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If you’re wondering how to buy cryptocurrency online – the process is actually very simple these days. All you need is an account with an online broker that offers your chosen cryptocurrency and payment method. You do, however, also need to assess how much the broker charges and whether or not the provider is safe.

In this guide, we show you how to buy cryptocurrency online in an easy, safe, and cost-effective way.

How to Buy Cryptocurrency – Quick Steps for 2021

If you’re looking for a quickfire way of how to buy cryptocurrency right now with a trusted and cost-effective trading platform – follow the steps outlined below.

  • Open an account with eToro: First, you’ll need to open an account with eToro – a regulated broker that allows you to buy cryptocurrency on a spread-only basis.
  • Upload ID: Like all regulated crypto brokers, you’ll need to provide a copy of your government-issued ID
  • Deposit: You can deposit funds instantly with Visa, MasterCard, Paypal, and a number of other e-wallets
  • Buy cryptocurrency: Finally, search for the cryptocurrency you want to buy, enter your stake (minimum of $25) and confirm the purchase.

And that’s it – you’ve just bought cryptocurrency at eToro! The digital coins will now appear in your portfolio. At any given time, you can cash your cryptocurrency investment out.

Step 1: Choose a Crypto Trading Platform

If this is your first time learning how to buy cryptocurrency – then you might require a more comprehensive walkthrough. If so, we are going to guide you through the investment process step-by-step.

The first step is to think about where to buy cryptocurrency. After all, there are hundreds of cryptocurrency platforms in the market. To point you in the right direction, below you will find a selection of the best brokers that allow you to buy cryptocurrency safely.

1. eToro – Overall Best Cryptocurrency Trading Platform 2021

etoro logo Irrespective of whether you are a first-time buyer or an experienced trader – eToro is the best place to buy cryptocurrency online and for Bitcoin trading. Used by more than 20 million people, this broker takes regulation very seriously. For those in the US, eToro is approved by the SEC and FINRA.

The broker is also authorized and regulated by the FCA, CySEC, and ASIC. As a result, you can safely buy and sell cryptocurrencies at eToro without needing to worry about security. In terms of what cryptocurrencies you can buy, eToro offers a great selection of major and minor coins. For example, if you want to buy a large-cap coin – eToro offers everything from Bitcoin and Ethereum to Ripple and Dogecoin.

etoro review crypto

If you’re interested in up-and-coming Defi coins, eToro also has you covered. This includes the likes of AAVE, Decentraland, Compound, Chainlink, and Uniswap. Unlike other providers in this industry, eToro allows you to easily buy cryptocurrency with an everyday payment method. This includes debit cards and credit cards, local bank transfers, and e-wallets like Paypal and Neteller.

In terms of minimums, you can buy cryptocurrency from just $25 per trade at eToro. You will, however, need to deposit at least $50 if you’re from the US and $200 in most other countries. If you’re a complete newbie and not quite sure what cryptocurrencies to buy, eToro has a couple of solutions for you. First, you have the eToro CryptoPortfolio. Through a single investment, you will be buying a diversified basket of digital currencies.

bitcoin price chart

The CryptoPortfolio is professionally managed by the team at eToro and thus – is regularly rebalanced. The second option is the eToro Copy Trading tool. This allows you to choose a successful cryptocurrency trader that uses eToro and subsequently copy all of their trades. Both this and the CryptoPortfolio allow you to buy and sell digital currencies without needing to do any research and also by taking advantage of the crypto signals filled by the portfolio that you’re subscribed on.

If you’re also thinking about diversifying into other asset classes to reduce your exposure to cryptocurrencies, you’ll be pleased to know that eToro offers thousands of financial instruments. This includes forex, commodities, indices, ETFs, and stocks from 17 international exchanges. Finally, eToro also offers a fully-fledged mobile app – so you can buy and sell digital currencies irrespective of where you are located!

