How To Buy Cryptocurrency Safely & With Low Fees

Last Updated May 30th 2022
15 Min Read

Investing in cryptocurrency is now more popular than ever before. Gone are the days when digital currency was seen as a niche investment choice–now everyone from first-time individual investors to large-scale organisations are getting in on the action. In fact, it has been said that in May last year some 51% of American adults had bought cryptocurrency for the first time in the 12 months prior.

However, despite it being easier to buy cryptocurrency than ever before, there are still a lot of people out there who are put off buying tokens because they fear the process is too complicated. Of course, there are a few things you need to know when buying crypto, but ultimately it's the same for any investment asset.

Investing or trading in a new market is never something you should run into without a fair bit of research beforehand, but one of the best things about cryptocurrency is just how accessible it is. Not only can you buy and sell tokens through numerous exchanges and brokers, but you can also read pretty much every little detail about a blockchain project–sometimes even the code behind it!

So if you’re someone looking to get started with crypto investment, this article is for you. We’ll be going over exactly what you need to get started and giving you a few pointers on how to choose a suitable broker, as well as some suggestions on suitable cryptocurrencies to start your portfolio with. 

Buying Cryptocurrency Safely–Prerequisites 

Contrary to popular belief, you don’t need much at all to start buying cryptocurrency. You’ve probably heard about wallets and yes, these are something that you’ll need to store tokens. Wallets come in a variety of formats; there are hardware wallets, web-based wallets, mobile apps and those that need to be downloaded to your PC or laptop. However, the good news here is that many top brokers will store your tokens as a feature of a standard trading and investment account.

Of course, we recommend getting to grips with the different wallet types and it's always advisable to have your own place to store tokens, separate from your broker or exchange. But for those looking to get started, this can be done further down the line. 

buy cryptocurrencies

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

Where To Buy Cryptocurrency

If you want to invest in cryptocurrency safely, then you probably realise that you’ll need to open an account with a reputable broker or exchange that can give you access to the market. Once again, there are a lot of operators to choose from and the best one for you will depend on several factors, such as how often you intend to trade, whether you prefer functionality or simplicity and, arguably most important of all, which tokens you plan to buy and sell.

Different brokers will have different fee structures, list a different selection of cryptocurrencies and will have different trading platforms. Whichever one you best like the look of, we recommend you always go with a broker that is subject to some sort of regulation and has certain protections in place for customers.

To help you get started we’ve listed some of the top brokers on the market.

Choosing A Crypto Exchange

You may already be familiar with the names on the following list, as they represent some of the most popular and most trusted names in retail investment. There are, of course, other brokers out there, but any of the following five platforms are a good place to start if you’re new to the market. 

eToro

First on our list is eToro–arguably the most recognisable name in retail trading. We think you’ll be hard pushed to provide a better provider, as not only is eToro a trusted brand with a solid track record, it also has an award-winning trading platform as well as numerous learning resources to help you get started on your crypto investment journey.

When it comes to fees, eToro doesn’t harbour any nasty surprises. You’ll pay a flat fee of 1% on all crypto transactions, which will be added to the bid/ask spread. eToro spreads themselves are highly competitive, but they do differ depending on what token you plan on trading. As things go, the operator’s fee structure is one of the most cost-effective on the market and arguably one of the main reasons eToro is so popular. It also offers trading in other assets, which means eToro is subject to much more regulatory scrutiny than crypto-only trading platforms.

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

Coinbase

Coinbase is another well-regarded name in the world of cryptocurrency trading. One of the things we like about Coinbase is that there are regular opportunities to earn cryptocurrency by completing short questionnaires about emerging projects. Coinbase also offers a dedicated wallet that you can download to your mobile device and link to your account, making it easier to move your tokens around should you need to.

When it comes to fees, we found that Coinbase is pretty transparent but it is more costly than many other leading platforms. For example, Coinbase carries a different fee for market makers and takers, with the former–those providing liquidity–paying 0.40% and the latter paying 0.60%. This is fairly competitive, of course, but Coinbase may also charge for withdrawals, depending on the method used, which can make it slightly more costly than other leading exchanges. 

