How to Buy Cryptocurrency? Step-by-Step Guide

New investment instruments are becoming widespread around the world. One of the most popular and new investment instruments of the last period is cryptocurrencies. Especially with the orientation of institutional investors and the moves of important companies of traditional finance, cryptocurrencies have become a remarkable investment instrument. Cryptocurrencies, which are flooded with new investors day by day, will be popular in the future. You can continue reading our guide for the answer to the question of how to buy cryptocurrency.

In this content, you will learn about our guide to buying Bitcoin, the best cryptocurrency exchanges, crypto wallets and security, crypto investment strategies and more.

Introduction The Basics of Buying Cryptocurrency

Cryptocurrency, which has become a popular investment tool in the modern financial world, can seem complicated for new investors. In particular, the question of how to buy cryptocurrency is often asked by new investors.

Before you buy cryptocurrency, you will need a wallet or a centralized exchange account. Decentralized wallets put you in control, while wallets offered by centralized exchanges help you store your assets. Once the wallet and exchange have been chosen, it’s time to make a deposit. Traders who prefer an exchange will need to verify their identity, while those who use a decentralized wallet will only need to create a wallet.

After the deposit phase is completed, cryptocurrency can be purchased on the relevant platform. At this point, security measures should be taken and risk management should be done. Even the best cryptocurrency exchanges do not guarantee complete security.

What is Cryptocurrency and Why is it Popular?

Cryptocurrency is a digital currency created through smart contracts and traded on a blockchain. These virtual currencies are secured by cryptography. Cryptocurrencies, which cannot be managed by central authorities or banks, work with a distributed ledger technology. Cryptocurrencies such as Ripple are used as a means of payment, while cryptocurrencies such as Bitcoin are preferred as a means of value protection.

The main reason for the popularity of cryptocurrencies is easy accessibility and the digital environment. Investors or users can access and transact with cryptocurrencies within seconds. Cryptocurrencies are also active 24/7 and cost-efficient.

Advantages and Risks of Investing in Cryptocurrency

The biggest advantages of investing in cryptocurrencies are speed and low transaction fees. An investor can create crypto investment strategies and invest at any time and on any day within this strategy. Another advantage is that cryptocurrencies offer the potential for high returns. Easily tradable, cryptocurrencies are more accessible than the investment instruments of traditional finance. Cryptocurrencies, which can be traded every day and every hour of the week, have the advantage of instant trading. Methods such as buying cryptocurrencies with debit and credit cards are also among the advantages.

Cryptocurrencies also have many disadvantages. One of the disadvantages of cryptocurrencies is that they are open to speculation. Due to high volatility and market manipulation, crypto investors can suffer a huge loss in seconds. Another disadvantage is that regulations are not yet reflected in cryptocurrencies. Reliability, which is one of the things to consider when buying cryptocurrency, is also one of the disadvantages. Even the best cryptocurrency exchanges can go bankrupt and users can lose their assets.

Cryptocurrency Purchase Methods

An investor asking how to buy cryptocurrency can explore buying methods with this guide.

There are many ways to buy cryptocurrency. In the early days when Bitcoin was launched and altcoins were slowly gaining ground, crypto traders used Peer-to-Peer (P2P). With P2P platforms, which are still available, buying crypto is quite simple. Investors can buy crypto in exchange for a certain amount of cash to the seller.

While the reliability of this barter-based method has been questioned, cryptocurrency exchanges have emerged. In this method, crypto investors become members of centralized exchanges and can buy and sell cryptocurrencies after authentication. Binance, Huobi and Gateio are known as the best cryptocurrency exchanges.

Another method is to buy and sell cryptocurrency through decentralized exchanges, which entered the crypto sector with the DeFi Summer 2021. To buy and sell cryptocurrency on decentralized exchanges, you need a decentralized wallet. Wallets such as Trust Wallet and Metamask are examples. Decentralized exchanges are platforms such as Uniswap, PancakeSwap and Raydium.

With institutional investors getting involved in the sector, a new method has emerged. You can buy and sell cryptocurrencies through payment apps and transfer them to your personal wallets. Alchemy Pay and PayPal are among the payment apps. You can also use crypto ATMs, just like bank ATMs. These ATMs are the only example of physical trading.

Purchasing through Cryptocurrency Exchanges

Buying and selling crypto on cryptocurrency exchanges is a very common method. Binance, one of the best cryptocurrency exchanges, is the platform with the highest active trading volume. The biggest advantage of such exchanges is that they inform and guide investors. For example, Binance makes it easier for new investors with its Bitcoin buying guide.

To buy cryptocurrency on cryptocurrency exchanges, you must create a membership and complete the approval process required by the platform. You can then transfer traditional currency to the exchange and trade cryptocurrencies with this money.

