If you are new to the crypto world, you may 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 produce a step-by-step guide that will explain how to invest, buy, but also trade crypto-currencies.
Note that this simple guide that follows, although 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.
Choose an exchange or platform that is reliable
A question often comes up these days on the Internet: where to buy crypto? It must be said that the number of services that exist and that allow you to do such a thing are numerous (and more or less reliable).
It is therefore not easy to find it. 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. But for other helping tools, you can go url!
eToro: the best crypto trading platform in 2022
As we were able to mention in our comparison of crypto platforms, in our opinion eToro is the benchmark in 2022. There is simply no better service for trading digital assets. Note that in our coutry, eToro allows CFD trading on cryptocurrencies. A CFD is a contract for difference. This means that you will not buy the underlying asset (the cryptocurrency) but that you will still have the same exposure to the evolution of its price. The advantage?
Greater simplicity and the fact that you will not have to manage the storage and security aspect of your investments. By opting for this platform rather than another, you will have access to a lot of different crypto-currencies (more than thirty), relatively low fees, as well as an interface that is easy to understand and use (ideal for those who are starting). Of course, eToro offers a mobile application that will allow you to trade any asset from your smartphone or tablet.
In terms of functionality, the platform is a reference 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 on 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.
Do you want to test eToro without taking any risks? This is possible thanks to its demo account which will allow you to invest up to $100,000 in virtual funds. Once you feel ready, you can invest real money in the cryptos of your choice.
Binance: the alternative to buy crypto-currencies
An excellent 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 (the Binance coin), Bitcoin, Ether,… Indeed, Binance does not trade CFDs (Contracts 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 cryptocurrency and hold it is its big advantage versus an eToro. Purists will appreciate, but this involves notions of security and real research work. With an eToro, you will not have that and the result (if you are looking to make profits) 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 not just about that. It is above all a crypto-currency exchange platform that provides access to an impressive number of assets. In total, you can invest in several hundred digital assets. There’s something for everyone, that’s a real argument. But if you are starting out, it is better to focus on the most popular virtual currencies.
On the fee side, Binance is not left out since it turns out to be the exchange with the lowest fees. Because it is the largest exchange in the world, it is able to reduce them as much as possible. Even professionals (hedge funds, etc.) use its platform for trading.
Binance is also the possibility of staking (in order to generate returns with your cryptos), to obtain a Binance Visa card in order to make purchases in cryptos, to take advantage of a launchpad allowing you to participate in new projects exclusive tools as well as many tools for trading with leverage. eToro also offers it, but it limits the leverage to x2 so as not to lose its customers.
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 strengthening of regulatory requirements.
Virtually all platforms have implemented an identity verification system for their users to prevent money laundering. This requires you to send a number of documents. Why should you verify your account and prove your identity with a platform allowing the purchase and/or trading of cryptos? For the simple and good reason that without it, you will have no 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 will save 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. Generally, the verification process is done easily and quickly. You don’t need to worry. Just follow the process!
Are you now ready to buy cryptocurrencies? We hope this post was useful. Thank you for reading!