Step 1: Choose an exchange
The first step is choosing a licensed exchange that complies with the EU's MiCA regulation or the equivalent framework in your own country. Only a properly licensed provider can legally serve retail customers. A full list of vetted exchanges is available in our ranking.
For someone buying crypto for the first time, three options tend to stand out:
[Kraken](/api/go/kraken) – one of the longest track records in the industry (since 2011), with a BDO reserve audit. A great choice if you value stability above all else.
[Bybit](/api/go/bybit) – card and bank-transfer funding, multilingual support, bonus up to $30,100. A strong balance between simplicity and features.
[Bitget](/api/go/bitget) – bank-transfer funding, 0.1%/0.1% fees, a $300 million protection fund, bonus up to $6,200.
You'll find more options in our guide Best crypto exchange for beginners.
Step 2: Create an account and enable 2FA
Go to your chosen exchange's website directly (always through a saved bookmark or by typing the address yourself, never from a Google ad – phishing domains can look nearly identical). Create an account with your email and set a strong, unique password – ideally generated and stored in a password manager (Bitwarden, 1Password, KeePass).
As soon as your account is created, turn on two-factor authentication (2FA). The best options are a TOTP app (Google Authenticator, Authy, Aegis) or a hardware security key such as a YubiKey 5 (supported by Binance, Kraken and Coinbase, among others).
Avoid SMS-based 2FA wherever possible – it's vulnerable to SIM-swap attacks, a technique that has hit high-profile targets and many exchange users over the years. Store your backup/recovery codes offline, ideally on a fireproof metal backup plate.
Step 3: Complete identity verification (KYC)
KYC (Know Your Customer) is mandatory at every licensed exchange, stemming from anti-money-laundering regulations that apply in most jurisdictions.
You'll typically need to submit: a photo of your ID or passport (both sides), a selfie holding the document next to your face, and – for deposits above a certain threshold (often around $15,000 or local equivalent) – a document confirming your source of funds (payslips, employment contract, gift deed).
Verification usually takes 5 to 60 minutes. It can be slower during peak hours (weekend evenings). Coinbase and Kraken tend to be among the fastest; larger exchanges processing hundreds of thousands of applications a day can be a bit slower.
Step 4: Fund your account
You generally have three main ways to deposit funds:
Bank transfer – usually free and credited within a few hours to a day, depending on your bank and country. The cheapest option for regular purchases, supported by virtually every major exchange.
Local instant payment methods – many exchanges, including Bybit and Bitget, support fast local payment rails in various countries. These are instant, with daily limits and fees typically around 1–2%.
Visa/Mastercard – the fastest option, but also the most expensive, with fees of 1.5–2.5%. Funds are available immediately.
Once deposited, funds appear in your fiat wallet on the exchange. Check that the currency you deposited matches the trading pair you want to use.
Step 5: Place your first buy order
The simplest way to buy is the "Convert" or "Quick Buy" mode – you choose a pair (e.g. USD → BTC), enter an amount and click "Buy". The spread is slightly wider than on classic spot (0.3–0.5%), but you skip having to read an order book.
If you want to save on fees, use the classic spot market. There are two main order types:
Market order – you buy immediately at the current market price. You pay the taker fee (0.1% on most exchanges, 0.4% on Coinbase Advanced).
Limit order – you set the price at which you want to buy. The order only fills once the market reaches your level. You pay the maker fee (usually 0.1%, sometimes as low as 0.02% with an exchange's native token).
For first purchases, a market order on BTC or ETH is usually a good choice – these two cryptocurrencies have the deepest liquidity and tightest spreads.
Step 6: Move your crypto to a hardware wallet (optional)
If you plan to hold crypto long term (HODL), consider moving your funds from the exchange to a hardware wallet: a Ledger Nano S Plus or a Trezor Model One (both roughly $60–90). The rule "not your keys, not your coins" means that as long as crypto sits on an exchange, it's technically controlled by that exchange.
Procedure: generate a receiving address on your hardware wallet → click "Withdraw" on the exchange → select the correct blockchain network (e.g. Bitcoin for BTC, ERC-20 for ETH) → paste the address → send a small test amount first (e.g. 0.001 BTC) → once it's confirmed, send the rest.
Never send crypto over the wrong network (e.g. BTC on an ERC-20 address). This is the single most common cause of permanently lost funds for beginners.
For small amounts and short-term trading, keeping funds on the exchange is acceptable, as long as you have 2FA enabled and a withdrawal address whitelist set up.
What about taxes?
Simply buying cryptocurrency is generally not a taxable event. Tax usually arises only when you sell crypto for fiat currency or spend it on goods or services.
Tax rates and rules vary significantly by country – some treat crypto gains as capital gains, some as regular income, and filing deadlines differ widely. Check your local tax authority's current guidance well before filing.
Important: even if you only had a loss in a given year, or didn't sell anything, you may still be required to file a report if you hold crypto purchased in prior years – rules on this vary, so it's worth checking.
A crypto-to-crypto swap (e.g. BTC for ETH) is tax-neutral in many jurisdictions, though not universally – check your local rules.
Summary
Buying cryptocurrency in 2026 is simple and takes about 30–60 minutes: choosing a licensed exchange, KYC, funding your account, placing a spot or Convert order, and optionally moving funds to a hardware wallet.
Some of the most cost-effective and reputable exchanges for first purchases are Kraken, Bybit and Bitget. You'll find our full exchange ranking on the homepage.
After your first purchase, it's also worth reading our guides What is a CEX and Crypto for beginners to navigate the market with more confidence.