Buying Crypto with P2P (Peer-to-Peer) Platforms

Buying crypto on P2P platforms is a very simple system. On P2P platforms, a seller and a buyer meet. The seller sells the cryptocurrency they hold for a certain amount. The buyer buys this cryptocurrency with the cash they have. This system, which has existed since the early times, is based on the barter method. Since reliability is among the things to consider when buying cryptocurrency, it is important to make sure that the seller is reliable when buying with the P2P system.

Buying Cryptocurrency Using an ATM

After 2021, crypto ATMs became widespread in many countries, creating a physical environment for buying and selling cryptocurrencies. Traders can buy and sell cryptocurrency through crypto ATMs, just like bank ATMs. Buying cryptocurrency using an ATM is quite simple.

Buying Crypto with Decentralized Exchanges (DEX)

In 2021, decentralized exchanges entered our lives in a bullish cycle known as DeFi Summer. Decentralized exchanges such as Uniswap, PancakeSwap and Raydium have become popular trading platforms. Investors can buy and sell cryptocurrencies on decentralized exchanges through crypto wallets and security measures. This requires creating a decentralized wallet. Decentralized wallets like Trust Wallet make it easier for investors by creating an entry guide to the cryptocurrency market.

Best Exchanges to Buy Cryptocurrency

More than 70 percent of investors who buy cryptocurrency prefer centralized exchanges. The best cryptocurrency exchanges are Binance and Coinbase. These exchanges rank first in terms of the number of users and trading volume.

Trading cryptocurrencies through centralized exchanges is easy and functional. The trader creates a membership on the relevant exchange and can start trading by sending fiat money to their account. Traders pay less transaction fees if they trade on crypto exchanges with the lowest commissions. It is important to compare cryptocurrency exchanges and find the most functional one.

Binance

Binance is the world’s most popular cryptocurrency exchange with the highest trading volume. Binance attracts new investors with its user-friendly interface, which is characterized by its wide asset support, high liquidity, reliable infrastructure, spot and futures trading, airdrops and launchpad campaigns. Binance was founded and developed by Changpeng Zhao (CZ).

Coinbase

Coinbase is a publicly traded crypto exchange in the US, listed on the Nasdaq stock exchange. Although Coinbase appears centralized, it has become the first choice of institutions. In particular, providers of spot Bitcoin ETF services hold their assets on Coinbase. Coinbase stands out with its spot trading, reliable trading infrastructure and custody services.

Kraken

The US-based crypto exchange Kraken is known as the crypto exchange of choice for investors with large amounts of assets. The Kraken exchange has become popular thanks to the functionality of its spot trading platform and the variety of cryptocurrencies listed.

KuCoin and Other Alternatives

KuCoin is one of the most actively used exchanges in the cryptocurrency market. KuCoin, which attracts attention especially with its altcoin diversity and user-friendly interface, stands out with its low transaction fees and user experience-oriented infrastructure.

Other alternative exchanges besides KuCoin are Gateio, MEXC, Huobi, OKX and Bybit.

A Step-by-Step Guide to Buying Cryptocurrency

Cryptocurrency and Bitcoin buying guides make it easy for new investors to buy and sell. Such guides provide information on what to look for when buying cryptocurrency and crypto investment strategies.

In order to buy cryptocurrency, it is first necessary to determine the platform to buy from. After deciding whether this platform is a centralized exchange or a decentralized exchange, the next step can be taken. In the next step, the investor transfers the fiat currency to the relevant platform. To buy and sell cryptocurrency on decentralized exchanges, decentralized wallets are needed. Examples include wallets such as Trust Wallet and Metamask.

After the investor transfers the fiat currency to the relevant platform, they can start trading after fulfilling certain conditions. Here is a detailed guide to buying cryptocurrency…

1. Choosing a Reliable Cryptocurrency Exchange

The first step is to choose a reliable cryptocurrency exchange. The trader compares cryptocurrency exchanges and chooses the most suitable one. At this point, the exchange’s reliability, liquidity and simple interface will be important factors. An investor who wants to trade on a decentralized exchange connects to the relevant platform with a decentralized wallet and trades. On the other hand, an investor who wants to buy cryptocurrency with a centralized cryptocurrency exchange takes the first step by creating a membership. Among decentralized exchanges, Uniswap, PancakeSwap and Jupiter are examples of reliable exchanges. On the other hand, exchanges such as Binance and Coinbase are among the reliable centralized exchanges.

2. Account Opening and Authentication (KYC)

When an account is opened on cryptocurrency exchanges, the verification phase begins. To comply with regulations, exchanges require identity verification (KYC) from users. An investor can start trading after KYC verification by the exchange they are a member of. This verification is carried out for security and anti-money laundering purposes.

