Crypto 101, Part 3: How to Buy Your First Crypto Safely

Welcome to the final article in our Crypto 101 series. This three-part series has been designed to take you from the basics to practical action: Part 1 covered an Introduction to Cryptocurrency, Part 2 explored Investment Instruments, and now, in Part 3, you’ll learn how to buy your first cryptocurrency safely. Buying your first cryptocurrency can seem overwhelming, but understanding each step helps you avoid pitfalls and make smart choices.

This article guides you through selecting an exchange, account setup and verification, funding safely, and making your first purchase securely. By following these best practices, you can protect your investment from the start and build a solid foundation for your crypto journey.

Step-by-Step: Buying Your First Cryptocurrency

Buying cryptocurrency for the first time involves clear, manageable steps. Knowing the process in advance helps you avoid mistakes.

#1 – Choose a Reputable Exchange and Set Up Your Account

Before diving in, it’s useful to have a clear picture of what getting started actually involves. The first step is to select a reputable crypto exchange with high liquidity, robust security measures, and regulatory compliance in your region. For beginners, centralized exchanges such as Binance, Coinbase, Kraken, or OKX are popular choices because they offer simple interfaces and reliable customer support.

Once you've chosen an exchange, create your account by signing up with your email, choosing a strong password, and enabling two-factor authentication to keep your funds secure. Each of these steps will be explored in detail in the following sections, so you can approach your first crypto purchase with confidence.

Know Your Client (KYC)

KYC is required by law in many countries to prevent fraud and money laundering. Most centralized exchanges require Know Your Client verification, usually by uploading an ID, a selfie, and sometimes proof of address. This step can take from a few minutes to a couple of days, depending on the exchange and your jurisdiction.

#2 – Making a Deposit

Once your account is set up and verified, add funds to buy your first crypto. Start with a small test amount in case of mistakes, especially with crypto transfers, as errors can lead to permanent loss.

There are typically two main ways to make a deposit:

1. Deposit Fiat Currency (EUR, USD, etc.)

Most major exchanges support fiat deposits via:

• Bank transfer (SEPA, SWIFT, FPS) – usually has lower fees but can take 1–3 business days to complete.
• Credit or debit card – faster, but often comes with higher fees (1–5%).
• Third-party payment providers (like Simplex or Banxa).

2. Deposit Cryptocurrency

If you already own crypto (e.g., from another wallet or exchange), you can transfer it in. This usually involves withdrawing from one platform and depositing to another. There are two typical approaches:

Starting from the deposit side:

• Go to your exchange’s “Deposit” section.
• Select the crypto asset you want to deposit.
• Choose a supported network. Using an unsupported network can cause permanent loss of funds.
• Copy the deposit address.
• Paste that address into your sending wallet or exchange.
• Confirm the transaction.

Starting from the withdrawing side:

• Go to your wallet or exchange’s “Withdraw” section.
• Select the crypto asset you want to withdraw.
• Choose the network to use. Again, the network has to be the same on both ends.
• Enter the destination address.
• Confirm the transaction.

Both platforms must support the chosen network. Using an unsupported network can cause permanent loss of funds.

Deposit Status and Confirmations

Crypto deposits may take a few minutes to an hour to appear, depending on network traffic and required confirmations. Fiat deposits can take longer, especially the first time.

You can track the status inside your exchange account. If things take longer than expected, exchanges usually provide a transaction history or support channel.

#3 – Choosing the First Cryptocurrency

If you’re just starting, you may want to stick with well-established coins. Most liquid and well-known currencies include:

• Bitcoin
• Ethereum
• XRP (Ripple)
• Solana
• Dogecoin

Another option is to choose a stable coin that is pegged to the USD, like:

• USDT (Tether)
• USDC (Circle)

#4 – Making the First Purchase

Once your account is verified and funded, you can place your first buy.

There are usually two main ways to buy:

• Market order: buys instantly at the current price.
• Limit order: lets you specify a price and waits for the market to reach it, but without a guarantee that your order will be filled at all.

Trading always involves fees, so check for them.

Buying Crypto Through Fintech Apps (e.g., Revolut, PayPal, Robinhood)

Financial apps like Revolut, PayPal, Robinhood, or Cash App let users buy and sell crypto directly from their mobile app, offering an easy entry for beginners, especially if you are already a customer.

However, there are important limitations:

• You generally do not have access to your crypto's private keys, which means you do not fully control your assets, sometimes summed up as, "Not your keys, not your coins."
• Withdrawals may be limited or restricted. Many fintech apps do not let you send your crypto to an external wallet, or only support a few currencies and networks.
• The fees on these platforms are sometimes hidden within exchange rates or spreads, meaning you may pay more than expected.
• Trading features are often very limited. You may not get tools like limit orders, stop losses, or staking.

These platforms are useful for learning and introductory exposure, but not ideal for long-term storage or serious investing.

How to Best Hold Your Cryptocurrency Long Term

If your purpose is to hold the cryptocurrency long term and not to actively trade it, it is best to hold it in a wallet you control.

You can hold crypto in your exchange wallet (safe but involves credit risk) or a non-custodial wallet you control. For more information on wallets, see the “Crypto wallet” section in Part I, within the chapter on how to access crypto markets.

Please be safe and take every precaution to protect your assets:

• Always double-check wallet addresses before transferring.
• Don’t respond to unsolicited messages or DMs; scams are everywhere.
• Bookmark the correct exchange URL and enable all security features.
• Learn before investing more — crypto rewards patience and caution.

With this final article in the Crypto 101 series, you now have a practical roadmap for buying your first cryptocurrency safely. Remember, every decision you make shapes your crypto experience, so keep learning, stay alert, and always prioritize security. This series was structured in three parts: Part 1 provided an Introduction to Cryptocurrency, Part 2 explored Investment Instruments, and this concluding article has guided you through taking your first practical steps as an investor. Whether you continue to explore advanced topics or simply hold your assets, you’ve built a strong foundation for future success in the world of digital assets.