How to buy crypto?

Buying and trading cryptocurrency has become increasingly popular over the past decade. Its decentralized nature, accessibility, and anonymity are some of the reasons crypto has become so appealing. And now more and more investors are turning towards this form of trading. 

But how exactly do you buy crypto? It’s one of the biggest questions faced by those who are new to the game and the good thing is, it’s easier than you think. 

With the growth of crypto comes varying options for buying it. Most notably, crypto can be bought through three separate means: online exchanges, brokers, and P2P platforms. Catering to different levels of experience with varying levels of flexibility and payment methods, each option offers unique benefits. 

It’s important you choose a platform that’s secure and easy to use, to ensure your assets are kept safe and your crypto trading remains accessible. In this article, we’ll go over all the different methods so you know everything there is to know about how to buy crypto.

How does buying crypto work?

First, let’s take a look at the different steps involved with buying crypto. 

1. Choose a platform: Select the platform that’s most suitable for your needs. You’ve got dedicated cryptocurrency exchanges which can be decentralized or centralized like OKX. Traditional brokers are also available, which trade in crypto as well as other assets such as stock and bonds. Finally, you have P2P (peer-to-peer) platforms which allow direct transactions between the seller and buyer.  

2. Create an account: Once you’ve settled on a platform, you’ll have to set up an account and verify your identity. This usually requires certain information such as your name and email address, but there may also be legal requirements to help with verification such as KYC (know your customer). Keep in mind, these security measures have been put in place for your safety, so you can buy crypto with complete confidence. 

3. Start depositing funds: To start buying crypto, you need to fund your account. This is typically done through bank transfers, e-wallets such as Paypal or with your debit/credit card. 

4. Choose your preferred cryptocurrency: With the funds in your account, you can start looking at the different cryptocurrencies available on the trading section of your chosen platform. Bitcoin, Ethereum, Dogecoin, and Pi are some of the more popular options at the moment. But depending on the platform, there will be tons of options for you to choose from, including altcoins. 

5. Make the purchase: When you’ve selected the cryptocurrency you want, the next step is to buy it. Select the amount you want, review all the details, and then click confirm. 

Congratulations! You’ve just bought crypto. 

Once the transaction is through, you need to make sure you store your crypto in a safe place. The most common place is in a digital wallet. Some exchange platforms will provide this service automatically, making it as simple as possible to store your cryptocurrency. However, you can also find external providers who supply wallet storage as well.

Ways to buy cryptocurrency

Now that you know how to buy cryptocurrency, let’s take a closer look at the different methods available. From crypto exchanges to P2P platforms, we’ll show you what each method offers, the process of buying crypto with them, and any pros and cons. 

It’s important to keep in mind that each one offers something unique, so choosing one will depend entirely on your needs. 

Buying crypto using crypto exchanges

One of the most common ways to buy cryptocurrency is through crypto exchanges. These online platforms allow for straightforward trading, with dedicated processes in place to ensure seamless and safe transactions.

There are three main types of crypto exchanges: 

• Centralized (CEX): Includes platforms like OKX, which are backed by a central authority, usually the government, to ensure greater levels of safety, stability, and user-friendly experiences. This is one of the most popular options, usually selected by individual traders as well as institutional traders, particularly for its security and high liquidity. 

• Decentralized (DEX): The opposite of centralized platforms, decentralized exchanges operate without the central authority or intermediary. They offer more privacy and anonymity, however there are risks associated with fewer protections and regulations in place. 

• All-in-one: Combines multiple exchanges, offering centralized and decentralized options for better flexibility. 

OKX is a great example of a crypto exchange, offering both centralized and decentralized services. It supports multiple payment options and comes with a wealth of security measures including KYC and AML, to make crypto trading as straightforward and safe as possible. Here’s a quick step-by-step guide of how to buy crypto on OKX: 

1. Sign up and verify your identity: First, create your account. You’ll be asked to register with your name, email, and region before completing the KYC process to verify your identity. This will require ID documents such as your passport or driving licence, as well as proof of address and a selfie for facial recognition. With fast approval times, you’ll have access to your account within 24 hours.  

2. Deposit your funds: Navigate to the ‘buy crypto’ section on your device and choose your payment method. OKX allows bank transfers as well as debit/credit payments for a range of different currencies.  

3. Select cryptocurrency: We offer a wide range of cryptocurrencies for you to choose from, including Bitcoin, XRP, Ethereum, Cardano and more. Each one is displayed at the real-time exchange rate so you get the most up-to-date prices. 