3. Deposit to Account (Bank Transfer, Credit Card, USDT)

Once the membership is created and KYC verification is done, the exchange account needs to be funded. The trader can use various methods to deposit fiat currency on the platform. The most common methods of sending money to exchanges are bank transfers and credit cards. Crypto exchanges make it easier for traders with a guide on depositing funds. Deposits can also be made by transferring USDT from another exchange.

4. Choosing and Buying Cryptocurrency

The most difficult stage for investors is choosing the cryptocurrency to invest in. At this stage, risk management should be done, the research process should be completed and the cryptocurrency should be purchased. Traders can use the exchanges’ trading screen to buy their chosen cryptocurrency. There are two options on this screen: market order and limit order. A market order allows direct purchase regardless of price, while a limit order involves buying at a set price.

5. Transfer to Wallet and Secure Storage

The purchased cryptocurrency can be stored on the relevant exchange, but it is more reliable to move it to personal wallets. Traders can move their purchased cryptocurrencies to decentralized wallets such as Trust Wallet or Metamask. These wallets are supported by a mobile or desktop application. After the wallet is created on the relevant platforms, the cryptocurrency on the exchange is moved to the supported blockchain. The transaction in question is realized with the withdrawal button.

Choosing a Cryptocurrency Wallet and Secure Storage

Cryptocurrencies, which are built on software and hardware, may require precautions for safe storage. Malicious actors called hackers can target crypto investors and steal their assets with simple codes. For this reason, there are various methods to help crypto investors store their assets securely.

Traders may prefer cold wallets as the most secure method. This wallet is a crypto wallet in a physical vehicle. As long as the physical vehicle is in the investor’s possession and the wallet information is not shared with others, there will be no problems. Another reliable storage method is the hot wallet. Unlike cold wallets, this wallet model does not require a physical vehicle. A hot wallet can be used via a mobile or desktop application. The wallets of trusted exchanges such as Binance and Coinbase can also be preferred as a storage method. However, it is worth remembering that exchanges do not fully assure investors.

The Difference between Hot Wallet and Cold Wallet

Hot wallets can be operated via internet-connected devices and are accessible via online exchanges. These cryptocurrency wallets offer easy and fast access, and investors can make instant transactions. Cold wallets, on the other hand, are physical devices that are not connected to the internet. Trading on such wallets is more complex and time-consuming. Cryptocurrencies held in cold wallets require a physical connection to be transferred to exchanges or traded. Cold wallets are usually USB stick-style hardware.

Best Crypto Wallets (Metamask, Trust Wallet, Ledger, Trezor)

To buy and sell cryptocurrency, you need to research the best crypto wallets. One of the issues to be considered when researching crypto wallets and security is ownership. The answer to the question of which cryptocurrency wallet is safer lies in this concept of ownership. A crypto wallet should not be used against the user’s will and desire.

At this point, we can evaluate the best crypto wallets in two categories. Metamask and Trust Wallet stand out as hot wallets, while Ledger and Trezor stand out as cold wallets.

Ways to Keep Your Cryptocurrencies Safe

To keep your cryptocurrencies safe, it is recommended that you move your assets to your personal wallets. This way, you are in full control of your assets and no one but you can access them. Also, investors should not click on every message, link or confirmation to protect their cryptocurrencies. Crypto wallets require a confirmation signature before the transaction, so traders should pay attention to the platform before confirming.

Cryptocurrency Trading Strategies

Various strategies are applied to be successful and gain profit in the cryptocurrency market. These strategies enable investors to act in a planned and programmed manner. The most common and well-known crypto investment strategy is the long-term investment (HOLD) strategy. Since this method is also used in traditional investment instruments, it appeals to a large audience. Investors of all ages can invest with the HOLD method. Although the long-term investment strategy is generally preferred in commodity products such as gold, it can also be applied in cryptocurrencies. In cryptocurrencies, it is called HODL instead of HOLD.

Investors who want to earn high returns in the cryptocurrency market can take more risks. The preferred strategy at this point is the day trading method. The strategy known as buying low and selling high is a method that requires professionalism.

Long Term Investment (HODL)

HODL is known in the cryptocurrency industry as an abbreviation of Hold On for Dear Life. A misspelling of the term HOLD, it represents a long-term investment strategy among cryptocurrency traders. This strategy requires a long-term view of the market, patience, fundamental analysis and psychological resilience. Traders who do not possess these characteristics are not recommended to use the HODL strategy.

Day Trading

Day trading, also known as day trading, is the buying and selling of cryptocurrencies and other financial assets during the day. Known as a short-term investment strategy, it involves technical analysis and market monitoring.

Passive Income Generation with Cryptocurrency (Staking, Yield Farming)

The way to earn passive income with cryptocurrency is through staking and yield farming. Both methods allow traders to earn passive income using their assets. Traders can earn income by staking any asset they have invested in (locking it on the platform for a certain period of time). This income model requires market monitoring of the cryptocurrency used for passive income.

