How to Buy Crypto: A Beginner’s Guide

How to buy crypto: So, you’ve decided to dive face-first into the exciting world of ! Go you! Whether you’re looking to invest, trade, or simply explore this digital frontier, understanding how to buy crypto is essential.

In this guide, we’ll walk you through the process step by step, ensuring you’re well-equipped to embark on your crypto journey.

Choose a reliable cryptocurrency exchange

The first step in buying crypto is selecting a trustworthy exchange or trading platform. Here are some key factors to consider:

Company authenticity and platform protection

Research the exchange’s reputation, protection protocols, and history of handling user funds. CoinJar has great reviews from independent platforms like .

Ease of Use

Opt for an exchange with a user-friendly interface that suits your level of experience.

Fees and Charges

Compare fees, spreads, and any hidden costs associated with transactions.

Customer Support

Look for exchanges that offer responsive customer service.

Number of Supported Coins

Consider the variety of cryptocurrencies available on the platform. offers a seamless experience for buying, selling, and storing crypto. And it has over 50 cryptocurrencies to choose from.

Create an account and verify your identity

Once you’ve chosen an exchange, sign up for an account. You’ll need to provide personal information and undergo a verification process.

This typically involves verifying your identity and linking your bank account. UK residents are required (in accordance with local legislation) to complete an assessment and to wait 24-hours (see note at the end of the article).

Fund your account

To buy crypto, you’ll need to deposit funds into your exchange account. You can use various payment methods.

Bank transfer

Transfer fiat currency (such as GBP Sterling) from your bank account to the exchange.

Debit or credit card

Some exchanges allow direct purchases using cards. CoinJar has an facility where you can purchase crypto instantly with a card. There are also other methods available on CoinJar so choose the method that suits you best.

Purchase with crypto

Once you buy some crypto, you can then buy other cryptocurrencies using the original crypto you bought with everyday money. Note that exchanging one cryptocurrency for another can incur fees, and may have tax implications.

Choose a cryptocurrency

Now comes the exciting part: Choosing which cryptocurrency to buy. Consider factors like your investment goals, risk tolerance, and market research.

Popular options include Bitcoin (BTC), Ethereum (ETH), and XRP (XRP).

Execute your purchase

Once you’ve selected a coin, place your order. You can choose between market orders (executed at the current market price) or limit orders (set a specific price at which you want to buy).

Protect your investment

After purchasing crypto, you can keep it on the exchange. Or you can transfer it to an external digital wallet. If you keep it on the exchange, it makes the crypto readily accessible if you want to exchange it for other crypto or sell it.

But, if the crypto exchange goes bankrupt () or if the exchange gets hacked, your crypto could be at risk. If you buy crypto on the CoinJar app, then the crypto you purchase will simply go into your wallet on the app, you don't need to set a separate wallet up. it is a user-friendly app for beginners.

After you build some confidence, you can create an external online wallet independent of CoinJar (hot wallet), or download your crypto to a cold wallet / hardware wallet (which means it's not connected to the internet so you reduce the risk of hacking).

Conclusion: How to buy crypto

With the right knowledge and a reliable exchange like CoinJar, you’re well on your way to becoming a crypto enthusiast.

Glossary of terms

Address: A unique alphanumeric identifier that represents a specific crypto wallet. It's used to send and receive cryptocurrencies, similar to a bank account number.

Altcoin: Any cryptocurrency other than Bitcoin. Examples include XRP, Ethereum and many others.

ATH (All-Time High): The highest price a cryptocurrency has ever reached.

ATL (All-Time Low): The lowest price a cryptocurrency has ever reached.

Bitcoin: The first and most well-known cryptocurrency, a digital currency operating on a decentralized network called a blockchain.

Bitcoin Cash: A cryptocurrency that emerged from a fork of Bitcoin. It aims to increase transaction capacity and efficiency.

Blockchain: A decentralized, digital ledger that records cryptocurrency transactions across a network of computers. This technology ensures transparency and security.

Block: A group of transactions bundled together and added to the blockchain.

Cold Storage: Storing cryptocurrencies offline, typically using a hardware wallet, to enhance security against hacking.

Crypto Wallet: A digital tool used to store, manage, and access your cryptocurrencies. Think of it like a digital bank account for your digital assets. CoinJar provides a crypto wallet for its users.

Cryptocurrencies: Digital currencies that use cryptography for security and operate independently of central banks. Examples include Bitcoin, Ethereum, Litecoin, and many others.

Debit Card: A payment card linked to your bank account that allows you to make purchases and withdraw cash. You can use your debit card to purchase cryptocurrencies on CoinJar, noting using a debit card results in additional fees.

Decentralized: A key characteristic of cryptocurrencies, meaning they are not controlled by any single entity like a government or bank.

DeFi (Decentralized Finance): A movement that aims to create a financial system that is open, transparent, and accessible to everyone, using blockchain technology.

Digital Assets: A broad term encompassing cryptocurrencies and other digital representations of value or ownership rights.

ERC-20: A technical standard for creating and issuing tokens on the Ethereum blockchain.

Exchange: A platform where you can buy, sell, and trade cryptocurrencies. CoinJar acts as an exchange.

Fiat Currency: Traditional government-issued currency, such as Australian Dollars, US Dollars, Euros, etc.

Fork: A split in a blockchain that creates a new version of the cryptocurrency with potentially different rules.

Gas: A fee paid in Ethereum to execute transactions and smart contracts on the network.

Hold Cryptocurrencies: To keep cryptocurrencies in your crypto wallet for long-term investment or future use.

Hot Storage: Storing cryptocurrencies online, typically in an exchange wallet or software wallet.

KYC (Know Your Customer): Verification procedures used by exchanges to comply with regulations and prevent fraud. UK residents are required (in accordance with local legislation) to complete an assessment and to wait 24-hours (see note at the end of the article).

Market Capitalization: The total value of a cryptocurrency, calculated by multiplying the current price by the total number of coins in circulation.

Mining: The process of verifying and adding new transactions to the blockchain, often requiring significant computing power.

Node: A computer connected to the blockchain network that helps validate and relay transactions.

Private Keys: Secret cryptographic codes that grant you ownership and control over your cryptocurrencies within a wallet. It's crucial to keep your private keys secure.

Purchase Bitcoin: The act of buying Bitcoin using traditional currency, such as Dollars, or other cryptocurrencies.

Purchase Cryptocurrencies: The act of buying any type of cryptocurrency, including Bitcoin, Ethereum, XRP, and others. CoinJar facilitates the purchase of various cryptocurrencies.

Smart Contract: A self-executing contract with the terms of the agreement directly written into code.

Stablecoin: A type of cryptocurrency designed to maintain a stable value by pegging it to another asset, such as the US dollar.

Staking: The process of holding cryptocurrencies in a wallet to support the operation of a blockchain network and earn rewards.

Token: A digital asset that represents a specific unit of value or utility within a blockchain ecosystem.

Transaction Fee: A small fee paid to miners for processing and confirming transactions on the blockchain.

Volatility: The degree of price fluctuation in a cryptocurrency. Cryptocurrencies can be highly volatile, meaning their prices can change significantly in a short period.

Whitepaper: A document that outlines the technical details, goals, and vision of a cryptocurrency project.