Buying crypto sounds simple. In reality, this is where most beginners overpay, misunderstand what they actually own, or lock themselves into platforms they don’t fully control.
This guide is a practical, no-hype walkthrough of how buying crypto actually works in 2026; from Bitcoin to altcoins, and how to avoid the most common beginner mistakes.
If you just want the short version:
Let’s break it down properly.
When people say they are “buying crypto,” they usually mean one of three things:
Those are very different stages, with very different risks.
Before getting into platforms and steps, it helps to understand what you’re actually buying.
Bitcoin was the first cryptocurrency, launched in 2009. Everything that came after it is commonly referred to as an altcoin (short for “alternative coin”).
Some altcoins are independent cryptocurrencies with their own blockchains. Others are built on top of existing blockchains.
This is where the distinction matters:
Confusingly, some altcoins include “Bitcoin” in their name (such as Bitcoin Cash). These are typically the result of hard forks, where developers disagreed on a project’s direction and split the codebase.
For a beginner, the important takeaway is simple:
Most beginners buy crypto in one of two ways:
Instead of ranking exchanges from “best to worst,” it’s more useful to understand what each type of platform is designed for.
Coinbase is often the first stop for beginners, and for good reason.
Pros
Cons
Coinbase is ideal if your priority is speed and simplicity. It becomes less attractive if you buy frequently or in size.
Crypto.com sits between a traditional exchange and a financial app.
Pros
Cons
Crypto.com appeals to users who want more than a simple on-ramp. The trade-off is complexity — you gain features, but you need to pay attention to pricing and custody choices.
Some services send crypto directly to your own wallet instead of holding it for you.
Pros
Cons
These services are best suited to users who already understand self-custody and are willing to pay for speed or privacy.
If a platform lets you buy crypto with fiat currency, it will require identity verification.
Typically this includes:
Platforms advertising “no-KYC” usually outsource payment processing to third parties that perform checks anyway. The friction doesn’t disappear — it just moves.
If privacy is your top priority, card-based purchases may not be the right on-ramp.
This is where most beginners make their biggest long-term mistake.
Self-custody requires discipline. For meaningful amounts, hardware wallets are considered best practice.
A sensible approach:
Card purchases bundle fees in ways that are easy to miss:
This is why card purchases are best treated as:
None of these are fatal — but they’re expensive ways to learn.
So, let's look at how to buy your first crypto if you are new to the cryptocurrency space.
A Coinbase account takes a few minutes to open and creates five different cryptocurrency wallets for you to store your altcoins in.
After signing up, a confirmation email will be sent to your email account. Simply click on the blue ‘Verify Email Address’ tab and you’ll be taken to the dashboard page.
Step #2. Add your phone number to verify your account
From your Coinbase dashboard, you’ll notice there are four steps to complete your account. The first task - confirming your email address will have a green check mark. You'll need to add your phone number, verify your identity by uploading a scan of your ID and finally add a payment method.
To enable two-factor authentication, simply enter your phone number. This will secure your account by texting a short confirmation code to your phone when logging in.
Step #3. Upload a scan of your ID
From the ‘Your Portfolio' page on Coinbase, you'll notice five separate wallets; Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin, Ethereum.
When you buy bitcoin on Coinbase, it will be stored in your Bitcoin wallet. Online wallets are the cryptocurrency equivalent of bank accounts. You need a wallet to receive, store or send bitcoins and other altcoins. Online wallets are popular because they are free to open, can be accessed from anywhere with an internet connection and they are simple to use.
By clicking on 'Accounts' and then 'Receive' you can see the public address of each wallet. If you give this address to someone, they can send you Bitcoin. If you click on the 'Buy/Sell' tab, you can use your bank account or credit/debit card to buy bitcoins. Your bitcoin will be sent directly to your Coinbase Bitcoin wallet.
As you've seen, setting up a Coinbase account takes just a few minutes and is completely free.
This guide is a practical, no-hype walkthrough of how buying crypto actually works in 2026; from Bitcoin to altcoins, and how to avoid the most common beginner mistakes.
If you just want the short version:
- Debit cards beat credit cards almost every time
- Convenience always comes with a premium
- If you don’t control the private keys, you don’t fully control the crypto
Let’s break it down properly.
