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Home » How To Buy Cryptocurrency Using Different Payment Methods
To help you instantly understand how much cryptocurrency you can buy we have created this simple calculator. Choose your favourite digital coin and fiat currency and enter an amount to proceed with the conversion. By default, the calculator will convert the selected cryptocurrency amount to fiat currency. If you’d like the opposite simple click on the exchange icon.
Cryptocurrency conversion rates are updated continuously. If you are satisfied with the rate on offer click on “Continue to Payment” in order to buy using eToro. As an online exchange for both beginners and experienced users, eToro is an ideal starting point for anyone searching for how to buy cryptocurrency.
With every single year that passes, cryptocurrencies are gained a greater share of global commerce. What was once an idea of a small group of people has grown to trigger a revolution in finance. This can be seen from the skyrocketing price of Bitcoin to the significant increase in searches on how to buy cryptocurrency. Before jumping into making a purchase, however, you should get familiar with the pros and cons of buying crypto. These include:
In addition to understanding how to buy cryptocurrency, it is important to learn the regulatory requirements of doing so. Although most exchanges are unregulated, they seek to provide a safe environment for all users by requiring basic user registration and verification. These KYC principles have been adopted from traditional banks and are present in most, but not all reputable exchanges.
When you’re buying Bitcoin or any other cryptocurrency you need to be aware of several factors:
Once you have made these choices, buying cryptocurrency is very often the easy part. Simply select how much crypto you wish to buy or fiat you wish to spend and complete the purchase. You will only succeed to buy cryptocurrency if you have sufficient funds in your account or card. For a step-by-step process about buying cryptos on one of the largest exchanges, please visit our guide on how to buy cryptocurrency on Binance.
If you are looking to own a significant amount of Bitcoin or Altcoins, you might want to consider splitting your purchases over time. Cryptocurrencies are highly volatile and it is impossible to predict their value in the next hour, let alone in the coming days and weeks. Buying smaller amounts more regularly can help hedge your purchases and would likely result in a better deal. When doing this, however, keep an eye out for any fixed fees, since these could eliminate any gains made through hedging.
Exchanges are only one place where you can buy cryptocurrency, but they are far from the only one. You can learn about how to buy cryptocurrency from ATMs or P2P on platforms such as LocalBitcoins. These alternative options can provide additional convenience since you could pay using cash, cheques or PayPal.
the world, both online and offline, there are several locations where
to buy cryptocurrency. These different locations charge different
fees based on the services and solutions which they offer. You should
understand which of these features you need and opt to buy your
cryptocurrency from the location which satisfies your needs without
offering too many extra features. This will probably reduce the fee
and complexity of your transaction.
The best way to buy Bitcoin and other cryptocurrencies online is through an exchange. Although there are thousands of them scattered around the world, only a handful can be considered to be reliable and secure. When you’re looking for an exchange you should watch out for fees, currency support, payment methods, and convenience factors, amongst other things.
With an exchange account opened you can proceed to buy cryptocurrency using these steps:
If the exchange offers an in-built wallet, the coins you have purchased will be deposited there. However, if it doesn’t offer this feature it will request your wallet address prior to the purchase.
The exchange should carry out the transaction in seconds, although this could take longer during busier periods. You will also be notified if you do not have sufficient funds in your account.
These are just standard processes present at most exchanges. To learn how to buy cryptocurrency at your chosen exchange you should read our detailed guides. Some of the best exchanges include:
Using cash to buy cryptocurrency is possible, with ATMs offering the easiest and safest solution. If you intend to buy Bitcoin, you can opt to use LocalBitcoins to negotiate with sellers who would accept cash (or cheques). For other cryptocurrencies, you would need to search on other platforms or forums for sellers in your area willing to accept cash. Be careful though, if you’re just starting out we don’t recommend you to buy crypto with cash.
Payment methods accepted by exchanges or other cryptocurrency providers can be quite varied. You probably already have access to at least one method, but likely more. The following list will help you understand which payment method is best for your particular needs.
Buying cryptocurrency is a straightforward process for those who understand the system. However, it can seem daunting or complicated to novice users. As the industry continues to grow and develop, new currencies are continually being launched, while others, which found little investor traction, fade away into the history books.
