Many people who decide to buy their first crypto usually think that it is a complicated process that requires a solid technical background. As soon as they make their first purchase, things change and become super easy.
Actually, all it takes to purchase your first coin is to make an account on one of the crypto exchanges and click ‘buy’. However, there are several things that you also need to know, and we will guide you through them.
What Are The Best Exchanges?
Several great exchanges offer various types of trades. However, if you are new to the whole crypto thing, you might want to go with those which are beginner-friendly. Three sites that stand out from the crowd are Coinbase, Coinmama, and CEX.IO.
As CEX.IO is proved to be the best for people who enter the industry and want to buy their first crypto, we will use this platform as an example.
Step 1: Setup An Account
First of all, you should register on the exchange. The CEX.IO homepage (https://cex.io/) has a button in the upper right corner. Also, there’s an option to log in via one of your social media accounts.
However, we strongly advise that you make a separate account and come up with a new strong password. After all, you are dealing with a website that will handle your finances, so precaution is always a good idea.
Step 2: Choose A deposit method
There are several available methods on CEX.IO which are mostly present on all other platforms: credit and debit cards, bank transfers, SEPA.
The best option for beginners is to go with a card. There’s a special tab in the header menu which will transfer you to the page where you must enter your card details. For linking your card to your profile, provide your card number, its expiry date, and your full name as it is on your ID.
After getting some coins, you’ll be able to buy crypto not only for fiats but also for another crypto.
Step 3: Verification Process
Now, the verification process is where it gets tricky. In order to verify the whole thing, you will have to take a selfie with your banking card next to you and also a picture of your card next to your ID. The AI of the website will automatically scan these photos.
This is a thing that not all of the exchanges require. It is something that many people don’t like, as they prefer to remain anonymous when trading cryptocurrencies. However, it is strongly recommended that you go through this step since that will maximize your safety.
Step 4: Depositing
Once your card is set up, you can deposit your money to the website. You can see two big buttons in the upper right corner for making deposits and withdrawals. For depositing, you need to enter the amount, and CEX.IO will automatically calculate the fee. All you have to do is agree and complete the transaction.
Step 5: The Buying Process
Go to the Buy/Sell tab and choose the currency that you want to buy. Right next to it is the menu to select the fiat that you want to use. Keep in mind that CEX.IO currently supports USD, EUR, GBP, and RUB.
There will be automatic offers to buy cryptos for a fixed price of $200, $500, or $1,000, and the fourth tab will let you manually input the amount. You can set either the amount of crypto units that you want to buy or the amount of fiats that you want to spend. After you make your choice, click Buy and follow the steps required after that.
Step 6: Storing Crypto
The final step is to withdraw cryptos from CEX.IO to a special type of online ledger called a wallet. Go to the Withdraw option next to the Deposit button. Make sure to select the crypto type from the menu and enter the address of your private wallet.
Cryptocurrency wallets store your funds safely, and if you want to hold your coins, sending them to your private ledger is the best option. There are also cold wallets that store your funds offline and make sure that nobody has access to them. They are generally the best option of storing crypto. But you can also keep some money on the exchange for trading purposes, especially if a cold storage is provided.
As you can see, buying your first cryptocurrency is quite simple. We used CEX.IO as the example, but the process is similar on all exchanges. The things that may differ on sites is the verification process, available payment methods, and the currency pairs that are supported. Once you understand your goals and priorities, choose the exchange that will suit you.