If you’re looking to buy cryptocurrencies like Bitcoin, Ethereum and other popular cryptos, you may be hard-pressed to know how to get started. Before you buy crypto assets, it’s important to check online review sites for reviews of the best sites to buy cryptocurrency, their fee structures, payment methods, trading platform features and wallets to securely store the crypto tokens you’ve purchased.
In this complete
how to buy cryptocurrencies
guide, we’ll explore the ins and outs of crypto and the best places to buy cryptocurrency in 2023 safely at a regulated exchange unaffected by any of the ‘crypto contagion’, insolvency or bankruptcy issues that affected now-defunct sites like FTX in the past.
How to Buy Cryptocurrency – Quick Guide
Do you want to buy cryptocurrencies like Bitcoin right now? If yes, you can follow the four quickfire steps outlined below to get started.
Open an account
: You’ll first need to open an account with a trusted cryptocurrency broker. We recommend
Coinbase
, as the platform offers multiple fiat deposit options and it has low trading fees.
Upload ID:
Due to regulatory compliance requirements, Coinbase will ask you to upload a copy of your government-issued ID.
Deposit:
Depending on your country, you can deposit funds with a debit/credit card, Paypal, Apple Pay, SEPA or bank wire.
Buy Cryptocurrency
: Search for any cryptocurrency of choice and click ‘Buy’.
Best Crypto Exchanges in December 2023
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How to Buy Cryptocurrency – Coinbase Tutorial
Gaining access to cryptocurrencies can be tedious if you are not using the right platform to do this. For beginners, we recommend using the
Coinbase
platform to buy and sell cryptocurrencies. In this section, we will explore how you can buy cryptocurrencies in as little as five minutes:
Step 1: Open a Brokerage Account at Coinbase
To get started,
visit the official website of the Coinbase platform
and create a free account.
You will be redirected to a signup page where you will need to provide your name, email address and password.
Step 2: Verify your identity
The next step is to verify your identity. Every new user will need to complete the know-your-customer (KYC) process to have their accounts verified.
This requires a copy of your:
Passport, driver’s license, or national ID card
Utility bill or bank account statement issued within the last 3 months
In most cases, Coinbase will authenticate your documents straight away and subsequently remove all account restrictions.
Step 3: Fund Your Account
To begin trading, you will need to fund your Coinbase account. The minimum deposit is $50. In addition, Coinbase offers multiple payment methods to make this process easy for you.
You can choose from:
Debit/credit card (Visa, MasterCard, Maestro)
Paypal
Apple Pay/Google Pay
Local bank transfer (country-specific)
International bank wire
Step 4: Buy Cryptocurrency
The final step is to buy the cryptocurrencies that you want. Coinbase allows you to choose from over 200 cryptocurrencies. You can
buy Bitcoin
, Ethereum, ADA, or even
Dogecoin
. To get started, head to the search bar and type in the cryptocurrency you want to purchase.
Say, for example, you want to
buy Ripple
or Bitcoin, type ‘XRP’ or ‘BTC’ into the search bar and click on the first result that pops up. Once you get to the asset page, you can click on the ‘Stats’ button to get the financial track record of the digital asset.
To complete the purchase process, click on the ‘Buy’ button.
Best Places to Buy Cryptocurrency – Exchange Reviews
As cryptocurrency adoption grows, so does the number of platforms offering access to these assets. Today, there are literally thousands of platforms where you can buy cryptocurrency. However, this creates a problem for traders. Finding the best platform to buy cryptocurrency could be challenging, especially for first-time traders. To save you on the hassles and hours in research, we did the heavy lifting. We reviewed hundreds of platforms before arriving at the best places to buy cryptocurrency.
The crypto platforms reviewed below are all security-conscious, meaning your details and funds are safe with them. You can also store your digital assets in their crypto wallets safely, and they also comply with standard anti-money laundering (AML) and know-your-customer (KYC) policies.
1. Coinbase – Largest Cryptocurrency Exchange in the U.S
Coinbase
is a crypto-facing cryptocurrency exchange. It is a publicly listed exchange and is quite popular with crypto investors due to its user-friendly trading platform.
Founded in 2012, Coinbase offers exposure to popular cryptocurrencies, altcoins and staking.
The Coinbase platform is meant for new crypto traders. It operates different platforms for specific users. More experienced traders favor the Coinbase Pro platform, now known as ‘Advanced Trading’ as of 2023, which offers better fees and more trading tools.
Coinbase is one of the top five largest cryptocurrency exchanges and offers crypto-custodial services for institutions, and has its COIN stock listed on Nasdaq.
Pros
Great user interface for newbie traders
Highly liquid
Low minimum balance
A great choice for altcoin trading
Publicly-listed
Cons
High fees
No credit card payment method
Visit Coinbase
2. Kraken – Third Largest Cryptocurrency Exchange
Kraken
was founded by its current CEO Jesse Powell and is owned by Payward Inc. It is one of the original cryptocurrency exchanges and was created way back in 2011. After its official launch in 2013, Kraken managed to quickly gain recognition, thanks to its high-quality product. At the time of writing, it is the third largest
cryptocurrency
exchange in terms of volume traded and is a reputed name in the industry.
