How To Buy, Sell and Trade Cryptocurrency

A starter guide – How to buy and sell cryptocurrency

Trading crypto currencyInvesting in cryptocurrencies and crypto trading has never been easier. If the concept of crypto currencies is confusing, just think of cryptocurrencies as a product with a value that people want to buy, sell or exchange and they start to make more sense.

Crypto coins like Bitcoin, Ethereum and Litecoin are seen as legitimate investments and crypto trading has become a hugely popular way of earning a side income.

Want to get started in crypto currency trading? One of the first things you will need to do is sign up with a cryptocurrency exchange or crypto bank, these services allow you to buy & sell crypto currencies in a similar way to how you trade stocks and shares. Many Crypto exchanges & wallet providers have also launched their own cryptocurrency payment cards backed by VISA and Mastercard. So now, you can even spend your cryptocurrency in shops and online.

Crypto currency newbie?

Crypto currency trading FAQs

We answer some of the top questions for Crypto currency newbies:

The easiest way to buy and sell Bitcoin or other cryptocurrency is via a crypto exchange or crypto bank, most coin exchanges and crypto banks provide accounts with a mobile app or online access for buying and selling crypto.

Finding a crypto exchange or bank - Research the market, find an exchange or crypto bank that offers the crypto coins or tokens you are interested in buying or holding. Use a checklist to make sure their service is available in your country and that it is suitable for your needs.

  1. Eligibility - Does the provider or service operate in your country? Are you eligible for an account?
  2. Investigate charges & fees - What are the associated costs? Crypto coins are bought and sold similar to conventional fiat currency trades or trading stocks and shares. Your crypto exchange will provide an exchange rate for a set trade. Usually for an exchange of fiat currency for crypto / crypto to crypto. Your coin exchange may charge you a flat fee for this, a commission, or they might profit from the rate of exchange they offer for individual trades.
  3. Buying coins with fiat currency or with other crypto - Crypto exchanges usually offer a number of options for trading cryptos. The popularity of Bitcoin means it is now an accepted currency to trade for alt-coin (other crypto) like ETH, LTC, XRP, XLM and others.
  4. Options for selling crypto coins - Most exchanges allow you to sell crypto coins in the same way you buy them. When you want to sell crypto your exchange will provide a trade offer in a fiat currency or trade offer in an alternative crypto currency.
  5. Spending crypto currency - Many exchanges & crypto banks have launched crypto payment debit cards, these cards allow you to spend your crypto just like fiat currency, each transaction uses a crypto for fiat currency exchange. However you might be charged additional transaction fees on top of any exchange rate applied - all fees should be clearly stated by your card issuer.

A search for 'cryptocurrency exchanges' online will generate various results, there are numerous cryptocurrency exchanges, plus a growing number of crypto banks & digital wallets that provide cryptocurrency trading services. We have provided details of some of the leading cryptocurrency exchanges in this article. Many of the larger exchanges operate cryptocurrency trading services in multiple regions including the UK, EU & US.

It is generally safer to use an established crypto exchange and one that offers an integrated digital wallet. Always consider a crypto exchange or bank that provides a guarantee or insurance cover for the safety of any crypto holdings you keep with them.

The costs vary from one crypto exchange or service provider to another.
For buyers there is there is usually a trading fee, plus possible charges for payment processing if you use a credit or debit card, plus any relevant taxes applied.

  • Trading fees are usually listed as maker and taker fees - Makers are the traders that create orders and wait for them to be filled, orders sit in the market as liquidity until they can be filled, while takers fee's apply to an order that can be immediately matched within the market, you're a taker because you take liquidity from the market.
    Marker & Taker fees are usually a small percentage of the trade value usually less than 0.5%
  • Payment fees - Any charges applied to your choice of purchase method. If you are using a funded account there is often no payment charge, whereas if you use a debit or credit card card processing fees might be applied. The amount will vary depending on the the crypto exchange or service provider. Payments terms and charges can be found in the trading terms of your chosen exchange.
  • Taxes Applied - Depending on your country of residence local taxes will be applied to each trade, these should be clearly stated by your exchange and itemised on each trade and  confirmation receipt.