Uphold

Uphold has gained a great deal of popularity in recent years and we think it is one of the most easy-to-use crypto exchanges out there. It lists a good selection of tokens and allows users to convert one currency to another with just a few clicks. Uphold also has a very user-friendly trading interface, which we think makes the platform particularly suitable for beginners. 

When it comes to fees, Uphold charges different spreads for different cryptocurrencies. Generally, the fee is around 1%. For example, the spread for Bitcoin is 0.85% to buy and 1% to sell. Similarly, Ethereum is 0.95% to buy and 1.1% to sell. However, some tokens, like Dogecoin, buy and sell with a 1.25% spread. The spreads are often higher than some competitors but Uphold makes up for it by not charging fees for other account transactions.

Binance

Binance is amongst the biggest decentralised exchanges in the world and one that has its own native cryptocurrency, BNB. Binance differs from the other platforms on this list because it was originally exclusively crypto-driven and did not allow fiat currency transactions. However, it has now developed into a mainstream exchange and offers similar functionality to most retail trading providers.

Binance fees are fairly competitive. Most users will pay a 1% fee built into the spread. This is the same for market makers and takers. However, if you’re a VIP (trading more than $1m a month) then this figure reduces. In addition to this, users paying their fees in BNB get an automatic discount, reducing the spread fee to 0.75% for makers and takers.

Gemini

The Gemini platform was launched in 2014 by Cameron and Tyler Winklevoss–the twins who famously sued Mark Zuckerberg claiming he took their idea for Facebook. Gemini is known for its high levels of security and is one of the few crypto-only exchanges to be backed by fairly solid regulatory bodies, including the Financial Conduct Authority, allowing it to operate in the UK, and the New York State Department of Financial Services.

When it comes to charges, Gemini has faced some criticism for its relatively complex fee structures. On the surface, it is similar to the aforementioned exchanges, with a small percentage added to the spread that varies for makers and takers. However, Gemini also charges an additional ‘convenience fee’ of $0.99 for those using the mobile trader, as well as a small custodial fee for holding users’ tokens. 

buy cryptocurrencies

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

Should You Buy Cryptocurrency?

At this stage, you might still be wondering if cryptocurrency represents a good investment for you. It’s certainly true that buying digital currency isn’t for everyone, but the main reasons it has proven so popular with investors and traders are as follows:

High volatility 

All you need to do is glance at a few cryptocurrency price charts to see that prices move substantially–even by the day. Whilst this does make them higher risk for investors, high volatility is what traders thrive on and has allowed crypto to rival forex as the most popular asset for short-term trading. 

Increasing value long term

Whilst cryptocurrency does exhibit relatively high volatility in the short time, ultimately the top tokens have increased substantially in value over the long term. Take Bitcoin, for example. BTC traded at pennies for the first few years of its existence. By 2013 it was worth over $1200 per token. Today, it is trading at over $30,000. Whilst this is less than half of its record high, it still represents substantial returns for long-term investors. 

The technology of the future

Many cryptocurrencies drive projects that could become a major part of web 3.0 technology. For example, you have Fetch.AI, which is building an artificial intelligence-driven economy, or Decentraland, which is one of the most talked-about metaverses at the moment. Investing in the native tokens of these projects is a great way to invest in the future of technology. 

Hedge against economic downturn

During recent economic turmoil, cryptocurrency has established itself as a way for investors to hedge against significant downturn in the legacy finance markets. Indeed, Bitcoin has been likened to gold as a means for storing value for large-scale investors. If nothing else, cryptocurrency is certainly a good opportunity for diversification. 

Read Also: How To Make Money With Cryptocurrency - Top 10 Proven Methods

buy cryptocurrencies

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

5 Tips For Building Your Crypto Portfolio

If you’ve decided on a journey into cryptocurrency investment, then you might be wondering where to start.  There is definitely a learning curve when it comes to buying tokens and each investor will have their own style. However, we think the following steps are pretty much universal:

1. Find a good broker

If you want to start trading cryptocurrencies, then the first thing you’ll need is a broker that can give you access to the market. We’ve outlined some of the top exchanges out there, but you need to choose the right one for you. We recommend starting with eToro – especially if you are new to the market. 