The exchange caters to over 8 million users and institutions globally and has its offices set up in various parts of the world. It is headquartered in San Francisco and has backing from some of the biggest VC firms in the finance domain. Kraken hosts over 120 cryptocurrencies and has constantly ensured to list top projects on its roster. It features three major stablecoins which include USDC, USDT and DAI. Kraken is also one of the only exchanges with a wide variety of Fiat currencies. It supports seven options, which is a major advantage for investors.
Kraken has a pro version, which can be used for paying lesser fees and using advanced trading products. It is also highly secure since all the assets are stored in cold wallets and are under 24-hour surveillance along with armed personnel providing security.
Pros
High security
Supports seven major fiat currencies
Reputed company
Third largest crypto exchange
Cons
Higher fees while using the basic Kraken exchange
Staking options are limited
Average customer service
Visit Kraken
3. OKX – Good Cryptocurrency Exchange to Buy Over 350 Crypto Assets
Established in 2017,
OKX
is a cryptocurrency exchange based in Seychelles. The platform started with minimal features, but within the period of 2021- 2023, it has added a large selection of features allowing users to diversify their investments. When it comes to trading, OKX supports conversion, spot trading, margins and derivatives trading. A P2P trading facility is also available. And while OKX was once a crypto-only trading exchange, it has recently added support for fiat payments – allowing users to buy crypto using 100+ fiat currencies.
OKX allows users to discover markets and opportunities based on their niche of interest. For instance, if a user is looking for the best metaverse or gaming project to invest in, they can find these projects through the platform. OKX also features an earning program that allows users to earn APY (Annual Percentage Yield) through staking and APR (Annual Percentage Return) through a savings account. Crypto loans, as well as copy trading, are also one of the highlights of OKX.
To buy cryptocurrency on OKX, users are charged on the basis of maker/taker fees that range from 0.080%/0.1% to 0.060%/0.080%. The fee charged is divided into tiers that are dedicated to how many OKB tokens users are holding. VIP users with assets exceeding $100,000 are subject to lower fees.
Pros
Offers Copy Trading
Offers Staking and Savings accounts
Low fees, which can be further reduced by holding OKB tokens
Offers copy trading
Spot trading, futures trading, margin, and derivatives trading supported
Simple interface
Cons
Requires a high number of OKB tokens to reduce fees
Not available in the US
Visit OKX
4. Bybit – Beginner-Friendly Cryptocurrency Exchange Offering Huge Bonuses to First-Timers
Bybit
was launched in 2018, and at the start, it was a low-cap cryptocurrency exchange. However, with time and the influx of more crypto assets. Bybit start to add more utilities, including more trading features and tools to make the crypto investment viable for investors.
Many features of Bybit are geared towards beginners, including the One-click buy option. P2P trading is also available – allowing users to buy and sell crypto from other parties at
zero fees.
The platform also offers a range of market data through its overview that categorizes the best gainers, losers, and leading investors. New listings are also common on this platform, and Bybit has gained a lot of renown, being among the first exchanges to be open to listing innovative projects.
Bybit has implemented a nuanced approach to fees based on VIPs and Non-VIP-users. VIP users’ fee rate range from 0.06%/0.04%, and for non-vip users, the fee rate ranges from 0.1% to 0.03%.
Security is a major concern for this cryptocurrency exchange – which has motivated it to create a triple-layer security module. It also has audited proof of reserve when it has a 1:1 reserve of all user’s assets on the platform. And those who create an account on the platform get a 5030 USDT bonus.
Pros
Beginner-friendly UI
Offers multiple trading options
Low trading fees
Copy trading available
Features multiple Web 3 elements, including NFTs
Has an Earn program
Cons
Not available in the US
Visit Bybit
5. Huobi – Reputable Place to Buy Crypto
Huobi
has been operating since the early days of cryptocurrency. A long-established household name in crypto, it was founded in 2013.
In that time Huobi, also known as Huobi Global, has never been hacked or had any issues with user data or funds being compromised in any way. When Bitmart exchange was hacked the Huobi and Shiba Inu communities teamed up to offer their assistance.
Huobi offers both spot and margin trading – meaning as well as buying crypto you can also take a long position or short crypto on the platform, using leverage. It offers up to 200x leverage on some assets, more than most crypto exchanges.
One unique feature of Huobi is it offers the free use of a crypto trading bot that uses a ‘grid trading’ system. Currently it has a backtested 7-day annual yield of 44% – that ROI performance data is updated weekly.
It also offers high-yield crypto staking of up to 50% APY on several assets, crypto loans and a welcome bonus.
Pros
A decade of operation without being hacked
Crypto staking
Grid trading bot
Both spot and margin trading
Cons
No social trading / copytrading
0.2% maker / taker fee is higher than Binance and Coinbase Pro
Visit Huobi
6. Crypto.com – Crypto Debit Card & App
Crypto.com
is a both a crypto exchange and mobile app with a crypto debit card, founded in 2016 and featuring celebrities such as Matt Damon in its TV advertising. It also signed a sponsorship deal with F1 racing (Formula one), the UFC and various sports teams.