Pros:

  • Heavily regulated trading platform used by over 20 million people
  • 0% commission on stocks and ETFs
  • Spread-only pricing structure on crypto, indices, forex, and commodities
  • Very easy to use – ideal for beginners
  • Minimum stake starts at $25 per trade
  • Supports debit/credit cards, bank transfers, and e-wallets
  • Copy Trading features promote passive investing

Cons:

  • Charting analysis tools are a bit basic

67% of retail investors lose money trading CFDs at this site

 

2. Binance – Best Crypto Exchange for Buying Small-Cap Coins

binance logo As of mid-2021, there are now more than 10,000 cryptocurrencies in existence. Most, however, are small projects with a low market capitalization and very little exposure. With that said, if you’re looking to build a diversified portfolio of up-and-coming coins, Binance is worth considering.

This is because the platform is often the go-to place for smaller projects that are looking to be listed online. In fact, Binance is home to hundreds of cryptocurrencies that you can buy at competitive fees. In most cases, you will only pay a commission of 0.10% to buy a cryptocurrency and less if you trade larger volumes.

binance review

If you hold a minimum number of Binance Coin tokens, your commission rate will also be reduced. The main issue with Binance is that most of its supported coins cannot be purchased directly with a debit/credit card or bank account. Instead, you need to trade it against another digital token. Let’s take Yearn.finance as a prime example.

If you want to purchase this blockchain asset, you first need to obtain another digital currency, Bitcoin. Then, you would need to swap Bitcoin into Yearn.finance. Although you can purchase Bitcoin and a number of other cryptocurrencies with a debit/credit card – Binance can charge up to 4% in fees. The specific fee will depend on where you live.

binance review

Nevertheless, if you are happy to go through an additional step or two to obtain your chosen cryptocurrency, Binance does offer a number of other benefits. For example, Binance is regarded as a secure platform – with plenty of safeguards in place. This includes its SAFU reserve, cold storage, IP address whitelisting, and 2FA. Plus, Binance offers a savings account that allows you to earn interest on your cryptocurrency holdings.

Pros

  • Maximum commission of 0.10% per slide
  • Supports hundreds of crypto markets
  • Fiat currency facilities available
  • Accounts take minutes to set up
  • Crypto derivatives markets include Bitcoin futures and options
  • Sinigfcant levels of liquidity and trading volume

Cons

  • High fees on debit/credit deposits

Cryptoassets are speculative and carry high volatility levels. Always consider the risks involved.

 

3. Capital.com – Best Crypto Platform for Leveraged CFDs and Short-Selling

capital.com review As you likely know, cryptocurrencies operate in a highly speculative and volatile trading industry. As such, this presents plenty of opportunities to profit from both rising and falling markets if you have the right platform on your side. At the forefront of this is Capital.com – a heavily regulated CFD brokerage.

If you’re new to CFDs, they are simply financial derivatives that track the second-by-second price of an asset in real-time. In turn, you are speculating on the future price of the asset without taking ownership. This can be beneficial for you and your cryptocurrency trading needs for several reasons. First and foremost, Capital.com allows you to trade cryptocurrencies with leverage.

capital.com review crypto

For example, if you place an order on Bitcoin worth $250 and apply leverage of 1:2 – your stake is multiplied by two. As a result, this allows you to increase your cryptocurrency purchasing power. Capital.com also allows you to place sell orders on your chosen digital currency or if you do Bitcoin trading. In doing so, this means that you are speculating on the price of the cryptocurrency going down.

Once again, this allows you to profit irrespective of whether the crypto markets are bullish or bearish. When it comes to CFD trading fees, Capital.com builds everything into the spread. This means that you won’t need to pay any commission when you enter buy and sell positions. In terms of supported markets, Capital.com offers dozens of cryptocurrency pairs. On top of major digital currencies, it also offers heaps of Defi coins.

capital.com review crypto

Much like eToro, Capital.com also gives you access to alternative asset classes. This includes a huge selection of stocks, ETFs, indices, hard metals, energies, agricultural products, currencies, and more. You can get started at Capital.com in minutes and the minimum deposit is set at just $20. Supported payment methods include debit/credit cards, e-wallets, and bank transfers. The broker is regulated by the FCA and CySEC.

