Although we read all the cryptocurrency news, understanding the basics can be surprisingly tricky. While the premise is simple, digital currency exists online only and is not regulated by banks or governments. Cryptocurrency can still seem complex when you try to buy some.

But if you are a college student, this may not be as difficult as it seems. We all know how vital efficient budgeting is for college students, and getting into cryptocurrency can feel like another budgeting challenge at first. But once you understand how it works, buying cryptocurrency for your future can quickly become a financially savvy decision.

Buy Crypto with a Credit Card

If you have a credit card, it's the fastest and most convenient way to buy cryptocurrency.

If you are a student buying with your first credit card, follow these pointers:

• Try to buy from an exchange where a third party does not handle your money. When you use a third party (e.g., Paxful), they hold your funds until you receive the Bitcoin and confirm that all is well. If there is no problem with the transaction, they then pay out the seller. The advantage of this approach is that it tends to be cheaper as sellers compete for your business. However, if there's any dispute about whether you received your coins or not, it is up to you and them to resolve it – which can be problematic if there's no one at home! Use an exchange direct where everything happens within their systems, including payment processing and delivery of coins to your wallets, such as Binance.
• Check what fees or charges apply when buying with a credit card – often, it will cost more than if you used another payment method such as bank transfer (ACH). Exchanges may also set limits on how much crypto you can purchase via credit cards each day/week/month etc., just like banks limit ATM withdrawals.

Use an Exchange

When you're ready to buy, sell, trade, or convert cryptocurrency (that is, once you've received your wallet and are prepared to start building up your portfolio), you'll need to use a cryptocurrency exchange.

A cryptocurrency exchange (also known as a digital currency exchange) is an online platform where users can buy, sell, or trade cryptocurrency for other digital currencies or traditional fiat money—i.e., U.S. dollars (USD), Euros (EUR), and so on.

Users simply need to complete an application form with their personal information, set up their account by linking it to a bank account or credit card, and then they can begin trading coins—or in this case, buying them!

Once you have an account set up on an exchange of your choice, you'll be ready to purchase your first cryptocurrencies using funds from your bank account or credit card. The process will vary slightly depending on which exchange you're using; however, each should be straightforward and have clear directions for first-time buyers like yourself!

Purchase Cryptocurrency on the Platform Itself

First, it's important to know what a platform is. Essentially, they're services that allow you to buy, sell, or hold cryptocurrencies.

As a college student interested in cryptocurrency investing, you may think, "how do I know that a platform will be right for me?" Well, keep reading, and you'll soon find out!

Some popular platforms include Coinbase and Robinhood.

Coinbase is great because it's easy to use and it has high liquidity. You can easily trade between Bitcoin and the US dollar; however, their fees are high compared to other platforms.

Robinhood is also easy to use; however, it does not support Bitcoin yet. Instead, it supports Ethereum and Bitcoin Cash - two other common cryptocurrencies - which can be confusing for new investors who want to get started with just Bitcoin. If you want an easier way than through sites like LocalBitcoins, Robinhood may be worth considering instead of Coinbase."

Consider the Fees

There are also fees associated with buying and selling cryptocurrency. Fees are not uncommon in the world of investing, but it's important to know what you're paying for and if those costs are worth it. This is especially true when you're on a student budget!

Fees can be hidden in the fine print, so make sure you read up on any company or platform you choose to buy cryptocurrency on before committing.

These charges can often include:

• Buying and selling fees (i.e., transaction fees) - They charge a percentage of your trade every time you buy/sell cryptocurrency. The fee varies depending on the platform, which means it could range from 0% to about 4%. High exchange fees add up quickly! Note that these are different from trading fees, which will be discussed later.
• Withdrawal fees - Some companies charge extra when you withdraw money from your brokerage account or transfer money to another site. Again, each company has its fee structure--some have no withdrawal charges, while others may charge several dollars per transaction.
• Depository/holding fees - Some platforms also charge extra if you keep your money with them for too long (think annual maintenance charges).

Invest Only the Amount You Can Afford to Lose

Crypto is still a young market, so it's important that you only invest the amount of money you can afford to lose. Because there's an element of risk involved in every investment purchase, spending more than you can afford on something like this is never a good idea. After all, if we did this with everything we bought, we wouldn't have any money left!

If you're concerned about investing in cryptocurrency because of the risk factor, don't worry, there are ways around this. As with anything else in life, those who are more experienced can help show you the ropes and guide your decisions to make sure your investment is as safe as possible. Your chances of success become greater by consulting an expert who has been around for a while and knows what they're doing when it comes to crypto investing. Do not try to go into the crypto marketplace alone if you are a newbie.

Set Up a Wallet Before You Buy Cryptocurrency

Once you've set up your wallet, it's time to buy some Bitcoin. There are many ways that you can purchase Bitcoin with your credit card or bank transfer. We recommend OKX, one of the largest cryptocurrency exchanges, and they have an excellent system to protect your cryptocurrency funds.

All you need to do is create an account, select "Buy/Sell" on the top menu bar, and choose how much Bitcoin you want to purchase with either your credit card or bank transfer (the cost will be in fiat currency). You'll then see a summary of your transaction before confirming it.

That's it! Once your digital wallet has processed your payment, the Bitcoin will be added to your account. From there, you can store it safely in a software wallet on another device or send it to a cold storage wallet for extra security. Either way, congratulations: now that you've purchased some Bitcoin with a credit card, nothing can stop you from becoming an expert cryptocurrency trader!

It's Never Easy to Buy Cryptocurrency

There are several ways to begin the crypto journey, including apps like Bitbuy and Shakepay that allow consumers to buy Bitcoin directly from their phone with a credit card.

Coinbase (available in 100+ countries), Robinhood (the US only), and Binance (worldwide) are all popular platforms for buying, selling, and trading dozens of different cryptocurrencies. Other exchanges, such as Kraken and Gemini, have a lower barrier of entry but may require additional verification steps to make significant transactions, so it's recommended that you do your research before signing up for an account.

Rounding out our list of options is the peer-to-peer marketplace LocalBitcoins which allows users from all over the world to purchase and sell Bitcoin using various payment methods, including cash deposits at banks or physical meetups and through PayPal transfers, among many others.

‍