If you’re new to the crypto world and want to understand how to buy crypto for the first time. Well, you’re a little late to the party… But not too late! Today we’ll go into detail on how you can buy Bitcoin (or Monero) safely and securely. There are so many benefits with cryptocurrencies that it’s a clear choice for investing and pathing a way for the future of the economy of the world.
How to Buy Crypto Easily
There are many ways you can buy crypto; with any multi-trillion dollar industry, businessmen will make it easier to join. The easiest way to purchase any cryptocurrency is through an exchange. Finding the best exchange is a matter of preference, as well as your physical location.
Step 1: Find an Exchange.
The easiest and most common way to buy cryptocurrency is through a centralized exchange (CEX). There are multiple options that will work for most countries, but some might be restricted. Some of the most popular choices are:
Look for an exchange that does not require heavy KYC policies, as this can sometimes be very invasive. Almost every CEX out there does require some form of KYC, but choose an exchange that does not go overboard.
Put a little research into it, but if all else fails, you could go to a local broker to help you find a centralized exchange that caters to you.
Step 2: Sign-up and Verify your account.
Once you’ve found the exchange that works for you, you need to create an account. Be very careful not to use the same username and password that you do on any other website. Due to the nature of cryptocurrencies, they are often subject to targeted hacks.
Once you’ve signed up, you can verify your email address. Then, depending on the centralized exchange you’re purchasing from, you may need to verify your identity and upload a selfie. These are general regulations for all centralized exchanges.
You may be able to purchase crypto before your verification has been approved, but you won’t be able to remove the crypto to a private wallet or withdraw the funds.
Step 3: Add Funds to Your CEX Wallet (or Purchase Crypto Directly)
Once you’ve set your account up, you should see a section on the CEX that says “Buy Crypto” or “Deposit.” Each exchange may have a slightly different method, but they all follow the same process.
Once you’ve clicked “Buy Crypto” you will have up to three options
- Buy With Credit Card: This option is fairly simple, you select the cryptocurrency you’d like to purchase and the fiat currency you’ll be depositing. You can then enter the amount you’d like to purchase, and the system will show you how much of the cryptocurrency you’ll receive.
You can also alter the deposit method to bank deposit, credit card payments, etc.
- P2P: Peer-to-Peer purchases are quite simple. A merchant will offer BTC or XMR at a certain price. You can then make a direct deposit into the merchant’s account, and they will transfer the funds to your private wallet.
- Fiat Deposit: You can deposit funds into the CEX personal bank, add your account details as a reference, and the CEX should automatically add the fiat to your account balance. From there, you can bid to purchase BTC or XMR at a certain price.
How to Withdraw Crypto From an Exchange
Once you’ve purchased BTC or XMR, you will want to withdraw the funds into your own wallet. Even though you theoretically own the cryptocurrency while it’s still on the exchange, if things do go wrong (like they have in the past), you will lose access to all your funds. Withdrawing it into a wallet is essential.
Most crypto wallets are free to use. You can purchase a physical offline wallet (also known as a cold wallet), or utilize an online one (Hot Wallet). But remove it from the exchange for safekeeping. ZenGo or Trezor are two great options.
The process of withdrawing is generally quite simple and works the same for almost all exchanges.
- Once you’ve purchased the crypto, it should appear in your “Spot” account. You need to navigate the CEX to find your spot account assets.
- Click “withdraw” next to the cryptocurrency that you want to withdraw.
- Complete the relative fields regarding your wallet address, the amount you’d like to withdraw, and the chain type that you’re withdrawing to.
- A screen will pop up confirming all the fees and details regarding the transaction after reviewing it. Click “confirm.”
- Most exchanges will request you complete a 2fa and confirm the transaction through an email sent to you. Complete these, and the transaction will process. The funds should appear in your wallet within 10 minutes.
How to Buy Cryptocurrency Using CashApp
If you’re a regular Cash.App user, buying bitcoin is made simpler than ever. Even if you’ve never used the app before, it’s similar to Venmo or Zelle. If you aren’t aware of what Cash.App is, it’s a payment system that is popular in both the US and the UK. Unfortunately, it’s only available to certain regions, but if you’re lucky to have the app in your country, here’s how you can buy Bitcoin using Cash.App.
