Pilot Aimee Jones
Last Updated on:
Wondering how to buy cryptocurrency? Well you’ve come to the right place. Cryptocurrencies, especially Bitcoin, have been booming as of late – piquing the interest of new investors across the globe.
The number of people wondering how to buy cryptocurrency has soared in recent years after the sector enjoyed a blaze of publicity. It can be a little daunting for beginners, so our guide on how to buy cryptocurrency walks you through all the necessary steps.
Your first priority is to find a safe, reliable cryptocurrency exchange that offers reasonably attractive fees and a professional level of service. UK investors that want to buy crypto have a number of options, and they all have different strengths and weaknesses. These are some of the best sites for buying crypto:
Zeply offers a safe and secure way to buy Bitcoin easily, with their intuitive and user-friendly app. With super speedy transactions, you won’t be waiting hours for your Bitcoin funds to appear. Read our Zeply review to find out more about this provider.
This is a really good option for beginners. Coinbase is a very user-friendly site and it makes the process of buying crypto really simple, quick and effective. There is nothing overwhelming about the site. The design is clear and uncluttered, and the user experience is very pleasant.
Coinbase does charge higher trading fees than some other sites, and the range of cryptocurrencies that you can buy is quite narrow, while customer service is slow, but it remains arguably the best choice for newcomers wondering how to buy cryptocurrency.
This is the world’s largest cryptocurrency exchange by any conceivable metric. It has high liquidity and the slippage is low, while there are lots of advanced trading tools and charting capabilities, so it is popular among experienced traders that buy cryptocurrency and sell it.
Binance has a huge range of cryptocurrencies to buy, sell, trade and exchange, and the wider Binance ecosystem includes ICOs, mining and much more. Trading fees are pretty attractive, especially if you pay them in Binance coin. The site can be a little overwhelming for newcomers, but many people like it once they learn its intricacies.
This is a UK-based site that allows you to buy cryptocurrency or join a mining pool. You can buy and sell major cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, XRP and Litecoin, and fiat transfers of pound sterling into your bank account are rapid if you sell crypto there.
This European cryptocurrency exchange allows you to buy cryptocurrency using a debit card, credit card, an online bank transfer, an e-wallet like Skrill or Neteller, or more niche options including Sofort and GiroPay. It is known for low fees, ease of use, high limits and strong trustworthiness, and it also covers a wide range of cryptocurrencies, so it is another good choice for anyone wondering where to buy cryptocurrency.
You have probably seen the eToro ads featuring Alec Baldwin and a sock puppet, as they are almost ubiquitous on YouTube and other online platforms. eToro is famous for allowing people to copy traders they admire, but it also allows you to buy cryptocurrency, sell it and go long or short on how certain cryptocurrencies will perform. It is quick and blessed with a clean interface, while the limits are pretty high, but it does not cover as many cryptocurrencies as certain high-profile rivals.
This is now one of the world’s oldest cryptocurrency exchanges, as it was founded more than a decade ago. It is also among the most popular exchanges by trading volume, which is testament to its high limits, low fees, trusted reputation and strong security record. It is not the most user-friendly site, but it is definitely worthy of your consideration if you want to purchase cryptocurrency.
This site was created by the Winklevoss twins, who were awarded damages from Mark Zuckerberg relating to the founding of Facebook – a tale documented in Hollywood movie The Social Network. They reinvented themselves as crypto gurus, and the site is known for slick service, a polished interface, low fees and good customer service.
There are thousands of different options at your disposal when you decide to buy cryptocurrency. These are the largest and most popular coins:
BTC is by far and away the largest cryptocurrency, accounting for almost two-thirds of the overall market cap for the crypto sector. It was also the original cryptocurrency, created in 2009 by the pseudonymous Satoshi Nakamoto. The supply of Bitcoin is capped at 21 million coins, and the mining difficulty continues to grow harder, so the price has soared over the past decade. Many see Bitcoin as a store of value, essentially a digital version of gold, but it can also be used to buy a huge range of goods and services.
Ethereum is actually a decentralized financial network and Ether is the name of the native token on the blockchain. Ether is easily the world’s second largest cryptocurrency. Many cryptocurrencies run on the Ethereum network, but Ether is the largest and it forms a key component in many investors’ portfolios.
