If you're new to the world of crypto, you may feel overwhelmed by the idea of making your first purchase. Fear not, as we are about to walk you through the process!
Having gone through our Crypto 101 Handbook and considered the various aspects, you've finally made the decision to delve into the realm of cryptocurrency ownership. It's time to take the plunge and acquire your initial digital currency!
While this may seem like an exhilarating revelation, you might find yourself at a loss for where to begin. Questions such as which crypto to buy, the choice of currency for the purchase, regulatory considerations, diverse order types, storage options, and many others may flood your mind. Fret not – I'm here to provide some guidance!
This beginner's guide to crypto will delve into the process of purchasing cryptocurrency for the first time and navigating the basics of trading. I will lead you through each step, eliminating any potential confusion. Stay tuned until the end, where I'll reveal the essential post-purchase step for every cryptocurrency newcomer.
Let's dive right in!
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Video Explainer: Transitioning from Fiat to Crypto – Tips on Purchasing Your First Cryptocurrency
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The Steps to Acquiring Your First Cryptocurrency
When contemplating how to purchase crypto using a credit card, the first move involves reaching out to your bank. Though unconventional, this simple step could potentially spare you future complications.
Engaging with your bank might sound peculiar, but it could prevent hassles down the line! Despite the increasing acceptance of cryptocurrencies, some banks still harbor reservations. In extreme cases, your account could even become frozen post-interaction with a crypto exchange. Rest assured, such occurrences are rare and usually resolvable.
Nonetheless, it's prudent to investigate your bank's stance on client crypto purchases to avoid unnecessary headaches.
Analogous to finding a reliable mechanic for your car, selecting the right exchange is crucial while learning to trade cryptocurrency for beginners. Entrusting your funds to a dubious exchange could spell disaster.
So, how do you navigate the maze of selecting the ideal exchange? While a comprehensive guide is merited, the crux involves thorough research on reputable exchange platforms embodying stringent security measures, compliance with regulatory standards, competitive trading fees, and a diverse array of trading pairs.
Choosing the most suitable cryptocurrency exchange may require time and consideration. Patience is key in ensuring a wise selection. For demonstration purposes, we'll use Binance as our exchange of choice. However, the impending steps are largely applicable across other premium exchanges.
Following the exchange selection, the subsequent step entails platform registration and compliance with KYC (Know Your Customer) and AML (Anti-Money Laundering) verification protocols.
The registration process should typically conclude within minutes. After confirming your email, you'll access your exchange dashboard. Prior to further action, the KYC and AML procedures come into play.
. Both of these terms sound very sophisticated and formal, and there's also a specialized segment elaborating on them in great detail, so feel free to explore it! In the meantime, it’s sufficient to say that KYC & AML are akin to unique identity screenings that every aspiring crypto enthusiast has to pass, in order to commence buying, selling, and trading cryptocurrencies on an exchange.
Before you wonder – indeed, these security screenings are obligatory, and no, there’s no secure method to “circumvent” them. This highlights the critical need to select a trustworthy and reputable crypto exchange!
With many exchange platforms, the identity verification process will entail providing personal particulars such as your full name, country of residence, address, date of birth, nationality, some form of identification, and a selfie to complete the basic KYC level on Binance. Most other top-tier exchanges follow similar requirements!
Now, KYC is a broad subject, so I won’t delve into it further. What's important is that, after providing all the aforementioned details, if everything is accurate, your account should be verified shortly, and you’ll be ready to learn how to buy crypto using a credit card for the first time!
This is the part that often perplexes many newcomers to the world of crypto! How exactly do you PURCHASE the crypto you desire? Do you need to deposit funds into your account, or can you acquire directly with your credit or debit card?
Well, let me tell you – it's actually much simpler than it appears! For instance, let’s say you want to buy some Bitcoin. Assuming you’ve registered with a top-rated exchange and not a niche platform, the purchase process should be exceedingly straightforward.
Take Binance, for example. When buying crypto with a credit or debit card, all you need to do is navigate to the “Buy Crypto” section at the top of the exchange’s homepage. Here, you can select the currency you want to pay in, along with the crypto asset you wish to purchase – for example, Bitcoin.
After that, all that’s left to do is enter your credit or debit card details and confirm the purchase. Yes, it truly is that effortless! There’s no need to pre-load your account with funds, and the entire process takes only a few minutes to complete.
You Have Crypto – What's Next?
So, that’s essentially how to buy crypto with a credit card for the first time! Some time ago, this process used to be quite different – much more convoluted and involved many additional steps. However, as crypto becomes increasingly mainstream, one of the main goals of crypto service providers is to make the concept as accessible to complete novices as possible. It's truly appreciated!
At this stage in the beginner's crypto guide, you may be wondering – what's next? There are various ways to utilize your newly-acquired crypto, but for now, let's focus on the first major action you should take after purchasing crypto for the first time – transferring it to a secure cryptocurrency wallet.
Let's think of it this way – imagine you’ve bought a new car. You’re excited to drive it and already planning your road trips. Now, would you drive your new car home and park it in your garage, or would you leave it in the parking lot of a mall?
The answer seems quite obvious, doesn't it? While leaving your car in a parking lot isn’t necessarily a bad move, there's a greater risk of something happening to it than if you were to park it in your garage. Generally speaking, of course.
The same holds true for cryptocurrencies. If you plan to start trading crypto or only hold a small number of coins & tokens, leaving them on an exchange is fine – it's more convenient, and you need not worry about acquiring a wallet.
However, if you’re serious about diving into crypto and intend to make additional purchases in the near future, investing in a well-constructed, leading-edge hardware wallet might be the best decision you make in your crypto journey. Just something to ponder as you manage your new crypto assets!
Notice how I use the term – hardware wallet. While there are numerous software or browser-based crypto wallets available, if you seek optimal security and peace of mind, nothing compares to a top-tier hardware product!
So, that's essentially it for first-time cryptocurrency purchases. Explore the other sections of this Crypto 101 Handbook if you want to delve deeper into the crypto industry!
