How do you buy Cryptocurrency? If you plan to start investing in Cryptocurrency, there’s no time like the present. In 2024, institutional adoption of Cryptocurrency surged, with Bitcoin hitting $100,000. Yes, you’re reading it right. In fact, major financial tycoons like Fidelity and BlackRock increased their crypto investments.
However, how would you start investing in Cryptocurrency? What’s the best platform? Which Cryptocurrency will rise in 2025? Read this article if you’re thinking of all these questions. Through this blog post, we have helped you get started on your cryptocurrency investment journey.
How do you buy Cryptocurrency: Learn in 8 Steps
From consideration to understanding the platforms and crypto tokens, there are eight easy steps to cover when you want to start your investment.
Step 1: The Consideration Stage
Typically, you should start your purchase from an exchange platform. But don’t avoid the last moment of consideration. The cryptocurrency market is highly volatile. For example, last year, around the first week of November, Bitcoin was priced at $68317. But as of the first week of Feb 2025, that price has reached $95464.
It’s both a rewarding and risky terrain of investment, especially for someone new to the digital token investment portfolio. As experts suggest, you can try the rule of thumb, which is to invest only 5 to 10 percent of your portfolio in cryptocurrency.
Cryptocurrencies like NovaCoin, OneCoin completely disappeared while Bitcoin rises and falls occasionally. Before you start, remember to track the graph of a cryptocurrency for profitable investment. While you can manage risk by allocating a specific portion of your portfolio to crypto, choosing the right Cryptocurrency can ensure profit.
Step 2: Choose the Cryptocurrency
As per the estimation of Financial Conduct Authority of UK, there are almost 20000 cryptocurrencies in regulation. Wondering which one to invest in? Well, in that case, the above number makes it overwhelming.
You can always target choose from top cryptocurrencies such as Bitcoin, Ethereum, DogeCoin, Ethereum, and Solana. But those are rare and expensive. However, you can always buy Bitcoin and other expensive cryptocurrencies for a fraction.
With cryptocurrency’s story being just over a decade old, choosing the right cryptocurrency for investment is difficult. But it’s not impossible. You can listen to experts’ podcasts to learn which token is trending.
For example, Quibetics is currently one of the most talked-about digital assets to invest in. This token’s decentralized VPN technology is going to change online privacy. But before you invest in any cryptocurrency, it’s best to check what makes it unique and how it can impact the digital world.
Step 3: Understand the Cryptocurrency
Now that you have selected the Cryptocurrency you want to invest in, it’s important to learn about it in detail. This step of investment requires delving deep into the mechanism of Cryptocurrency.
For example, you’ll learn about the fundamentals of digital currency and understand the blockchain technology by which this coin is backed up. Cryptocurrency mining happens using different mining techniques like ASIC mining, GPU mining, CPU mining, etc.
There are many blogs and sources like Coinfomania where you can research the cryptocurrency you have chosen.
Learn which mining technology your cryptocurrency uses. Access their community address like Redditt, Discord, or Telegram to get a more internal understanding of the token. More importantly, I want to learn about the intrinsic value of cryptocurrency and what industry experts are saying about its future growth.
Step 4: Choose the Platform to Buy
You’re mentally prepared to invest in cryptocurrency. You have also selected one, and ran an in-depth analysis of it; what’s next? You’ll need a cryptocurrency exchange platform to start trading digital tokens.
Having a bank account and a link to a brokerage firm isn’t enough to start trading or investing in cryptocurrency. You’ll need a specific marketplace dedicated to Cryptocurrency alone. In the Cryptocurrency world, we call it an Exchange Platform, and there are many platforms giving you access to an abundant number of cryptocurrencies to buy from.
Remember, there’s always a charge associated with buying and selling any cryptocurrency on any exchange platform. And you can buy from the platform or through a peer-to-peer transaction when someone wants to sell their Cryptocurrency to you. We suggest going for something good for beginners and with a good reputation. Coinbase, Kraken, Binance, and Gemini are good examples to start with.
Once you have chosen a crypto exchange platform, you have to create an account to trade and invest in Cryptocurrency. You’ll have to provide some identification proof to get started.
Step 5: Store your Cryptocurrency
Before you purchase a cryptocurrency, ensure to sign up for a crypto wallet. This is a digital wallet keeping your cryptocurrency store safe. These wallets use strong encryption to ensure your digital token is safe.
Sounds peculiar? See it this way: your digital wallet is like your personal vault where you secure your private key. Think of the private key as a password to access your Cryptocurrency. Was that easy enough?
You’ll find two types of wallets – hot and cold wallets. Hot wallets keep your crypto connected to the internet. If you run day-to-day crypto trade, it’s best to use a hot wallet. But, if you are investing $1000 in Bitcoin and want to hold it for 5 years, go for a cold wallet.
Step 6: Buy a Cryptocurrency
So, how do you buy Cryptocurrency? Once you have completed all the previous steps, get ready to buy a cryptocurrency from the exchange where you’ve registered yourself.
You can buy a whole crypto coin, or you can buy in fractions. Now select your purchasing method and follow the instruction given on the exchange platform to complete your crypto assets. Once you’re done purchasing, it’ll appear on the exchange account you have set up.
Step 7: Hold and sell to book profit
The ones who make a profit in Cryptocurrency take it as a long-term investment plan. While you can make a profit from instant trades, it requires lots of active time on the platform and gathering knowledge about the crypto world.
We advise you not to treat your cryptocurrency investment as a get-rich-overnight type of thing – especially if you are a beginner. Instead, focus on your investment horizon and gain profit periodically.
To hold your cryptocurrency investment, you’ll need to connect your exchange platform to your cold cryptocurrency wallet.
Step 8: Build a Strategy
It’s wise and fine to leave a specific portion of your investment in cryptocurrency for a long tenure. However, profitability requires more effort, and one has to do a lot with your analysis. Stay connected with crypto market shifts. Compare your portfolio to the newest market changes and strategies that are making others profitable.
As you gain more knowledge, you’ll start to make profitable decisions amplifying your investment portfolio. Infact, it can spark new avenues of earning from crypto like trading and mining.