Currently US traders can use the app and the VISA debit card, but not the exchange platform, although that may change in the future. The Crypto.com exchange offers both spot, margin trading and derivatives.
Crypto.com’s metal prepaid card pays up to 8% crypto cashback on purchases, and on the platform you can earn up to 14.5% interest on crypto holdings, the highest interest rates being for stablecoins like USDC. You can also farm and stake DeFi protocols, and like Huobi apply for a crypto loan.
Crypto.com supports 250+ cryptocurrencies and has over 10 million users. It also has its own NFT marketplace where you can create, showcase, sell and
buy non-fungible tokens
.
Pros
Earn up to 14.5% per annum interest on crypto
NFT marketplace
DeFi staking
Crypto debit card and wallet
Cons
USA investors partially restricted
High spreads
Visit Crypto.com
7. Evonax – No KYC or Sign-up Cryptocurrency Exchange
Evonax is a global cryptocurrency exchange that allows its users to exchange cryptocurrencies without having to sign-up or provide any KYC. Trade between 18 of the most popular cryptocurrencies on the market with a simple and intuitive user interface.
Evonax believe anonymity is every person right and value your privacy. All of this comes with a 24/7 support service, so you will always be in safe hands.
Evonax has a very simple three-step journey for its users. First, choose what coin you have and what coin you want together with the amount and provide your wallet address for the coin you want to receive.
Second, transfer the coin you have to a unique generated wallet address and wait for the blockchain network to confirm the transaction. Three, receive your coins in your wallet address.
Pros
Simple to use
No sign-up or KYC
Instant transfers
Good customer support service
Cons
Only 18 cryptocurrencies available
No wallet service
No live chat support
Visit Evonax
8. Libertex – Best Broker For Stocks and CFDs
Libertex
was founded in 1997 and has over two decades of experience in offering online trading services. It is regulated by the CySEC and is part of the Libertex Group of companies. Boasting over 2 million active users spread across 120 countries, Libertex allows trading indices, cryptocurrencies, stocks, commodities, and FX with the tap of a button.
Users get to choose the trading platform they are comfortable with between the MetaTrader 4 (MT4) and the Libertex Web Trader. It is famous for its zero-spread pricing structure and offers exposure to 250 financial instruments. Advanced traders also enjoy perks like margin trades with up to 1:30 in leverage.
Libertex offers negative balance protection, which protects users from unknowingly liquidating their accounts. In addition, its brokerage fee is 0.006% – one of the best in the industry – and users get to enjoy a rich trading experience.
It requires a minimum deposit of $100 for a new account and $10 for recurring deposits. Deposits can be made through several channels, including bank transfer, credit/debit card, and e-wallet providers.
Pros
Demo account up to €50,000
Low spreads
24/7 customer support
Negative balance protection
Cross-platform trading experience
Cons
Limited product portfolio
Variable spread system
Less emphasis on educational content
Charges for some withdrawal methods
Visit Libertex
9. Binance – Top-Rated Exchange to Buy Cryptocurrency
Binance
exchange is known for one thing; its sheer size. Founded in China, Binance is a rapidly-growing crypto ecosystem. Boasting decentralized exchange (DEX) platforms like PancakeSwap, Binance is the largest cryptocurrency exchange by trading volume.
It’s also one of the best platforms to trade cryptocurrencies due to its low trading fees of 0.10%. Also, if you own its proprietary coin BNB, you get discounted fees when you pay with the token.
Binance offers a wide variety of trading options, and users can execute margin trades, futures, and leveraged trading. Binance allows users to buy crypto with fiat currencies and offers over 300 crypto assets with thousands of trading pairs.
See our page on the
best utility tokens
, one of which is BNB. Aside from crypto trading, Binance runs an earning program for passive income.
Pros
More liquidity
Low trading fees
Great platform for experienced traders
Largest crypto exchange
Supports credit/debit deposits and fiat
Cons
Debit/credit fees are expensive
Not ideal for new traders
Visit Binance
Volatility Of Crypto Assets
If you have been around long enough in the crypto circles, you may have come across terms like volatility a couple of times. This is because cryptocurrencies are highly volatile. This means you may make a killing in one trading session and see your gains erode in the next couple of minutes.
A classic example is Bitcoin’s price which rose over 100% in the last six months, reaching a record $64,350 valuation but has struggled to break above the $35K mark for the last couple of weeks. Critics have pointed to these wild price swings as a reason why cryptocurrencies cannot replace cash.
Nonetheless, cryptocurrencies are an exciting investment class to watch out for.
To guide you in your quest, we recommend checking out expert crypto review sites (like ours) with dedicated teams of experts working round the clock to give you the best recommendations on the ever-changing market trends. This will save you lots of heartaches as you will be exposed to crypto projects with growth potential and proven track records.
Storing Cryptocurrencies
Just like every item, cryptocurrencies need to be stored. Given that they are lines of computer code, they cannot be stored in a physical location. You will need a crypto wallet to keep your crypto funds. Aside from storage, crypto wallets also allow you to do some other stuff like execute trades, monitor market trends, and make crypto-to-crypto swaps almost instantaneously.
Choosing the right crypto wallet goes a long way in determining your digital assets’ security, so we have selected the best crypto wallets available for mobile and desktop users.
