How To Buy Cryptocurrency 2026

Key Takeaways

• Cryptocurrencies can work just like money. However, in order to use crypto, you’ll need to buy it first.
• A common way for beginners to buy crypto is to use a crypto exchange, which works much like a stock brokerage account.
• You can buy crypto through centralized exchanges or swap crypto on decentralized exchanges; we’ll discuss both.

What Exactly Does It Mean To “Buy” Crypto

You know how buying a stock works, right? You take your cash, find a broker (like Robinhood or Vanguard), deposit funds, and buy the stock. Simple. Buying crypto works in pretty much the same way, except instead of using a broker, you’ll use a crypto exchange (like Nexo or Gemini, which we’ll cover in just a bit.

Like buying a stock, there are a few steps to the process. Here’s a quick rundown of how to buy crypto:

• Choose a cryptocurrency. There are more cryptocurrencies than you can shake a stick at these days. Thousands, in fact, but you don’t need to study them all. It’s okay to start with just Bitcoin or Ethereum. These two cryptocurrencies alone make up more than 60% of the market. But your investment goals and your own research might lead you to a different mix of crypto assets.
• Decide where you want to buy crypto.Most people start on a centralized exchange like Coinbase. We’ll discuss centralized exchanges (versus decentralized exchanges) in more detail later. But if you’re just getting started, you’ll probably want a centralized exchange because they make it easy to convert cash to crypto (and vice versa).
• Decide how you’ll pay for your crypto purchase. Most exchanges will let you link your bank account or debit card. A few exchanges, including Coinbase and Gemini, will let you link a PayPal account. Exchanges usually don’t offer credit card-funded crypto purchases, however, due to chargeback and fraud concerns.
• Choose where to store your crypto. Once you buy your crypto, you’ll need to store it somewhere. You’ve got two main choices here—the exchange where you made your purchase (similar to an online stock brokerage,) or in a crypto wallet you control. A wallet you control is safer because it protects you against risks related to crypto exchanges, such as bankruptcy. But storing your crypto in your own wallet comes with some responsibilities as well, like safeguarding the recovery phrase for your wallet.

What Are The Pros And Cons Of Buying Crypto?

Who Should Buy Crypto?

Cryptocurrency is often considered a “risk asset,” a term that speaks to crypto’s volatile price movements, which have been wilder than Boris Johnson’s hairdo on a windy day. But crypto can fit into a wide range of investment strategies, including those for:

• People who are concerned about inflation. OK, so crypto prices have been all over the map. But take a long view, and key crypto assets like Bitcoin have performed exceptionally over time compared to traditional (fiat) currencies like the dollar. Between 2018 and 2021, Bitcoin had more than a 1,000% return on investment as measured in dollars.
• Tech-savvy people. Like you! Crypto exchanges and crypto wallets have become more beginner-friendly, but buying and storing crypto isn’t always as easy as swiping a debit card. It also helps to have a “techie” mentality to decipher how each crypto works and decide which ones might be a good fit for your portfolio.
• Freedom-minded investors. Crypto is a disruptive technology that’s already upending long-established industries like banking and money transfers, giving people control over their cash.
• Future-minded investors. Many investors believe crypto will transform countless industries, making crypto a key part of a future-ready portfolio.

Sound good? Let’s dive in.

How To Buy Crypto In 5 Steps

Buying crypto is no longer relegated to shady websites or difficult to understand protocols. For the most part, crypto purchases are simple and easy, and can be done with a basic credit card or bank transaction! We'll walk you through some of the basics to help ease you through the process.

Step 1: Choose A Cryptocurrency And Purchase Amount.

But wait! Hold up! Don’t just jump into buying random cryptos! Do some research first. We cover a few options and strategies here. Many people start with Bitcoin as their first crypto buy—it’s the No. 1 token, after all—but exchanges often offer 100, 200, or even more token choices for purchase!

In fact, today’s crypto market includes more than 21,000 types of cryptocurrencies, though most of the action is in the top coins and tokens. Bitcoin alone represents about 40% of the entire crypto market. Ethereum is another 20%. And then there’s the rest, making up less than 40% of the entire crypto market. So, don’t be overwhelmed by the choices. Most lesser-known cryptos trade on specialty exchanges, and many aren’t the safest first picks.

Often, the top cryptocurrencies make a safer beginner portfolio because they’re widely traded, meaning you can easily sell if needed. These picks aren’t quite like blue chip stocks, but many are household names, such as Bitcoin and Ethereum. There’s no right answer here other than what’s right for you. Many crypto investors own several types of crypto; others hang their hats on just one.

For beginning investors, choosing crypto projects from the top twenty projects by market cap (total market value) makes a good starting point. Here’s a sample portfolio we put together from another deep dive into crypto investment strategies. This group focuses on the top 20 crypto projects, which most would consider low risk–at least in the crypto world where nearly everything is high risk.

This list is just an example (not investment advice!), and you might choose a different path altogether. Everyone’s crypto journey is different. Though we’re guessing that one thing you probably want to know how is much it costs to buy different types of crypto. For that, you can check out the live prices linked at the top of the article. You may want to also consider using a crypto research tool to help decide which cryptos to buy.

Step 2: Pick A Crypto Exchange.

A crypto exchange, or platform, works much like a stock brokerage, a way to buy crypto with traditional currencies like dollars. Most crypto investors start their journey with a centralized exchange, like Coinbase. Generally, centralized exchanges make it easy to buy crypto with fiat money, such as US dollars, a bank account, or a credit card. A centralized crypto exchange (CEX) is run by an institution and people. There’s a company behind the curtain making decisions about the platform and setting the rules. This isn’t a bad thing, and most centralized exchanges have become easy to use, including help sections for newbies. If you’ve used an online stock brokerage or online banking before, you’ll be able to find your way around a centralized exchange.