This is a stablecoin designed to track the price of the US dollar. The initial sales pitch was that the company behind it would hold a dollar for every Tether coin (USDT) issued. That is not quite the case any longer, but USDT does a good job of following the price of the dollar, so it is an attractive cryptocurrency for anyone that wants to avoid volatility.
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source. The native coin is called ADA. Cardano is similar to Ethereum, and was actually set up by one of Ethereum’s co-founders.
Another Ethereum co-founder set up Polkadot to enable cross-blockchain transfers of any type of data or asset, not just tokens. The Polkadot token (DOT) is the native coin for the network.
This is the native token for the Ripple network. At one point, XRP became the second largest cryptocurrency by market cap. It is not a decentralized cryptocurrency, so many argue that it goes against the spirit of the crypto project, but it remains popular, despite legal troubles in the United States.
Charlie Lee created this coin in 2011 to serve as the “silver to Bitcoin’s gold”. It is similar to Bitcoin, but allows smaller transactions to be facilitated quicker.
The native cryptocurrency of the Binance exchange and ecosystem.
A cryptocurrency created in a hard fork from Bitcoin in 2017 following a disagreement in the community about Bitcoin’s future direction. It is designed to solve scalability issues with Bitcoin and allow much quicker transactions, but it really splits opinion.
Once you decide which cryptocurrency you would like to buy, you have to find a site that sells it. Most exchanges sell Bitcoin and Ether, but the range of altcoins varies. Binance sells a large range of cryptocurrencies, so we have used it for this step-by-step guide on how to buy cryptocurrency:
You now know how to buy cryptocurrency and you should have a good idea of where to buy cryptocurrency. These tips should help you stay safe and get the best deal possible:
Once you buy cryptocurrency, you need to figure out where to store it. One option is to leave it in your exchange account. This is very convenient, but it is known as a “hot wallet”, because it is not particularly safe. Many crypto exchanges have been hacked over the years, resulting in the theft of thousands of Bitcoins and other cryptocurrencies, so it is generally better to move your coins to an external wallet.
That might not be the case if you plan to buy cryptocurrency and trade it on a regular basis, but external wallets are usually best if you are holding onto your crypto for a reasonable period of time. Some people enjoy the convenience of software wallets that sit on their desktops or mobile devices. This is certainly a sensible option if you plan on making regular transactions. Exodus is one of the leading providers. It is free, user-friendly and has an exchange built in.
Yet many people want something more secure for holding large amounts of cryptocurrency. Software wallets can also fall prey to hackers and other scam artists when you connect to the internet, so they are less secure than hardware wallets that offer cold, offline storage. You can buy a hardware wallet from a provider such as Ledger or Trezor.
There is an upfront cost involved, but you may find that it is worth the investment for peace of mind. You can alternatively go down the old-school route of printing off a paper wallet at a site like GitHub, but make sure you keep the paper safe. Remember that it is always best to have a wallet whereby you control the private keys, and it should offer strong backup and restore functions.
This article has explained how to buy cryptocurrency as clearly as possible. We have explained what to look for in a cryptocurrency exchange and walked you through the process of buying crypto. You can now go and buy cryptocurrency, but remember to stick to the security advice provided in this article. The sector moves rapidly too, and new places to buy cryptocurrency will spring up on a regular basis, so return to our site for updated news on how best to buy cryptocurrency in order to get the best possible deal.
The best way to buy cryptocurrency is to visit an established crypto exchange with high liquidity and a reputation for trustworthiness and strong security measures. Try to find the crypto exchanges with the most attractive fees, while also bearing things like user experience, customer service and range of cryptocurrencies in mind.
The minimum purchase will vary from exchange to exchange, but it is generally as little as £2 or $2. You certainly do not need to buy a whole Bitcoin, as they are now very expensive. You can buy fractional amounts of the leading cryptocurrencies.
You must first register for an account at a crypto exchange site. You may need to upload proof of ID and address. You can then start to buy cryptocurrency using a fiat currency like pound sterling or the US dollar, before storing them in a dedicated crypto wallet.