How to buy crypto

What you’ll learn

• What does buying crypto from an exchange mean?
• The process & what you’ll need
• Setting up a payment method
• What happens to the crypto once you buy it?

This is the fourth article in our how to use cryptocurrency section. So far we’ve explained how to safely store cryptocurrency, introducing the crypto wallet. We then moved on to how to make transactions – sending and receiving – before explaining what role an exchange plays in bringing buyers and sellers of cryptocurrency together. 

This article will now walk through the steps for how to buy cryptocurrency for the first time. We are going to use bitcoin for our example, though the steps are largely the same for other cryptocurrencies.

We’ll be using Coinbase as the example exchange – a Centralised Exchange, as discussed in the previous article.. We have no relationship with Coinbase but feel they provide one of the easiest to follow customer journeys for the novice. 

Regardless of which exchange you choose, the process of buying for the first time will start with Sign Up/Security and Verification. The next part of the process – adding funds and buying – can either be combined into Instant Purchase – via debit/credit card – or separated by Linking your Bank Account, followed by the buying step. 

There are pros and cons to each which we highlight.

Instant Purchase With Credit/Debit Card

1. Sign Up/Security
2. Verification
3. Add credit/debit card & buy instantly

Linking Your Bank Account

1. Sign Up/Security 
2. Verification
3. Link bank account
4. Buy cryptocurrency once funds clear