How to Buy Cryptocurrency for Beginners

Mark Saldana | Dec 8, 2020

Over the last 10 years, cryptocurrencies have gone from a niche hobby to a widely accepted form of currency all over the world. Bitcoin (introduced back in 2008) is widely believed to be the first cryptocurrency. Today, more than 6000 cryptocurrencies are bought, traded, and sold all over the world. But how does a beginner buy cryptocurrency so they can become part of this global market?

Buying cryptocurrency can be a confusing endeavor for first-timers, but it doesn’t have to be. In this blog post, we’ll tell you what you need to know so you can buy your first cryptocurrency with confidence. We’ll also cover how you can use cryptocurrency to place bets and earn rewards within ZenSports!

Table of contents

How to Buy Cryptocurrency: Picking the Right Exchange or Market
How to Buy Cryptocurrency: The Best Markets and Exchanges
Using Cryptocurrency to Bet and Earn Rewards with ZenSports

How to Buy Cryptocurrency: Picking the Right Exchange or Market

There are lots of choices when it comes to where you can buy cryptocurrencies (markets) and where you can trade cryptocurrencies (exchanges). While some platforms allow you to do both, there are important differences to keep in mind when determining which exchange or market is right for you:

Which currencies are offered?

Some markets and exchanges focus on just a handful of cryptocurrencies, while others offer hundreds. Are you interested in buying and trading a specific coin, or do you want access to lots of different currencies? Take this into account when deciding which service you want to use when buying cryptocurrency. 

What fees do they charge?

While fees can vary from service to service, most calculate buyer fees based on the last 30 days of trading volume. In other words, the more you buy and trade, the less you’ll pay in fees. Read the fine print for each market and exchange so you aren’t surprised by fees when you buy your first coin.

What fiat currencies do they accept?

When buying or trading crypto. You might see sites mentioning “fiat.” What exactly is fiat? In simple terms, it’s the traditional money that most of us are used to. This is currency that has value because a government or central organization says it has value. USD and EUR are both examples of fiat currency.

Do you want to use your cryptocurrency to buy goods and services?

Some people want to buy cryptocurrency in the hopes that it will increase in value over time. Others want to use cryptocurrency to buy goods and services online (or to place bets with ZenSports!). If you want to use the cryptocurrency you purchase (versus just selling it for a profit), make sure that the market or exchange that you purchase it from allows you to manage your own wallet. You can learn more about setting up a crypto wallet here.

In simple terms, managing your own wallet means that you can transfer, withdraw, and use your crypto whenever you like, in whatever amount you want. Many markets and exchanges manage your wallet for you, which means that while you still “own” the cryptocurrency you purchase from these services, transferring it to your own wallet to use for goods and services can be tricky (or sometimes downright impossible). 

different types of cryptocurrency

How to Buy Cryptocurrency: The Best Markets and Exchanges

Below, we’ve listed some of the top markets and exchanges for first-time cryptocurrency buyers. These are grouped based on your goals, physical location, and level of familiarity with crypto markets. 

If you’re an absolutely beginner who doesn’t want to set up a wallet

If you want to quickly buy crypto because you think it will increase in value over time (and not because you want to actually use it), Robinhood is probably your best bet. However, you’ll pay a premium for the convenience of not managing your own wallet. You will also never be able to withdraw your cryptocurrency to use on goods or services.

Robinhood

  • Type of service: market and exchange
  • Fee structure: Robinhood boasts “commission free” trading, but there’s fine print. Fees associated with markets, brokers, and exchanged are essentially passed onto users when they purchase or trade crypto. Read the full breakdown.
  • Fiat currencies supported: You can fund your Robinhood account (and purchase cryptocurrency) with most major bank accounts or debit cards.
  • Cryptocurrencies supported: Robinhood supports 17 cryptocurrencies, including Bitcoin and Ethererum View the full list.

If you want more control over your cryptocurrency

These services are great for anyone who wants to use their cryptocurrency for goods and services. You’ll have to spend a bit more time learning about crypto and setting up your own wallet, but you’ll have a lot more control over your funds. Keep in mind that some of these services are geo-restricted.

Binance.US

  • Type of service: market and exchange with a focus on US customers
  • Fee structure: Binance’s fee schedule is determined by an individual’s trading volume over the last 30 days and their daily BNB balance. BNB is Binance’s proprietary cryptocurrency that can be used to pay trading feeds. View the entire schedule
  • Fiat currencies supported: USD
  • Cryptocurrencies supported: Nearly all of the major cryptocurrencies are available for purchase on Binance.US. View the full list of more than 20 cryptocurrencies.