4. Buy your crypto: Review transaction details then complete the purchase. 

5. Store in your OKX wallet: Your crypto will automatically be stored in your OKX wallet and kept secure for easy trading. Alternatively, you can transfer to a private wallet, such as the OKX Wallet, if you prefer. 

Crypto exchange platforms like OKX are specifically designed to make crypto trading safe, straightforward and efficient. Still not sure if it’s the platform for you? Here’s a snapshot of the pros and cons of using OKX for purchasing cryptocurrency.

While OKX may have some minor drawbacks, it’s still one of the most accessible, secure, and flexible ways to purchase cryptocurrency.  

Buying crypto using a peer-to-peer trading platform

Next up, we’ve got peer-to-peer trading platforms, otherwise known as P2P. These sites are decentralized, allowing users to buy and sell crypto directly with one another without the need for a middle man. 

A price is agreed upon by both parties and the transaction completed in the way that suits them best, e.g. bank transfer, debit/credit card, PayPal etc. Third-party escrow services are then used to protect the transactions and prevent fraud.

Here’s a more detailed overview of the steps involved with P2P trading:

1. Registration: Create an account on your chosen P2P marketplace. Just like crypto exchanges, there may be a KYC verification process as well, however this is less common.

2. Browse trade listings: Sellers post trade offer listings for those who want to buy crypto. Listings usually include prices and available payment methods. Choose the one that meets your requirements. 

3. Place your order: Initiate the trade with the seller. The crypto will then be held in an escrow account until the payment has been confirmed. 

4. Payment: Pay the seller based on their preferred payment method. 

5. Store in a secure wallet: Once the payment is complete and your crypto will be released from escrow. Make sure you store it somewhere safe, either in a private wallet or the one provided by the P2P platform.  

In some cases, a P2P marketplace may automatically match buyers and sellers based on their preferences. This makes trading that much more convenient.  

P2P platforms are appealing for a number of reasons. For many, its decentralized process acts as the biggest draw, however this can be a negative for those who want more secure trading. It’s important you balance the pros and cons with this one carefully. 

Buying crypto using a brokerage

Finally, when looking at how to purchase cryptocurrency, using a brokerage is considered the third most popular system. Brokerages act as a go-between, allowing users to buy crypto directly from the site rather than an individual trader. It’s commonly compared to the process of buying stocks, with these platforms often facilitating the trades of other assets too. 

A broker site often quotes the prices of the trade to the buyer and then handles the transaction side of things so you don’t have to. It’s completely straightforward and not as hands-on as other options. 

Here’s a step-by-step guide of how to get cryptocurrency with a broker: 

1. Create an account: Sign up to your preferred brokerage platform and complete identity verification. Again, this is done through KYC and may require you to upload any necessary ID documents such as your passport or proof of address.  

2. Deposit funds: Deposit fiat currency through bank transfer, credit/debit card etc. 

3. Choose your cryptocurrency: Select the cryptocurrency you want to buy. This could be Ethereum, Bitcoin, Dogecoin etc. 

4. Buy the crypto: Input the amount you want to buy and confirm the transaction. The brokerage will handle the rest of the purchase, ensuring funds are transferred quickly. 

5. Store your crypto: Some brokerages will have wallets for you to store your crypto securely. Or you can transfer it to a private wallet of your choosing. 

Choosing to buy crypto with a brokerage offers a user-friendly and accessible way to trade. However, as with our other options, there are a number of pros and cons. Let’s take a closer look so you can make the most informed decision. 

Brokerages are one of the most popular platforms for beginners and it’s easy to see why. However, with less flexibility and higher fees, it may not be the best option long-term or for more experienced investors.  

What is the best way to buy crypto?

This depends entirely on your needs and what you’re looking for when buying crypto. As you can see, each method has benefits and challenges, so how do you decide the best way to buy cryptocurrency for you?

If you’re completely new to crypto, you may want to look at using a broker. It’s simple, user-friendly, and tends to include fewer steps, so you can take a more hands-off approach. It’s also ideal for those who only want to make small transactions and investments. 

If you’re looking for greater levels of privacy and anonymity, a P2P platform might be the one for you. You’ll also get more direct control over your trade and fewer verification steps, which is why this one is better for more experienced traders. However, just keep in mind that there are fewer security measures involved, so your trades won’t be as protected as they would be with other methods. 

Finally, crypto exchanges are most ideal if you're planning on making more frequent trades and want that extra level of safety. These sites prioritize security, while offering more advanced tools, high withdrawals, and high liquidity. They are also more likely to offer a wider selection of cryptocurrencies for you to choose from. 

Ultimately, it’s completely up to you which method you choose. We’d recommend assessing each option carefully before jumping in. After all, you want to make the most informed decision before making this type of investment. 

