Cryptocurrency wallet apps like the Bitcoin.com Wallet app, brokerages like etoro (see their resources on how to invest in cryptocurrency), peer-to-peer crypto exchange platforms like Peach Bitcoin, and cryptocurrency centralized exchanges (CEXs) like those listed here are the four main ways to buy cryptocurrency.

 

To send, receive, buy, sell, trade, and manage Bitcoin and the most popular cryptocurrencies safely and easily, make use of the multichain Bitcoin.com Wallet app, which is trusted by millions of people.

Table of Contents

• Important considerations
• Neither your coins nor your keys!
• Why do I need to prove my identity in order to buy cryptocurrency?
• How much does it cost to buy cryptocurrency?
• How to buy crypto
• Using the multi-chain Bitcoin.com Wallet app to buy cryptocurrency
• Buying cryptocurrency through a broker
• Acquiring cryptocurrency through the Bitcoin.com website
• Purchasing digital currency from a central crypto exchange
• Utilizing a peer-to-peer trading platform to buy cryptocurrency

Important considerations

When purchasing cryptocurrency, the following should be your top three priorities:

1. Payment technique
2. Used platform or location
3. Where your bitcoins go

Payment techniques  include bank transfers, payment apps like PayPal, Apple Pay, Google Pay, and Samsung Pay, as well as credit cards. face-to-face transactions with cash or even barter. In terms of convenience, privacy, and fees, each payment method has tradeoffs.

Platforms/venues

Digital wallet providers, centralized spot exchanges, OTC desks (private “Over-The-Counter” exchange services primarily used by high-net-worth individuals), peer-to-peer marketplaces, and even payment apps like PayPal are among the options available for purchasing cryptocurrencies.

Of course, buying cryptocurrency in person is also an option. You could, for instance, offer your friend cash in exchange for a predetermined amount of a cryptocurrency.

There are a few options for where your crypto goes after you buy it:

1. into a cryptocurrency wallet you own (e.g. a wallet that is “self-custodial,” such as the multi-chain Bitcoin.com Wallet
2. into a crypto wallet that is controlled by someone else (e.g. a payment app like PayPal or a central crypto exchange).

Neither your coins nor your keys!

A “self-custodial” or “non-custodial” wallet is one in which you own and control your cryptocurrency, so you never need to ask for permission to use it. This means that you won’t have to wait for a third party, like a centralized exchange, to approve the transaction before receiving your cryptocurrency. Additionally, it means that you are free to send your cryptoassets whenever and wherever you please.

On the other hand, a lot of custodial cryptocurrency wallets place severe restrictions on what you can do with your coins. You might be required to register an address before sending cryptocurrency to it, and you might have to wait several days before you can withdraw. Any kind of withdrawal may not be permitted in some instances. A complete freeze on your account is also not uncommon. For instance, if it is determined that you pose a threat to security or fraud, you might be locked out of your account with no way to act.

Additionally, the best self-custodial cryptocurrency wallets allow you to customize the “network fee” for each send. This means that you can pay more to send faster when you’re in a hurry or save money on transaction fees when you’re not.

Most importantly, self-custodial crypto is safer. You won’t have to worry about being hacked or facing counter-party risks like a centralized exchange being hacked or going bankrupt as long as you follow best practices for key management. Find out more about these dangers here.

We encourage you to take into consideration the multi-chain Bitcoin.com Wallet if you do not already have one. Millions of people rely on this self-custodial, simple cryptocurrency wallet.

Why do I need to prove my identity in order to buy cryptocurrency?

You are interacting with a regulated business when you buy crypto using a government-issued currency through an exchange service. Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations pertaining to the transfer of funds must be adhered to by these businesses. Customer information, such as identification documents and occasionally proof of address, must be collected and stored in accordance with these regulations.

How much does it cost to buy cryptocurrency?

The method of payment and the platform or venue used determine the cost of crypto purchases. For instance, you only need to take into account the “network fee” for sending the cryptocurrency from your friend’s crypto wallet to yours if you buy directly from a friend and pay in cash.

Find out more about sending cryptocurrency, including information about network fees.

Naturally, you will need to account for the fees associated with making a credit card or bank transfer payment.

