Part 2 of 4 in our Crypto For Beginners series.
Never used crypto before but want to start? We’re happy to help. Here’s what you need to know to set up an account.
At a glance: the fastest path for a first-timer is an exchange account (like Coinbase) funded with a debit card. You can usually buy crypto the same day.
Two ways to hold crypto
Before you can use crypto, you need somewhere to hold it. There are two options: an exchange platform or a crypto wallet.
An exchange platform (sometimes called a “centralized exchange” or CEX) is a company that lets you buy, sell, and send crypto on its website or app. It works much like a normal online account: you sign in, the company holds the crypto on your behalf, and if a transfer goes to the wrong place, their support team can help you try to recover it. If this is your first time with crypto, we recommend starting here.
A crypto wallet puts you fully in charge: you hold the crypto yourself, protected by a recovery phrase — a set of secret words that acts as the key to your wallet. That independence is why many people eventually move to a wallet, but it comes with real responsibility: anyone who has your recovery phrase can take your funds, and if you lose the phrase, nobody can restore access for you. There’s no rush — a wallet is something you can graduate to later.
One practical note: some platforms won’t let you send or receive funds on the same day you create the account, so it’s worth setting up before you need it.
Our recommendations
- Exchange platforms:
- Coinbase — the most beginner-friendly; simple app, clear guidance
- Kraken — strong security record, easy-to-reach support
- Crypto wallets (for when you’re ready):
- Trust Wallet — easiest to start with; phone app that supports all the coins and networks we use
- MetaMask — the most widely supported; a little clunkier, but works nearly everywhere
Always download wallet apps from the official app store or the project’s own website, and never share your recovery phrase with anyone — no legitimate company will ever ask for it.
Funding your account
Once your account is set up, there are a few ways to get crypto into it — either by transferring crypto you already have, or by buying it with a connected payment method. Here are the usual options:
- Transfer crypto from another account: if you have another account, or a friend wants to send you funds, this works — and you can use the crypto the moment it arrives.
- Connect a debit card: on average the fastest way to buy crypto, and most platforms allow same-day purchases with this method.
- Connect a bank account: often cheaper for larger amounts, but it can take a few days before purchases are allowed on a new account.
- Connect an alternative: some platforms offer options such as PayPal, whose benefits and timelines differ from platform to platform.
We recommend purchasing a stablecoin like USDC, this is so you don’t have to worry about the value of it changing between when you buy it and when you go to use it. Once you have some crypto in your account, you’re ready to make a purchase!
Note: It’s okay to not purchase the crypto until you know exactly how much you’ll need for the order; just make sure you buy the crypto and send the funds before the NowPayments timer runs out.
More in this series
- Part 1: Crypto For Beginners: Terms
- Part 2: Crypto For Beginners: Setting Up Your Crypto Account (you are here)
- Part 3: Crypto For Beginners: Putting It Into Practice
- Part 4: Crypto For Beginners: Getting A Refund