Pros:

  • 0% commission and tight spreads
  • Thousands of markets on offer
  • CFD asset classes include crypto, stocks, forex, and commodities
  • Minimum deposit of just $20
  • Supports debit/credit cards and e-wallets
  • Great for beginners
  • MT4 supported
  • Leverage available – limits depend on your location

Cons:

  • You can’y invest in the underlying asset – CFD instruments only

76.25% of retail investor accounts lose money when trading CFDs with this provider.

Read More: Still not sure which broker to pick? Read how we compare trading platforms to help clear the mist!

Step 2: Choose Which Cryptos You Want to Buy

As we mentioned just a moment ago – there are now more than 10,000 cryptocurrencies that you can buy and sell from the comfort of your home. The tricky part is knowing which cryptocurrency to buy. After all, while some digital tokens have made gains in the thousands of percentage points in the past few months alone – others have made a loss.

With this in mind, this section of our guide on how to buy cryptocurrency will now discuss how to choose the right digital asset for your portfolio and trade the crypto signals.

What are the Best Cryptocurrencies to Invest in?

When thinking about the best cryptocurrency to buy – there isn’t a hard and fast solution. This is because the cryptocurrency marketplace, in general, is highly speculative – so price action rarely follows logic. Take Dogecoin as a prime example.

  • For many years, this so-called ‘Joke’ cryptocurrency remained virtually worthless – with the token priced at $0.004 on January 1st, 2021.
  • Five months later in May, the same digital currency hit highs of $0.71.
  • This means that in less than half a year of trading. Dogecoin investors netted gains of over 17,000%.
  • The only reason for this is that Tesla founder and CEO – Elon Musk, continuously spoke about Dogecoin in a positive light.
  • In turn, this spurned people to buy the digital token in the hope it would continue its rapid upward trajectory.

The Dogecoin example shows us that there is often little substance to a cryptocurrency’s rise and fall. Instead, much of the industry is built on fear, greed, and widespread speculation.

With that said, the specific cryptocurrencies that you choose to invest in should align with your attitude towards risk. For example, many would argue that Bitcoin – as the largest and still de-facto cryptocurrency, offers the least amount of risk in this space.

dogecoin price 2021 chart

After all, the digital currency has since surpassed a market valuation of $1 trillion – making it worth more than the vast majority of S&P 500 stocks. On the other hand, the upside potential is going to be limited – meaning returns in the thousands of percentage points could be a thing of the past.

At the other end of the spectrum, you have up-and-coming projects with a significantly smaller market capitalization. For example, Decentraland – a Defi coin project that launched its MANA token in late 2017 – carries a market capitalization of just over $1 billion.

Although this might sound like a high valuation, the upside potential is, of course, much higher than the likes of Bitcoin and Ethereum. Naturally, the risks are also much higher. Ultimately, it’s a wise idea to spend plenty of time thinking about what cryptocurrency to buy through in-depth research.

Buying Altcoins

For those unaware, any cryptocurrency that isn’t Bitcoin is classed as an altcoin. These coins vary in size and substance. For example, Ethereum is by far the largest altcoin – with an all-time high market capitalization of almost $500 billion.

You then have altcoins that are barely known – with a valuation of just a couple of million dollars. Depending on the size of the altcoin project, you might be able to purchase your chosen token from a regulated broker like eToro.

However, if your chosen altcoin carries a really small market capitalization, then you might need to use an exchange like Binance. As we covered earlier, this might require you to first buy a major cryptocurrency like Bitcoin and then swap it for the altcoin you wish to obtain.

Buy Defi Coins

Many in the digital currency industry argue that Defi coins are the next big thing. For those unaware, Defi refers to the decentralized finance arena. This up-and-coming phenomenon aims to revolutionize traditional financial services by removing the need to go through a third party.