What “Buying Crypto” Actually Means
When people say they are “buying crypto,” they usually mean one of three things:
- Buying Bitcoin or altcoins on an exchange
- Holding crypto in an exchange-managed wallet
- Eventually withdrawing crypto to a wallet they control
Those are very different stages, with very different risks.
Before getting into platforms and steps, it helps to understand what you’re actually buying.
Bitcoin, Altcoins, Coins, and Tokens (Quickly Explained)
Bitcoin was the first cryptocurrency, launched in 2009. Everything that came after it is commonly referred to as an altcoin (short for “alternative coin”).
Some altcoins are independent cryptocurrencies with their own blockchains. Others are built on top of existing blockchains.
This is where the distinction matters:
- Coins exist on their own blockchain (Bitcoin, Litecoin, Solana)
- Tokens rely on another blockchain, most commonly Ethereum
Confusingly, some altcoins include “Bitcoin” in their name (such as Bitcoin Cash). These are typically the result of hard forks, where developers disagreed on a project’s direction and split the codebase.
For a beginner, the important takeaway is simple:
You don’t need to master this on day one. You just need to understand that not all crypto works the same under the hood.
Step 1: Choose How You Want to Buy
Most beginners buy crypto in one of two ways:
Debit or Credit Card
This is the fastest and simplest option, and where most people start.
Many UK card issuers treat crypto purchases as cash advances, which means:
Debit cards avoid most of this, though you’ll still pay exchange and processing fees.
This is the fastest and simplest option, and where most people start.
- Debit cards are usually fine
- Credit cards are usually a mistake
Many UK card issuers treat crypto purchases as cash advances, which means:
- Immediate interest
- Extra fees (often 3–5%)
- No promotional protections
Debit cards avoid most of this, though you’ll still pay exchange and processing fees.
Bank Transfer
Slower, but cheaper.
If you plan to buy regularly or in larger amounts, bank transfers almost always make more sense once you’re comfortable.
Rule of thumb:
Slower, but cheaper.
If you plan to buy regularly or in larger amounts, bank transfers almost always make more sense once you’re comfortable.
Rule of thumb:
If you’re buying crypto with money you don’t already have, stop. That’s not investing; that’s leverage by another name.
Step 2: Choose the Right Type of Platform
Instead of ranking exchanges from “best to worst,” it’s more useful to understand what each type of platform is designed for.
1. Coinbase – Simple, Regulated, Expensive
Coinbase is often the first stop for beginners, and for good reason.
Pros
- Extremely easy to use
- FCA-aligned for UK users
- Instant debit card purchases
Cons
- High fees on instant buys
- Custodial by default
- Not optimised for price-sensitive buyers
Coinbase is ideal if your priority is speed and simplicity. It becomes less attractive if you buy frequently or in size.
2. Crypto.com – Feature-Rich, App-First Ecosystem
Crypto.com sits between a traditional exchange and a financial app.
Pros
- Widely available in the UK
- Instant debit card purchases
- Integrated custodial wallets
- Optional Visa card for spending crypto
- Supports withdrawals to self-custody wallets
Cons
- App interface can feel cluttered
- Fees and spreads aren’t always obvious
- Best perks often require locking CRO tokens
Crypto.com appeals to users who want more than a simple on-ramp. The trade-off is complexity — you gain features, but you need to pay attention to pricing and custody choices.
3. Non-Custodial Services – Fast, Flexible, Expensive
Some services send crypto directly to your own wallet instead of holding it for you.
Pros
- You control the wallet
- No long-term platform risk
- Minimal account friction
Cons
- Higher total fees
- No recovery if you make a mistake
- Requires discipline and basic wallet knowledge
These services are best suited to users who already understand self-custody and are willing to pay for speed or privacy.
Step 3: Verification (Why You Can’t Avoid It)
If a platform lets you buy crypto with fiat currency, it will require identity verification.
Typically this includes:
- Email and phone number
- Government-issued photo ID
- Sometimes proof of address
Platforms advertising “no-KYC” usually outsource payment processing to third parties that perform checks anyway. The friction doesn’t disappear — it just moves.
If privacy is your top priority, card-based purchases may not be the right on-ramp.
Step 4: Where Your Crypto Actually Lives
This is where most beginners make their biggest long-term mistake.