Selling Cryptocurrencies
If you intend to sell your cryptocurrencies, either because you no longer want to hold a particular crypto asset or you have made profits from investing in them, then the process is just as when you initially bought it. Since the crypto asset is within a digital wallet, you can easily initiate the withdrawal request.
Although there are several means you can employ to offload your crypto holdings, the best and safest way is to do this through an exchange like Coinbase. This way, you get a guarantee that your account will be credited when you decide to sell off your asset.
Choosing The Right Broker
Previously, it was not easy to buy cryptocurrencies as only a few brokers offered crypto custody services. However, times have changed with cryptocurrencies becoming a major market segment. Now, several
trading platforms
are offering crypto-related services.
As good as this may sound, it presents a new challenge, and this is, how do you select the right broker to buy cryptocurrencies through? As dire as this situation may seem, we have chosen a few criteria to help you in your quest.
Brokers are unique in their offerings, and you need to ensure whichever you choose to work with ticks the following boxes:
1. Fees
This is the first parameter to consider in choosing a broker. You need to know how much a
cryptocurrency broker
charges for deposits and withdrawals. Another cost to consider is the commission for trades. It is now an industry norm for brokers to offer commission-free trades. Platforms like Capital.com offer such perks. You should also consider hidden fees that a broker may be charging and its inactivity fee structure.
2. Payment Methods
This is also necessary. The more payment channels a broker boasts of, the easier it is to fund your account. Some brokers allow you to
buy Bitcoin with PayPal
. Others do not accept credit card deposits, while some may take longer to process bank wire transfers. Look out for these signs.
3. Crypto Offerings
Given that we are discussing investing in digital assets, you need to know how many cryptocurrencies a broker supports. Some brokers offer crypto CFDs meaning you do not have to worry about custody of the underlying asset. If this works for you, you should try such brokers out.
4. Security
You need to find out if your chosen broker is a regulated entity. Licenses from reputable regulatory bodies like the FCA show that the broker is secure, meaning your funds will not suddenly disappear into thin air. Your data will not also be compromised in the event of a breach due to the constant audits the broker will be undergoing.
5. Minimum Deposits
Minimum deposits are also crucial. You need to know what the lowest financial bar a broker requires to admit a new client. This can be a great way to test your trading strategies with little capital before investing large sums.
6. Social Trading
Social trading
is gradually becoming an industry standard. It’s the process where trading platforms to provide a means for traders to follow the latest market trends and news. This also allows new traders to develop themselves to connect and learn from their more experienced counterparts.
7. Support
Although many traders may not count this as important, customer support is crucial to handling sticky situations. Given that the cryptocurrency space is still evolving, many traditional investors are still confused about how the asset class works. Great customer support from a broker can make this process easier and more seamless. Many brokers now offer support in several languages. You should also look out for 24/7 technical support putting into perspective the weekends when you might want to place trades.
8. Usability
The ease of use of a trading platform is also important. Can you find your way quickly and easily around the trading platform? Can you get things done on time and leverage on market trends? Given that we are busier now than ever before, this can be a major challenge if a trading platform is not user-friendly. Whichever broker you choose to work with must be user-centric and make the trading experience painless and seamless.
Cryptocurrency exchanges can also be used to buy Ethereum (ETH) which can then be used to
buy NFTs
(non-fungible tokens), a popular new emerging market alongside cryptocurrencies.
9. Analytical tools
Just like the traditional financial markets, cryptocurrency trading requires analytical tools. A good trading platform must offer good statistics and great insights on a chosen digital asset. This will help guide your investment decision and make it easier for you to choose the cryptocurrency you want to invest in.
These parameters can help you in your search only so much. The best means of getting the best trading platform advice is checking out review sites on a particular broker. Even though it may sound like a cliché, it is very important if you intend to take cryptocurrency trading seriously. There are so many trading platforms that are popping up by the day with fantastic offerings. You need to know how to sieve the wheat from the chaff.
Knowing a reliable broker from the less-trustworthy ones can be difficult. Review sites will help you out in this regard as they will break down the finer details and offerings of a particular broker. Also, the comparison parameter will make it easier for you to compare between two platforms and know their pros and cons. Another benefit lies in the fact that you will learn if a broker is a scam or legit, which is very important if you intend to avoid bad actors from stealing your funds.
Which Cryptocurrency To Buy in 2023?
With both large and small-cap cryptocurrencies seeing exponential growth in the last six months, it can be difficult to decide which cryptocurrency to buy. Even though Bitcoin still leads the emerging industry, several crypto protocols also get investors’ attention either by their value proposition or by user adoption.
However, choosing the best cryptocurrency boils down to you. If you are a value-driven investor looking to buy low and sell high, several small-cap cryptocurrencies will likely fit into your budget. Another metric may be the future proposition for a given project.
The more use case and adoption a crypto asset sees, the more growth potential it has. Meanwhile, relying solely on a crypto project’s whitepaper and claims will not likely cut the ice in returns. A great way to stay on top of market developments and shifting trends is to peruse review sites like
InsideBitcoins
with a dedicated team of experts who are familiar with the inner workings of the crypto market and can make the safest recommendations for you.
