It’s impossible not to be aware of the recent crypto craze, but while it’s very much part of the public conversation, only a small minority of people have actually taken the plunge and made a purchase.

If you’re thinking about buying cryptocurrency but don't know where you should start, stick with us as we guide you through the initial stages of this process.

Us a reputable platform to buy cryptocurrency

First and most importantly, you should only use reputable, respected and regulated platforms when purchasing crypto currency.

The reasons for this should be obvious, and security is very much at the top of the agenda here. Dealing with dodgier sites and services, or even attempting to snap up your first crypto assets directly from an individual, will leave you exposed to the potential for exploitation.

There’s also the sheer convenience which comes from selecting a legitimate crypto exchange. You’ll be able to use a payment card to cash in fiat currency for whichever coins take your fancy, and also buy other types of assets like NFTs, all within one platform.

Choose a coin based on research, not hype

A common mistake made by newbies is hearing about an asset via social media, then jumping on the hype train by making it their first crypto purchase.

This is more often than not one type of cyber scam which is used by malicious groups to trick uninitiated victims out of their hard-earned cash, with the promise of rapid returns.

It’s advisable to instead research any coin you’re interested in to see what utility it offers, what the ethos behind it is, and how well received it has been in the wider community.

You’re better off sticking with flagship currencies because they aren’t liable to the same vulnerabilities as altcoins. Although volatility is innate to all crypto at the moment, so don’t assume that a mainstream coin is a sure thing.

Be sensible about your crypto budget

Talking of volatility, when buying crypto you need to be happy about the level of variability which comes with even the most seemingly stable and long-standing assets in this ecosystem.

Bitcoin itself has gone from all-time-highs to worrying declines in value over the course of a few months, and this is not the first time that such wild fluctuations have taken place.

Thus you shouldn’t set a budget for buying crypto which is outside of your comfort zone. Invest only what you can afford to lose outright, and don’t get fooled by what some people might say, because this market could disappear tomorrow, just as it could also endure for a thousand years.

Work out an investment strategy

While you may be buying your first batch of crypto right now, it’s worth assessing whether or not this will be your initial step on a longer investment journey, or a short-term flutter.

For example, if you’re planning to put together a nest egg to see you through retirement, limiting crypto investments and spreading them out over time to avoid being exposed to ups and downs in the market makes sense, just as it is wise to increase your pension pot in other ways, such as with a side hustle.

The bottom line on buying crypto

Anyone who hasn’t yet added some crypto to their portfolio should do so sooner rather than later. In spite of the pessimism around this market, it has been resilient through tougher times before, and stands a good chance of growing in the future as more people pile in.