  • Potential sectors that Defi platforms are targeting include financial services, insurance, lending, banking, and more.
  • In the vast majority of cases, these decentralized finance platforms will have their own cryptocurrency token – which is known as a Defi coin.
  • As a new and somewhat unproven industry, Defi coins offer both a high reward and risk profile.In other words, while the profit upside could be huge, as are the risks.Over the course of the first half of 2021, Defi coins have led the way in term of financial gains For example, Uniswap saw gains of 1,100% in its first 8 months of trading, while the PancakeSwap token returned over 5,000% in half the time. In addition to capital gains, some Defi coins also offer the chance to earn regular income on your investment.

defi coins by market capi

One such example is a token named Defi Coin – which at the time of writing, is in its pre-sale launch stage. This innovative project promotes long-term investing by penalizing sellers with a 10% tax. Most interestingly, half of this taxation is distributed to existing Defi Coin holders, meaning that backers earn a dividend.

Understanding the Benefits & Risks of Buying Crypto

Throughout this guide on how to buy cryptocurrency – we have discussed both the benefits and risks of investing in digital assets, even if you trade crypto signals. To recap, the main benefit is that you are investing in a financial asset that is still new – at least in comparison to the stock markets.

In turn, the upside potential – when choosing the right cryptocurrency, has been significant over the past few years. On the other hand, Bitcoin trading and cryptocurrencies, in general, are super-volatile and thus – driven by widespread speculation. As a result, there is every chance that you will lose money by purchasing cryptocurrency.

etoro crypto portfolio review

One of the best ways that you can mitigate your risk is to ensure you are not over-exposed. For example, rather than buying just one or two digital currencies, it might be worth considering the previously discussed eToro CryptoPortoflio.

Not only will this give you access to a diversified basket of cryptocurrencies – but the portfolio is weighted based on market capitalization. For example, at the time of writing, Bitcoin carries a weighting of 21.95% while Dash and Bitcoin Cash are both at 4.97%.

Step 3: Choose Your Payment Method

So now that we have discussed the many considerations that need to be made when choosing a cryptocurrency to invest in, the next step is to think about how you wish to pay for your purchase.

Below we discuss some of the many ways in which you can pay for your digital currency investment.

Buy Cryptocurrency With Paypal

Paypal offers a fast, simple, and highly secure way of buying digital currencies from the comforts of home. If you are thinking of how to buy cryptocurrency with Paypal – the best option in the market is eToro. On top of other e-wallets like Skrill and Neteller, eToro allows you to deposit funds with Paypal instantly.

Buy Cryptocurrency With a Debit or Credit Card

Most first-timers will look to buy cryptocurrency with a debit or credit card. Brokers like eToro, Binance, and Capital.com all support Visa and MasterCard – so that covers the vast majority of consumers. All you need to do is enter your card details and deposit amount – and the transactions will be processed instantly.

With that said – and much like using Paypal, debit and credit card crypto purchases will require you to go through a KYC (Know Your Customer) process. This means that you need to upload a copy of your ID before you can proceed with your investment.

buy ethereum with debit card

The aforementioned brokers will typically be able to verify your ID document instantly – which is great. However, plenty of other brokers in this industry rely on manual verification processes – which can take days to complete.

In terms of fees, eToro charges non-US customers just 0.5% of the deposit amount. Those based in the US pay no fees at all. In comparison, the likes of Coinbase charge 3.99% on debit/credit card deposits – which is huge.

Buy With Another Cryptocurrency

The other option you have when learning how to buy cryptocurrency is to pay for your purchase with an alternative digital token. For example, if you wanted to buy Uniswap, you can obtain the token by exchanging it from Bitcoin. This payment method comes with its pros and cons.

  • In terms of the positives, if you are only dealing in cryptocurrency as opposed to fiat money, there is rarely a requirement to go through a KYC process.
  • In turn, this means that you can avoid giving your personal information, and thus – you won’t need to upload any ID documents.

On the flip side, the actual process of swapping one cryptocurrency into another can be cumbersome and time-consuming. This is especially the case if you don’t currently own any digital currencies – as you would first need to use a debit/credit card, e-wallet, or bank account to buy Bitcoin (or another major cryptocurrency).

Step 4: Buy Cryptocurrency

Now that you have had a chance to think about your preferred payment method, we are now going to conclude our guide by showing you how to buy cryptocurrency with eToro.