2. Take care of security

Security is important for any kind of e-commerce but particularly anything to do with cryptocurrency. Of course, you’ll want to make sure any exchange you choose has adequate security protocols, but it's also essential that you maintain your own security standards–such as choosing secure passwords and never sharing your private key.

3. Focus on a small selection of tokens

There are literally thousands of cryptocurrencies listed across various exchanges, but we recommend sticking to a handful of well-known tokens when starting out. This will allow you to get an idea for how prices move and build your knowledge base as you go. Investing in too many tokens early on can make things much more difficult. 

4. Have a strategy

Even if you’re buying your first cryptocurrency, you should prepare a strategy of some kind. This can be as simple as planning a time frame for your investment, or deciding on an entry/exit price. Having a strategy will reduce the chance of making decisions based on emotion.

5. Don’t over commit

Related to the point above, it’s important not to get carried away. If you do your research and find a token you think is pegged for significant growth, don’t jump the gun by investing more than you intended. By budgeting carefully, you will stand a much better chance of long-term success. 

What Are The Top Cryptocurrencies To Buy In 2022?

If you’ve decided you want to invest in cryptocurrency in 2022, sorted yourself out a wallet and chosen your exchange or broker, then the next thing to decide is which cryptocurrencies you plan on buying. Building a portfolio takes time and research, but there are some tokens that we think could be good picks for the coming years. 

1. Bitcoin

Bitcoin launched way back in 2009 and was effectively the first cryptocurrency. Today, it remains the most well-known and most valuable token on the market–a favourite among institutional investors. Whilst Bitcoin is somewhat dated when compared with the latest smart chains, it continues to be the benchmark against which all other cryptocurrencies are measured.

We’ve already noted that Bitcoin once traded at a fraction of a cent. Since then, the token has reached a record price of $69,044 back in November 2021. One of the reasons we think it presents a good addition to a nascent crypto portfolio is that the token is currently depressed at just $30,279. As such, we think it could be poised for growth in the near future. 

buy bitcoin

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

2. Ethereum

Ethereum was the first of a new generation of smart chains, launched in 2016. Just as with Bitcoin, Ether traded at a relatively low value before the project gathered momentum. Today, a single Ether token will set you back $2,086. Once again, this is down from a high of $4,878.2 in November 2021. As things stand, Ethereum is the second-biggest cryptocurrency in terms of market capitalisation.

While the project has received some criticism for its network congestion and soaring GAS fees, it should be remembered that this is largely due to its popularity–with Ethereum playing host to more DeFi and memecoin projects than any other smart network. The reason we think ETH has a place in most crypto investment portfolios is the ongoing Ethereum 2.0 upgrade, which could once again see the project become the most advanced smart chain on the planet. 

buy ethereum

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

3. Decentraland

Decentraland is one of the big crypto success stories of the last couple of years. The project is effectively a 3D virtual reality world in which users can buy property, play games, interact and trade digital goods. On the surface, it can be likened to mainstream games like World of Warcraft and Minecraft. However, in reality Decentraland has far more potential than a standard video game.

As the internet evolves into web 3.0, projects like Decentraland could become increasingly valuable. Whilst the project currently centres upon the buying and selling of virtual real estate, it can support everything from play-to-earn games to NFT marketplaces. There are other projects in the space, but Decentraland looks like the front runner and we think it could be a good pick for new crypto investors. 

buy decentraland

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

4. Ripple

Often referred to as the bankers’ crypto, Ripple is actually the name of the organsiation behind the XRP token. Ripple has a very defined and viable use case–the project aims to facilitate cross border remittances for banks and financial institutions. As it stands, these organisations send payments using SWIFT, which has high fees and can take time. Alternatively, they can arrange exchanges themselves, which requires them to have permanent holdings in different denominations.

