Bitcoin has been around since 2009 and in just a few years the crypto market exploded with different types of cryptocurrencies. But still today a lot of people are afraid to trade with cryptocurrencies, often saying that it seems complicated and easy to get scammed.

This article will cover several different ways of purchasing cryptocurrencies, what to look out for and how to store them.

What is a “crypto wallet”, and do I have to have one to store my Bitcoin?

A cryptocurrency wallet is a digital wallet that allows you to store, send, and receive digital currencies. It is similar to a physical wallet in that it allows you to store currency, but it is digital and stored on a computer or mobile device. Cryptocurrency wallets are designed to be secure and are often encrypted to protect the private keys that are used to access and transfer the digital currency.

There are several different types of cryptocurrency wallets, including:

Software wallets: These are digital wallets that are installed on a computer or mobile device. They are typically free to use and are relatively easy to set up.

Hardware wallets: These are physical devices that are specifically designed to store and manage cryptocurrencies. They offer a high level of security and are often considered to be the most secure type of cryptocurrency wallet.

Paper wallets: These are essentially a printout of a private key and a public address. They offer a high level of security, but they can be lost or destroyed if not properly stored.

Online wallets: These are digital wallets that are hosted by a third party, such as a Crypto Exchange and accessed through a web browser. They offer convenience but are generally considered to be less secure than other types of wallets. Additionally, there are several different types of web browser extension wallets, such as Metamask, where you have control over your private key.

Do I have to have a wallet?

No, you don’t have to have a wallet, you could keep your crypto at a crypto exchange. Maybe you’ve read about the FTX Crash and feel a bit worried about keeping your assets at an exchange, and to be honest no one can be 100% certain it won’t happen again. But if you just want to try trading with crypto and don’t plan to spend too much money, keeping your crypto at one of the more reputable exchanges is fine.

However, if you plan to purchase and HODL crypto, I recommend a hardware wallet. Ledger, Trezor and KeepKey are all good and safe. Just don’t ever purchase a used hardware wallet!

Obstacles you might run in to

There are a lot of different ways to buy cryptocurrencies, and the best way often depends on where you live and if trading with cryptocurrencies is regulated by law or not. Often it’s not explicitly prohibited to trade with crypto, but there can be other obstructions you need to overcome.

Where I live it’s mainly the banks that make it hard to trade with crypto. Most banks don’t allow the use of their VISA/Mastercard to purchase crypto. They also don’t allow you to transfer FIAT currencies to your bank account if they suspect it’s a result of crypto trading. To legitimate this behaviour, they often refer to The Money Laundering and Terrorist Financing Act, effectively making every crypto trader a suspected terrorist financier.

Where and how can I buy crypto?

Given the possible obstacles you need to overcome, depending on where you live and what regulations apply to you, some of these suggestions might not work for you. If you run into issues, try one of the other suggestions.

Bitpanda

Bitpanda was founded in Vienna in 2014 and their native token is Bitpanda EcoSystem Token (BEST) In my opinion they have a very easy and intuitive user interface, which makes it suitable for users who are new to the crypto trade.

Once you’ve signed up at Bitpanda, you might be asked to verify your email address and phone number (and later on, also your identity). Once this is done, your account should be unlocked for trading.

At the top of the website, you will find a button that says “Deposit”, and once you’ve clicked on it you will be shown a list of currencies. Choose the currency you wish to deposit, and a list of payment methods will show up.

Choose your preferred method to deposit money. If one option doesn’t work, try another. Depending on the method you choose, the money will be available to you somewhere between a few minutes to a few days.

Once your deposit is complete, the funds will show in your account.

Purchasing Crypto at Bitpanda

At Bitpanda you now have two options to purchase crypto. Either you can click on “Prices”, to show a list of all assets available for purchase, or you can click on “Trade” and then “Buy”, to show the same list.

I like Litecoin (LTC) myself, so that’s what I will purchase. Scroll (or use the search function) to find the asset you wish to buy.

Select the amount you wish to buy, accept the terms and proceed with the purchase. You now own some Litecoin (or whichever asset you choose to buy), and by going to your wallet you can choose to sell, swap or send your LTC.

Binance

Binance was founded in 2017 and is one of the largest crypto exchanges in the world, with an average trading volume of 2 billion USD. Binance’s native token is BNB which is available at two different blockchains, BNB Beacon Chain and BNB Smart Chain.

Once you have signed up to Binance, you might be asked to verify your email address and phone number. Later on, depending on your trading volume, you might lso e to verify your identity.

In the top right corner of the website your wallet is located, select “Fiat and Spot Wallet” from the dropdown menu.

In your Spot and FIAT wallet, choose “deposit” right next to the currency you wish to deposit.

This will open up a new page and present you with deposit options available to you.

Choose your preferred method and follow the instructions on the screen. Your funds will become available to you in a few minutes or a few days, depending on which method you choose. Once the deposit is complete the funds will show in your FIAT and Spot wallet.

Purchasing Crypto at Binance

At Binance there are a few different ways to choose a cryptocurrency and purchase it.

By selecting “Trade” next to your FIAT assets, you get a limited options of crypto you can buy.

If you instead click at “Markets” in the menu at the top of the website, you get a list of cryptocurrencies to pick from.

I would like to buy some BNB, so I will select “Trade” in the BNB row.

This will open up the trade window. However, it opens up to trade BUSD with BNB and not EUR and BNB.

To change this, choose from the list to the right (or use the search function).

I think the current price of BNB is favourable, and will just buy at market price. Once you have selected “Market”, choose how much money you wish to spend to buy your assets, and click “Buy”.

When the transaction is done, you will find the assets you bought in your FIAT and Spot wallet.

A Final Word

This article has shown how to purchase crypto with FIAT from two different crypto exchanges. In these examples, I have purchased Litecoin and BNB, but it works the same to purchase some other cryptocurrencies. You can also purchase one cryptocurrency and pay with another cryptocurrency.

The examples in this article are the basics when it comes to buying, selling and trading cryptocurrencies, but should be enough to get you started. The exchanges I have used in this article are Bitpanda and Binance, but the principle is pretty much the same whichever exchange you use. I picked these two exchanges because I use them myself and I believe them to be trustworthy.

While there are risks of getting scammed while trading with crypto (as I’ve written about before), the risks are fairly low when you use reputable exchanges such as Binance, Bitpanda or CRO. You might also be interested in reading the article: The Difference Between Crypto And FIAT Money

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