Coinbase

  • Type of service: market and exchange
  • Fee structure: Fees with Coinbase are determined by transaction size, location, and currency. See the full fee structure here.
  • Fiat currencies supported: You can fund your Coinbase wallet with EUR, USD, or GBP depending on your location. 
  • Cryptocurrencies supported: Coinbase supports 50 currencies, and the currencies you can buy, sell, and trade depend on the country you live in. View the full list. 

Bittrex

  • Type of service: market and exchange
  • Fee structure: Like other exchanges, Bitfinex calculates fees based on your trading volume from the last 30 days. Read more about the fee structure.
  • Fiat currencies supported: Customers located in the US who have been verified with Bittrex can buy cryptocurrency with USD.
  • Cryptocurrencies supported: Bittrex supports 250+ of the world’s most popular cryptocurrency markets. View the full list. 

Bitfinex

  • Type of service: exchange
  • Fee structure: Like other exchanges, Bitfinex calculates fees based on your trading volume from the last 30 days. Read more about the fee structure.
  • Fiat currencies supported: Users who have been verified with Bitfinex can deposit and withdraw fiat currencies. Bitfinex supports USD, EUR, GBP, JPY, and CNH. You can also use a credit card to buy crypto on Bitfinex.
  • Cryptocurrencies supported: Bifinex supports hundreds of cryptocurrencies. View the full list. 

Kraken

  • Type of service: market and exchange
  • Fee structure: Kraken’s fee schedule is determined by an individual’s trading volume over the last 30 days. View the entire schedule
  • Fiat currencies supported: USD, EUR, CAD, GBP, CHF, JPY, and AUD
  • Cryptocurrencies supported: Nearly all of the major cryptocurrencies are available for purchase on Kraken. View the full list of more than 20 cryptocurrencies.

Binance.com

  • Type of service: market and exchange with a focus on international customers (US residents are restricted from using this service)
  • Fee structure: Like Binance.US, Binance.com’s fee schedule is determined by an individual’s trading volume over the last 30 days and their daily balance. View the entire schedule
  • Fiat currencies supported: Binance.com supports 15 fiat currencies from markets in Europe, Asia, North America, and Oceania.
  • Cryptocurrencies supported: Nearly all of the major cryptocurrencies are available for purchase on Binance.US. View the full list of more than 20 cryptocurrencies.

Kucoin

  • Type of service: market and exchange
  • Fee structure: Like other services, KuCoin calculates fees based on trading volume. The higher your trading volume for the last 30 days, the higher your “VIP” status with KuCoin. If you have a high enough VIP status, you may even pay negative fees. Read more about the fee structure.
  • Fiat currencies supported: You can buy cryptocurrency with any of the 17 fiat currencies listed here.
  • Cryptocurrencies supported: KuCoin supports hundreds of cryptocurrencies. View the full list. 

HitBTC

  • Type of service: exchange with a focus on Bitcoin
  • Fee structure: Fees start at 0.10% and get lower depending on your trading volume. Read more about their fee structure here.
  • Fiat and cryptocurrencies supported: View their trading exchange to see all the currencies they support in addition to Bitcoin.

If you’re an advanced user (or want to become a crypto nerd)

Want to get into the weeds and learn everything you can about cryptocurrency? If so, these two services are for you.

Binance DEX

  • Type of service: decentralized exchange with a focus on international customers (US residents are restricted from using this service)
  • Fee structure: BNB is the native token on Binance Chain, so users are charged BNB for sending transactions. Read more about trading fees on Binance DEX.
  • Fiat and cryptocurrencies supported: View their trading exchange to see all the currencies they support.

P2PB2B

  • Type of service: market and exchange
  • Fee structure: P2PB2B charges 0.20% on all trades. You can see their deposit and withdrawal fees here.
  • Fiat and cryptocurrencies supported: View their trading exchange to see all the currencies they support.

Using Cryptocurrency to Bet and Earn Rewards with ZenSports

ZenSports allows you to place bets with BTC, USDT, ICX, and SPORTS, ZenSports’ proprietary cryptocurrency.

Why bet with SPORTS? Placing bets with SPORTS tokens offers unique rewards on the ZenSports platform like lower fees, cash-back rewards, referral bonuses, and access to special contests and promotions. Plus, SPORTS tokens provide all of the benefits of using crypto over traditional fiat currencies, such as instant transfers, super low transaction costs, and no middleman.

Learn everything you need to know about our SPORTS reward program here.

Earning rewards with ZenSports

Buying and Trading SPORTS with the ZenSports Exchange

Inside the ZenSports app, you’ll find a trading exchange that allows you to buy, sell, and trade SPORTS. Within our exchange, we offer the following trading pairs:

  • SPORTS / USDT
  • SPORTS / BTC
  • ICX / USDT

We hope this overview of how to buy cryptocurrency has been helpful and informative. Once you’ve purchased your first cryptocurrency, jump into ZenSports to start winning and earning rewards with SPORTS!

 

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