How to Invest in Cryptocurrency – Beginner’s Guide for 2022


If you’re looking to invest in cryptocurrency for the first time – you will be entering a new and existing trading space that has since surpassed a market value of $1 trillion.

In this beginner’s guide, we’ll teach you everything you need to know about investing in cryptocurrency. Key topics include how to choose a safe and low-cost cryptocurrency exchange, selecting the best digital currencies for your portfolio, and the steps required to invest in less than five minutes.

How to Invest in Cryptocurrency for Beginners – 4 Easy Steps

In just four simple steps – you can invest in cryptocurrency via a regulated online broker in under five minutes.

Best of all, when using eToro for this purpose – you can instantly pay for your cryptocurrency investment in US dollars without paying any transaction fees.

Here’s a quick-fire overview of how to invest in cryptocurrency at eToro:

  • ✅Step 1 – Open an Account with eToro: Opening an account with eToro is super easy as it’s just a case of providing the broker with some personal information. You’ll also need to upload a copy of your ID for anti-money laundering purposes.
  • 💳Step 2 – Deposit: You only need to deposit $10 into eToro when you first open an account and no transaction fees are charged(US clients only). Choose from ACH, a debit/credit card, an e-wallet, and more.
  • 🔎Step 3 – Search for Cryptocurrency: Now that you have a funded account, use the search bar to find the cryptocurrency that you want to invest in. If you’re unsure which digital asset takes your fancy, click on the ‘Discover’ button to browse the 60 digital currencies supported by eToro.
  • 🛒Step 4 – Invest in Cryptocurrency: After clicking ‘Trade’ you will see an order box appear on your screen. Enter your investment stake in the ‘Amount’ box and click ‘Open Trade’ to invest in your chosen cryptocurrency.

Cryptoassets are a highly volatile unregulated investment product. 

First-time traders might appreciate our more detailed guide on how to invest in cryptocurrency – which you will find by scrolling down.

Where to Invest in Cryptocurrency 

There are over 100+ exchanges and brokers in the online space that allow you to invest in cryptocurrency. When thinking about where to invest in cryptocurrency, we would suggest choosing a provider that is regulated to ensure that you can invest in safety.

It’s also a good idea to choose a platform that offers low fees and of course – support for your preferred cryptocurrencies.

In the sections below, you will find reviews of where to invest in cryptocurrency assets safely and in a low-cost way.

1. eToro – Overall Best Place to Invest in Cryptocurrency

etoro logoeToro was launched in 2007 and has become one of the best copy trading platforms which is home to a wide range of asset classes, making it a great option to learn how to make money with cryptocurrency. In addition to cryptocurrencies, this covers everything from ETFs and index funds to forex and commodities. You will have access to 60+ cryptocurrencies here – all of which can be purchased from a minimum investment of $10. This means you’ll have access to both the best future cryptos as well as the best shitcoins such as Dogecoin, Shiba Inu and ApeCoin. Furthermore, you’ll be able to access the next cryptocurrencies that could explode in 2022.

This is ideal if you’re looking to explore crypto assets for the first time and you don’t want to risk too much money. Moreover, at a minimum trade size of $10, you can invest in expensive cryptocurrencies like Bitcoin and Ethereum – both of which are now worth thousands of dollars per token.

When it comes to fees, eToro allows US clients to deposit USD on a fee-free basis. This is the case irrespective of which deposit type you choose.  Options here include ACH, e-wallets like Paypal and Neteller, online banking, and debit/credit cards. Trading commissions when you buy cryptocurrency cost just 1% – which is built into the price that you see when you place an order. This way you can buy Bitcoin and other cryptos with a credit card from the comfort of your own home.

etoro review

If you are interested in gaining exposure to cryptocurrency but you don’t know which tokens to add to your portfolio – eToro offers a duo of passive trading tools. First, there are professionally managed smart portfolios, which allow you to diversify across more than a dozen digital currencies through a single investment. eToro is always adding new cryptocurrencies to its portfolio so you can gain exposure to the best cryptos that could explode in 2022. One such exciting new crypto project is Curve, for more details be sure to read our how to buy Curve guide as well.

