How to Buy & Sell Cryptocurrencies – Complete Beginners Guide

CryptoRocket is one of the best trading platforms if you wish to buy cryptocurrencies. In fact, the platform offers a fast sign up process, competitive spreads, low commissions and no transaction or deposit fees.

CryptoRocket offers 30 different cryptocurrency pairs you can choose from. That together with great customer support services and remarkable education resources, make it a great opportunity to earn money trading cryptocurrencies.

After signing up on it you will have to create a trading account, through which you will be able to buy and sell cryptocurrencies. The broker has a user-friendly trading platform that you will enjoy both if you are a beginner and an experienced user. You will also have the option to try trading in demo mode. When you feel ready you can switch to a real account after you’ve made your initial deposit.

The minimum deposit is $10 only and you can make your deposit via credit/debit card or Bitcoin.

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Binance is a well-known cryptocurrency exchange that is favored by many traders and enthusiasts on the cryptocurrency market. The exchange was created in China, but later on, it moved to the crypto-friendly island of Malta in the EU. From all the services we have reviewed, Binance offers the most cryptocurrency pairs and you can buy altcoins easily such as you can buy Aave on Binance with the base currencies being BTC, ETH, BNB, and USDT. As you can’t deposit, trade, and withdraw with fiat currency, the crypto exchange only has crypto-crypto pairs (e.g., ETH/BTC). Therefore, you need a crypto wallet on the exchange to buy and trade cryptocurrency.

You can choose from a basic and an advanced trading view on Binance. While the basic is more newbie friendly, the advanced view is best suited for expert traders. The platform’s fees are normal compared to other services on the crypto market. The average trading fee on Binance is 0.1% if you are the maker of the trade. However, if you pay with BNB, you will get a 50% discount on the trading fee.

Creating an account on Binance is fast. Hit register and type in your details, including your email address and password, and you are done. Binance has different verification levels. Each level has a daily limit for withdrawals, starting with 10 BTC at level 1. If you are not planning to withdraw large amounts of money, this is good news for you. In other cases, you have to send different documents (such as your government ID) to the Binance team to verify. Verification on Binance can sometimes be slow.

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One of the easiest option to buy cryptocurrency is Coinbase as signing up is fast, and you can buy bitcoins with a credit card. However, the fees are a bit high on this crypto exchange. A standard buy or sell trade costs you 1.49%, while credit card purchases have a fee of 3.99%.

Coinbase is licensed in the United States, located in San Francisco. The service allows users of 32 countries to buy and sell cryptocurrency on the platform. On the flip side, the platform supports only a handful of coins, including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, ZRX, BAT, and Zcash.

With over $150 billion worth of cryptocurrency exchanged and 20 million customers served, Coinbase features a user-friendly interface where users can purchase coins easily. After you have registered an account, you have to verify your email and phone. Then, you have to select a payment method to use for buying coins on the cryptocurrency exchange.

There’s an initial limit on the payment method you choose, which is a weekly limit of 1,500 EUR for European customers. However, you can raise the limit by submitting personal identification documents to the crypto exchange.

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Changelly is a well-known exchange featuring near-instant transactions. The service is the direct competitor of ShapeShift, another “instant” crypto exchange. We didn’t include ShapeShift as the service is not transparent about its fee structure – the company states that it charges zero fees, although the cost for each transaction is much higher than at Changelly.

Established in 2016, Changelly features a nice-looking, easy-to-use platform. The service charges a flat fee of 0.5% for each transaction. However, the crypto exchange may take its cut from the exchange rates, so you should check other services for the real rates before making a trade on the platform.

While Changelly supports a wide variety of coins, it only supports fiat currencies when buying cryptocurrency. Therefore, you can only deposit fiat to purchase cryptocurrency, but you can’t sell coins on the platform. Changelly supports credit card payments. However, that will cost you a lot as the platform uses Simplex as a processor, which takes a 5% cut from all credit card transactions. Moreover, the service itself charges an additional 5% from credit card payments (totaling 10%).

One thing that is important to note is that the exchange rates are not set before you initiate a transaction. Therefore, Changelly will show only an estimate of how many coins you will receive, but not the actual amount of cryptocurrency.

Signing up for Changelly is easy. You only need an email (Facebook and Google+ are supported) to register an account to start trading.

