If you are new to the crypto world, you might still be trying to figure out how to buy cryptocurrency 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 exactly 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 which exist and which make it possible to do such a thing are numerous (and more or less reliable). It is therefore not easy to navigate.
In order to make your job easier and above all to allow you to invest on 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 2022
As we could mention in our comparison of crypto platforms , eToro is in our opinion the benchmark in 2022. 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 out). 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 (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.
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 actually be able to store and buy cryptocurrency 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 out, 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 clearly 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 out, 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 is able to reduce them as much as possible. Even professionals (hedge funds…) use its platform for trading.
Binance also offers the possibility of staking (in order to generate returns with your cryptos), of obtaining a Binance Visa card in order 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.
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 a number of 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
- Access to the platform but with limitations
As you will have understood, 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. 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 less choices in order to make a deposit.
The most generous platform at this level remains eToro. It allows you to deposit funds using your bank card (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 in order 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 , which is not the case for all platforms. This is a reassuring point.
4. Buy the crypto of your choice
Do you want 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 over the purchased crypto.
Which crypto to buy in 2022?
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 own 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)
- Polka dots (DOT)
- Uniswap (UNI)
- Litecoin (LTC)
- Chainlink (LINK)
- Earth (MOON)
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. 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 be keen 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 the 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 on a cold wallet. For those who use eToro, the question of storage will not arise.
How to choose the platform on which to buy a crypto? Our advices
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 in order 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 cryptocurrency for the first time, it is better that the whole 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.
FAQ: crypto platforms and exchanges
To conclude this comparison of crypto platforms in 2021, we are going to take the time to answer the most common questions.
How to buy cryptocurrency?
To buy cryptocurrency (Bitcoin, Ether, BNB, Cardano, Ripple, Dogecoin etc), you will first have to create an account on one of the best crypto trading sites featured in our top 5. doing such a thing, you will avoid a lot of traps and will be able to benefit from reliable, secure, or even regulated platforms for some.
Once you have been able to open an account on the crypto exchange of your choice, you will need to deposit funds in your investor account. It will of course be possible to deposit the monetary currency of your choice (Euro, American dollar, etc.). Depending on your choice of crypto platform, it will be possible to deposit funds by credit card, wire transfer, PayPal, Apple Pay, and more. You can also very well use virtual currencies to buy or trade other crypto-currencies.
As soon as your funds are accessible, all you have to do is choose the desired trading pair (For example: BTC / EUR to convert your euros into Bitcoin) and then buy the crypto of your choice. Note that no matter which trading platform you choose, fees will be incurred by it.
How to open an account on a crypto platform?
Creating an account on a crypto platform or exchange is relatively simple. No matter which site you choose to invest in, you will need to provide virtually the same information. You will usually need to provide an email address and set a password.
After that will come the step of verifying your identity and your account (also called KYC or Know Your Customer in English). The reason for this is that the cryptocurrency exchange platforms presented in our ranking must meet the requirements of regulators (the governments of different countries ). This is something quite common since you will also have to do it to open a bank account or when creating an account to invest in the stock market.
During this verification process, the crypto platform will ask you for your name, first name, address, etc. You will also need to provide a copy of an identity document as well as proof of address. If we can afford a word of advice: don’t neglect the verification. Without it, you will not be able to take full advantage of the best cryptocurrency exchange sites (from a trading point of view, deposits, withdrawals, etc.).
What is a crypto platform / exchange?
A crypto platform (we can also call it “exchange”) refers to an online broker who allows you to buy, trade, and of course sell cryptocurrency. It is exactly the same as a stock broker, with the only difference that it will allow you to invest in crypto-assets. You will simply have to deposit funds in the currency of your choice (euros, dollars, Swiss francs …) and use them to buy crypto. Through these sites, it will often be possible to save your assets with the aim of generating interest.
How much money does it take to invest in cryptocurrencies?
Cryptocurrency platforms and exchanges all have different requirements. To give you an idea, the two best services that we feature in our comparator require a first deposit of around € 43 for eToro (the equivalent of $ 50 – this may vary slightly depending on the conversion rate) and 80 € for ZenGo. The advantage with these is that you will be able to buy parts of a cryptocurrency. For example, the price of Bitcoin being very high, you will have no trouble buying a portion of a Bitcoin. You don’t have to buy a full Bitcoin. If you have constraints at this level, be sure to choose the crypto platform that you deem to be the best from a minimum deposit point of view.
What is crypto trading?
Crypto trading is simply the act of trading cryptocurrency. The term “trader” means that you are actively buying and reselling digital assets. The objective is to generate capital gain on a relatively short position taken over time (a few minutes, a few hours, or even a few days). By trading cryptocurrency, platforms like eToro will give you the opportunity to take advantage of advanced features. For example, you will be able to place a limit order, apply leverage (to boost the performance of your investment), and a lot of other things.