How to Buy Cryptocurrencies | Crypto.com (2024)

How to Buy Cryptocurrencies | Crypto.com (1)

Key Takeaways:

  • Crypto purchases can be made through brokerages, exchanges, and peer-to-peer marketplaces.
  • Common payment methods for purchasing cryptocurrencies are bank transfers, credit/debit cards, and other cryptocurrencies.
  • When trading in crypto, buyers must determine the right strategy for their goals.
  • Where to store purchased coins and tokens must also be considered; cold and hot wallets each have their pros and cons.
  • Staying abreast of industry developments and trends helps in making informed, safe decisions when participating in the cryptocurrency market.

Introduction

Cryptocurrency adoption has been accelerating year-on-year since the creation ofBitcoinin 2009. Of the over580 million cryptocurrency owners globally(at the time of writing), almost 300 million are holders of the coin that started it all.

Cryptocurrency is a decentralised form of currency that can be sent directly from one person to another without needing a third-party intermediary.

Learn more about how cryptocurrencies work.

Those interested in joining the crypto community have several options when it comes to making their first purchase:

  • Brokerages are an intermediary between buyers and sellers, providing an efficient platform for building a cryptocurrency portfolio. They often provide other financial services, such as interest-bearing accounts. The Crypto.com App is a brokerage trusted by over 80 million users and a great place for beginners to start their crypto journey.
  • Centralised exchanges allow users to trade digital currencies with one another. They typically offer advanced features, such as leveraged or automated trading, for experienced cryptocurrency users or institutions. A notable example is the Crypto.com Exchange, which supports all the popular Bitcoin trading pairs.
  • Decentralised exchanges let users buy and sell cryptocurrency without a third-party service provider, which means users are responsible for managing their private keys. Crypto.com DeFi Wallet is a non-custodial app where users can store and purchase digital assets, plus access decentralised apps (dapps).

For more about the differences between centralised and decentralised cryptocurrency platforms, read What Is a Crypto DEX?

How to Buy Cryptocurrencies

The Crypto.com App supports over 250 popular cryptocurrencies, and users can start buying them following a quick onboarding process.

After downloading the Crypto.com App, the first step is creating an account, which requires providing an email address and phone number, plus completing identity verification. This KYC process varies by jurisdiction but usually involves submitting a valid form of identification.

Once the identity documents are verified, it’s time to decide on a payment method. The Crypto.com App supports fiat currencies, credit/debit cards, Apple Pay, Google Pay, and other cryptocurrencies, depending on the user’s region.

Buying Crypto via Bank Transfer

One of the most popular ways to buy coins and tokens in the Crypto.com App is by using fiat currency, as it lets users tap into the lowest fees. All users need to do is initiate a transfer from their bank account, and the funds will be received in their Fiat Wallet.

Once their Fiat Wallet is funded, users can then begin purchasing Bitcoin by following the steps below:

  1. Tap Buy on the Crypto.com App home screen.
  2. Select a cryptocurrency.
  3. Under Cash, select the relevant Fiat Wallet and tap Buy again.
  4. Review the transaction details and tap Continue.
  5. Confirm the transaction with a passcode or biometric verification.

Payment Methods: Buying Bitcoin With a Card

Buying cryptocurrencies with a credit or debit card is a convenient and fast way to build a portfolio. In the Crypto.com App, it takes only a few taps to add a card and complete the purchase:

  1. Tap Buy on the Crypto.com App home screen.
  2. Select a cryptocurrency.
  3. Under Cash, select Add Payment Method.
  4. Follow the on-screen instructions and add the card information. (A small amount of around US$0.10 will be temporarily held, but not charged, for up to seven days.) Once complete, return to the Buy screen.
  5. Select a cryptocurrency and the purchase amount.
  6. Under Cash, select the newly added card.
  7. Confirm the transaction with a passcode or biometric verification.

The perk of making card purchases in the Crypto.com App is that new users pay 0% credit/debit card fees in their first seven days after completing account registration.

Other Payment Methods

In addition to using a Fiat Wallet or credit/debit card, users can buy crypto with Apple Pay, Google Pay, and other cryptocurrencies in the Crypto.com App.

Adding Apple Pay or Google Pay as a payment method is very similar to adding a credit or debit card:

  1. Tap Buy on the Crypto.com App home screen.
  2. Select a cryptocurrency.
  3. Under Cash, select Apple Pay or Google Pay, and tap Buy again.
  4. Review the transaction details and tap Continue.
  5. Confirm the transaction with a passcode or biometric verification.

As a medium of exchange, cryptocurrencies can always be traded with one another. Crypto.com App users are able to deposit cryptocurrency from an external wallet and use it to purchase Bitcoin and over 250 other coins. Here’s how:

  1. Tap Buy on the Crypto.com App home screen.
  2. Select a cryptocurrency to buy.
  3. Under Crypto, select a cryptocurrency to sell and tap Buy again.
  4. Review the transaction details and tap Continue.
  5. Confirm the transaction with a passcode or biometric verification.

With several payment options, the Crypto.com App makes it easy for users to grow their holdings. Visit the Help Centre for comprehensive guides on buying cryptocurrency.

