To the untrained eye, the crypto world can appear complicated and unnerving.
Making a start and buying some crypto coins may even seem like something only for a pro trader...
Fortunately, that's not the case!
In this article, I will show you exactly how to buy your first coins, from choosing the right currency all the way to keeping it safe.
I've broken down the basics and highlighted all the key points you should remember before investing in crypto, too.
Let's dive straight into the five simple steps you can follow to buy crypto as a Beginner!
So Step 1 is choosing the right coin to buy
If you know a bit about crypto already and have a coin in mind you want to purchase, great!
But if you’re still not sure, here's what you should know:
When choosing a coin to invest in, it's essential to remember not to follow trends blindly.
As inviting as they may sound, and as often as you hear your friends bragging about how much they've made in a week, things are rarely that simple!
I always strongly encourage you to do your research, assess the amount you can invest, and decide accordingly.
Take a look at websites like CoinMarketCap and CoinGecko for additional research.
You can find good indicators for gauging a coin's position here, like ranking and recent price trends.
You should also take a look at a coin's website itself to assess how strong the coin's fundamentals are.
Ultimately, try to look for coins that are well-known or have solid backing, and in this way, you can avoid potential scam coins more easily.
Another point to remember in crypto is that things sometimes go differently than expected!
As with traditional finance, values can go up and down, so invest at your own risk.
For the purpose of this article, I'm going to go with Ethereum.
It's a coin you might have already heard about, as it's one of the market's oldest, most popular, and high-value coins right now.
Now that you have some ideas, where can you buy crypto anyway?
Step 2 is about choosing an exchange.
Just as you should choose a coin to invest in by doing prior research, it’s essential that you also look carefully for reliable platforms to purchase on.
Two of the most popular exchanges are Coinbase and Binance.
For the purpose of this video, I am going to use Binance.
It’s one of the biggest exchanges out there and offers a pretty low barrier to entry for beginners.
Now it's crucial to make sure you are accessing the correct URLs for the platform you are using....
This means checking to ensure you are trading on the correct, authentic website, with a padlock displayed in the address bar.
So once you know which exchange you want to buy from, you can move on to…
Step 3 – Signing up to the exchange
This is what the Binance homepage looks like.
If you don't already have an account, go ahead and make one or sign into your existing account.
To do that, click on “sign up with email or phone” and enter your email address...
You will receive a verification code to your email address, so make sure you enter it correctly...
Upon completion, you will arrive at your dashboard, which should look something like this...
You can now complete your profile by verifying your account and filling in the rest of the details later.
Congratulations!
You’ve now set up your Binance account and your gateway to buying crypto!
Alright, now that your account is all set up, it’s time to actually use it...
So let’s look at Step 4 – Buying coins on the exchange
When buying coins on the exchange, it's very important to keep in mind not to invest more than you are willing to lose.
This is because, ultimately, crypto is extremely volatile, and there is no telling where the market will go.
Before I dive into buying crypto, though, take a look at what the wallet on Binance looks like...
You'll want to hover above the 'Wallet' option and click 'Overview.'...
Since I've just created this account for the purpose of this video, my balance is zero.
I guess yours might be, too!
Returning to your dashboard, you can see three main options to choose from when buying or selling assets from the 'Buy Crypto' button...
For the sake of this video, I'll go for 'Buy crypto with your card.'...
All you have to do beyond this point is enter the amount you are willing to spend.
You'll automatically see the amount of Ethereum you can receive in exchange.
Then click 'Continue,' and depending on the platform you are using, it'll take around 10 minutes for the coins to be transferred to your wallet.
Now bear in mind that the coins you have just purchased are stored in the exchange’s wallet.
For better security, though, I recommend you store your coins off the platform.
And that brings you to my next step, which is…
Step 5 – Transferring crypto outside of an exchange to keep it safe
So what I want to explain is how to move your coins to your personal wallet.
It’s an enhanced security measure, because as long as your coins are on an exchange and connected to the internet, there’s always a risk from hacking attempts.
But where do you move them?
Well, the primary method for storing cryptocurrencies is in personal crypto wallets.
These come in two main categories, hot wallets or cold wallets.
Hot wallets operate online and since they’re internet-enabled they’re at higher risk of hacking - hence ‘hot’.
One of the most popular is called MetaMask.
On the other hand, cold wallets are not connected to the internet and hence lower risk, or ‘cold’.
They typically take the form of physical devices, much like USB sticks.
The Ledger Nano X is a great example of a popular cold wallet.
To best protect your assets, I recommend using such hardware wallets, along with 2-factor authentication to safely store your coins offline.
When choosing a personal wallet, make sure that the wallet you are using supports the cryptocurrency you are investing in.
Some wallets can accept Ethereum, while others can accept bitcoin, and so on, for a wide range of cryptocurrencies.
Since you are just starting with crypto, I recommend a simple and convenient web wallet like Metamask, as it’s natively compatible with Ethereum.
If you do not have a MetaMask account yet or are hearing about it for the first time, do not worry. I have you covered.
I have a dedicated article you can see about how to set up your MetaMask account. That should get you up to speed!
Anyways, let's resume transferring coins from Binance.
From the homepage, click on 'Wallet' and go to the 'Fiat and Spot' option...
Scroll down until you see the list of coins you can transfer.
Choose your coin from the list and click on the 'Withdraw' button from the 'Action' ribbon.
You should arrive at a screen looking like this...
Now the problem here is that since you’ve set up a new account, you do not have any biometric data stored or a passkey set to carry out transactions safely.
At this point, you will have to verify your account before you can actually withdraw any crypto...
Do so by clicking on 'Enable Now' and follow the steps Binance provides for you.
This process may include facial verification and proving your residential information.
Once you have verified your account, you can get back to withdrawing your coins...
Great!
Next, on the withdrawal screen, you’ll have to enter the address of your Metamask wallet and a withdrawal network and send your funds there.
You can find the public address of your Metamask wallet as shown here.
And in fact, there’s actually a small copy icon beside the address on top.
All you have to do now is click that and paste it on the Binance website...
Once that’s completed - send it through from Binance and… Congratulations!
You’ve just transferred your first crypto to your very own wallet, safe and sound!
Conclusion
So that's all there is to it!
In this article, you learned about the importance of conducting solid research into both the right coin and identifying a reliable exchange like Binance before making your first purchase.
I walked you through the process of creating an account and buying your first cryptocurrency, always remembering to invest only what you can afford to lose.
Critically, you saw how to safeguard your investment by transferring it from the exchange to your personal wallet.
Whether it be it a hot wallet like MetaMask or a cold wallet like the Ledger Nano X, the security benefits are clear.
With these insights, you are now better equipped to navigate the exciting yet volatile landscape of crypto.
Enjoy your first purchase, and good luck!