- Download and sign up for Cash.App
- Add funds to your Cash.App balance
- Tap on the “Stocks” button at the bottom of the main screen (it looks like a squiggly line)
- Tap “Bitcoin” and enter the amount you’d like to purchase.
- Click Next, double check all the details on how much you’ll receive as well as the fees.
- The app will either use faceID or require a pin, and the payment should process.
Now that you own Bitcoin on your Cash.App balance, you will be wanting to withdraw it to your personal Cold or Hot wallet. You will need to have completed some KYC to do this.
- From the home screen, tap “Banking”
- Change from your fiat currency by tapping “USD” (or whichever fiat you’re using), then tap “BTC”
- Enter the amount in BTC that you’d like to withdraw
- You can then either tap the top right corner screen if you’re wanting to use a QR code, or you can tap “Send” which will take you to a new screen.
- If you’ve tapped send, you can then paste an external wallet address, then tap confirm.
Once you’ve withdrawn the BTC using Cash.App the funds should process to your personal wallet within 10 minutes, depending on current market conditions. There is a minimum BTC withdrawal limit of 0.001 BTC (which is about $20)
How to Buy Cryptocurrency Anonymously
Buying cryptocurrency has become more difficult over the years, but there are still ways to buy Bitcoin or Monero without providing some sort of verification or ID. Buying crypto anonymously is not always about engaging in criminal activity but rather a statement on having complete control over your finances as well as your privacy.
It is not illegal to buy crypto anonymously, either. But governments around the world are making every attempt to crack down on this. Here’s how you can buy Bitcoin or Monero anonymously.
The most common way to buy crypto anonymously is through a p2p trade. This can be done through a decentralized exchange (DEX.) This process used to have multiple issues and would be full of scammers as they could claim they owned the cryptocurrency but didn’t. DEXs have introduced a multisig payment now, which makes it safer but more expensive.
- The seller will create an offer to sell the specific cryptocurrency on the DEX.
- The buyer will make a bid to purchase the tokens and provide their crypto wallet details.
- The seller will send their funds to the DEX and will hold them until the payment for the tokens has been processed.
- The seller can then release the funds to the buyer.
Unfortunately, there are risks such as higher pricing, longer waits, and certain sellers will try to trick the system in which you’d need to create a dispute. Changelly, Pionex, eToro, and CoinSmart are the most popular DEX that offers p2p trading.
A Bitcoin ATM is just like your usual bank atm, except you can buy or sell Bitcoin through it (Some offer alternative currencies.) There are very few Bitcoin ATMs around the world, especially if you’re in a smaller city. However, the process is extremely simple:
- Find a Bitcoin ATM near you using CoinATMRadar
- When you get to the ATM, you just need to enter your crypto wallet address. You need to be very specific and careful when doing this to ensure your coins are not sent to a dead address; there is no chance you can refund them.
- Deposit the cash into the ATM. The system will usually provide a prompt with details regarding the transaction.
- Confirm the transaction.
Bitcoin ATMs often have about a 6% fee and often have limits.
How to Set Up a Crypto Wallet Anonymously
One of the only real ways to keep your crypto in your own hands is by using a cold crypto wallet. There are few options, but two companies seem to run this field: Ledger and Trezor.
There are alternative hot wallets available, but you will be sacrificing privacy in one form or another. Here is how you can set up a cold wallet such as Trezor or Ledger.
Steps to setting up your crypto wallet
First, you need to purchase a Ledger or Trezor device. Put some research into which one works best for you. Once you have the wallet with you, you will need to set it up on a PC.
- Download the wallet application. (Ledger / Trezor)
- Connect your cold wallet to your PC, navigate through the on-screen instructions, and select “set-up new device”
- Set up your device’s pin. Make sure it’s completely unique to any alternative pin you use, and write the pin physically on a piece of paper, which you should store in a safe. It may feel like it’s over the top to do this, but people have lost millions by skipping this.
- Once you’ve set it up, a Mnemonic phrase will display on the screen. Write down this phrase on the paper as well. This code will never be displayed again, and it’s the only way to back up private keys.
From there, you can use your desktop app to find your wallet information and follow the UI to receive and send cryptocurrencies. The dApp will only have access to your wallet while the cold wallet device is plugged in. Ledger does a great breakdown of how you can receive and send different cryptocurrencies to your wallet.