First, you will need to quickly open an account with the broker. This simply requires some basic personal information and contact details. After verifying your mobile number, you will then be asked to upload a copy of your ID. As we mentioned just a moment ago, eToro will usually be able to verify your ID instantly.

etoro sign up

Next, it’s time to make a deposit. eToro supports debit/credit cards, Paypal, and other e-wallets – all of which are processed instantly. Bank transfers are also an option but this can taker a few days to process.

Now that you have funds in your eToro account, you can search for the cryptocurrency that you want to buy. You can do this easily by entering the name of the digital currency into the search box and clicking on the result that loads. In our example below, we are searching for Dogecoin.

how to buy dogecoin on etoro

The final step is to complete a buy order on your chosen cryptocurrency. This part of the process is simple as you only need to enter your investment stake into the ‘Amount’ box. The minimum is just $25 at eToro and you don’t need to buy a full coin.

how to buy dogecoin on etoro

Once you enter your stake in USD, you can see how many tokens (or fractional tokens) you will get. In our example, a $25 stake will get us 79.04 Dogecoin tokens. Finally, click on the ‘Open Trade’ button to complete your cryptocurrency purchase!

eToro – Overall Best Cryptocurrency Trading Platform 2021

This beginner’s guide has explained everything there is to know when learning how to buy cryptocurrency online. Not only have we discussed the best brokers to complete the purchase with – but we’ve also explained what risks and potential rewards you need to consider.

If you’re ready to take the leap by investing in a digital currency right now – eToro is the best broker for the job. You can invest from just $25 into your chosen crypto asset and the broker supports debit/credit cards and Paypal. Additionally, eToro is heavily regulated and offers some of the lowest trading fees in the space.

etoro logo

 

67% of retail investors lose money trading CFDs at this site

FAQs

What is the best way to buy Cryptocurrency?

The best way to buy cryptocurrency is through a regulated online broker. This will allow you to buy cryptocurrency in a safe and secure environment and get you access to fiat deposit facilities.

Where to buy cryptocurrency online?

If you're wondering where to buy cryptocurrency, there are hundreds of exchanges and brokers to choose from. In choosing the right platform for you, be sure to explore factors surrounding regulation, fees, payment types, and user-friendliness. You also need to ensure the platform supports your preferred cryptocurrencies.

What is the best platform to buy cryptocurrency?

We found that the best platform to buy cryptocurrency in 2021 is eToro. This trusted broker is used by more than 20 million people and is regulated by several reputable financial bodies. Plus, the platform offers super low fees and you can invest from just $25 per crypto trade. If you're more of a short-term speculator, the best platform to buy cryptocurrency CFD is Capital.com. This provider allows you to trade cryptocurrency with leverage at 0% commission. Other popular platforms include Gemini and Robinhood.

Where to buy cryptocurrency with Paypal?

If you're wondering where to buy cryptocurrency with Paypal, eToro allows you to do this in minutes. There is no deposit fee if you're based in the US and an FX charge of just 0.5% for all other nationalities.

How much money do you need to buy cryptocurrencies?

Firstly, we should mention that there is no requirement to buy a full cryptocurrency - as digital tokens can be fractionized into much smaller amounts. This is particularly important, when you consider that Bitcoin is now trading in the tens of thousands of dollars. With that said, the minimum investment requirement is actually set by the broker or exchange you choose to sign up with. At eToro, for example, the minimum crypto trade is just $25.

Is it safe to buy cryptocurrency online?

Most cryptocurrency exchanges operate without a license - so these platforms should be avoided. On the other hand, you have brokers like eToro and Capital.com that are regulated by several financial bodies. When using these platforms, you can buy and sell crypto in a safe and secure environment.

Can you short cryptocurrencies?

The easiest way to short cryptocurrencies is to use a regulated broker that offers CFDs. Shorting is possible at both eToro and Capital.com by simply placing a sell order on the digital token you think will go down in value. In terms of cashing out, all you need to do is place a buy order to close the position.

 

Kane Pepi
Kane Pepi

Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Kane has also written for websites such as MoneyCheck, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers.

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