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Depositing funds with a traditional debit or credit card is by far the easiest way to buy crypto. All you need to do is enter your 16-digit card number, expiry date, and CVV, and your funds should be credited instantly. Most crypto exchanges do not let you withdraw funds back to a debit card though, so you’ll likely need to cash-out to a bank account.

Fees: This will vary depending on the exchange. Coinbase for example charges 3.99% for debit/credit card payments.

Best Platforms for Debit Card / Credit Card Deposits:

1. Binance: The exchange charges a 3.5% fee per transaction when using credit or debit cards.
2. Plus500: CFD broker that allows you to buy and sell four different cryptocurrencies.*
3. Coinbase: Exchange broker that is hugely popular with newbies. 3.99% deposit fee when using a debit/credit card

*80.5% of retail investors lose money when trading CFDs with this provider. You should consider whether you can afford to take the risk of losing your money.

PayPal is the most popular e-wallet in the online space. By funding your account directly with PayPal, you can then use your e-money wallet at a number of exchanges. Deposits are usually instant, and withdrawals are super-fast.

Fees: Some exchanges such as PayPal allow you to deposit with PayPal for free.

Best Exchanges for PayPal Deposits:

1. Plus500: CFD broker that allows you to buy and sell cryptocurrencies using PayPal.
2. VirWox: Expensive Fees when you Buy Bitcoin with PayPal.

Check our guide to buying crypto with Paypal here.

Skrill is an e-wallet service provider very similar to PayPal. Based in the UK, they allow you to send and receive funds to users globally. By depositing funds directly into your Skrill wallet, some exchanges allow you to buy crypto instantly.

Fees: Plus500 does not charge deposit fees when funding your account with Skrill.

Best Platforms for Skrill Deposits:

1. Plus500: Four different cryptocurrencies available to buy and sell with leverage.
2. Markets.com: CFD broker that lists several cryptocurrencies.

A bank wire simply refers to a cryptocurrency exchange deposit made via a bank account. In most cases, you will need to log in to your online bank account and transfer the money directly into the exchange platform. Bank wires generally give you the largest deposit limits, they’re the most secure, and fees are normally minimal. However, bank deposits are also the slowest, often taking more than 3 days before the funds are credited.

Fees: Some exchanges charge nothing for bank wire deposits, while some might charge a nominal fee that’s less than a dollar.

Best Platforms for Bank Wire Deposits:

1. Coinbase: Easy platform to buy cryptocurrencies. Bank wire accepted in multiple countries.
2. BitStamp: Ultra-cheap deposit fees when depositing by bank wire. Only five cryptocurrencies supported.

Launched in 1998, WebMoney is one of the oldest online e-money providers. You can find your WebMoney account in numerous ways, such as at a cash-in terminal, bank card, bank wire, and pre-paid card. Once your WebMoney account is loaded, you then use the funds to deposit into a cryptocurrency exchange.

Neteller is a popular e-money provider that facilitates online payments. You simply deposit funds into your Neteller account and then use your balance to buy crypto. Withdrawals can be made to a bank account, although the fees are a bit high.

Best Platforms for Neteller Deposits:

1. BitPanda Exchange broker that accepts Neteller as a payment method. Trading fees are expensive, with Bitcoin purchases costing 1.49%.
2. Local Bitcoins.com This platform is a peer-to-peer exchange that sees buyers and seller trade directly. Neteller deposits are supported at Local Bitcoins.com, however the seller must specify that they accept it.

Giropay is a really popular payment method used in Germany. The e-provider is essentially a third party between online merchants and the bank. Deposits made with Giropay usually take 1 business day.

Fees: Often less than a dollar or free.

Best Exchanges for Giropay Deposits

1. BitPanda: Excellent range of supported payment methods, including Giropay. However, charges an expensive 1.49% free to buy Bitcoin.
2. Plus500: Highly regulated CFD broker that accepts Giropay deposits. Trade four different cryptocurrencies via CFDs.
   
   

If you want to buy Bitcoin in the real world, then you might want to consider a Bitcoin ATM. If you find a terminal in your home city, all you need to do is specify how much you want to buy, and then insert your local currency into the machine. As soon as you do, you’ll either get a wallet address printed on a receipt, or the Bitcoin can be transferred directly to your Bitcoin wallet.

Fees: Expensive – averages 8-20% on top of the currency market rate.