Choosing which currency to invest in can either be a simple, straightforward process, or it can be a complicated one. One option is to simply decide you want to own some Bitcoin and maybe some XRP, and that’s great. The other option is a more data-driven approach. You decide to be analytical and study which cryptocurrency has been providing the best results over a period of time. In the latter, things can get quite complicated as you dive into technical and fundamental analysis. Choosing which route you’d like to take highly depends on how much you’re investing and how much time you’re willing to dedicate.
If you opt for the analytical route, one thing we recommend is to just pick a handful of coins and perform your study on those. You’ll be tempted to study different coins, but don’t make this mistake. You’ll end up burning your time and it would be even harder to come to a conclusion. Instead, pick 3 to 7 coins and stick to those.
There are many reasons why individuals buy cryptocurrencies. Some believe in blockchain technology and would like to support it, while others see cryptocurrency as an investment. Then there are those who like using it because it is convenient to make purchases or payments. Whatever the reason for wanting to buy cryptocurrency, we will show you all the different ways there are to buy crypto.
The first step to buying cryptocurrency is determining which one you intend to buy. With over 2,500 different currencies, making a choice could be harder than you think. Deciding will very much depend on the purpose of the purchase. For trading and investment’s sake, the most popular cryptocurrencies are the ones with the highest market caps. Currently, these are Bitcoin, Ethereum, Ripple, Bitcoin Cash, Tether, and Litecoin.
Once you have decided which coin to purchase, you need to understand how much of it you intend to buy, what payment method you will use, and what additional features or tools you need, before or after your purchase. Next, you will probably follow some or all these steps:
Cryptocurrencies are often listed with their three-digit ticker code, such as BTC for Bitcoin, and ETH for Ethereum. Due to the high concentration of cryptocurrencies, it is easy to mistake one ticker code for another. You should also be aware that the price of any cryptocurrency at any moment in time can vary, sometimes significantly, between one platform and another.
Buying cryptocurrency with a credit or debit card is one of the most popular methods since it offers a fast, convenient and easy way to get hold of the digital asset. As a result of their global appeal, cards, especially Visa and Mastercard, are accepted by the vast majority of reputable platforms.
While most cryptocurrency exchanges will charge an additional fee for making deposits with a debit or credit card, Bitpanda does not. In operation since 2014, Bitpanda is a European exchange with over 1 million users worldwide. It is suitable for both novice users and experienced traders, offering low deposits and high withdrawal limits. Furthermore, Bitpanda allows you to buy Bitcoin, IOTA, Dash and many more cryptocurrencies using your debit or credit card.
Instead of buying cryptocurrencies, you can opt to invest in them, without owning them. This can be done by buying cryptocurrency Contracts for Difference (CFDs). These financial instruments are traded on dedicated trading platforms, such as Plus500, and allow you to leverage your investment capital to open positions that are multiple times larger. Trading cryptocurrency CFDs involves considerable risk and should only be undertaken by experienced traders who can afford the potential losses.
Further examples of platforms that allow you to invest or buy cryptocurrencies with a credit or debit card include:
credit and debit cards, PayPal is an extremely popular online payment
method, trusted by millions across the world. While this eWallet
makes payments fast and simple, accepting it can be expensive for
platforms. As a result, practically no major cryptocurrency exchange
platform accepts PayPal.
Nevertheless, you can buy crypto with PayPal through the P2P platform, LocalBitcoins or via eToro. This platform links cryptocurrency buyers and sellers, allowing them to negotiate directly all the terms of the sale. As a result, if you can locate a seller who will accept a PayPal payment, you can proceed in this manner. While LocalBitcoins offers several useful features, including a buyer and seller rating, it is currently only limited to the sale of Bitcoin.
If you would like to invest in cryptocurrency with PayPal, your best option is to choose a cryptocurrency CFD trading platform. eToro allows you to deposit funds using PayPal, or a multitude of other methods. The platform offers several cryptocurrency CFDs, as well as other markets. In addition, eToro also includes a social trading platform, where you can automatically emulate the trades being made by other traders.
Examples of trading platforms that allow you to buy cryptocurrency CFDs with PayPal include:
It might surprise some users to learn that it is possible to buy cryptocurrency with a bank transfer. This payment method is widely accepted since platforms do not incur any fees for accepting it. As a result, deposits via bank transfer are normally free, unlike those made with a debit or credit card.
