How to Buy Cryptocurrency: Complete Step-by-Step Guide 2025

What to know before you buy Cryptocurrency 

Before we discuss how to buy crypto, you should know about the inherent risks. The more informed you are, the more comfortable you will be when you eventually buy cryptocurrency:

• Volatility: Crypto is highly volatile, so prices can rise and fall sharply.
• Security: Your tokens are usually stored in an exchange-hosted "hot" crypto wallet, but can be transferred to your personal crypto wallet. Some exchanges use secure funds to protect against loss (such as Binance's Secure Asset Fund for Users (SAFU)), but there is no widespread protection akin to the FDIC insurance that protects US bank accounts.
• 24/7/365 Trading: Unlike stocks and indices, which are traded during stock market hours, you can buy cryptocurrency around the clock.
• Budget Management: Before using a crypto exchange or investment platform, set a budget and stick to it.

Best Platforms to Buy Cryptocurrency in [current_year] 

In 2024, cryptocurrency exchanges recorded nearly $19 trillion in trading volume. Every day, billions of dollars are traded on thousands of cryptocurrencies across hundreds of exchanges. All exchanges are not equal, though. In addition to variations in interfaces and features, their fees, security, customer support, payment options, and asset selection can all differ greatly.

Here are a few of the best cryptocurrency exchanges in [current_year].

Binance: Join the Biggest Crypto Exchange 

Binance is the world's largest crypto exchange by trading volume. It's a feature-rich investment platform with options for staking, margin trading, spot trading, and futures trading. It accepts 30+ deposit currencies and over 100 for purchasing its 500+ assets, with most currencies/regions limited to debit/credit cards and bank transfers. 

Fees are low, and there's a wealth of information covering everything from new coins to guides on how to buy crypto.

Binance employs the internationally recognized Cryptocurrency Security Standard (CCSS), and stores funds offline in a "cold" crypto wallet for added security.

The platform was hacked in 2019, with the hackers stealing about $40 million worth of Bitcoin (7,000 tokens in total). The company promptly dealt with the issue, though, and compensated affected users using the aforementioned SAFU.

The only downsides to Binance are its complexity and customer support. Support options are available by email and live chat, but the sheer scale of the platform often leads to slow response times. Also, while the many features and trading options are welcome for experienced users, they may be overwhelming—at least initially—for beginners still learning how to buy crypto.

• Pros: Low fees. Many trading options/features. Fund protection.
• Cons: Slow support.
• Minimum Trade: $1
• Assets: 500+
• Fees: Varies. Low overall.
• How to Buy Crypto: Sign up. Verify. Click "Buy Crypto" or "Add Funds". Select the token and amount, choose payment method, and confirm. 

The main Binance platform is not available in the US. However, the company launched the US-compliant Binance.US in 2019.

Coinbase: Earn as you Learn How to Trade Crypto 

Founded in San Francisco, Coinbase is often called the largest US crypto exchange, although it technically operates as a remote-first, decentralized company with no official HQ. It has a simple, user-friendly interface and offers over 250 cryptocurrencies. 

Its "learn to earn" scheme is excellent for beginners, as it guides them through basic video classes and questionnaires—including introductions on how to buy crypto and how-tos on investing—and rewards them with cryptocurrencies.

The fees ultimately depend on the transaction type and asset, and some are on the high side compared to other exchanges. Payment options also vary, including Visa, Mastercard, and bank transfers for most users, and iDeal (Netherlands) and PayPal (many countries in Europe) for some.

As with Binance, customer support is a struggle at times. The 24/7 live chat often directs users through automated chatbots, and it's difficult to speak to a human.

Still, the chatbots are helpful, and there are various troubleshooting guides and FAQs. It's also one of the few platforms that will pay you for learning how to buy crypto.

• Pros: User-friendly. Learn to earn scheme.
• Cons: Automated support. Higher fees.
• Minimum Trade: $1
• Assets: 250+
• Fees: Varies. On the high side.
• How to Buy Crypto: Sign up. Verify. Select "Buy". Choose an asset, amount, and method. Review and confirm.

Kraken: Trade a Wide Selection of Assets Securely 

Kraken offers a huge selection of digital assets, including over 300 cryptocurrencies and many trading pairs. It has excellent phone and chat support, and its accessibility features and guides are great for beginners.

It's not as extensive as Binance, but if you're a beginner still getting to grips with how to buy crypto, it's a solid choice.

However, trading fees can be higher than Coinbase and Binance, and they're not always clear-cut. There are cheaper tiers for high-level traders, but they require volume in excess of $20,000 a month.

Kraken offers various options. Some currencies are limited to instant bank transfer services, but PayPal is available in the USD and GBP, while Canadians can use Interac.

