When deciding where to buy cryptocurrency – your chosen platform should offer low fees, your preferred payment method, small account minimums, and of course – a strong regulatory framework.
First, this innovative social trading platform is regulated by several tier-one licensing bodies – which include the SEC in addition to the FCA, ASIC, and CySEC.
You only need to deposit $10 to open an account at this broker – which is ideal for those wishing to invest small amounts of money.
For instance, US clients can deposit funds without paying any fees at all – which covers debit/credit cards, e-wallets, and bank transfers.
If you’re interested in cryptocurrency but have little experience in this space – eToro offers a Smart Portfolio that manages your investments on your behalf.
The copy trading tool allows you to instantly copy the portfolios of any crypto trader on the platform, and you can access in-depth statistics on their performance all for no extra cost! Finally, eToro also offers a top-rated mobile app – which is available on both iOS and Android.
With millions of customers using Coinbase to buy and sell cryptocurrency – the platform is often the preferred provider for beginners.
That is, by using your Visa or MasterCard to buy cryptocurrency instantly, Coinbase will charge you almost 4%.
We also like that Coinbase is regulated – and that it keeps 98% of client digital funds in cold storage.
As such, Binance is popular with those seeking high levels of liquidity and a wide selection of digital currency markets.
Much like Coinbase, the fees here are expensive – with Binance charging 4.5% to use Visa or MasterCard, in addition to a buy commission of 0.5%.
With that said, if you are able to deposit funds with ACH or a domestic wire transfer, you will not be charged any fees.
Webull is one of the most popular brokerage sites in the US, with the platform offering thousands of stocks, ETFs, and even options.
You can trade a variety of digital currencies here – including but not limited to Bitcoin, Chainlink, Uniswap, Zcash, Bitcoin Cash, Litecoin, Ethereum, and more.
Although you won’t be able to deposit via a debit/credit card, you can fund your account with ACH or bank wire.
The platform is authorized and regulated by the New York State Department of Financial Services and is structured as a trust company.
Although Gemini offers a rock-solid place to buy cryptocurrency safely, the platform does charge a rather pricey commission of 1.49% per slide.
In a nutshell, by depositing your idle digital tokens into the Gemini exchange, you will be paid a rate of interest – which will depend on the respective asset.
On the flip side, and as we cover in more detail shortly, it is important to note that 10 years prior to writing, Bitcoin was available to buy at just $1 per token.
Simply put, they’re trading ideas from experienced cryptocurrency traders indicating whether you should buy or sell specific cryptos at a certain time and price.
Before we give some examples of just how successful some cryptocurrencies have been since they were launched – it is important to note that not all digital assets have performed well.
Although the above examples are just two of many – the key point here is that in buying cryptocurrency for your portfolio, you stand the chance of making sizable returns.
First and as noted earlier, you can now choose from more than 17,000 tradable digital assets.
For example, you don’t need to buy one full Ethereum token for several thousands of dollars.
This diversification strategy is particularly effective when you use a low-cost cryptocurrency broker that supports small investments.
Additionally, cryptocurrency can also be a useful tool in hedging against the wider stock markets.
The reason for this is that by only buying the dip, you are missing out on prolonged upward pricing swings.
The key point here is that dollar-cost averaging removes the need to try and time the market.
In terms of growth, we mentioned earlier that Bitcoin was worth just $1 a decade prior to writing this guide.
When the token was first launched in 2017 – its primary purpose was to allow users of the Binance exchange to reduce their trading commission.
These digital products can then be traded with other users – with MANA the native digital currency backing the Decentraland project.
This means that in just over three years of trading, Decentraland and its MANA token grew by more than 20,000%.
On the one hand, there are actually better-performing smart contract blockchains in this space – namely Neo and Solana.
Not only in terms of lower fees and even faster transactions – but being able to scale on a much larger level.
The YFI token – which backs Yearn.finance, is, therefore, a top cryptocurrency to keep an eye on this year.
This means that outside of the top-100 projects, the cryptocurrency market is extremely fragmented.
Another major risk to consider is that over the course of the past few years – billions of dollars worth of digital assets have been stolen from cryptocurrency exchanges.
As such, it is crucial that you stay away from unlicensed platforms and only buy cryptocurrency from a regulated exchange or broker – of which there are very few.
This is because if you lose your private keys and do not back your wallet up with a recovery passphrase, your funds will be lost forever.
This is, of course, a big risk for exchanges and brokers – which is why fees are typically high.
You can use both of these popular e-wallets at eToro at a fee of just 0.5%.
From your perspective, you will likely be able to deposit funds via ACH for free – albeit, the transaction might take a few days to arrive.
At the other end of the scale, you have Binance.
Peer-to-peer cryptocurrency trades are extremely risky, especially for buyers – as you will be required to pay for your purchase before you receive the tokens.
When it comes to keeping your cryptocurrency funds safe, you generally have two options.
You can buy cryptocurrency online through an exchange or broker that lists your preferred token.
If you enter the market at a favorable price and hold onto your tokens for a sufficient number of months or years – there is every chance that you will make a return on your principal investment.
However, there are thousands of other cryptocurrencies to buy – many of which could offer a better upside than BTC.