Coinbase is one of the largest cryptocurrency exchanges in the world, and, like most exchanges, does not charge any fees for deposits made with a bank transfer. Along with Bitcoin, you can use Coinbase to buy Litecoin, Ethereum, Ethereum Classic, and a handful of other digital currencies. Coinbase accepts several fiat currencies, including EUR and USD, however, if your base currency is not supported, you can conveniently request a currency conversion when making your bank transfer.
other platforms allow you to buy cryptocurrencies with a bank
transfer. These include:
Anonymity has long been considered as being a great feature of cryptocurrency by some, and a serious liability by others. As more platforms are pressured or choose to increase Know Your Customer (KYC) and due diligence procedures, it is becoming much harder to buy cryptocurrency anonymously.
There are, of course, a few exceptions, such as cryptocurrency ATMs. Located across the world, these ATMs provide one, or sometimes more cryptocurrencies in exchange for fiat currency. The challenging side of cryptocurrency ATMs is finding one in your area which supports the cryptocurrency you desire.
Another way to buy cryptocurrencies anonymously is to meet an online seller, through a forum or P2P platform, such as LocalBitcoins, and negotiate the transaction without providing personal details. This method can be risky since fraudsters operate on such sites, so beware of the potential dangers.
Apart from using the traditional fiat currencies, such as GBP, EUR, USD or CAD, to buy cryptocurrencies, you can also use one cryptocurrency to buy another. This process is especially useful for those who obtained cryptocurrency from mining it or through an airdrop but would like to change it to a different one. Additionally, one may find cryptocurrency trading as a lucrative way to make a good profit or a living out of it.
With a few exceptions, cryptocurrency exchanges allow you to trade all the currencies which they support. Binance, one of the largest exchange platforms, specializes in facilitating crypto to crypto transactions. The platform offers over 400 different cryptocurrencies, together with some of the lowest trading fees in the industry.
cryptocurrency is permitted in most jurisdictions, with some
exceptions, such as Morocco and Pakistan. Other countries, such as
the US, impose certain territorial restrictions. As a result, you may
not be able to open an account with certain platforms, depending on
where you are based. For example:
Generally, users from Europe are accepted on the most reputable trading platforms and exchanges, giving such users the greatest choice of which platform to use.
Cryptocurrency CFDs are a relatively new market and offer traders the possibility to open both long and short positions based on their belief of the currency’s price at a point in the future. Normally, platforms that support CFD trading offer the option to trade on margin, allowing traders to purchase more than they would otherwise afford on their own. This financing comes at a cost and increases the trader’s exposure to the risk of losing more or all the investment capital.
Remember, you should only trade cryptocurrency CFDs if you fully understand the risks involved and are able to afford the potential of losing some or all your investment.
By now, you should have a good understanding of how to buy cryptocurrency, but what about storing it? Just like fiat currency, you need to protect your digital coins in a safe place. Many reputable cryptocurrency exchanges and brokers offer an in-built wallet that you can use to store your funds. While this option is secure, and, in a few cases, insured, you should seek to store your cryptocurrency in hardware wallets when you don’t intend to use them imminently.
The following are some examples of the best cryptocurrency wallets:
Storing cryptocurrency securely is one concern that cryptocurrency CFD traders needn’t bother themselves with. Since investing in CFDs does not include buying the actual cryptocurrency asset, there is no need to plan the logistics of transferring and storing the digital coins. Instead, all information is securely stored on the CFD trading platform and is easily accessible solely by the investor.
Taking into consideration security, convenience, availability, and access, cryptocurrency exchanges are the best way to buy Bitcoin and Altcoins.
Depending on the value of Bitcoin at the time of your purchase and the exchange’s terms you might be able to buy $1 worth of BTC. However, it could be difficult, with exchanges such as Coinbase setting a minimum $2 limit.
From people who support cryptocurrencies to traders looking to profit from the coin’s volatility, the range of people who buy Bitcoin is as vast as humanity itself.
In most countries around the world, buying cryptocurrency is legal and allowed.
In the short term, Bitcoin represents a high-risk, high-reward potential investment. In the long-term, however, Bitcoin is likely a secure investment since it grows in value and uses each year.
You can buy cryptocurrencies directly by joining P2P platforms such as LocalBitcoins or finding Bitcoin sellers online. Decentralised exchange platforms also allow you to buy direct.