Buying, selling and spending cryptocurrencies is legal in many countries but they are not considered legitimate currencies by governments, instead they are usually classed as a digital product or commodity. With this is mind crypto coins are not backed up by governments or sovereign banks, in that sense cryptocurrencies are considered as more risky financial assets.

With greater global investment in crypto coins many of the more well known cryptocurrencies now see a good level of market confidence. The rise in Bitcoin shows money can be made from trading cryptocurrencies but you should never forget that crypto assets can rise and fall in value, there is always a risk that you will loose money.

YES - In the UK, US & Europe when it comes to reporting cryptocurrency expenses and profits individual investors must uphold the capital gains tax laws of their country of residence.

Just like trading stocks and shares in the UK, US or Europe any profit made buying and selling cryptocurrencies - digital coins & tokens, must be disclosed on your annual tax return and you must pay any tax liability regardless of where, or how you purchased your digital currencies.

Failure to disclose profit from cryptocurrency trading can result in fines and even jail sentences.

Crypto currencies are not real money in the physical sense, they are purely digital however with growing popularity of crypto currencies and established markets for crypto trading, they do have an asset based value.

Crypto exchanges and digital wallet providers have launched crypto staking products and cryptocurrency payment cards, these developments have enabled individuals to invest, trade, save and even spend cryptocurrencies. Individual crypto coin values are most easily measured against national 'fiat' currency (volatility can be very high and there can be large fluctuations in a cryptocurrencies value from one day to the next).

Top Tip: Always do your research, if you are new to crypto trading take a look at some of the webinars and trading guides available at most crypto exchanges.

Check out some of the leading cryptocurrency exchanges

Coinbase and Bitpanda both have intuitive mobile apps and web interfaces that make it simple to buy and sell many of the most popular cryptocurrencies with either real ‘fiat’ currency or with other cryptocurrencies.

Coinbase, Binance & Bitpanda have also recently launched their own crypto payment cards, providing their customers the freedom to spend crypto in shops and online. CRYPTO.COM & Binance have more technical apps and web interfaces so they are generally more popular with more experienced cryptocurrency traders.

Coinbase Crypto Exchange

Pros

  • Available in UK/EU/US (fully regulated in UK / permitted in EU)

  • Low trading fees

  • Fiat to crypto / crypto to crypto trading pairs

  • Multiple funding methods: Bank trasfer / credit or debit card / 3rd party 

  • Coinbase has it's own secure digital wallet with insured cover

  • Coinbase VISA payment card - spend your crypto balances

  • Good tutorials and info, opportunites to earn crypto for FREE

Cons

  • Higher fees when not using Coinbase Pro

  • Wallet key is securely stored but not user controlled

  • A more limited choice of altcoin / pair trading options

Fees: Coinbase charges maker fees of 0.15% and taker fees of 0.25% (these fees decrease further for larger value trades), plus a flat or variable fee which ever is higher as set out in the trading & funding pricing & fee's FAQs. 
Standard fees
Buy/Sell (from a funded account): 1.49%  UK/EU/US 
Instant Buys (debit card funded): 3.99% UK//EU/US
Bank Transfers (SEPA): In/Out  FREE / 0.15 €uro
UK Faster Payments: FREE 
Instant Card Withdrawal: up to 2% of any transaction or a minimum fee of £0.55

Coinbase supports trading via a mobile app and online. Trading is simple, register a payment method, fund your account and buy crypto. Some of the more popular crypto currencies can be purchased directly with fiat currency in your account or via an instant buy using a debit/credit card. Other coins must be traded via cypto pair trading (basically you buy one of the main coins  with fiat currency then you trade these crypto coins for other crypto.

Coinbase supports trading in over 40 cryptocurrencies for clients in the UK, US & EU. Coinbase also offers the enhanced Coinbase Pro version which has a cheaper fee structure and better charts/metrics. Coinbase Pro is ideal for more experienced traders.