Custodial Wallets
If you don’t hold the private keys, you’re trusting a third party. That trust may be reasonable — but it’s still trust.
- These are wallets managed by a company, usually an exchange.
- Easy to use
- Recoverable if you lose access
- Not truly under your control
If you don’t hold the private keys, you’re trusting a third party. That trust may be reasonable — but it’s still trust.
Self-Custody Wallets
- These wallets give you full control.
- You control the private keys
- No account freezes
- No recovery if you lose access
Self-custody requires discipline. For meaningful amounts, hardware wallets are considered best practice.
A sensible approach:
- Use exchanges to buy
- Withdraw to a wallet you control
- Increase self-custody as your confidence grows
Fees: Where the Real Cost Hides
Card purchases bundle fees in ways that are easy to miss:
- Exchange fees
- Spread markups
- Card processor fees
- Foreign transaction fees
- A “3.99% fee” can easily become 6–10% all-in.
This is why card purchases are best treated as:
- A first buy
- A fast top-up
- A convenience option
Common Beginner Mistakes
- Buying with credit
- Leaving everything on exchanges
- Chasing altcoins before understanding Bitcoin
- Ignoring fees and spreads
- Treating convenience as free
None of these are fatal — but they’re expensive ways to learn.
So, let's look at how to buy your first crypto if you are new to the cryptocurrency space.
Joining an Exchange
I recommend Coinbase and will use it as an example for this guide. Coinbase is a popular exchange that lets you use your home currency to buy bitcoin and a range of altcoins including Ethereum, Ethereum Classic, Bitcoin Cash and Litecoin.
A Coinbase account takes a few minutes to open and creates five different cryptocurrency wallets for you to store your altcoins in.
How to open a Coinbase account
Coinbase is one of the most trusted cryptocurrency exchanges. Here, you can create your own digital currency wallet in minutes. Setting up a wallet is free.
First, simply head to the homepage and enter your email address and a password.
After signing up, a confirmation email will be sent to your email account. Simply click on the blue ‘Verify Email Address’ tab and you’ll be taken to the dashboard page.
Step #2. Add your phone number to verify your account
From your Coinbase dashboard, you’ll notice there are four steps to complete your account. The first task - confirming your email address will have a green check mark. You'll need to add your phone number, verify your identity by uploading a scan of your ID and finally add a payment method.
To enable two-factor authentication, simply enter your phone number. This will secure your account by texting a short confirmation code to your phone when logging in.
Step #3. Upload a scan of your ID
The third step is to upload a scan of any form of photo ID such as your driving license or passport.
Step #4. Add a payment method
Step #4. Add a payment method
The last step is to add a payment method. There are two main options.
Add a Bank Account
Add a Bank Account
This is recommended as you can make and accept faster payments. Once verified you can withdraw to this account.
Add a Euro Bank Account
If you have a Euro bank account that can make and accept SEPA payments, you can instantly buy and sell bitcoins once completed.
Add a 3D Secure Credit Card
Coinbase accepts any Visa or Mastercard to make small investments. This is ideal for small amounts. You will still need to add a bank or wallet to sell, though.
Step #5. Buy your first bitcoins
From the Dashboard of your Coinbase account, you'll see the section titled 'Your Portfolio'. Here, you'll notice five separate wallets; Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin, Ethereum.
When you register an account with Coinbase, you will automatically have these wallets set up for you. Each wallet can store a different type of cryptocurrency.
Add a Euro Bank Account
If you have a Euro bank account that can make and accept SEPA payments, you can instantly buy and sell bitcoins once completed.
Add a 3D Secure Credit Card
Coinbase accepts any Visa or Mastercard to make small investments. This is ideal for small amounts. You will still need to add a bank or wallet to sell, though.
Step #5. Buy your first bitcoins
From the Dashboard of your Coinbase account, you'll see the section titled 'Your Portfolio'. Here, you'll notice five separate wallets; Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin, Ethereum.
When you register an account with Coinbase, you will automatically have these wallets set up for you. Each wallet can store a different type of cryptocurrency.
Buying your first crypto
From the ‘Your Portfolio' page on Coinbase, you'll notice five separate wallets; Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin, Ethereum.