You can view your nearest Bitcoin ATM by checking out CoinATMRadar.

Yandex

Yandex is a Russian-based online payment provider that allows you to purchase goods and services online, including that of cryptocurrencies. Once you’ve opened an account with Yandex, you can fund it via traditional payment methods such as a debit/credit card or bank wire.

Fees: Some exchanges charge more than 5-8% to deposit using Yandex.

Best Platforms for Yandex Deposits:

1. PayBis: Cryptocurrency broker that accepts Yandex. Unknown in the exchange space and unregulated. Tread with caution.
   
2. LocalBitcoins.com: Established peer-to-peer cryptocurrency exchange. Some sellers accept Yandex. Only Bitcoin available.

Western Union is a money transfer service that is very popular in third world countries. You can deposit funds via a terminal, or in some cases, by using a debit/credit card or bank transfer. If you don’t have access to traditional payment methods, then Western Union might be an option for you. However, tread carefully, as its a payment method often requested by scammers.

Fees: Very expensive fees charged by Western Union. Normally a flat fee, so small transfers are penalized.

Best Exchanges for Western Union Deposits:

1. LocalBitcoins.com: Some sellers on the peer-to-peer exchange accept Western Union. Some protections are in place as the coins are held in escrow before the payment is sent.
2. Paxful: The Paxful platform specializes in unconventional payment methods such as Western Union. Very high fees and no regulation.
   
3. Cointal: Much like in the case of LocalBitcoins.com, Cointal utilizes a peer-to-peer system. The escrow system provides protection on both sides of the trade.

If you’re based in China or Hong Kong, then you’ve probably heard of China Union Pay. Its a financial services firm that issues bank cards, which can then be used to purchase goods and services both online and offline. This makes it perfect to buy crypto.

Fees: Depends on the platform. Platforms such as Paxful charge high exchange fees.

Best Platforms for China Union Pay Deposits:

1. Paxful: Paxful accepts China Union Pay deposits, but the exchange rates on offer are really poor.
   
2. LocalBitcoins.com: Good rates available at LocalBitcoins.com, although not many sellers accept China Union Pay.

Paysafecard is an established third party payment provider that issues e-money for online purchases. In most cases, you obtain a Paysafecard at a high-street store, and then use the unique voucher number online. This option is probably best suited if you don’t have access to a bank account.

Fees: One of the most expensive. You’ll pay fees when you deposit funds into Paysafecard, and sellers will charge a premium, as the funds need to be spent online.

Best Exchanges for Paysafecard Deposits:

1. Paxful: The platform offers more than 300 different payment methods. However, expect to pay a hefty premium to use Paysafecard.
   
2. LocalBitcoins.com: Certain sellers will accept a Paysafecard, however, you’ll be offered a really bad exchange rate.

Entropay is an innovative financial services company that allows you to create unlimited virtual credit cards (VCCs). You need to load your Entropay account via a debit/credit card or bank transfer, create a VCC, and then enter the card numbers into the exchange as you would with a standard debit/credit card number. Backed by Visa.

Fees: Entropay charge 4.95% to load your account, and then you’ll need to pay the exchange’s debit/credit card transaction fee. This is 3.99% with Coinbase.

Best Platforms for Entropay Deposits:

1. Coinbase: Good for beginners, although only a hand-full of cryptocurrencies listed. Expect to pay 3.99% deposit fee.
2. Coinmama: Simple Bitcoin broker that allows you to use an Entropay VCC. Expensive, including a trading fee of about 5.9%

Revolut

Revolut is a hugely popular mobile app that operates in a similar way to a digital bank. You are given local bank account numbers in various countries, subsequently allowing you to send and receive money with ease. Although the Revolut card itself rarely works at cryptocurrency exchanges, there is a simple and cost-effective workaround. All you need to do is send funds from your Revolut account as a bank transfer, directly into the exchange.

Fees: No fees charged by Revolut to send a bank account transfer via SEPA or UK Faster Payments. Exchanges usually charge no more than a dollar to deposit in this manner.

Best Platforms for Revolut Deposits:

1. Coinbase: SEPA transfers via your Revolut account are normally received within 1-2 days. High limits.
2. Bitstamp: Zero fees to deposit, and pay just 0.90 EUR when withdrawing back to your Revolut SEPA account.