Want to buy crypto but don’t know where to start? Here is a simple guide

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With prices rising, crypto is an exciting investment. But when you’re just starting out, the buying process can seem confusing and you might not know where to start.

This is one of the main issues that stops potential crypto investors. In a recent Bakkt crypto survey, nearly a quarter (24%) of respondents said the biggest challenge in buying crypto was that they didn’t know where to start.

Whether you’re just looking for places to buy Bitcoin or want to invest in all kinds of coins, it’s not as difficult as it seems at first glance. By following a few steps, you can safely make your first crypto purchase.

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1. Learn more about your crypto buying options

There are different types of platforms where you can buy crypto. The most popular options are crypto exchanges, stock brokers, and payment apps. Once you know more about them, you can choose the right one for you.

A crypto exchange is dedicated to the buying, selling and trading of cryptocurrencies. These have the most cryptocurrencies available and the most features. If crypto investing is of serious interest to you, then an exchange will probably be the best option.

Trading can have a certain learning curve. However, many of the best cryptocurrency exchanges are easy to use and offer a lot of educational content. The following two are great if you are new to crypto:

Some stock brokers have started to diversify with cryptocurrencies in recent years. Robinhood is a vivid example.

These don’t offer as much as you would get on an exchange. Crypto selections tend to be smaller and you might not be allowed to transfer the crypto out of the brokerage itself. Nonetheless, it can be a convenient way to add crypto to your wallet, especially if you already have an account with a broker that offers crypto.

You can also buy crypto on two popular payment apps, Venmo and PayPal. They have the fewest features and don’t let you transfer crypto from the app itself. Despite the drawbacks, some buyers appreciate the speed and ease of obtaining crypto through a payment app.

2. Create an account on a crypto platform

After checking out where to buy crypto, the next step is to choose one you like and create an account. If you have chosen a stock broker or an app that you already have an account on, all you need to do is enable crypto purchases.

The registration process depends on the platform, but they all ask for similar information. Every encryption platform licensed in the United States must obtain certain customer data to comply with Know-your-Customer (KYC) regulations.

Here’s what you can expect to provide before you can buy crypto:

Full Name Email Address Phone Number Physical Address Social Security Number Date of Birth

In some cases, you may need to provide proof of identity by means of a valid ID, proof of address and maybe even a selfie.

3. Make your first crypto purchase

Once your account is ready, the last step is to make the purchase. Decide which cryptocurrency you want and how much, then choose a payment method.

This is another time when the process varies depending on the platform you have chosen. Stock brokers almost always require you to deposit money by wire transfer or bank wire first. Crypto exchanges often accept a variety of payment methods, including debit and credit cards.

Before deciding how to pay, review the accepted payment methods and their fees. You can save on crypto trading fees by choosing the most affordable payment method. As a general rule, bank transfers usually have the lowest fees for crypto purchases.

Credit cards, on the other hand, are hardly ever a good choice. Between the additional trading fees and the cash advance fees, buying crypto with a credit card can cost you 7% more or more.

To sum up, here’s how to buy crypto from start to finish:

Find out about crypto buying options and choose the one that suits your needs. Crypto exchanges are a popular choice, as are stock brokers who offer crypto exchanges. Create an account on the platform you choose. Be prepared to verify your identity. Choose the cryptocurrency you want and make your purchase. It is usually best to pay by bank transfer to get the lowest fees.

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