Here are recent articles we did on the
best cheap cryptocurrency
to buy and a new
crypto Reddit
users are interested in.
Bitcoin
Bitcoin is a well-known digital currency. Over 95% of Americans equate the crypto market with Bitcoin. This is, in a way, true due to the large stake the oldest cryptocurrency has in the nascent sector. Launched in 2009 following a whitepaper by mysterious founder Satoshi Nakamoto in 2008, Bitcoin is the largest cryptocurrency and, at the moment, the most valuable.
Since its debut, it has grown more than 9,000,000% and has seen wide adoption by retail and institutional investors and world governments. Despite its outstanding success, Bitcoin is the most criticized cryptocurrency for several reasons:
environmental concerns
, government inability to influence policies in the Bitcoin network, volatility, and its use by criminals to move funds.
Bitcoin
(BTC)
Price
$41,157.00
Market Cap
$805.55 B
Meanwhile, Bitcoin has not slowed in its strides, and 2021 was its big break. Opening the year at a little over $30K, Bitcoin more than doubled its value rising to an all-time high (ATH) of $64,350 in mid-April, then making another all-time high of $69,000 in November.
Even though it has since seen its value slashed by half, Bitcoin still commands the largest trades and sits top of the global crypto table. If you want to add the top crypto asset to your investment portfolio, read out
how to buy Bitcoin
guide.
Ethereum
Besides Bitcoin, Ethereum is the only cryptocurrency that pulls significant weight in the crypto industry. Controlling 17.1% of the crypto market, Ethereum is a popular decentralized applications (dapps) platform founded by a group of software engineers and scientists led by Russian-Canadian Vitalik Buterin.
Even though most of the early founders have since left to form independent crypto projects, Ethereum is the most recognized dapps platform and the official home of the booming decentralized finance (DeFi) space. It’s also central to the metaverse – see our list of the
best metaverse coins
.
Ethereum
(ETH)
Price
$2,172.99
Market Cap
$261.22 B
Even though it has been criticized for its high gas fees and network congestions occasioned by its continued reliance on proof-of-work (PoW) consensus protocol, Ethereum has over 200 DeFi protocols actively transacting on its blockchain. It has continued to see its influence grow by the day, given the exponential increase in DeFi projects. It surged to a record $4,350 before market pressures saw it lose more than 50% of its value. However, Ethereum may see its fortune change once it transitions to the less energy demanding proof-of-stake (PoS) protocol by the end of the year.
If you want to learn more about the Ethereum project, you can check out our
How to Buy Ethereum
guide.
Dogecoin
Meme-based cryptocurrency Dogecoin has been a revelation this year. Even though it has not crossed the $1 mark since its debut in late 2013, the parody coin has come close to doing so. Rising to a record $0.74 in the heat of the crypto wave, Dogecoin increased 15,000% year-to-date (YTD). Its phenomenal gains have seen the joke cryptocurrency attain a pop star status attracting celebrity support and birthing a whole bevy of dog-themed cryptocurrencies.
Dogecoin
(DOGE)
Price
$0.092
Market Cap
$13.08 B
Even though Dogecoin has no generic use case aside from the Shiba Inu (not to be confused with a similarly named crypto project) being a fun and cute crypto protocol, Dogecoin has continued to make waves and temporarily surpassed the likes of Ford Motors and Twitter in the market valuation.
Trading way below its record high, Dogecoin is not going anywhere soon, with Tesla boss Elon Musk aiming to make it a next-gen interplanetary currency in the future. We have highlighted some market-moving trends of Dogecoin in our
How to Buy Dogecoin
guide here.
Binance Coin
Known simply as BNB, this digital token is not tied to a crypto protocol but a centralized cryptocurrency exchange known as Binance Holdings. It plays several roles in the rapidly expanding Binance ecosystem and enables its holders to enjoy lower fees on Binance-owned platforms.
Aside from this, the proprietary coin is used in settling online services purchases, ticketing, and several other utilities.
The BNB may not be a top crypto project, but its meteoric rise is nothing short of outstanding. Coming into the year at little over $40, BNB surged to a whopping $650 in the May crypto frenzy. This saw it occupy the fourth most valuable cryptocurrency, and it has retained the position for much of the year. With a burning schedule done every quarter, BNB slowly sees its 200 million tokens become more valuable by the day. Meanwhile, its present trade below $350 may be a great position to buy the BEP-20 token.
Crypto Presales
New crypto ICOs, private sales or presales offer the lowest entry point possible in price terms, and therefore the highest upside potential.
Some of the most promising cryptocurrency assets we’ve reviewed are those about to launch, as its important to buy low and sell high as a trader. See our full list of the
best crypto launches
early in their roadmap.
Alternatives To Bitcoin
Bitcoin is the premier digital asset, no doubt, and there is a slim chance that any crypto protocol may topple it from its first position on the crypto ranks. However, 2023 has seen many crypto assets making a bold entrance into the crypto space. With several digital assets posting remarkable gains, investors are looking for small-cap cryptocurrencies with growth potential.