Buying Strategies

People buy crypto for a variety of reasons. Some are attracted by its decentralised nature, where no entity can interfere with its supply. Others use coins and tokens to hedge against inflation and other market risks, or as a means to send money. One of the most prominent reasons is the potential to turn a profit.

When buying crypto, buyers need to consider their objectives carefully. In doing so, they can determine the right strategy for their purchases.

If the objective is trading, the buyer should aim for a low entry price (or the price of a coin when the purchase is made) relative to the exit price (or the price of the coin when it is sold). Simply, it is the strategy of buying low and selling high, and requires ‘timing the market’ to buy at the lowest possible price, which can be risky, as no one can predict how the market will move. This is where trading tools come in.

Buying at the Lowest Price

The Target Price feature in the Crypto.com App allows users to place Buy and Sell Orders for currencies when it hits a set price. They can buy crypto at their preferred, lower price and later sell it at a higher price automatically without having to track its price movements. This is extremely helpful since — let’s not forget — cryptocurrency trades 24 hours a day, seven days a week.

Dollar Cost Averaging

If the buyer is looking to HODL, then the entry price does not matter as much. But buying a lump sum of any asset can be risky. To minimise the risk of price fluctuations, buyers can consider adopting the Dollar Cost Averaging (DCA) strategy, which involves purchasing smaller amounts of crypto at regular intervals over time.

The Recurring Buy feature in the Crypto.com App lets users do just that. They can buy as little as US$15 of Bitcoin and 160-plus other coins each time.

How to Store Crypto

Another decision to make when buying cryptocurrency is how it will be stored. Cold wallets are physical, offline devices that hold the private keys used to access the cryptocurrency. They are not vulnerable to software attacks but may not be suitable for beginners. Learn more about the pros and cons of hardware wallets and how to choose the right one here.

Hot wallets are connected to the internet, making the user’s cryptocurrency more accessible on a daily basis, whether for spending or trading. Security, regulatory compliance, and privacy should be top of mind when deciding on a hot wallet provider.

Crypto.com is the industry leader in this regard as the first cryptocurrency company in the world to obtain several independently assessed certifications. The company has also released its Proof of Reserves (PoR), which is a way to ensure that a platform holds enough assets to cover all of its client balances. The PoR was conducted and certified by an independent auditor to ensure the integrity and anonymity of the entire process. Crypto.com’s users can view the PoR report and verify their funds here.

Keeping Crypto Safe

Users can also take additional measures to further enhance the security of their accounts. Here are some best practices:

  • Set up two-factor authentication (2FA) and an Anti-Phishing Code.
  • Do not share passwords and authentication codes with anyone. Crypto.com will never ask for this information.
  • Always make sure to visit official Crypto.com websites and social media accounts.
  • Be aware that phishing can happen via any communication channel, including email, SMS, and voice calls.
  • ‘Pig butchering’ and ‘rug pulls’ are two common crypto scams. Learn more about them here.
  • Report any suspicious communications to the Customer Support Team at [emailprotected].

How to Sell Crypto

After acquiring crypto, Crypto.com App users always have the option to sell it for other cryptocurrencies or fiat currencies. Here’s how to sell one cryptocurrency to buy another:

  1. Tap Sell on the Crypto.com App home screen.
  2. Select a cryptocurrency to sell.
  3. Under Crypto, select a cryptocurrency to buy and tap Sell again.
  4. Review the transaction details and tap Continue.
  5. Confirm the transaction with a passcode or biometric verification.

The process of selling cryptocurrency for fiat currency varies by jurisdiction but will largely require these steps:

  1. Tap Sell on the Crypto.com App home screen.
  2. Select a cryptocurrency to be converted to fiat.
  3. Under Cash, enter the amount to be converted to fiat.
  4. Review the transaction details and tap Continue.
  5. Confirm the transaction with a passcode or biometric verification.

For detailed guides on how to sell Bitcoin and other cryptocurrencies to buy fiat, visit the Help Centre.

The Crypto.com Visa Card offers a rewarding way for users to spend their cryptocurrencies if they prefer not to sell them. They can enjoy up to 5% back on spending and many other perks, including Spotify and Netflix subscription rebates, airport lounge access, and zero annual fees. Everything there is to know about this popular crypto-linked card can be found here.

Final Words — Buying Crypto for the First Time

Acquiring cryptocurrency for the first time is an exciting process. Before proceeding, it’s crucial to consider the risks and conduct extensive research. Staying abreast of industry developments and trends aids in making informed decisions when participating in the cryptocurrency market. Additionally, following news outlets and regulatory changes gives insight into how prices might be affected.

Cryptocurrency transactions and activity will only become more commonplace if the 39% rise in crypto adoption in 2022 is any indicator. With the resources that are now available, the world of cryptocurrency is more accessible than ever.

Crypto.com University is a one-stop knowledge-sharing platform for those just getting into cryptocurrency and those who are ready to level up.

Due Diligence and Do Your Own Research

All examples listed in this article are for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, cybersecurity, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsem*nt, or offer by Crypto.com to invest, buy, or sell any coins, tokens, or other crypto assets. Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction. Any descriptions of Crypto.com products or features are merely for illustrative purposes and do not constitute an endorsem*nt, invitation, or solicitation.