You might also consider the copy trading tool. This allows you to mirror the cryptocurrency investments of a proven trader like-for-like. The minimum investment stake with copy trading is just $200. We also found that eToro offers one of the best crypto wallets for beginners. This is because when you buy cryptocurrency here, the tokens are kept safe in your eToro web wallet.

Alternatively, for more control and flexibility over your cryptocurrencies, the eToro wallet app can be downloaded to your iOS or Android smartphone. Finally, we should note that eToro is perhaps the best crypto exchange in the market for complete beginners – as both its website and mobile app are super easy to use. Read our in-depth eToro review for more details.

Ever wondered how to invest in the metaverse? With eToro crypto enthusiasts can gain exposure to the best metaverse coins such as MANA and SAND.

Number of Cryptos 60
Trading Commission 1% plus market spread
Debit Card Fee FREE
Minimum Deposit $10

What We Like

  • Heavily regulated
  • Super low trading fees
  • No deposit fees
  • Supports dozens of coins including Tron and Zcash.
  • Deposit funds with a debit/credit card, e-wallet, or bank transfer
  • Copy trading tools

Cryptoassets are a highly volatile unregulated investment product. 

2. Webull – Invest in Crypto With Just $1  

webull logoThere is no longer a requirement to risk large sums of money when you invest in crypto – especially when you have an account with a broker like Webull. Put simply, this top-rated brokerage site allows you to buy and sell cryptocurrency from just $1 per trade. 

And, best of all, you won’t be required to meet a minimum deposit when you open an account. As such, this means that you can deposit $1 to get a feel for how the cryptocurrency platform at Webull works. With that said, it’s best to use ACH when depositing funds here – as no transaction fees are charged.

webull platform screenshot

Domestic bank wires, however, are charged at $8 per transaction. Nonetheless, another major benefit of choosing Webull to invest in crypto is that you will not pay any commissions. Bid-ask market spreads start at 1% here, so do bear that in mind when calculating your investment costs. 

If you are looking for a cryptocurrency broker that also enables you to invest in traditional assets – Webull also offers stocks, ETFs, and options. These financial instruments can also be bought and sold on a commission-free basis – plus the market spread. Finally, Webull offers retirement accounts across various IRAs, but no copy trading tools are available.

        

Number of Cryptos 20+
Trading Commission 0% commission plus market spread
Debit Card Fee ACH and bank wires only
Minimum Deposit No minimum deposit

What We Like:

  • 0% commission broker
  • Minimum position size only $1
  • Real-time market data and charting features
  • Two-factor authentication offered
  • $5 reward when completing first crypto trade

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance – Low Fee Exchange to Invest in 600+ Cryptocurrencies  

Binance is the largest cryptocurrency exchange globally. With that said, the exchange offers a domestic version of its website that is only accessible to US clients. And, compared to the 600+ cryptocurrencies hosted on the main Binance website, the US version of this exchange supports 80+ markets.

Nevertheless, once you have opened a verified account here and made a deposit, you can trade cryptocurrencies at a commission of just 0.10% per slide. Moreover, when funding your Binance account via ACH or a domestic bank wire, you won’t be charged any transaction fees.

On the other hand, depositing with a debit or credit card is expensive here, with Binance charging 4.5%. Moreover, this is in addition to an instant buy fee of 0.5%. When it comes to trading tools, this is where Binance stands out. This is because you can analyze the cryptocurrency markets through high-level technical indicators and charting features. 

However, these tools won’t be suitable for beginners, so do bear this in mind before you open an account with Binance. Another popular feature offered by Binance is its Trust Wallet app – which enables you to store thousands of different tokens across multiple blockchains. For a simpler way to store your crypto investments – you can use the main Binance web wallet.  

Ever wondered what the price of the FC Barcelona fan token could reach? Read our FC Barcelona fan token price prediction article for more details.

        

Number of Cryptos 80+
Trading Commission Up to 0.10%
Debit Card Fee 4.5% plus an instant buy fee of 0.5%
Minimum Deposit Depends on the payment method

What We Like:

  • 80+cryptocurrencies to trade
  • Low trading commissions
  • Dedicated staking service gives users access to the best staking coins
  • Suitable for technical traders

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Coinbase – Top Exchange for First-Time Cryptocurrency…



Read More: How to Invest in Cryptocurrency – Beginner’s Guide for 2022

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