Beyond that, trade facilitation fees are charged by exchange services. Larger purchases typically result in lower overall fees, so avoiding numerous small purchases frequently makes sense.

How to buy crypto

Let’s take a closer look at the steps involved in buying cryptocurrencies now that we’ve covered the fundamentals.

Using the multi-chain Bitcoin.com Wallet app to buy cryptocurrency

The Bitcoin.com Wallet isn’t the only cryptocurrency wallet that lets you buy cryptoassets from within the wallet app. Moreover, the Bitcoin.com Wallet is entirely self-sufficient. This indicates that you always have full control over your cryptocurrency. The steps for purchasing cryptocurrency with the Bitcoin.com Wallet app are as follows:

1. On your device, open the Bitcoin.com Wallet app.
2. Choose the cryptoasset you want to buy. For instance, Bitcoin (BTC), Ethereum (ETH), and Bitcoin Cash (BCH) before selecting “Buy.”
3. Select the wallet you want to use for the deposit by following the on-screen instructions. Actually, there are separate wallets in the Bitcoin.com Wallet for each cryptocurrency we support (e.g. MATIC, BTC, BCH, ETH, and so on). You can also make as many individual wallets as you want, which can help you keep track of your money. You could, for instance, create two separate Bitcoin wallets: one for My BTC Savings and another for Everyday BTC Spending.
4. Enter your credit card information and verify your identity if this is your first purchase. Your subsequent purchases are completed in a matter of seconds after your initial one, which includes identification verification!
5. Your purchase will proceed once it is finished.

Of course, you can also use your Bitcoin.com Wallet in a different way to receive, store, and use the cryptoassets you’ve already bought. Other ways to purchase crytpo include:

Buying cryptocurrency through a broker

A brokerage is a platform that lets people buy, sell, and trade cryptocurrencies and other financial assets in the cryptocurrency market. These platforms, of which eToro* is an excellent illustration, serve as a link between buyers and sellers and provide access to stocks, commodities, and other assets in addition to a wide range of other services that go well beyond the cryptosphere. Buy cryptocurrency on eToro*

As a reliable, user-friendly platform that has been offering cryptocurrency trading since 2013, eToro is an excellent choice. eToro maintains segregated accounts for user funds and offers transparent and competitive pricing for crypto trading with just 1% fees. eToro’s extensive tools, resources, and customer support make it simple to manage your digital assets, regardless of whether you want to buy, sell, or transfer cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or dozens of others.

There are a number of advantages to using eToro over traditional wallets. eToro is a licensed broker that provides an environment for your investments that is safe and open, and the onboarding process is simple. You can start trading without having to worry about setting up and managing a wallet. Additionally, due to the platform’s secure storage of your digital assets, eToro removes the need for storage concerns. As a result, you won’t have to worry about managing intricate security measures or losing private keys. With eToro, you can buy cryptocurrency quickly and easily from a reputable broker.

* Crypto-asset investments are not regulated. They might not be suitable for retail investors, and you might lose everything you invested. It is critical to read and comprehend the investment’s risks, which are detailed at this link.
As a registered digital asset service provider with the AMF, eToro (Europe) Ltd. provides cryptoasset investing and custody services. Investing in cryptoassets is extremely volatile. No safeguards for consumers. Profit tax may apply.
In some EU nations, cryptoasset investing is unregulated and highly volatile. No safeguards for consumers. Profit tax may apply.
eToro doesn’t offer non-subordinate cryptoassets administrations to clients dwelling in Germany.

Acquiring cryptocurrency through the Bitcoin.com website

On the Bitcoin.com website, you can use your credit or debit card or another method of payment (Apple Pay, Google Pay, etc.) to purchase a variety of cryptocurrencies. You will need to decide where to receive your crypto when you purchase it from our website. As a result, when prompted, you will need to enter an appropriate crypto address.

