Easy
How to buy cryptocurrencies: all the methods explained simply
Buying cryptocurrencies can be done in several ways. You can use a traditional bank , an online bank , a broker , a centralized exchange platform on-ramp service connected to a decentralized wallet , or a decentralized exchange . Each method involves significant differences: the type of asset actually purchased, the level of self-ownership , the possibility of withdrawing to an external wallet fee structure , interaction with the blockchain , and the level of complexity.
Here is a complete overview, from the simplest to the most technical, to understand how to buy cryptocurrencies when you are starting out.
Table of Contents
Buying cryptocurrencies through a traditional bank
Some commercial banks now allow investment in Bitcoin or other digital assets. However, you are not buying a cryptocurrency recorded on the blockchain.
What you are actually buying
- A Bitcoin ETF
- An indexed structured product
- A certificate
- A derivative product
You hold price exposure, but not a asset that you can transfer to a wallet. The asset is generally not held by a traditional bank.
Benefits
- Maximum simplicity
- No need to understand blockchain
- Clear regulatory framework
Disadvantages
- No self-detention
- Unable to transfer to an external wallet
- Costs are often very high
Online banks and neobanks
Online banks and some neobanks offer cryptocurrency purchases directly through their apps. It's worth noting that the best bank is the one that best suits your individual needs and goals.
What you buy
According to the establishment:
- An exhibition at the price
- Cryptocurrencies held in custody by the company
- Sometimes an asset can be withdrawn to an external wallet (depends on the online bank)
Points to watch out for
- Average costs
- No self-detention
- Withdrawals to an external wallet are not always possible
Online brokers
Brokers you to invest via CFDs , ETFs or other financial instruments linked to cryptocurrencies.
What this means
- You are not buying an asset on the blockchain
- You hold a financial product
- Transfer to a wallet is not possible
Points to watch out for
- Fees vary considerably depending on the broker; spreads are sometimes high.
- No self-detention
- Withdrawal to an external wallet is not possible
Centralized exchange platforms
Centralized exchange platforms are currently the most widespread method for buying cryptocurrencies.
Functioning
- Create an account
- Identity verification ( KYC )
- Deposit via bank transfer or card
- Purchase via market order or limit order
What you buy
Cryptocurrencies are recorded on the blockchain but managed by the centralized exchange. This exchange holds the private keys on your behalf. You can then transfer them to a personal wallet on the blockchain.
Points to watch out for
- Average fees for simple purchases, low fees when using advanced platforms (direct interaction with the order book)
- No self-detention
On-ramp and decentralized wallet
A service called "On -ramp" allows you to buy cryptocurrencies directly from a decentralized wallet .
Process
- Creating a portfolio
- Obtaining a recovery phrase
- Purchase via credit card through an intermediary
- Direct receipt of funds to your address
Here, you are immediately in self-detention. You control the private keys .
Points to watch out for
- Requires learning how to use a wallet
- High intermediary fees
Decentralized exchanges
Decentralized exchanges allow you to exchange one cryptocurrency for another without a central intermediary.
Important
You cannot buy directly with euros . You must already own a cryptocurrency.
Functioning
- Connecting a wallet
- Interaction with a smart contract
- Exchange via a liquidity pool
Comparison of methods
Asset type
- Bank: financial product
- Neobank: Exposure or asset under guard
- Broker: derivative product or asset held in custody via intermediaries
- Centralized platform: Asset in custody, transferable on the blockchain
- On-ramp: real cryptocurrencies
- Decentralized exchange: exchange between assets
Level of control
- Low: bank, broker
- Intermediary: centralized platform
- High: decentralized wallet and decentralized exchange
Understanding the costs
Before buying cryptocurrencies, check:
- The spread
- Fixed costs
- Conversion fees
- Network charges
- the product you actually own
A purchase by card often costs more than a bank transfer.
The optimal method for self-holding with the lowest possible fees is to use the advanced platform of a centralized exchange to make a purchase and then withdraw those funds on the blockchain to one's own wallet.
Centralized platforms also offer the advantage of easily exchanging cryptocurrencies for stablecoin, allowing users to defer taxation in France while holding assets transferable on the blockchain. This is not the case with banks and brokers, and rarely with neobanks.
To learn in detail about all the best practices, legal constraints (taxation, inheritance, etc.), and tutorials on the tools to use (and much more), I invite you to discover the BSM program . The program also covers the workings of the monetary system and Bitcoin. It's for anyone who wants to go from being a curious newcomer to a solid understanding of currency and Bitcoin, combined with mastery of all the tools. The program is accessible from the header or the link above.
To actually own a cryptocurrency
Owning a cryptocurrency means controlling the private key associated with the address recorded on the blockchain. If you don't control that key, you hold a claim, not the asset itself.
Which method should you choose when you're starting out?
For a beginner:
- Bank or neobank: simplicity but very limited control and high fees
- Centralized platform: good balance between accessibility and control, very low costs with best practices
- Decentralized wallet: a little more technical but complete autonomy and familiarity with what blockchains were primarily designed for: self-ownership.
Understanding how to buy cryptocurrencies involves knowing what you're actually buying, who holds the funds, and whether you can transfer them freely. The best method depends on your goal: simple price exposure or holding a digital asset on the blockchain and self-ownership for true sovereignty.
Cryptocurrency investments are risky. Crypternon cannot be held liable, directly or indirectly, for any damage or loss resulting from the use of any product or service mentioned in this article. Readers should conduct their own research before taking any action and only invest within their financial means. Past performance is not indicative of future results. This article does not constitute investment advice .
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AMF Recommendations. There is no guaranteed high return; a product with high potential returns implies high risk. This risk must be commensurate with your investment goals, your investment horizon, and your ability to lose some of your savings. Do not invest if you are not prepared to lose all or part of your capital.
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Yoann
Trained as an engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future, I am participating in its democratization by developing Crypternon.