Crypto basics: How to buy cryptocurrency

Cryptocurrency is the biggest thing that has happened to the financial world in the last few years. Each day, more and more people are investing in this novel technology, with some even making huge profits on it. Now’s the best time to buy your own coins, but first, how and where can you buy cryptocurrency?

Many online platforms now let people trade their cash with crypto tokens as well as invest in other types of altcoins. Find out the various options you have in starting your own crypto investment here at Cryptoshimbun!

What is cryptocurrency?

Unlike physical cash or gold, cryptocurrency is a digital asset that only exists in electronic form and is stored across millions of computers all around the world to create a decentralized network that manages transactions.

Its decentralized nature means that it’s not controlled or backed up by any authority, bank or government. It also means that there is no single authority that can control the price hikes and trends for cryptocurrency. To put it simply, users all around the world set the price and trends governed by the principles of demand, supply and scarcity.

Where to buy cryptocurrencies

There are more than 10,000 different cryptocurrencies that are traded in dozens of crypto exchanges globally. Exchanges are online and digital marketplaces where you can buy and trade crypto. Because of these platforms, investing in cryptocurrencies is made more convenient and safe.

On the platform, you can trade one crypto for another like Bitcoin to Litecoin, or buy crypto using regular currency like the US dollar. Just like stock exchanges, they also reflect the current market prices of the cryptocurrencies they offer. You can also trade cryptocurrencies back to fiat or another currency listed on the exchange.

Different types of exchanges

Once you’ve decided you want to buy Bitcoin, Ethereum or any other cryptocurrency, you’ll need to create an account on a crypto trading platform to exchange your cash for digital assets. There are three different types of cryptocurrency exchanges:

Centralised Cryptocurrency Exchange

This is also known as a traditional cryptocurrency exchange and it offers cryptocurrency trades from either fiat-to-crypto currency or crypto-to-crypto tender. Examples of centralised platforms include Binance, Coinbase and Kraken.

As the most widely accepted platform, the majority of all crypto transactions go through centralised exchanges that offer more reliability because they are operated and controlled by a company.

Decentralised Cryptocurrency Exchange

This acts as an alternative to a traditional and centralised exchange. The trades or transactions are executed by an automated process without any central body regulating them These trades are considered peer-to-peer.

Hybrid Cryptocurrency Exchange

This is a combination of both exchanges, taking the best from each platform concept. A hybrid exchange makes use of smart contracts and offers a trustless nature together with the fast transaction speeds of centralised platforms.

Review of crypto exchanges

Some cryptocurrency exchanges offer a platform that helps make transactions easy for the customer. Meanwhile, some offer competitive pricing that professional cryptocurrency traders can use. 

Here are three of the top crypto exchanges:


Binance is known for its high-speed trade execution, lower trading fees and more cryptocurrencies trading pairs than other providers. It provides the purchase and sale of more than 50 cryptocurrencies, including Bitcoin, Etherium, Bitcoin Cash, Litecoin, Chainlink, Dogecoin and other popular digital currencies.


Coinbase is more user-friendly than most crypto platforms. You can get started as soon as you have created your profile, linked your bank account and funded your wallet. It allows users to buy, sell and store more than 30 different digital currencies.


Kraken is perfect if you’re just getting into crypto. It offers 3 packages of accounts with its starter, intermediate and pro. The starter account already allows for deposits, exchanges, and withdrawal of cryptocurrency. 

How to buy cryptocurrency

Creating an account is the first step to buying crypto. The process is more or less the same across all platforms and will only take a few minutes to complete.

  1. Go to your selected platform’s website
  2. Register with your email address and choose a secure password
  3. Enter referral code if applicable
  4. Follow the verification instructions. It may ask you for a one time password sent to your phone or your email. Finish through the verification to go to the next step
  5. Once your account is set up, you need to complete the Know Your Customer process
  6. Add payment details that you will use to buy crypto. You can add in your credit card or you can also transfer funds from your bank account to your crypto wallet
  7. Once your account is set up and you have funds, you are ready to buy and sell.

How safe are cryptocurrencies?

Crypto transactions are said to be more secure than other types of digital transactions such as online banking, money transfers through digital wallets or peer-to-peer payment services.

With crypto, transactions are backed by a special system called the blockchain. Unlike other financial solutions, the blockchain is a technology that keeps improving. Moreover, it is built on secure cryptography.

Ledger transparency means that all the transactions are available to the public and are verified by several participants in the networking, making it difficult to cheat or scam the system.

Transactions don’t require permissions which means there’s no regulatory body or authority that has control over any part of the network at any time.

When you decide to buy cryptocurrency, make sure that you open an account with a trusted platform. Invest safely by following security protocols and securing your password. 

Cryptocurrencies are gaining mainstream momentum with more and more companies adopting it as a payment method. Some countries are also starting to embrace crypto as legal currency, a proof that digital currencies are here to stay and might just become the money of the future.

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