In this section, we will briefly explore five of such crypto protocols:
AAVE
The digital token of the crypto lending protocol Aave, this digital asset, has been a revelation this year. With the protocol enabling cryptocurrency owners to earn passive income from lending out their crypto holdings, Aave is the most valuable DeFi protocol with a controlling share of 16.64% in the burgeoning DeFi market.
Read our list of the
best DeFi coins to invest in
, one of which is AAVE.
The AAVE token has shown good growth metrics surging from $88.05 on Jan. 1 to $643.07 on May 18, increasing more than 4,000% in the process. Even though it has dipped in value, AAVE is still a crypto asset to watch out for and may become the next Bitcoin in the emerging DeFi sub-sector. Read more from our
how to Buy AAVE
guide.
DOT
Polkadot is the result of a failed Ethereum dream of building an interoperable and scalable network. Founded by former CTO and co-founder of Ethereum Gavin Wood, the heterogeneous multi-chain solution has been dubbed an ‘Ethereum killer’ from the get-go.
It has not proven its supporters wrong, barreling its way into the top ten most valuable cryptocurrencies and making remarkable strides towards enabling an interconnected blockchain ecosystem. The DOT token has seen a mixed price action like most cryptocurrencies, but it has been able to keep its head above water. Coming into the year with an $8.88 valuation, DOT has grown more than 200%, plateauing at $48.36 on Apr. 14.
ADA
Another popular ‘Ethereum killer’ and one with a history to the popular dapps platform. ADA is the digital token of the Cardano network, which is developed by Hong Kong-based software firm Input Output Hong Kong (IOHK) and Emurgo. Cardano is a proof-of-stake (PoS) blockchain network that uses the self-styled Ouroboros mining protocol to validate transactions on its protocol. The beauty of the
Cardano network
is that it is still under development, but the project has quickly grabbed investors’ attention, given its value proposition.
The Cardano aims to build a new financially inclusive ecosystem where anyone can participate without fear of censorship. With its promise of lower fees and interoperability, Cardano’s ADA has been one of the best-performing crypto assets in the last few months. It surged from under a dollar valuation to over $2.45 in May.
Cardano’s low price and future potential is a great investment opportunity for any investor. Read more from our
how to Buy Cardano
guide.
SOL
Another potential alternative to investing in Bitcoin is blockchain protocol
Solana
. Also dubbed the ‘Ethereum killer’ tag, Solana is a permissionless, open-source crypto platform that enables DeFi solutions. It also claims to be faster in verifying transactions than the Ethereum network with a reputed 50,000 transactions per second (TPS) record. Using an innovative consensus algorithm proof-of-history (PoH) and the proof-of-stake (PoS) protocol, Solana has seen growing adoption with more DeFi projects migrating their services to the Solana network.
With DeFi set to continue its parabolic rise with growing investor interest in the sub-sector, Solana may soon challenge the Ethereum network as one of the best platforms to build DeFi protocols. Its SOL token has also seen positive price action moving from $1.8 to a record $55.91. It is projected to continue its uptrend despite the market downturn.
Crypto Signals
Also see our guide to the
best crypto trading signals
. These automated crypto buy and sell signals are an alternative to way to trade crypto with low risk, letting a team of professional traders provide trade setups and investing strategies.
Taxing Crypto Earnings
Crypto assets are placed in different umbrellas by different government agencies. While some countries prefer to see them as commodities, some others have pegged them as securities.
However, most tax agencies are ramping up efforts to generate revenue from the booming crypto space. The US Internal Revenue Services (IRS) considers cryptocurrencies as “property,” making them subject to capital gains treatment.
Meanwhile, sometimes they are also treated as income and are subjected to the income tax laws. In the US, the following crypto trading activities are considered capital gains taxable events:
Exchange crypto for fiat currencies
Paying for goods and services with cryptocurrencies
Swapping a crypto asset for another through an exchange or peer-to-peer channels
Income tax earnings for crypto are listed below:
Airdropped crypto
Income generated from lending on DeFi platforms
Block rewards gained by mining crypto
Crypto gains made from staking and liquidity pools
Getting paid with crypto
However, you can still repurpose your losses to offset your capital gains tax obligations. You can even save up to $3,000 on income tax when you hold on to your crypto assets for a long period.
Calculating Your Capital Gains Tax
The total amount you will pay for trading cryptocurrencies or owning digital assets depends on long you have held them. This will go a long way in determining your:
Short-term Capital Gains
This will be determined if you started trading crypto less than a year ago. Whatever gains or losses you may have incurred will be taxed at the same rate as your normal ordinary income and is subject to the short-term capital gains tax. However, your losses could help to offset your taxable income up to $3,000. You can also move those losses into the following year.
Long-term Capital Gains
Long-term capital gains operate differently from the short-term variant. If you have held crypto-assets for more than a year, you are eligible to pay 0%, 15%, or 20%, depending on your income. You can see a revised list from the
IRS here
.
How To Invest In Crypto Responsibly
Starting with the launch of Bitcoin in 2009 by Satoshi Nakamoto, the crypto market has only been on an upward trajectory. Meanwhile, the first-ever cryptocurrency has grown more than 9,000,000% since inception leading the infant sector into a unicorn status in the shortest time possible. This remarkable feat has seen both retail and institutional investors join the bandwagon and research
how to get into crypto
.
