How to Buy Crypto (Storing, Depositing, and Withdrawing)

What is the Best Way to Buy Cryptocurrency?

The best way to buy cryptocurrency will depend on what you’re looking to do. If you want a quick and easy way to convert fiat currency to crypto, your best bet is to use an exchange or make an in-wallet purchase. These may come with higher fees, but they’re available 24 hours a day, 7 days a week.

If you want to keep your cryptocurrency purchases private, your best option is to use a Bitcoin ATM. These machines require no user verification or KYC; anyone can come up, insert cash, and receive their Bitcoin. Another option for private transactions is to do a peer-to-peer crypto transaction. Many sites are available to facilitate these transactions, and you only have to pay the crypto transaction fees. However, there are risks when making trades with people you don’t know, so always exercise caution.

For their convenience and accessibility, we recommend using crypto exchanges to purchase your cryptocurrency. It’s what they were built to do, and they offer safety and security as well as convenience.

Cryptocurrency Fees

You’ll have to get used to the fees when making crypto purchases. There are fees whenever you make a transaction, fees for depositing to exchanges, fees for withdrawing from exchanges, fees for using Bitcoin ATMs – it will seem like all you’re doing is paying fees.

This is why shopping around is essential when looking for a place to buy your cryptocurrency. Different exchanges will have different policies when it comes to fees. For example, some won’t charge for deposits; some won’t charge for withdrawals, etc. A good rule of thumb is the more convenient your purchasing is, the higher the fees. However, some exchanges offer very low fees while being secure and convenient places to buy crypto. To learn more about the best exchanges, check out our article on the best crypto exchanges.

Guide to Buying From an Exchange

Buying crypto from an exchange is one of the most convenient ways to make a cryptocurrency purchase. While the process may differ slightly from one exchange to another, they all follow the same broad strokes, so we’ve created a guide to help you make your first cryptocurrency purchase.

1. Choose Your Exchange – The first thing you’ll need to do is choose the crypto exchange you will use to make your purchase. Each offers different fees, security, and additional features such as staking, so do your research before you make your decision.
2. Create Your Account – Once you’ve chosen your exchange, you’ll need to create your account. It’s very similar to signing up to an online casino site. You’ll be asked routine questions like your name, age, and address. However, it’s important to note that not all exchanges offer services to every country, so check availability in your area before you sign up.
3. Verify Your Identity – After creating your account, you’ll need to complete a KYC check. This usually requires sending proof of ID (such as a passport, driving license, etc.) and proof of address (utility bill, tax document, bank document, etc.). While this may seem inconvenient, most regulated exchanges are lawfully required to carry out these checks, so it’s a good sign if they’re asking you to do it.
4. Deposit Fiat – The most common ways you can deposit fiat currency to your exchange are by a credit/debit card or bank transfer. Card payments will often have higher fees and lower limits, but they are more convenient for smaller transactions.
5. Purchase Cryptocurrency – Once you’ve deposited your fiat currency, you can head to the “market” section of your exchange. Here you can choose your currency pairing (USD/BTC, USD/ETH, etc.) and choose how much you want to buy. If you’re a beginner, it’s best to choose the market buy option, as that immediately makes the purchase at market price. It’s important to be aware of fees when selecting a purchasing amount, as you must factor that in.

It’s as easy as that! You’ve just made your first cryptocurrency purchase! But now you have your cryptocurrency, what should you do with it?

How To Sell Your Cryptocurrency

When it comes time to sell your cryptocurrency, it’s just as easy as buying it – if not more so! First, if your cryptocurrency is already on the exchange, you find the currency pairing that fits yours and the fiat currency you want to receive. Then, once you’ve found it, input the amount of cryptocurrency you’d like to sell. Again, it’s much simpler to use the market sell option if you’re a beginner, as it will immediately sell your crypto at the current market price.

If your crypto isn’t already on the exchange, you’ll have to transfer it across. Make sure to triple-check the address you’re sending your crypto to, as there is no recourse if you send it to the wrong address. It’s best practice to send a small transaction first to ensure you have the correct address before sending the total amount.

Once you’ve received your fiat currency, you can withdraw it using the banking method you used to make your deposit. Be aware of any withdrawal fees/limits that apply to your chosen banking method.

One important thing to note when selling your cryptocurrency is the tax implications. Many governments view crypto the same way they view the stock market. You’ll be subject to capital gains tax once you’ve sold your crypto. Keep track of any profits or losses so you can report them to your local tax authority and check the crypto tax regulations in your area.

Summary

While it may seem a little complicated initially, buying, storing, and selling cryptocurrency is simple. If you’re using a convenient method such as a crypto exchange, you can have your account created and verified and your crypto purchased within a few minutes. Once you’ve made your first crypto purchase, you can use it in any number of ways, from depositing to a crypto casino site to buying some Tesla merch!