How to buy crypto: the complete guide for beginners

In this article, we see how to buy crypto through the most well-known platforms that offer convenient and simple trading services.

Nowadays, there are many applications that allow even beginners to purchase Bitcoin and other digital currencies without necessarily having to understand the complex logic of the crypto world.

Let’s discover the main solutions together.

How to buy crypto with the financial apps Trade Republic, Trading212, and eToro

Financial apps are the most popular tools for those who want to discover how to buy crypto in a simple and intuitive way.

Among the most well-known and established, we find Trade Republic, Trading212, and Etoro.

Each of them offers a wide range of products in crypto, including Bitcoin, Ethereum, Dogecoin, Solana, Cardano, Algorand, Litecoin and many others.

They all work the same way: first, it is necessary to download the application on the smartphone (or go through the website) and register the account.

This phase includes the submission of identification documents to ensure security and compliance with financial regulations.

Ensure you are in possession of an identity document or driver’s license, and at least one document that proves your residence (bills, tax statements, residence certificate, employer’s certificate).

Once the verification is completed, you can proceed with depositing money into the application’s account via bank transfer or credit/debit card.

At this point, you can easily understand how to buy your first crypto with just a few clicks.

All three platforms Trade Republic, eToro and Trading212 feature a search bar where you will need to type the name of the currency you wish to purchase.

After clicking on the cryptocurrency symbol, you need to click on “trade” (or “compra”), enter the amount you want to spend, and click on the green confirmation button.

In the same way that the purchase was made, the sale can be made, and then possibly transfer the profit to your bank account or card.

It is important, however, to emphasize how these applications have commission costs (or spreads) higher than the industry average.

You might find yourself paying up to 1% of the amount you are buying or selling, depending on the platform and the cryptocurrency in question.

It is worth highlighting how in all 3 mentioned apps, cryptocurrencies are traded as CFD (Contracts for Difference), that is, through derivative products that replicate the value of the currency they refer to.

Source: https://traderepublic.com/en-es/crypto#crypto-without-complexity

Buying crypto through exchanges: Binance, Coinbase, and Bitpanda

Exchanges like Binance, Coinbase and Bitpanda are online platforms dedicated to investors who want to learn how to buy crypto in a thorough and varied way.

Unlike the financial apps mentioned in the previous paragraph, exchanges are solely focused on the trading of digital currencies and offer a wider and sometimes more convenient selection.

These platforms also provide advanced charts and very convenient analysis tools, in addition to competitive fees and supportive financial services.

However, their mechanism of use is slightly more complex and requires the knowledge of some basic concepts. 

To begin, it is necessary to create an account (from smartphone or web) and complete the identity verification process KYC by attaching your documents.

Subsequently, users can deposit funds through various options, including bank transfer, credit card, and crypto deposit from another platform.

After adding funds to your account, you will need to click on “trade” in the “spot” section and search for the ticker of the crypto you want to buy.

The ticker is an abbreviation that is used to indicate a market asset, for example BTC for Bitcoin, ETH for Ethereum, and SOL for Solana.

If you want to purchase, for example, Bitcoin on an exchange like Binance, you will need to type in the search bar of the spot trading section the entry BTC/EUR.

At this point, you will only need to select the “mercato” option on the order type, enter the amount of BTC you want to buy, and click on “compra BTC”.

You can also set a price limit at which you would like to execute the operation by clicking on “limit” order, as long as it is a lower value than the current one.

Source: https://accounts.binance.com/en/register?ref=44972688

It is important to highlight that not always on exchanges are there trading pairs available in EUR, as the majority are listed in USDT, which is a stablecoin that replicates the value of the US dollar.

If the market with counterpart in EUR is not available, you must first convert to USDT by clicking on EUR/USDT.

P2P solutions to buy Bitcoin and other digital currencies anonymously

Peer-to-Peer (P2P) solutions offer an additional alternative option for those who want to know how to buy crypto anonymously and directly. 

Platforms like LocalBitcoins, Relai, and Bisq allow users to purchase Bitcoin and other digital currencies directly from other individuals in a very simple way.

This purchasing method offers a certain degree of anonymity, as transactions occur directly between the parties involved without the intermediation of a centralized platform.

The process of purchasing crypto begins by creating an account on the chosen P2P platform and completing the verification process.

Attention because for maximum extension of privacy it is advisable to choose Bisq among the proposed platforms, as it does not require KYC verification.

Once verified, the user can explore the sales offers posted by other users and choose the one that best suits their needs.

P2P transactions can be carried out through various payment methods, including cash, bank transfers, and prepaid cards

To find the most suitable offer, you can filter the searches based on currency, payment method, and exchange rate. Once you have found the desired offer, you can start the purchase process by clicking on the offer and following the instructions to send the request to the seller.

It is important to pay attention and select sellers with good reviews to avoid risks and ensure a safe transaction.

Regarding Bisq, one of its most interesting features is represented by the guarantee system. When a purchase is initiated, both the buyer and the seller must deposit a small amount of money as a guarantee.

Bisq also offers a decentralized arbitration system to resolve any disputes. The arbitrators are community members who help resolve conflicts impartially.

Source: https://bisq.network/

Conclusions

In conclusion, we can state that the choice of the platform on which one wants to buy crypto essentially depends on the user’s previous experience and their interests.

If you are looking for the most convenient and easy solution of all, the choice will certainly fall on financial apps like Trade Republic.

If you are already somewhat experienced in the sector and are looking for a convenient solution that is still easily accessible, you can go through exchanges like Binance.

If the goal is to remain anonymous and one has a fairly in-depth knowledge of the crypto sector, the most suitable option is that of P2P platforms like Bisq.