By using cryptocurrency as a medium for exchange, Ripple can settle cross-border payments almost instantly and with comparatively low fees. It already has support from several major institutions, including Santander, the Canadian Imperial Bank of Commerce, SBI Remit and Sweden’s SEB. The price of XRP is currently $0.42, which is relatively low for the token and we think it could soon be poised for a breakout. 

buy xrp

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

5. Binance Coin

We introduced Binance earlier as one of our recommended exchanges. However, the wider Binance ecosystem encompasses a lot more than the exchange - and it’s mostly down to the Binance Smart Chain, which is arguably the biggest rival to Ethereum when it comes to attracting DeFi projects. As it stands, Binance’s native token, BNB, is the fourth biggest cryptocurrency by market cap.

In the last year or so, soaring network costs have seen the faster Binance platform become ever more desirable for developers. It is also capable of delivering NFT-based projects, as well as meme coins and just about any other format of cryptocurrency. The fact that it is backed by the one of the biggest crypto exchanges in the world also lends BNB a certain degree of stability, which is one of the reasons we think it’s a good pick for novice investors. 

buy binance coin

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

Conclusion

If you’re new to the cryptocurrency market and looking to dip your toe in the waters of digital currency, then hopefully this article has given you a few pointers on how to get started. As we’ve noted above, a key factor is choosing a reliable and secure exchange that can give you access to the market without charging excessive fees.

Of course, choosing the right provider is largely a question of personal taste. However, new investors are often unsure of exactly what they are looking for. This is why we usually recommend eToro, as it is a highly accessible platform and offers an impressive array of guides and learning resources.

Once you’ve chosen an exchange you're happy with, then the research starts. Before jumping into cryptocurrency investment, it’s important to spend the time getting to know about the different projects out there – what each token is for, how it works and what sort of competition it has. We’ve made some suggestions to get you started, but there are numerous other tokens to consider. 

Cryptocurrency investment is growing in popularity and becoming increasingly more mainstream. Big things are expected to happen in the blockchain world over the coming months so now could be a judicious time to get involved. Just make sure you follow the tips we've outlined above and take time in developing a strategy that suits your investment style. 

eToro – The Best Place To Buy Cryptocurrencies 

Open an account with eToro, deposit some funds with USD, and finally – buy cryptocurrencies from just $10.

trade crypto on etoro

Crypto asset investing is highly volatile and unregulated in some EU countries and the UK. No consumer protection. Tax on profits may apply.

FAQ

How do I buy crypto online?

If you want to start investing in cryptocurrency, then the good news is it’s easier than ever before to buy tokens. The first thing you’ll need to buy crypto online is a good broker or exchange. We recommend eToro if you don’t have one already, as it's a very user-friendly platform that has a wealth of learning resources to help you get started. 

What crypto platform has the lowest fees?

Crypto trading fees vary from platform to platform and can also change depending on which token you are buying. The best way to compare the fees of each platform is to shortlist the tokens you intend trading then check them against each operator’s fee schedule. You’ll find some platforms also charge a flat commission fee, which needs to be factored in. 

Which cryptocurrencies are good for beginners to buy?

When starting your crypto investment journey, it's best to shortlist a handful of tokens to concentrate on whilst you learn the ropes. We usually recommend sticking with the more widely known tokens, such as Bitcoin, Ethereum and Binance as there is a lot more information out there relating to these coins–which makes research much easier. 

Will buying crypto make me a millionaire?

Stories of overnight millionaires abound in the crypto world, but investors should be wary of trying to chase big gains. Patience is key to any investment strategy and unless you are a day or swing trader, then you should plan on playing the long game. 

Which cryptocurrencies should I invest in?

The cryptocurrency is more diverse than ever before as it continually expands into new areas and industries. Choosing which tokens can be frustrating as there are so many promising projects out there. We recommend checking out some of our guides on Trading-Education.com to find out more about the top cryptocurrencies of 2022.

Read More:

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