How to buy cryptocurrency on the exchange: instructions for buying cryptocurrency on cryptocurrency exchanges
Cryptocurrency exchanges are the most popular way to buy digital assets, please. And given the fact that these sites are becoming more and more functional, not only an experienced user can quickly acquire coins, but also a beginner who enters this area for the first time. The editorial staff of Btcnewsweb.com prepared instructions on how to buy cryptocurrency on the exchange, how to choose the platform that is best for you, and what nuances should be taken into account.
- 1 General instructions for buying cryptocurrency on the exchange
- 2 How to choose an exchange for cryptocurrency trading
- 3 What is verification and why is it needed
- 4 How to buy cryptocurrency on the exchange through the trading terminal
- 5 How to quickly buy cryptocurrency from a card through an exchange
- 6 What are the commissions when buying cryptocurrency on the exchange
- 7 Where else can you buy crypto
- 8 Where is it more profitable, cheaper and safer to buy cryptocurrency: in an exchanger or on an exchange
- 9 Where is the best place to store cryptocurrency after purchase
- 10 Conclusion
General instructions for buying cryptocurrency on the exchange
A short algorithm of actions that must be taken to buy cryptocurrency through the exchange:
- Choosing a cryptocurrency exchange. It is necessary to choose a site that will meet most of the preferences of a particular user, and at the same time be safe and with a good reputation.
- Check in. Usually, you can register using e-mail or mobile phone, less often – log in through social media accounts.
- Verification. This is a necessary measure if you plan to buy crypto for regular money (fiat money).
- Refill. Different exchanges support different ways to enter fiat money, but in most cases you can use a VISA or Mastercard for this purpose.
- Buying cryptocurrency. This can be done in different ways, we will explain in more detail in the article.
After that, you will need to take care of the further storage of coins, that is, choose a reliable cryptocurrency wallet.
Now let’s look at all aspects in more detail.
How to choose an exchange for cryptocurrency trading
Choosing the wrong crypto exchange can make the purchase much less profitable, and in the worst case, even deprive you of capital if you enter a fraudulent or weakly secured platform. Here are five main factors to look out for when choosing a cryptocurrency exchange:
- Security and legality. Check the exchange for licenses and approvals from regulators. Assess the security measures the platform uses to protect your accounts. It must be possible to activate two-factor authentication.
- Exchange type. You can trade through classic trading platforms, p2p exchanges and brokerage services. Each option has its own advantages and disadvantages, the first option being the most popular. Finally, even among the classic crypto-exchanges there are different options – spot and futures, centralized and decentralized, etc.
- Commission structure. All crypto exchanges charge interest for trading operations and withdrawals, some also for deposits and other things (for example, for account inactivity for a certain period of time). By comparing different sites, you can choose the most profitable in terms of trading fees.
- User interface. It is especially important to consider this if you are trading cryptocurrency for the first time. The most popular are exchanges with an intuitive interface. Most of the popular exchanges have almost the same type of trading terminal, precisely because at the moment it is considered the most convenient and functional.
- Ways of payment. There are exchanges (most often decentralized) that support exclusively cryptocurrency, that is, you can come to trade only if you already have coins in your wallet. For the initial purchase, you should choose other exchanges – with support for fiat money, where you can buy digital assets for rubles, dollars, hryvnia, Belarusian rubles, etc.
It is important to weigh everything carefully before sending your money to one or another platform. Examples of trusted trusted fiat cryptocurrency exchanges: Binance, Currency.com, Huobi, EXMO, Free2ex, BTC-alpha.
Video tutorial on buying cryptocurrency on the Currency.com exchange:
What is verification and why is it needed
By registering on the exchange, you may find that some options are not available to an unverified user, in particular, the use of fiat money. Verification means passing the Know Your Customer (KYC) check, which allows the site to be sure that the customers are really who they say they are, and that they are allowed to use the company’s services and this will not be associated with any criminal activity.
KYC is essential to combat money laundering and terrorist financing both globally and nationally. By implementing KYC, a company can obtain correct customer information and weed out users with questionable backgrounds.
There are exchanges that require KYC for any operations (for example, EXMO), and there are those that allow you to use part of the functionality without verification. The requirements themselves may also vary slightly, but basically everyone asks for the following information:
- full name;
- Date of Birth;
- Contact details;
- residential address, confirmed by receipts of housing and communal services or a certificate of registration;
- scan or high-quality photograph of an identity card (passport, ID-card, driver’s license);
- your selfie, sometimes with your ID.
KYC is a requirement of regulators in many jurisdictions, especially in Europe and the USA. If the exchange refuses to comply with it, then it will not be able to operate in a certain jurisdiction. That is why, despite the fact that users would prefer to remain anonymous, sites are forced to require verification. Verification is not required on decentralized exchanges.