A Bitcoin address, for instance, looks like this:

An Ethereum address looks like this: 3J57t1XpEZ73CZmQvfksriyiWrnqLhGTLy

0xb794f5ea0ba39494ce839613fffba74279579268 The buying procedure on our website is as follows:

1. Visit our Buy page.
2. Choose the cryptocurrency that you want to buy. For instance, Ethereum (ETH) or Bitcoin (BTC), and click the “Buy” button.
3. Enter the currency amount and select whether you want to pay in USD or another local currency. $100).
4. Select the “Buy” option.
5. Add the address of your wallet. You will decide where the cryptoasset you are purchasing will go here. You can send cryptocurrency, for instance, directly to your multi-chain Bitcoin.com Wallet. Simply provide the appropriate cryptocurrency address to accomplish this. For the correct address:

 

• Start the app.
• Select the receive button.
• Select the cryptocurrency our want to receive (eg. BTC, BCH, ETH) choose the crypto wallet you want to receive it to (eg. My BTC Wallet, My ETH Savings Wallet, etc.)
• To copy the address to your clipboard, tap the copy button. That address needs to be entered into the Bitcoin.com website. You can, for instance, email the address to yourself and then paste it into the wallet address field on our website if you are accessing the website from a desktop or laptop. If you’re accessing the website from your desktop or laptop, you can, for example, email the address to yourself then paste it in the wallet address field on our site.
• Create an account and provide your payment information to finish the purchase process.

Watch this video to learn how to locate your Bitcoin.com Wallet cryptocurrency address:

Purchasing digital currency from a central crypto exchange

The cryptocurrency you acquire using this strategy will initially be held on your behalf by the cryptocurrency exchange. You will need to move your cryptocurrency from the exchange to a self-custodial wallet like the multi-chain Bitcoin.com Wallet if you want complete control over it. You will be subject to the withdrawal policy and fees of the exchange when you withdraw crypto. You might not be able to withdraw for days or weeks in some cases, and the withdrawal fee might be much higher than what you would normally pay for a crypto transaction on that network.

The typical procedure for purchasing cryptocurrency from an exchange is as follows.

1. Go to the website of a crypto exchange.
2. Make an account and, as necessary, verify your identity.
3. To purchase your cryptoassets, such as Bitcoin (BTC) and Ether (ETH), follow the website’s instructions.
4. Your exchange account will show the cryptocurrency you bought.
5. Send your cryptoasset from the exchange to a self-custodial wallet like the Bitcoin.com Wallet if you want complete control.

Utilizing a peer-to-peer trading platform to buy cryptocurrency

Peach Bitcoin and a number of other platforms make cryptocurrency trading easier by providing two services: 1) a place where buyers and sellers can post their buy and sell orders; and 2) an escrow and dispute resolution service.

In some jurisdictions, these platforms are not technically classified as “money transmitters” because their primary function is to help people find each other. As a result, you may not be required to disclose your identity in order to use them. Therefore, P2P platforms can be an effective means of obtaining cryptocurrencies for buyers who are concerned about their privacy, despite the fact that they are typically less convenient and frequently more expensive overall (it can be challenging to obtain the “correct” market rate using this method due to a lack of liquidity). It is important to keep in mind, however, that if you are a seller and use a peer-to-peer platform to engage in the commercial sale of cryptoassets (beyond, say, a few small transactions here and there), you might find yourself breaking the law in your country because you might be regarded as a money transmitter operating without a license.

The majority of peer-to-peer cryptocurrency exchanges incorporate a reputation system, which means that they monitor and display users’ trading histories. If you want to buy on a P2P exchange, you should look for sellers who have a good reputation—they have done several trades and never had a complaint—so you can buy from them.

Typically, using a peer-to-peer exchange, you can purchase cryptocurrencies as follows:

1. Sort through the listings by type of payment (such as transfer via PayPal, for example) amount, seller’s location, reputation, and other factors.
2. Start a transaction. The cryptoasset is placed in an escrow account as a result.
3. Send the agreed-upon payment amount using the agreed-upon method of payment. Keep in mind that this could even entail personally meeting the seller and handing over cash.
4. The seller then confirms through the website or app that they have received the payment. This causes the cryptoasset to be transferred to your crypto wallet from escrow.
5. In some cases, the purchased cryptoasset will be released from escrow directly to the crypto wallet of your choosing. In other cases, it will first be sent to your peer-to-peer platform account wallet (which is typically a custodial web wallet). In that case, you’d then want to withdraw it to a crypto wallet you control. Note that this final step often incurs a fee, which typically constitutes the peer-to-peer platform’s business model.