Past performance is not a guarantee or predictor of future performance. The value of crypto assets can increase or decrease, and you could lose all or a substantial amount of your purchase price. When assessing a crypto asset, it’s essential for you to do your research and due diligence to make the best possible judgement, as any purchases shall be your sole responsibility.

How to Buy Cryptocurrencies | Crypto.com (2024)

FAQs

How do you buy crypto effectively? ›

For beginners wondering how to start, follow these five steps:
  1. Choose what cryptocurrency to invest in.
  2. Choose a reputable cryptocurrency exchange.
  3. Explore storage and digital wallet options.
  4. Decide how much to invest.
  5. Stay informed and manage your investments wisely.
May 1, 2024

How can I buy cryptocurrency? ›

Step 1: Register and Verify Your Account on a Crypto Exchange
  1. Step 1: Register and Verify Your Account on a Crypto Exchange.
  2. Step 1: Register and Verify Your Account on a Crypto Exchange.
  3. Step 2: Add Funds to Your Wallet. ...
  4. Step 2: Add Funds to Your Wallet. ...
  5. Step 3: Place Your Bitcoin Order. ...
  6. Step 3: Place Your Bitcoin Order.
Mar 7, 2024

How do I buy crypto wisely? ›

Most financial experts recommend limiting crypto exposure to less than 5% of your total portfolio. Crypto is considered a high-risk asset class. Limiting allocation helps manage overall volatility and risk. Those new to crypto investing may start with 1% to 2% as an introduction.

How do I convince someone to buy crypto? ›

It's not that difficult if you speak the truth tell the individual all you know about cryptocurrency, when you profit off it buy the individual a gift, tell the individual your cryptocurrency earned profits, I bet they would ask what exchange is the best to sign up on.

How much will I get if I put $1 dollar in Bitcoin? ›

1 USD equals 0.000016 BTC. The current value of 1 United States Dollar is -0.77% against the exchange rate to BTC in the last 24 hours. ​ The current Bitcoin market cap is $1.24T. ​Create a free Kraken account to instantly convert USD to BTC today.

Can I buy crypto for $1? ›

Buy Bitcoin in Seconds. Buy BTC securely with card or instant bank transfer. Start with as little as $1.

How much money do you need to buy cryptocurrency? ›

Many crypto exchanges have minimum purchases of $10 or less. Cryptocurrencies are digital assets that are usually created using a cryptographic computer networking technology called blockchain, which makes it possible to exchange them without the need for a central authority such as a bank.

Can I buy crypto for cash? ›

You can buy Bitcoin and other cryptocurrencies with cash or credit from one of the thousands of Bitcoin ATMs around the world. Many Bitcoin ATMs also enable you to sell bitcoin and receive cash.

Can I buy Bitcoin for 100 dollars? ›

A $100 investment in Bitcoin may seem like very little, but it is an excellent start to getting involved in digital currencies. The Bitcoin market is known for its volatility, but the real query lies in what returns you might anticipate from an initial investment.

Which crypto is best to invest now? ›

  1. Bitcoin (BTC) Bitcoin (BTC) remains a compelling choice for investors in May 2024 due to its fundamental strength, technical innovation, and favorable macroeconomic climate. ...
  2. Ethereum (ETH) ...
  3. Solana (SOL) ...
  4. Avalanche (AVAX) ...
  5. Tron (TRX) ...
  6. Cardano (ADA) ...
  7. Polkadot (DOT) ...
  8. Chainlink (LINK)
4 days ago

What to consider before buying crypto? ›

Let's take a closer look at what to consider for each of these questions.
  • Get educated. When you hear about people buying crypto, it might sound like a singular asset like a stock or a bond. ...
  • Prepare for risk and volatility. ...
  • Manage risks. ...
  • Get smart about security. ...
  • Don't forget taxes.

Is it illegal to buy crypto for someone else? ›

Yes. You can purchase a cryptocurrency gift card from one of the handful of online retailers that offer them or take the more traditional route: buying cryptocurrency on a registered exchange and then sending it to the beneficiary's wallet address.

Which crypto is best to invest in? ›

Top 10 Cryptos in 2024
CoinMarket CapitalizationCurrent Price
Bitcoin (BTC)$1.2 trillion$62,245
Ethereum (ETH)$360 billion$3000
Binance Coin (BNB)$85 billion$581
Solana (SOL)$65 billion$146
6 more rows
4 days ago

How much to buy 1 Bitcoin? ›

BTC to USD
AmountToday at 7:20 am
1 BTC$62,274.47
5 BTC$311,372.32
10 BTC$622,744.65
50 BTC$3,113,723.25
4 more rows

How much to invest in Bitcoin to become a millionaire? ›

While this is a lower-bound scenario, we can use it as a baseline to show what it takes for investors to become Bitcoin millionaires. Assuming an annualized return of 30%, one would need to invest roughly $85,500 annually for five years to hit millionaire status. Over 10 years, this number falls to around $18,250.

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