• Pros: Large selection of assets. Great support.
• Cons: High fees.
• Minimum Trade: $1
• Assets: 300+
• Fees: High for entry-level traders.
• How to Buy Crypto: Create, verify, and fund your account. Click "Buy". Choose your asset and amount, and then confirm your order.

Step-by-Step Guide: How to Buy Crypto for the First Time 

Ready to buy Bitcoin or trade altcoins? Here's how to buy crypto in a few simple steps.

Step 1: Choose a Token 

Before you buy, read up on the options and markets. New traders often buy Bitcoin, and it's a solid option, but there are many more cryptocurrencies available. Bitcoin was the first and remains the biggest, but that doesn't mean it's the best for you.

Step 2: Choose Your Platform 

Look for beginner-friendly platforms. Kraken is user-friendly and has great customer support. Coinbase will basically give you coins for learning how to buy crypto.

Once you find your preferred exchange, sign up.

Step 3: Verify Your Identity 

Before you can buy Bitcoin or other cryptocurrencies, you must verify your account.

Exchanges are tightly regulated and follow strict know your customer (KYC) and anti-money laundering (AML) guidelines, so you'll need to confirm your identity using a photo ID.

Step 4: Add a Payment Method 

Fees vary based on your chosen payment method. Check the cashier before depositing, choosing a method that is convenient and doesn't come with high fees.

Step 5: Place Your Order 

You're now ready to buy cryptocurrency. Browse the website's cryptocurrencies, check the transaction fees, and buy.

How to Avoid Scams 

There are risks to using any exchange or investment platform. These sites often use advanced security protocols, but some responsibility lies with the user.

Don't Share Your Details 

Keep your password, crypto wallet, and identifying information safe and don't share them with anyone.

Use a Trusted Site 

Make sure your chosen platform is secure and trusted, and don't be lured to a suspicious site on the promise of a big welcome bonus or fee-free trading.

Don't Click Email Links 

If you receive an email from an exchange warning about account anomalies, visit the site directly.

Stay up to Date with Crypto Scams 

Read scam reports and check the DFPI Scam Checker to stay informed.

Understanding Fees: How to Buy Crypto for Less

If you buy from an exchange—whether you hold it in an exchange crypto wallet or transfer it to your own crypto wallet—you will pay transaction fees.

These vary by transaction type and typically follow a "taker and maker" scheme, with the latter being the one who sells a cryptocurrency and the former being the purchaser. Both fees are typically charged as a percentage of the transaction, but exchanges may also charge fixed amounts for deposits and withdrawals.

The greater your volume, the less you will pay, but lower rates rarely apply until you exceed $10,000 in monthly trading volume.

Learn how to buy crypto for less by searching for exchanges with low fees for your budget and currency/asset.

Navigating Legal and Tax Implications

In most jurisdictions, including the USA and UK, crypto profits are taxed similarly to other investments. If you buy Bitcoin and eventually sell it for a profit, you may need to report it. 

In the US, for example, crypto profits must be reported on Schedule D (Form 1040), Capital Gains and Losses.

Capital gains tax only applies to profits. If you purchase $10,000 Bitcoin and hold it in a crypto wallet, you likely won't owe any tax. The same applies if you sell that Bitcoin for a loss. However, if you sell your Bitcoin for $20,000, tax is due on the $10,000 profit.

There are also some legal aspects to consider. The USA has a legal framework that regulates the exchange of cryptocurrency, allowing individuals to buy cryptocurrency safely. Such frameworks don't exist everywhere, though.

In 2021, El Salvador made Bitcoin the nation's official currency, only to retract this stance several years later, while China banned all cryptocurrency trading and mining, despite holding some of the largest Bitcoin reserves in the world. 

In learning how to buy crypto, it's essential to understand both the legal and tax implications in your jurisdiction, so always check these before you buy cryptocurrency.

Common mistakes when buying Cryptocurrency 

If you're just learning how to buy crypto, you're more prone to making mistakes, such as:

Not Doing Enough Research 

The fact that you're reading a guide on how to buy crypto is a great start, but there's more to learn. Do you know how Bitcoin differs from Ethereum? Do you know why the markets are so volatile?

These are good things to know before you start filling your crypto wallet.

Falling for the FOMO Effect 

The fear of missing out has stung many crypto traders. They see a price rising, hear that it will become the next Bitcoin, and rush to buy it, only for the price to plummet. It's okay to join a gravy train on occasion, but do your research first.

Ignoring Risk Management 

Before you buy cryptocurrency, implement a proper risk management strategy. It should include a budget and maximum deposit/transaction limits. Exchanges often have information and tools for responsible trading—use them and stay safe.

Emotional Trading 

This occurs when users buy cryptocurrency because they are desperately hoping for a sharp price increase or want to recoup losses. Trade with your head, not your heart—buy crypto because you've done your research and not because you need a big profit.

FAQs on How to Buy Crypto