Bitpanda Crypto Exchange

Pros

  • Account available in UK & EU (fully regulated in the UK & EU)

  • Low trading fees

  • 'Fiat to crypto' / 'crypto to crypto' trading or  swaping 

  • Multiple funding methods: Bank trasfer / credit or debit card / 3rd party 

  • Bitpanda has it's own secure digital wallet

  • Bitpanda VISA payment card - spend your crypto balances

  • Good academy tutorials and info, opportunites to earn crypto for FREE

Cons

Bitpanda maximum maker fees are 0.1% and the maximum taker fees are 0.15% for purchases and sales of cryptocurrencies, plus a trading fee of 1.49% incorprated into the offer price.

Buy/Sell (from a funded account): 1.49%  UK/EU/US 
Instant Buys (debit card funded): 1.5% to 3.6% UK/EU/US
Bank Transfers: In/Out:  FREE
UK Faster Payments: FREE 
Withdrawals: Via Bank Transfer / Bitpanda wallet

Bitpanda is similar to Coinbase and supports trading via a mobile app and online. Trading is simple, register a payment method, fund your account and buy crypto. Some of the more popular crypto currencies can be purchased directly with fiat currency in your account or via instant buy using a debit/credit card. Other coins must be traded via cypto pair trading (basically you buy one of the main coins with fiat currency then you trade these crypto coins for other crypto).

Bitpanda supports trading a growing number of cryptocurrencies for clients in the UK & EU. Bitpanda also offers the enhanced Pro version with a cheaper fee structure, better charts and metrics. Bitpanda Pro is desidged for experienced traders, allowing api integration with trading bots and other trader tools. 

  • Accounts available in UK/EU/US

  • FREE crypto purchases for 30 days then low trading fees 

  • Fiat to crypto / crypto to crypto trading pairs

  • Funding methods: Bank trasfer / credit or debit card / crypto transfers

  • CRYPTO.COM digital wallet

  • CRYPTO.COM VISA payment card - spend your crypto balances

  • EARN interest on crypto holdings 2% to 10%

Cons

  • Only crypto withdrawls supported / NO fiat currency withdrawls supported

Fees: CRYPTO.COM charges a spread of 0.16% down to 0.09 % for taker and 0.1% down to 0.036% for the maker as set out in the CRYPTO.COM funding, trading & fee's FAQs. 

Other fees
Buy/Sell (from a funded account): 1.49%  UK/EU/US 
Instant Buys (debit/credit card): 1.8% UK//EU/US
Bank Transfers (SEPA): In/Out  FREE / 0.15 €uro
UK Faster Payments: FREE 
Card Withdrawal (fiat wallets onto a UK or EU debit card): 1% charge minimum withdrawl ammount £10 / 10€

CRYPTO.COM oficially launched in 2018 and focuses on facilitating a wide range of alt-coin trading via a mobile app and online. Account funding is allowed via multiple methods via fiat currencies including $ Dollar, £ Pound, € Euro or trasfering in of crypto from an external wallet.

CRYPTO.COM allows registrations from numerous countries including UK, US & EU. CRYPTO.COM allows some fiat to crypto trading for the most widley trade crypto currencies but mostly supports crypto - crypto pair trading e.g. Bitcoin (BIT) for Stellar Lumens (XLM). 

CRYPTO.COM supports around 100 crypto coins and suits traders looking to trade in the most popular cryptocurrencies and many less well known 'altcoins'. 

Buying & selling crypto assets is risky, the value of crypto currency coins and tokens can rise or fall on a daily basis and you could loose money.

 

Disclaimer: WOWCOMPARE.CO provides news and articles for a consumer and small business audience.

WOWCOMPARE is not a lender, bank, broker and we are not authorised or regulated by the FCA as a provider of financial advice. We do not recommend any product or service featured on this site, however we may receive a commission for sales and services purchased as a result of using this website.

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