By clicking on 'Accounts' and then 'Receive' you can see the address from each wallet. You simply use the debit or credit card linked to your account to buy altcoins. These will be sent directly to your Coinbase wallets.
Use your wallet address to exchange your home currency for bitcoin or altcoins
Use your wallet address to exchange your home currency for bitcoin or altcoins
Online wallet security explained
When you buy bitcoin on Coinbase, it will be stored in your Bitcoin wallet. Online wallets are the cryptocurrency equivalent of bank accounts. You need a wallet to receive, store or send bitcoins and other altcoins. Online wallets are popular because they are free to open, can be accessed from anywhere with an internet connection and they are simple to use.
By clicking on 'Accounts' and then 'Receive' you can see the public address of each wallet. If you give this address to someone, they can send you Bitcoin. If you click on the 'Buy/Sell' tab, you can use your bank account or credit/debit card to buy bitcoins. Your bitcoin will be sent directly to your Coinbase Bitcoin wallet.
Final Take
As you've seen, setting up a Coinbase account takes just a few minutes and is completely free.
Once created, you can buy, receive, send or store bitcoins with ease. Coinbase is extremely easy to use and thoroughly recommended.
As we've seen, buying crypto in 2026 is easier than ever, but that doesn’t mean it’s risk-free.
You’re always trading something:
If you’re just starting out, buy small, use a debit card on a reputable platform, and focus on learning how custody works.
You'll sometimes see altcoins referred to as being coins or tokens but all altcoins are entirely digital. Any cryptocurrency referred to as a coin exists on its own blockchain. A token, on the other hand, relies on another network, most commonly Ethereum or EOS.
Online wallets are the cryptocurrency equivalent of bank accounts. You need a wallet to receive, store or send bitcoins and other altcoins. Online wallets are popular because they are free to open, can be accessed from anywhere with an internet connection and they are simple to use.
When you register at an exchange such as Coinbase, you will automatically have wallets set up for you. At Coinbase, for example, you will receive five wallets: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin. Each wallet can store a different type of cryptocurrency.
How does online wallet security work?
Some links on Coinstronauts may be affiliate links. This means we may earn a commission if you sign up through them, at no extra cost to you. All content is for informational and educational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile. Readers are responsible for their own decisions.
© Coinstronauts 2026
You’re always trading something:
- Speed vs cost
- Convenience vs control
- Simplicity vs sovereignty
If you’re just starting out, buy small, use a debit card on a reputable platform, and focus on learning how custody works.
- Convenience gets you in.
- Understanding keeps you safe.
Happy buying!
Frequently Asked Questions
What is an altcoin?
As the prefix 'alt' suggests, altcoins are any cryptocurrencies that came after bitcoin. Confusingly, some altcoins contain the word bitcoin in their names such as Bitcoin Cash and Bitcoin Gold. These altcoins are spin-offs of Bitcoin created by software upgrades known as hard forks. Hard forks occur when developers and programmers disagree about the direction of a cryptocurrency and pursue different paths.
Why are some altcoins called 'coins' and others called 'tokens'?
Why are some altcoins called 'coins' and others called 'tokens'?
You'll sometimes see altcoins referred to as being coins or tokens but all altcoins are entirely digital. Any cryptocurrency referred to as a coin exists on its own blockchain. A token, on the other hand, relies on another network, most commonly Ethereum or EOS.
What are online wallets?
Online wallets are the cryptocurrency equivalent of bank accounts. You need a wallet to receive, store or send bitcoins and other altcoins. Online wallets are popular because they are free to open, can be accessed from anywhere with an internet connection and they are simple to use.
When you register at an exchange such as Coinbase, you will automatically have wallets set up for you. At Coinbase, for example, you will receive five wallets: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin. Each wallet can store a different type of cryptocurrency.
How does online wallet security work?
Top exchanges such as Coinbase take security very seriously and have bug bounty programs that pay rewards to security researchers who identify software security vulnerabilities.
In the case of Coinbase, an astonishing 98 percent of customer deposits are stored offline and all digital currency stored on Coinbase's servers are covered by an insurance policy.
Disclosure & Disclaimer
Some links on Coinstronauts may be affiliate links. This means we may earn a commission if you sign up through them, at no extra cost to you. All content is for informational and educational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile. Readers are responsible for their own decisions.
© Coinstronauts 2026