How to buy crypto with credit card or PayPal?

Most platforms allow you to buy crypto through multiple means, including bank transfers or through your debit card. Two of the main ways many traders choose to buy cryptocurrency is either through a credit card or Paypal. 

Both methods allow for seamless and instant transactions, which is why they’ve become so popular. But let’s explore these ways of buying crypto a little bit further. 

Buying crypto with credit card 

When it comes to how to purchase crypto with a credit card, you must first make sure the platform you’re using accepts this payment method. In most cases, crypto exchanges, brokers, and P2P sites will let you pay using your credit card. 

Once you have your account set up and your chosen cryptocurrency ready, all you have to do is enter your credit card details to complete the transaction. It works exactly the same as any other credit card purchase. 

Advantages and limitations of using a credit card to buy crypto

Buying crypto with Paypal

If you’re wondering how to buy crypto with Paypal, the process couldn’t be simpler. Again, you must first make sure the platform accepts this payment method. But once your account is live and you’ve chosen the cryptocurrency you want to buy, you can complete the transaction through your Paypal account. 

This is a fast and secure way to purchase crypto, with no need to enter your bank details. As long as you have access to your Paypal account, you can start trading with ease. 

Advantages and limitations of using a credit card to buy crypto

How to know what crypto to buy?

Choosing the right crypto to invest in can be tricky, especially when there are so many options available. To help make the decision a little easier, we’ve compiled some key factors to consider. 

Project fundamentals 

First, you should understand the purpose of the cryptocurrency. For example, Bitcoin can be used for payments and Ethereum is used for executing smart contracts. Knowing why the crypto exists and what it’s used for is key to understanding its true value. 

You should also look at the team behind the cryptocurrency. Ethereum’s development team is considered one of the best and largest on the market, with some of the top blockchain developers working in the background. This is an important part of your decision as the experience and skill of the individuals behind the crypto, help with adaptability and reliability. 

Market trends 

It’s essential that you keep up-to-date with market trends when trading cryptocurrency, especially since you’re working with such a volatile market. Before choosing your crypto, research any past fluctuations to know what you’re getting yourself into. 

Look for patterns to identify opportunities you can take advantage of and keep an eye on industry news or any updates that could impact prices. 

Risk tolerance 

If you’re not interested in taking big risks, you should take this into account when selecting the crypto you want to buy. Understand the difference between short-term and long-term investments. 

For example, high-risk cryptocurrencies are best for short-term investment whereas long-term investment is best if you’re planning to hold for a while. This should ultimately come down to your own personal comfort level with potential losses. 

Utility 

Maybe you’re looking to get cryptocurrency that has real-world use cases or offers staking/reward options. For example, the crypto Chainlink can be used for smart-contract-based insurance or in gaming and NFTs. 

Other cryptocurrencies come with staking options, where you can receive rewards or interest for holding tokens long-term. Cardano and Polkadot are great examples of this rewards-based system. 

Diversifying to manage risks 

Finally, no matter which cryptocurrency you prefer, the important thing to remember is to diversify your portfolio. You don’t want to invest everything you have into one type of crypto. In an unstable market, this can pose a number of risks. 

Instead, you should spread out your investments. Find different cryptocurrencies you like, mixing in altcoins with your bigger, more stable options. This will allow you to balance your risks more evenly with the potential for greater rewards. 

What is the safest website to buy crypto?

The safest websites to buy crypto from will have a wealth of security features to help reduce risks. Look out for platforms that comply with regional regulations, implementing verification processes such as KYC, AML, and multi-factor authentication. They should also be end-to-end encrypted for the correct and safe storage of your data and offer comprehensive customer support should you be concerned about fraud or hackers. 

Fortunately, OKX ticks all those boxes and more, as one of the most trusted crypto exchanges available. Offering full transparency over all policies as well as a wealth of advanced security features, OKX takes care of your safety and your trades. 

Key factors to consider before investing in crypto

Now that you know everything there is to know about buying crypto, there are just a few things you should keep in mind before you start your investing.

Make sure you carefully consider the platform you’re using. Research its reputation and get to grips with any added fees and costs. Check that the platform follows all the required regulations to make it safe and secure for crypto trading. And most importantly, start with a strategy. Buying crypto without the expertise can be problematic, so make sure you have a good understanding of how it all works.

Hopefully this guide has helped you understand a bit more about buying cryptocurrency. And if you think you’re ready to start investing, OKX is a great option. Offering robust security and compliance, as well as full transparency and a wealth of cryptocurrencies to choose from, you can trade with confidence. 

Sign up with OKX.