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, 24 hours a day. The most known assets are Bitcoin, which many treat as a store of value, and Ethereum, which powers apps and programmable money through smart contracts. Everything else is an altcoin. If you are brand new and want a deeper glossary, bookmark our picks for best cryptocurrency wallets because the wallet examples will make the concepts easier to understand later in this guide.

Pick a regulated on-ramp (KYC & fees)

Choose an exchange or broker that is licensed in your region, supports your bank or payment method, and publishes a clear fee schedule. Compare the spread plus fees instead of only headline numbers. This usually means bank transfer funding is cheaper than card purchases. Before you open an account, skim the platform’s security page and make sure it supports the networks you plan to use for withdrawals.

• Verification (KYC): Expect identity checks and initial limits. Verification helps with account recovery later.
• Funding: Bank transfer usually has the lowest fees compared with cards or instant purchase options.
• Withdrawals: Confirm chain and network support and note the withdrawal costs for BTC, ETH, and stablecoins.

New buyers often rush to trade. Spend five minutes on security first and turn on two-factor authentication in the profile area. You will use it in every step that follows, so it is worth doing before your first deposit.

Make your first purchase (and minimize fees)

1. Fund your account by bank transfer to reduce fees whenever possible.
2. Buy a major asset such as BTC or ETH, or a stablecoin for flexibility when moving to other platforms.
3. Immediately enable an authenticator app for 2FA. Avoid SMS where possible.
4. Withdraw to your own wallet once the trade settles. Self custody reduces counterparty risk.

Pro tip: Most platforms offer a basic one-click buy and an advanced trading screen. The advanced screen often has lower fees. Take a moment to learn a limit order and you may save money over time.

Wallets: hot vs cold (and which to use when)

Hot wallets are mobile apps or browser extensions connected to the internet. They are great for small balances, spending, and interacting with DeFi or NFTs. Cold wallets keep private keys offline on hardware. They are best for long-term savings. Most users benefit from using both and keeping only spending money in a hot wallet. If you are choosing a device, review our roundup of best cryptocurrency wallets to compare setup steps and backup options.

Stablecoins & moving funds

Stablecoins such as USDC, USDT, DAI, and PYUSD aim to hold a value near one United States dollar. They make it easy to move funds between exchanges, on-ramps, and DeFi without touching a bank each time. Read our plain-language primer, What is a Stablecoin, then check the network your wallet or exchange uses before you send. Ethereum ERC-20 transfers can be more expensive during congestion while transfers on networks such as Tron or Solana can be cheaper. Network choice changes total cost and speed.

• Double check the destination network and address format before you send.
• Send a small test transaction first, then the rest once it arrives.

Altcoin exchanges & DYOR (do your own research)

Once you hold BTC, ETH, or a stablecoin, you can move to altcoin exchanges for broader listings. Evaluate liquidity and order book depth to avoid large slippage on trades. Check listings quality and beware of illiquid micro-caps. Review the platform’s security track record and whether it publishes proof of reserves or independent attestations. Before you buy any altcoin, read the whitepaper, study token supply and unlock schedules, and confirm who controls the smart contract. If you plan to sit out of the market for a while, parking in stablecoins can simplify re-entry later.

Security checklist

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

If you ever doubt a link, type the official domain directly into the browser and navigate from there. Many phishing pages look identical to the real thing. Learning basic operational security today will prevent expensive mistakes later.

Taxes & record-keeping

In many countries, swapping one crypto for another, spending crypto on goods or services, and earning staking or interest rewards are taxable events. Keep a clean log of each transaction, date, fees, and cost basis. If you are in the United States, start with our explainer on Cryptocurrency tax laws and compare it with the IRS virtual currency resources before you file. Good records reduce stress at tax time and help you calculate gains more accurately.

FAQ

Is it too late to buy crypto?

Markets are cyclical. Focus on learning custody, fees, risk management, and how to avoid scams. Process and discipline matter more than timing your first purchase perfectly.

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 gradually as you build confidence.

Should I leave coins on an exchange?

Leaving funds on an exchange creates counterparty risk. Move long-term holdings to a wallet you control and keep only trading balances on platforms.

Starter gear we trust for beginners

Hardware Wallet

Ledger Nano S PlusSecure long-term storage in a compact device. Pairs with the Ledger Live app for easy portfolio tracking and firmware updates. Ideal for first hardware wallet buyers who want strong security without a steep learning curve.

Pros

• Offline private keys
• Wide asset support
• Beginner friendly setup

Cons

• Requires careful seed backup

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