How to Choose the Right Cryptocurrency to Buy?

Before getting into how to buy cryptocurrency, the first question is why you want to buy cryptocurrency. The most obvious reason for most investors is to make a profit. What your expectations are and whether you’re considering a long-term or short-term investment is the next question.

Every investor, including newbies and professionals, risks losing money. This is true for crypto investments, stock investments, business investments, and other fields. No project is too big to fail or drop in price.

Here are some tips for choosing the right cryptocurrency:

• Consider the market cap, but don’t trust it blindly. A coin’s market cap shows the total value of all coins in circulation and its size in the market. Like large company stocks, cryptos with high market caps, such as Bitcoin, are generally considered less risky. However, a large market cap doesn’t guarantee safety on its own. For example, TRUMP memecoin, launched in January 2025, is now one of the top 100 cryptocurrencies by market cap, yet it has dropped 90% from its all-time high of $75.35 at launch, according to CoinGecko. Especially for new projects, prices and market caps can take off initially and fall as early optimism fades.
• Set your risk appetite. ​​Stick to big names like Bitcoin or Ether if you’re looking for less risky options. Bitcoin has been around since 2009, showing historic gains. Ether is the native token of the Ethereum blockchain, which dominates in the number of decentralized apps built on it. Although these cryptocurrencies are volatile, they are less likely to disappear overnight.
• Check the coin’s purpose and supply. A clear purpose usually means the project has real long-term potential. Pay attention to how the coin’s supply works. Is there a fixed maximum number of coins, or can the supply grow over time? Also, consider how the tokens are managed and distributed. Knowing this can help you understand how rare the coin is and what that might mean for its value over time. Read white papers, check the team’s credibility, and follow recent news to avoid projects with questionable practices.
• Look at adoption and community. Coins with strong communities, developer support, and real-world usage are generally safer bets. For example, Bitcoin is accepted as a means of payment by PayPal, Visa, and Mastercard partners, meaning it has a real use case. Among Bitcoin holders are the U.S. government and a growing number of corporations, which indicates high trust in the asset.

Where to Buy Crypto: Comparing Exchanges and Platforms

Now, about the part: how do you buy cryptocurrency. Available options include crypto exchanges like Binance and Kraken, decentralized exchanges like Uniswap, ATMs, brokerage apps such as eToro or Robinhood, and mobile payment apps like PayPal.

Crypto Exchanges

Many beginners buy their first crypto through exchange platforms that allow traditional registration, fiat payments, and standard verification. Starting here is simple; these platforms are called centralized because they require verification. Exchanges like Binance and Kraken have different offerings, so check if the coin you want is available and read reviews about platform security. Look up questions like “Is Kraken good?” to move forward with confidence. Also, consider decentralized exchanges, such as Uniswap. They let you trade without intermediaries, which gives more control but requires a bit more technical know-how.

Mobile Payment Apps

Mobile apps like PayPal, Cash App, or Revolut allow users to buy and hold cryptocurrencies directly from their phone. These platforms are simple and familiar to anyone used to digital payments. They’re a good option for beginners looking for a fast and easy way to start investing in crypto. However, payment apps offer fewer features than crypto-native platforms and the available coins are limited.

Crypto ATMs

Crypto ATMs allow buying and selling cryptocurrencies using cash or a card. They work much like traditional ATMs but connect to a crypto exchange to complete the transaction. These machines are convenient for quick purchases and for those who prefer using cash. However, fees are usually higher than online exchanges, and the selection of coins may be limited.

Payment Methods for Buying Crypto: What You Need to Know

Available payment methods depend on your country and the platform or app you choose. Most exchanges accept bank transfers, credit or debit cards, and peer-to-peer crypto payments. First, you’ll need to link your card, add funds to your account, search for the asset you want to buy, enter the amount, and confirm. On decentralized exchanges, you usually swap one crypto for another. Peer-to-peer payments let you buy directly from other users, though prices and fees can vary. Trading fees on exchanges start from around 0.1% and may increase depending on the platform, with some using fixed fee structures. Consider these carefully to make smarter investment decisions. We’ve covered the basics of how to buy cryptocurrencies, though doing your own research on platforms, fees, and payment methods will help you choose what works best for you.