can purchase cryptocurrency directly from the broker, often using a more easy-to-use interface; Some popular Brokers include Robinhood, SoFi, and Easy Crypto AI. They all serve the same purpose, each with different fees, limits and varying rates on cryptocurrencies.
While a Crypto Broker may seem like the more convenient and beginner-friendly method, their rates may not necessarily align with the best possible market price for when you purchase or sell a particular cryptocurrency. Brokers often charge a higher fee, and in some cases are known to restrict the movement of user funds out of the platform.
As Crypto Exchanges now offer similar user-friendly purchase options to uncomplicate the experience, we believe this is the more secure and affordable method to purchase crypto as a new investor.
This also gives you an opportunity to learn the standard trading interface of the exchange, and by doing so find out how to pay lower fees for your next crypto purchase.
Important to Note
Ensure your chosen platform is available in your region and supports the fiat currency you intend on using to transfer or deposit. If the exchange is unavailable in your region you’ll be denied access to certain features.
If the Fiat Currency you want to use to purchase Cryptocurrency isn’t supported, you’ll need to purchase crypto elsewhere. (Alternatively, you’d have to find another exchange to purchase the tokens your preferred exchange accepts before you can begin to trade crypto on that exchange).
Register and Verify Your Account
Once you’ve chosen a beginner-friendly exchange such as Coinbase or Crypto.com, you can sign up and create an account with the platform. Some even offer new user bonuses such as Free Crypto rewards or Cashback on trading fees! If you haven’t found one yet, compare popular exchanges and rewards with Coinfall.
Most trusted exchanges, require users to complete a KYC verification process as a regulatory measure and to help prevent fraud. Know Your Customer (KYC) verification process is expected of exchanges by law, and typically involves requiring new users/customers to submit a proof of identity document (like a passport or driver’s license) alongside a live photo of themselves to verify their identity. Failing to verify your details may restrict you from purchasing or selling on the platform.
If you’re feeling unsure about submitting your private information, we suggest you do further research on the platform, its origin, its team, and the security measures taken to protect the customer data.
Choose Your Payment Method
After verifying your account, you can buy or sell from the exchange. Credit cards, direct bank transfers, and one-off direct debits are commonly available funding methods you can use – Some exchanges (like Kraken), even let you use Google Pay or Apple Pay. It’s worth noting that more convenient methods such as credit card payments will likely incur a higher transaction fee for your purchase/sell order.
Certain platforms even offer recurring buy options for users that want to inherit the Dollar Cost Averaging investment strategy. Users can divide up the total amount to be invested across periodic purchases of a particular crypto asset, and reduce the impact of volatility on the overall purchase (i.e. You could purchase $100 worth of Crypto by investing $10 each week for 10 weeks).
Place the Order
Choose the cryptocurrency you wish to purchase by searching the name of the currency or the ticker symbol. Enter the amount you wish to purchase or sell, then review and confirm the details to place an order.
If you cannot find particular crypto (that you want to purchase), it’s likely that it’s not supported by your chosen platform just yet.
There are hundreds of different cryptocurrencies, with the likes of Bitcoin (BTC) and Ethereum (ETH) dominating the market by capitalisation.
Did you know?
NZ-based broker Easy Crypto AI is a one-of-a-kind platform, taking the non-custodial role and allowing users to purchase cryptocurrency directly into their Crypto Wallet.
Securely Store Your Holdings
When the order is complete, your funds will be allocated to your Exchange Crypto Wallet. Sometimes known as your Spot Trading Account, it is essentially a place to keep your crypto holdings secure within the exchange. The more prominent exchanges are now insured against crime and have other security measures in place to (prevent cyber attacks and theft) – but having full control of your funds by transferring them out of the exchange and into a Hot Crypto Wallet is the more secure method for storing your crypto.
If you don’t plan on trading your crypto, we suggest moving your funds to a Hot Wallet (also known as DeFi Wallets) or a Cold Wallet for added security.
Hot wallets
Also known as DeFi Wallets, they are stored online and are accessible via digital devices such as phones, computers or tablets that are connected to the internet. Users can interact with things such as NFTs using these wallets with DeFi apps or an in-wallet internet browser that lets you surf the DeFi internet world. For beginners, we recommend the Exodus wallet (available as a mobile or desktop app).
Cold wallets
Also known as Hardware Wallets, they take the form of external devices, like a USB drive or a hard drive. Ellipal, a company that supplies cold wallets describes them perfectly…
– “Air-gapped cold wallet can never be connected to the internet. The cold wallet is fully protected from unauthorized access, cyber hacks, and every other vulnerability that comes with connecting to the internet. Cold wallet is the highest security type of crypto wallets, which means the owner of the wallet has full control of their private keys”
You can compare and learn more about hot or cold wallets with Coinfall.
Caution
With both wallets (hot or cold) it is important that you store your private keys in the most safest way available to you. If you lose the this code associated with your wallet, you will lose all your crypto funds.
Although some cold wallet providers sell private key storage devices to keep it safe, if a cold wallet device breaks or fails you can lose all your crypto.
Final Thoughts
As with any investment, make sure you consider your investment goals and current financial situation before investing in cryptocurrency. Cryptocurrency (even Bitcoin) is extremely volatile and a very speculative investment. Seek financial advice from a professional, and invest carefully and with caution at all times,
Use our website as a tool to navigate your journey and compare the most popular crypto platforms in 2022.
