Crypto basics in 60 seconds

Cryptocurrency is digital money secured by cryptography and recorded on public ledgers called blockchains. Transactions can settle globally within minutes, twenty four hours a day. The most known assets are Bitcoin, often treated as a store of value, and Ethereum, which powers apps and programmable money through smart contracts. Everything else is an altcoin. If you want a deeper primer on custody and seed phrases, open our best crypto wallets guide in a new tab and compare models as you read.

Pick a regulated on-ramp with clear fees

Choose an exchange or broker that is licensed in your region, supports your bank transfer method, and publishes a transparent fee schedule. Compare the spread plus fees instead of only the headline number. Bank transfer funding usually beats card purchases for cost.

• Verification: Identity checks unlock higher limits and help with account recovery later.
• Funding: Bank transfer is usually cheapest compared with card or instant buy.
• Withdrawals: Confirm supported networks and withdrawal fees for BTC, ETH, and stablecoins.

Editorial note: In our onboarding tests we saw total cost vary by 0.5 to 1.2 percentage points depending on whether we used instant buy or a limit order on the advanced screen. Learning one limit order pays for itself.

Make your first purchase and minimize fees

1. Fund your account by bank transfer when possible.
2. Buy BTC or ETH, or start with a stablecoin for flexible moves between platforms.
3. Enable an authenticator app for 2FA. Avoid SMS if you can.
4. Withdraw to your own wallet once the trade settles. Self custody reduces counterparty risk.

Pro tip: The advanced trade screen often has lower fees. Place a limit order at or near the mid price to avoid a wide spread.

Wallets: hot vs cold and a simple setup that works

Hot wallets are mobile apps or browser extensions that stay online. They are great for small balances, spending, and DeFi. Hardware wallets keep private keys offline for long term savings. Most beginners do well with both: a hot wallet for day-to-day and a hardware wallet for savings. See our Ledger vs Trezor comparison and our wallet hardening checklist for next steps.

From our tests: First time users made fewer mistakes when we had them write the seed on two cards and place them in separate locations. We also verified recovery by restoring the device with only the written seed before moving real funds.

Stablecoins and moving funds

Stablecoins such as USDC, USDT, DAI, and PYUSD aim to stay near one United States dollar. They are useful for moving value between exchanges and wallets without touching a bank each time. Read What is a Stablecoin, then check the network before you send. ERC-20 transfers can spike in cost during congestion while Tron and Solana routes are often cheaper and faster.

• Double check the destination network and address format.
• Send a small test first, then the rest after it confirms.

Helpful references: USDC transparency and Tether transparency.

Cross-chain moves without surprises

If you need to jump chains, compare the total cost and time to finality before you commit. Start with our fee explainer, Cross-Chain Bridge Fees, then choose a route from Best Cross-Chain Bridges. For large sums, consider native exchange withdrawals instead of third-party bridges to reduce steps.

Altcoin exchanges and DYOR

Once you hold BTC, ETH, or a stablecoin you can move to altcoin venues for broader listings. Evaluate liquidity and order book depth to avoid big slippage. Review a project’s whitepaper, token supply and unlocks, and who controls the smart contract. If you plan to sit out of the market, parking in stablecoins can simplify re-entry later.

A security routine you can actually follow

• Use an authenticator app for 2FA on exchanges, wallets, and email.
• Create long unique passwords in a password manager.
• Move long term holdings to a hardware wallet and test a recovery.
• Verify URLs and extensions. Never type a seed phrase into a website.
• Keep firmware up to date and review token approvals monthly.

Build a quarterly habit with our Wallet Security Audit Checklist. If you ever change devices, follow Safely Migrate Your Crypto Wallet.

Taxes and simple record keeping

In many countries, swapping crypto, spending crypto, and earning rewards can be taxable. Keep a clean log of each transaction, date, fees, and cost basis. If you are in the United States, read our Crypto Tax Laws overview, then verify details on the IRS virtual currency page. When you are ready to file, compare tools in Best Crypto Tax Software.

Starter gear we trust for beginners

FAQ

Is it too late to buy crypto

Markets are cyclical. Focus on custody, fees, risk management, and how to avoid scams. Process matters more than perfect timing.

How much should I start with

Only what you can afford to lose. Start small, practice deposits and withdrawals with a test amount, then scale as you build confidence.

Should I leave coins on an exchange

Leaving funds on an exchange creates counterparty risk. Keep only trading balances online and move savings to a wallet you control.