However, investing in crypto comes with its own set of risks. Keep the following in mind when trading digital assets:
Constant Research
The crypto space is an ever-evolving space with new crypto projects and
Web3 projects
springing up by the day. To make the best gains, you need to stay updated on the latest market trends and movements by researching.
Social media channels highly influence cryptocurrencies, and you can leverage social trends and make gains before market pullbacks. You can also turn to crypto market news on major financial channels and listen to expert analyses on cryptocurrencies. One such review website is InsideBitcoins which will provide you with the latest updates on Bitcoin and the
best altcoins
.
Limit Your Risk Exposure
Cryptocurrencies are known to be
highly volatile
, which means they can spike up and crash within hours. This could be disastrous if you did not properly hedge your bets. When the market is turning against you, make sure you pull your investment to limit your risk exposure.
Do not rely on the idea that it will rise immediately. It may take days – even months – before the bears lose grip of the market. Always keep in mind that cryptocurrencies are high-risk high-reward assets and invest funds that you can handle losing.
Should You Buy Or Trade Cryptocurrencies?
You may need to consider a few factors like your budget, time constraints, and risk tolerance. If you want to day trade, trading low marketcap altcoins may be more suited to you. However, if you are more long-term in your investment strategies, you may consider buying more established crypto assets like Ethereum for the long haul.
There are a few differences in both strategies. Buying is a mid to long-term investment with lower risk, lower reward, and you buy and own the underlying asset and can make payments with it if needed.
Trading cryptocurrency
is a short-term investment with higher risk, higher rewards, where you own virtual contracts for differences (CFDs) rather than the underlying asset and speculate on the price direction.
Cryptocurrency News – Latest Updates in December 2023
Coinbase’s Brainchild: The Rise of Base Chain in the Ethereum Layer 2 Arena
FTX Founder Bankman-Fried Seeks Court Relief Amid Legal Quagmire
Coinbase Halts Certain Stablecoin Trades in Canada
The total crypto market cap opened August 2023 at $1.14 trillion, based on the Tradingview monthly chart, and dropped to the $1 trillion area following rumors of Elon Musk’s SpaceX selling their Bitcoin holdings.
The 2022 yearly open was $2.19 trillion, versus a 2021 yearly open of $760 million. So the crypto markets gained in valuation by several hundred percent over 2021, then dropped by over 50% in 2022. Many analysts predict the crypto bull run will continue in Q4 2023 or following the next Bitcoin halving which is estimated to take place in May 2024.
Our Beginner Cryptocurrency Guides
Now that you’re more familiar with how to buy cryptocurrency online safely, check out our other beginner’s guides:
AltIndex Review
Best AI Cryptos
Best Arbitrum Network Coins
Best Beginner Cryptocurrency
Best Bitcoin Mining Sites
Best Blockchain Games
Best BSC Tokens
Best Coins to Buy on PancakeSwap
Best Coins to Buy on Uniswap
Best Crypto Airdrops
Best Crypto Courses
Best Crypto Crowdsales
Best Crypto Discord Groups
Best Crypto E-commerce Platforms
Best Crypto Games
Best Crypto Giveaways
Best Crypto Presales
Best Crypto Private Sales
Best Crypto ICO
Best Crypto IDO
Best Crypto IEO
Best Crypto Sectors
Best Crypto STO
Best Crypto Trading Bots
Best Crypto Twitter Accounts
Best Crypto Under $1
Best Cryptos to Day Trade
Best Crypto to Buy Now
Best Crypto to Buy in the Crash
Best Crypto Wallets For Beginners
Best Cryptos With Most Potential To Buy In 2023
Best Decentralized Exchanges
Best Deflationary Cryptocurrency
Best DEX Coins
Best ERC20 Tokens
Best Future Cryptocurrency
Best Low Market Cap Crypto
Best Low Supply Cryptocurrency
Best Meme Coins
Best New Cryptocurrency
Best New NFT Projects
Best NFT Staking Projects
Best Penny Cryptocurrency
Best Proof of Stake Coins
Best Reddit Crypto to Buy
Best Shitcoins
Best Solana Meme Coins
Best Staking Coins
Best Telegram Bots
Best Telegram Bot Tokens
Best Tiktok Crypto
Best Utility Tokens
Best Wallet Review
Best Yield Farming Platforms
Best VR Crypto Projects
Bitcoin BSC Price Prediction
Bitcoin’s Lightning Network
Bitcoin ETF Token Price Prediction
Bitcoin Minetrix Price Prediction
Crypto Emporium Review
Crypto Influencers
Crypto Launches
DAO Crypto Projects
Dubai Crypto Projects
Eco Friendly Cryptos
Everything You Need To Know About BRC-20 Tokens
Everything You Need To Know About Smart Contracts
Fastest Growing Cryptocurrency
FTX Token Price Prediction
Greenest Cryptocurrency
How to Buy Bitcoin BSC
How to Buy Bitcoin ETF Token
How to Buy Bitcoin Minetrix
How to Buy Cryptocurrency in the UK
How to Buy Meme Kombat
How to Buy TG.Casino Token
How to Buy Watches with Bitcoin
How to Earn Free Cryptocurrency
How to Gamble With Altcoins
How to Prepare for the Next Crypto Bull Run
How to Use ChatGPT for Cryptocurrency Price Predictions
Is Cryptocurrency a Good Investment?