Some people feel more comfortable with a centralized exchange, and they have their benefits. If you need to buy crypto with fiat dollars, a centralized exchange is the easiest way to get the job done.

You can also use a decentralized crypto exchange (DEX) like Milk Road Swap, but a DEX is often a better fit for people who already have some cryptocurrency they want to swap for a different crypto asset. If you peek under the hood of a DEX, you’ll find high-octane computer code and precision math making the engine purr. Computer algorithms govern the swaps and swap prices. Curious to learn more? Check out our deep dive into decentralized exchanges, or get straight to swappin' with our very own Milk Road Swap.

When choosing an exchange, you might want to keep a few things in mind like:

• Whether the exchange offers proof of reserves.This is a tool to help people see if the exchange has the money they say they have. If things go south, you want to feel confident that they can cover customer liabilities. Some parts of the puzzle are still missing, like whether the exchange owes a boatload of money to someone else. Check out our guide on proof of reserves to learn more (and see which exchanges offer them.)
• Where the exchange is licensed and located. FTX, The now-infamous exchange that collapsed in 2022, was incorporated in Antigua and Barbuda, with bits and pieces of the company operating in other parts of the world. This creates cloudiness over which country has jurisdiction and whether people from other countries have any financial protection at all. If you’re in the US, it’s safer to choose a US-based exchange. Also, be aware that each state has its own financial regulations, so some exchanges may not be available where you live.
• Whether the exchange carries insurance.If you live in the US, you’re probably familiar with Federal Deposit Insurance Corporation (FDIC) protection. FDIC insurance insures bank deposits for up to $250,000 per account. Great. Except that crypto doesn’t have that, at least not for everything. Some exchanges offer pass-through FDIC insurance on cash balances, but the crypto you buy isn’t insured by the government. But that doesn’t mean centralized crypto exchanges aren’t insured. Many crypto exchanges carry insurance against losses due to hacks and breaches. It’s insolvency that creates the largest uninsured risk.
• Whether the exchange has a good reputation for customer support.A benefit of using a centralized exchange is that they have real people in customer support. You got questions, and they’ve got answers. Usually. For example, Coinbase offers support through chat (type “agent” to get a live person), or you can open a support ticket to get a reply by email. It’s worth checking what other people are saying about the exchange’s customer service.
• How much trading fees cost.Trading fees can take a big bite out of returns or amplify already painful losses. Which cryptocurrencies you want to buy might play into the decision as well. Coinbase offers no-fee trades with its Coinbase One membership, and many exchanges offer lower fees if you use the “advanced” or “pro” trading option.

The tips above might not make or break your decision, but they’re definitely worth some consideration. You can also check out our additional tips for choosing which crypto exchange to use.

Step 3: Verify Your Identity.

To open a crypto exchange account, you’ll need to verify your identity. The process is called Know Your Customer (KYC) and is common for financial institutions, like banks, brokerages, and–you guessed it–crypto exchanges. Expect to send a copy of your license or passport.

Typically, KYC only takes a few minutes but can stretch to a few days if the exchange verifies your identity manually.

Step 4: Connect Your Funding Source To The Exchange.

If this is your first crypto purchase, you’ll need cash money to complete your first buy. Most exchanges let you connect to your bank account or debit card. Some, like MoonPay, Coinbase and Gemini, let you connect with a PayPal account.

Only a few exchanges support credit card-funded crypto purchases due to the risk of fraud and chargebacks. For example, Kraken supports credit cards (outside the US), but you may not be able to withdraw right away if you purchase with a credit card.

Many exchanges also support deposits by wire transfer from your bank account. The advantage of wire transfers is that you can send larger amounts than you can with an ACH transfer. The downside is that some exchanges charge a fee for wire transfers–and it's likely your bank does as well. Be sure to follow the directions provided by the exchange you are using.

• Bank Account (ACH transfer): Common
• Debit Card: Common
• PayPal: Rare
• Credit Card: Rare
• Wire Transfer: Common

Step 5: Transfer Your Crypto To A Self-Custody Wallet.

Before you buy crypto, it’s a good idea to think about how you want to store your coins or tokens. Although many people choose to just keep their crypto on the exchange where they bought it, this isn’t always the safest choice. You’ll probably be okay, but what if the exchange suspends withdrawals, or gets hacked, or collapses altogether!?

Here are a few storage options to consider:

• Exchange: This option is called “custodial storage,” meaning the exchange provides a wallet and keeps custody of your crypto.
• Software Wallet: A software wallet is an app or browser extension that lets you move your crypto off the exchange and spend it or use it as you see fit. Software wallets create and store the private keys to your wallet on an internet-connected device, so they’re often called “hot wallets.”
• Hardware Wallet: A hardware wallet, sometimes called “cold storage,” uses an external hardware device to store your wallet’s private keys. You can easily buy one on Amazon. Often, you can pair a hot wallet with a cold wallet. This gives you access to more apps through the hot wallet but locks your crypto with the cold wallet. Win/win!

Not sure how to choose a wallet? Check out our wallets page for a few tips.

To Sum It Up

Buying crypto doesn’t have to be intimidating. There are options that can make it a lot easier for new or less experienced people to buy coins (the ones used as money) or tokens (the ones that do more) on an exchange. What are your goals? How much crypto experience do you have? Those answers will guide you to the option that works best for you.

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