Things to Consider When Buying Cryptocurrency

When buying cryptocurrency, it is important to pay attention to the platform used and the transactions made. If the platform is a website, it is necessary to pay attention to the url section, and if it is an application, it is necessary to follow the permissions given. It should be noted that not every approved transaction can be trusted, so it is important to double check before connecting to a wallet or approving a transaction.

Apart from security measures, another issue is commission and transaction fees. It is important that the cryptocurrency platform has high liquidity and low transaction fees. Otherwise, investors may have to pay a large commission.

One of the most important problems traders have faced recently is market volatility. A cryptocurrency can experience a price change of 10 to 20 percent instantaneously. At this point, it is necessary to use the limit order when trading and avoid big losses.

Safe Exchange Usage

When investing in cryptocurrency, the preferred exchange should be reliable. Using a secure exchange offers the opportunity to avoid high transaction fees, protect against fraud, take precautions against market volatility and trade on high liquidity.

Commission and Transaction Fees

Crypto exchanges generate revenue through commissions or transaction fees. Crypto investors have to pay a certain amount of commissions and transaction fees in exchange for the cryptocurrency they buy. Therefore, investors should choose exchanges with higher liquidity and lower transaction fees in order to reduce costs.

Market Volatility and Risk Management

Volatility in the cryptocurrency market happens very often. Many cryptocurrencies, especially Bitcoin, can fall or rise momentarily. Crypto traders should buy or sell cryptocurrencies at the appropriate time and under the appropriate conditions. Before buying cryptocurrency, it is important to manage risk and protect against large losses. When managing risk, it should be determined how much of the capital will be used and how much loss can be accepted.

Paying with Cryptocurrency and Usage Areas

Cryptocurrencies are being adopted day by day and expanding their usage areas. Especially the preference of Bitcoin by corporates paves the way for cryptocurrencies. Many cryptocurrencies such as Bitcoin, Ethereum and XRP can be used as payment methods. Especially XRP serves as a means of payment and is preferred worldwide. While the methods of making payments with cryptocurrency are increasing day by day, more payment instruments are expected to emerge after the regulations.

Buying Products and Services with Cryptocurrency

Saving time is an important issue when purchasing goods or services. Cryptocurrencies are used as a way to shop faster with lower transaction fees. With cryptocurrencies, you can eat, drink coffee or buy clothes. Many companies also sell services with cryptocurrency payments. These services include sports and language training. Cryptocurrencies are also becoming widespread in travel and accommodation. Travala, in agreement with many hotels, offers vacations with crypto payments.

Use in DeFi and NFT Ecosystem

Cryptocurrencies are used in the DeFi space to generate passive income and in the NFT space to earn as part of an artistic community. Crypto investors can earn passive income by staking their holdings on DeFi platforms. On the other hand, a potential NFT collection can be purchased with cryptocurrencies like SOL or ETH.

International Money Transfers with Cryptocurrency

In traditional finance, international money transfers are slow and costly. Especially on weekends, international money transfers are almost impossible. With cryptocurrencies, on the other hand, you can transfer money to anyone living in a different country within seconds. In addition, international transfers with cryptocurrency are less costly and can be made 24 hours a day, seven days a week.

Cryptocurrency Purchasing and Regulations in the Future

The cryptocurrency market is expected to undergo a major change in the coming period. While countries are preparing for large-scale regulations, regulations are expected to come into force in the cryptocurrency sector. Although the European Union and Turkey have taken important steps in terms of regulations, there is no crypto regulation in the US yet. With the increase in these regulations, it may become easier to buy cryptocurrencies in the future. Banks may provide cryptocurrency trading services and increase accessibility after the regulations.

Regulations are also expected to affect crypto exchanges, aiming to reduce fraud and increase security measures.

Trading Crypto with Decentralized Finance (DeFi)

Decentralized finance (DeFi) platforms are on the rise and attracting new investors. Investors are turning to DeFi platforms to buy and stake cryptocurrencies at lower prices, trade with personal crypto wallets and remain anonymous. DeFi platforms like PancakeSwap and Uniswap offer fast and easy cryptocurrency trading.

State Efforts to Regulate Cryptocurrencies

In 2024, it was seen that states increased their regulation efforts in the field of cryptocurrency. The bankruptcy of FTX, one of the world’s largest cryptocurrency exchanges, and the reset of Luna, one of the largest cryptocurrencies by market capitalization, revealed the need for regulation. Many countries have started regulation efforts to ensure that investors can trade more securely. Turkey, for example, enacted a cryptocurrency law in 2024.

The Future of Cryptocurrencies

The cryptocurrency era that started with Bitcoin is expected to become a bigger investment market in the future. Experts predict that in the future, payment methods will improve with cryptocurrencies and cryptocurrency trading will become easier. Regulations will also ensure reliable trading.

Frequently Asked Questions (FAQs)