Buying Your First Crypto
Learn how to choose a reputable exchange, complete KYC verification, and make your first crypto purchase safely
What You'll Learn
From Fiat to Crypto
Now that you have a wallet, it's time to get some cryptocurrency. The bridge between traditional money (fiat) and crypto is called a cryptocurrency exchange. Think of it like a currency exchange at the airport, but for digital assets.
There are two main types of exchanges:
🏢 Centralized Exchanges (CEX): Companies like Coinbase, Binance, and Kraken. They hold your crypto for you (custodial), require identity verification, but are easier for beginners.
🔓 Decentralized Exchanges (DEX): Protocols like Uniswap and Jupiter. You keep control of your crypto (non-custodial), no KYC required, but you need crypto to start.
Since you're starting with zero crypto, you'll need a centralized exchange first. Later, we'll explore DEXs for trading between cryptocurrencies.
Exchange Security Alert
Not your keys, not your crypto! Exchanges can be hacked, freeze accounts, or go bankrupt. Only keep on exchanges what you're actively trading. Move the rest to your personal wallet.
Choose Your Exchange
These are the most reputable exchanges for beginners. All require KYC but offer strong security and easy interfaces.
Coinbase
- Most beginner-friendly interface
- Available in 100+ countries
- FDIC insured USD balances
- Instant purchases with debit card
- • Very easy to use
- • Strong security
- • Good mobile app
- • Higher fees
- • Limited coins
- • Slow support
Binance
- Largest exchange by volume
- 500+ cryptocurrencies
- Lowest trading fees (0.1%)
- Advanced trading features
- • Low fees
- • Many coins
- • High liquidity
- • Complex for beginners
- • Regulatory issues
- • Not in all US states
Kraken
- Founded in 2011 (oldest)
- Never been hacked
- Great customer support
- Advanced security options
- • Very secure
- • Good support
- • Fair fees
- • Slower deposits
- • Dated interface
- • Fewer features
Understanding KYC (Know Your Customer)
Centralized exchanges are required by law to verify your identity. This process is called KYC and it's designed to prevent money laundering and fraud. While it goes against crypto's privacy ideals, it's necessary for converting fiat to crypto legally.
Create Account
Sign up with email and create a strong password. Enable 2FA immediately for security.
~2 minutesPersonal Information
Provide your full name, date of birth, address, and phone number. This must match your ID exactly.
~5 minutesIdentity Verification
Upload a photo of your government ID (passport, driver's license) and take a selfie for facial verification.
~5 minutesAddress Proof
Some exchanges require proof of address (utility bill, bank statement). Not always required for basic limits.
OptionalApproval
Wait for verification. Usually instant but can take up to 48 hours during busy periods.
Instant - 48 hoursPrivacy Alternative
Want to avoid KYC? You can buy crypto peer-to-peer on platforms like Bisq or LocalBitcoins, use Bitcoin ATMs, or receive crypto as payment. These methods often have higher fees and risks.
Payment Methods & Fees
Fee Calculator
Making Your First Purchase
Once your account is verified and funded, you're ready to buy crypto! For your first purchase, we recommend starting with either ETH (Ethereum) or SOL (Solana) since you'll need these for DeFi transactions.
Step 1: Navigate to Buy/Trade
Look for "Buy Crypto" or "Trade" in the main menu. Select the cryptocurrency you want to purchase.
Step 2: Enter Amount
Enter either the USD amount you want to spend or the amount of crypto you want to buy. The exchange will calculate the other.
Step 3: Review Order
Check the exchange rate, fees, and total cost. Prices change every second, so your order might execute at a slightly different price.
Step 4: Confirm Purchase
Click buy and confirm. The crypto will appear in your exchange wallet within seconds.
Pro Tip: Use Limit Orders
Instead of market orders (instant), try limit orders where you set the price. If ETH is $2,000, set a limit order at $1,950 and wait. You might get a better price!
Withdrawing to Your Wallet
Remember: not your keys, not your crypto! After buying, transfer your crypto to your personal wallet:
1. Go to Withdraw/Send: Find the withdrawal section in your exchange account.
2. Select Network: Choose the correct network (Ethereum for ETH/ERC-20 tokens, Solana for SOL/SPL tokens). Wrong network = lost funds!
3. Enter Your Wallet Address: Copy from MetaMask/Phantom. Triple-check it's correct!
4. Start Small: For your first withdrawal, send a tiny amount (like $5) as a test. Once it arrives, send the rest.
5. Pay Network Fee: Withdrawals require a network fee. Ethereum is expensive ($5-20), Solana is cheap ($0.01).
Common Mistakes to Avoid
• Sending to wrong address (irreversible!) • Choosing wrong network • Not accounting for fees • Keeping everything on exchange • Using SMS 2FA instead of authenticator app
Check Your Understanding
Make Your First Purchase
- Choose an exchange from our recommendations (Coinbase for beginners)
- Create your account and set up 2FA with an authenticator app
- Complete KYC verification - have your ID ready
- Add a payment method (bank account for lower fees)
- Buy $20-50 worth of ETH or SOL to start
- Find the withdrawal section and prepare to send to your wallet
- Send a $5 test transaction to your MetaMask (ETH) or Phantom (SOL)
- Verify it arrived in your wallet
- Send the remaining amount after confirming the test worked
- Save your transaction ID for your records