See also: exchanges without mandatory verification.
How to buy cryptocurrency on the exchange through the trading terminal
The trading terminal is a set of tools for trading and monitoring the market state. It includes the creation of orders – orders to buy / sell assets. In terms of commissions, this is the most profitable way to buy.
- Create an account on the selected crypto exchange. For example, we will consider Binance, this is the most popular platform.
- Go through verification. The process of sending data takes 15-20 minutes, but waiting for verification may take 1-2 days.
- Fund your account. To replenish your Binance account, you can go to the “Wallet” menu, select “Fiat money and Spot”, find the required currency for replenishment there, and press “Enter”.
- Select a Payment Method.
- Review the payment details and enter the amount.
- Confirm the action through the website of the selected payment system or bank.
- Go to the wallet again. Find the cryptocurrency you want, for example Bitcoin.
- Click “Trade”. Choose a pair that suits your needs. For example, if you are going to buy bitcoin on the exchange for rubles, then choose BTC / RUB.
- Once in the trading terminal, pay attention to the section for creating orders. Form a buy order (where it says “Buy”). If you want to buy quickly, then go to the “Market” tab, enter the amount for the purchase. If you are ready to wait a little, but buy is more profitable, then form a limit order, indicating the desired price as well. The order will be executed when a counter market order is found at that price.
How to quickly buy cryptocurrency from a card through an exchange
This method is even simpler than the previous one, but it may be less profitable. Many exchanges support payment for purchases from a bank card through third-party payment services, after which the coins go to the exchange account.
How it’s done:
- Registration and verification – these points are exactly the same as those described in the previous section.
- On the Binance exchange, open the Buy Crypto menu and select Credit / Debit Card.
- Select the currency of your card (for example, ruble) and the currency you are buying. You can buy from the card not every cryptocurrency presented on the exchange, but only a few dozen of the most popular ones.
- Enter the amount you would like to spend.
- Click “Buy BTC” (or another coin).
- Going to the website of the bank / payment provider, check the details and confirm the operation.
There is also another way to buy from a card on Binance – through third-party partners (Simplex, BANXA, Mercuryo). The process looks virtually the same. To get to this section, open the “Buy cryptocurrency” menu and select “Through third-party partners“.
What are the commissions when buying cryptocurrency on the exchange
In addition to the cost of the cryptocurrency itself, you will need to pay a commission to the platform for providing services. It includes the fees of the maker (a trader who adds liquidity to the order book using a limit order) and a taker (a trader who takes liquidity from the order book by creating a market order).
Fees can have a multi-tiered structure and depend on factors such as the volume of trades in the last 30 days, the amount of exchange token in the account (BNB for Binance, HT for Huobi, FTT for FTX, etc.).
Basic commissions of some crypto-exchanges:
- Binance: maker 0.1%, taker 0.1%.
- Huobi: maker 0.2%, taker 0.2%.
- Currency.com: maker -0.025% (rebate), taker 0.075%.
- EXMO: maker 0.3%, taker 0.3%.
- FTX: maker 0.02%, taker 0.07%.
Where else can you buy crypto
In addition to cryptocurrency exchanges, there are the following ways to buy cryptocurrencies:
- p2p platforms – for example, Binance P2P, LocalCryptos, Monabey, Cryptolocator, Bitzlato and others.
- Telegram bots from various exchangers and p2p exchanges.
- Payment systems (for example, through AdvCash, you can purchase a coin immediately with crediting to Binance).
Where is it more profitable, cheaper and safer to buy cryptocurrency: in an exchanger or on an exchange
In terms of costs, the exchange may be more profitable than the exchanger, but you also need to take into account the commission for withdrawing to the wallet. It is more convenient to withdraw large amounts, since most exchanges set a fixed commission for withdrawal.
In terms of speed, exchangers are superior to exchanges, if you do not yet have an exchange account – you do not need to register and verify, you can make a purchase in a few minutes.
When it comes to security, reputable crypto exchanges are clearly in the lead with a strong focus on protecting customer funds and information. You can even store assets on them for some time, although it is recommended to withdraw them for storage to an external wallet.
Where is the best place to store cryptocurrency after purchase
There are the following types of cryptocurrency wallets:
For long-term storage of large amounts, the best choice is hardware wallets. They do not connect to the Internet until you need to send a transaction, so they are most protected from hacker attacks.
Buying cryptocurrency on an exchange is a method that is suitable for almost all categories of users. The purchased assets can subsequently be used in various ways, for example, to receive passive income from them through landing pages, staking, and pharming. Exchanges provide the opportunity for additional savings with their own exchange tokens, and also give discounts for large monthly volumes. Top sites provide a high level of security, as well as many auxiliary functions.