Is it Too Late to Buy Bitcoin?
Is it Too Late to Buy Dogecoin?
Is it Too Late to Buy Shiba Inu?
Liquidity In Cryptocurrency
Make Money With Cryptocurrency
Make Money With NFTs
Meme Kombat Price Prediction
Most Energy Efficient Cryptocurrency
Most Popular Cryptocurrency
Most Promising Cryptocurrency
Most Sustainable Cryptocurrency
Most Trending Cryptocurrency Projects
Most Undervalued Cryptocurrency
Most Volatile Cryptocurrency
Next Big Crypto
Next Cryptocurrency to Explode
New Coin Listings
New Upcoming ICOs
NFT Giveaways
Rising Cryptocurrency
Should I Buy Bitcoin Now
Should I Buy Ethereum Now
Should I Buy XRP Now
TG.Casino Price Prediction
Top Crypto Gainers
Trending DEXTools Crypto
Upcoming Binance Listings
wETH vs ETH
When is the Next Bitcoin Halving?
When and How to Buy Arbitrum
Where and How to Buy ARKM
Where and How to Spend Bitcoin
Who accepts Bitcoin?
Who accepts Dogecoin?
Yield App Review
Conclusion
The crypto market is an exciting field to invest in. Cryptocurrencies are fast-growing digital currencies and are considered by many to be the future of money.
Crypto assets are also highly volatile, meaning they experience wild swings. Browse review sites like Inside Bitcoins to do your own research (DYOR) before investing in cryptocurrencies and consider dollar cost averaging (DCA) rather than going ‘all in’ at one time.
Many trading platforms and exchanges offer crypto assets and you may wish to open accounts at several to split up your portfolio and take advantage of different features such as
crypto staking
.
Coinbase
is our recommended broker for crypto.
FAQs
How Can I Buy Cryptocurrency?
You can purchase your desired cryptocurrencies through several means. One way is to use cryptocurrency exchanges like Binance. However, most crypto exchanges are not regulated, which presents a risk to your investments. Another means is to buy through traditional trading platforms that offer crypto exposure and are licensed to provide financial services.
How Can I Sell Cryptocurrency?
You can sell your crypto holdings in various ways, but we recommend selling them through the platform you initially bought them from. This will ensure that you get your money back and avoid bad actors.
Where To Buy Cryptocurrency?
With many trading platforms now offering crypto services, it can be difficult to choose where to buy cryptocurrency. However, some of the most well-known platforms are Binance, Coinbase, and others reviewed in this guide. All these exchanges offer different packages, and you need to compare them to know which one you are comfortable with.
What Are The Best Brokers To Buy Cryptocurrencies From?
Our most recommended brokers to buy cryptocurrencies are Coinbase, Huobi, and Crypto.com.
What Payment Methods Can I Use To Buy Cryptocurrencies?
There are numerous payment methods for buying cryptocurrencies. You can buy cryptocurrencies with credit/debit cards, Paypal, Neteller, Skrill, Sofort, and bank wire transfers. It all depends on the platform you transact with.
What Is A Cryptocurrency Exchange?
A cryptocurrency exchange is a trading platform that allows you to buy and sell cryptocurrencies. Following the traditional exchange style, you will utilize analytical tools, perform technical analysis, look at the order book, and place trades. Some like Binance also offer financial services like earning interest on your crypto savings and borrowing.
What is a Bitcoin Exchange?
A Bitcoin exchange is another term for a cryptocurrency exchange.
How Does A Bitcoin Exchange Work?
A Bitcoin exchange operates much like Nasdaq. It facilitates trade between a buyer and seller, albeit in cryptocurrencies. A Bitcoin exchange adopts the same operational module as a brokerage firm, and you can fund your account through a bank transfer or other means. However, you will pay a fee for the service.
Is Buying Cryptocurrency Safe?
Buying from regulated entities like Coinbase is safe, and you can be assured that bad actors will not steal your funds.
Do I Have To Pay Taxes When Buying Or Selling Cryptocurrencies?
According to the US IRS department, trading cryptocurrencies is taxable and falls under the capital gains tax. Check out our section on taxation to know how much you need to pay as taxes.
Which Cryptocurrency Should I Buy?
Before deciding on which one to invest in, you need to conduct thorough research on the digital asset you are interested in. Even though Bitcoin is a clear favorite, several other alternative currencies (altcoins for short) have growth potential.
What Are The Safest Cryptocurrencies To Buy?
The crypto market is highly volatile, which means gains can be wiped out in seconds. Another major challenge is that altcoins are tied to Bitcoin’s price movement. This means if Bitcoin goes up, other digital assets also rise and vice-versa. Bitcoin price action is a good marker to evaluate crypto investments.
What Are The Most Popular Cryptocurrencies To Buy?
The most popular digital assets include the likes of Bitcoin, Ethereum, Binance Coin, Dogecoin, Cardano, XRP, Polkadot, and UniSwap.
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