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How & where to buy altcoins online
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In this beginner’s guide we cover the basics of getting your first altcoin. Follow a step by step guide to making your first purchase, take a look at the future prospects of the sector as a whole, and get help on the best time to invest.
What are the best exchanges to buy altcoins on?
Copy link to sectionTo buy an altcoin now you should use one of the brokers below. You can learn more about the specific features of each one by reading our detailed reviews, or simply navigate to their website from the links in the table to get started. Otherwise, scroll down to learn more about buying altcoins first.
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Plus500
CFD service. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorised by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe such as leverage limitations and bonus restrictions.
Coinbase
How to buy altcoins online – a step-by-step guide
Copy link to sectionStep 1. Decide which coin to buy
Copy link to sectionIf you’re new to crypto and have previously only invested in Bitcoin, then it might be best to start with a well-known altcoin such as Ethereum and Dogecoin. Alternatively, if you have a large crypto portfolio already, or are looking to put money into smaller coins in anticipation of future gains, then it can pay to research some newer/smaller projects with potential.
Step 2. Choose an exchange
Copy link to sectionRegardless of which altcoin you want to buy, the best option is always to use a cryptocurrency exchange. An exchange is a marketplace that lets you buy or sell coins with other users, with the current market rate determined by activity on the platform.
Each exchange has a unique set of features and has a different set of coins available. While most offer all the leading altcoins, it might be more difficult to find one that lets you buy a brand new, smaller coin. The exchanges below offer a broad range of coins and are simple for beginners to get to grips with.
- Binance: Binance is the most popular exchange platform and it offers one of the widest range of coins as well. You either can dive straight into the main exchange or download a slimmed down, beginner-friendly ‘lite’ app to start with. Sign up with Binance now >
- Bittrex: Bittrex is another exchange that’s simple and easy to use. It prides security above all else and offers hundreds of different coins, from the leading cryptos to small altcoins. Join Bittrex today >
Step 3. Sign up and create an account
Copy link to sectionIn order to use an exchange, you have to set up an account first. This process is simple and should only take a few minutes. You will need to provide some personal details and contact information, like an email address, and most platforms require a form of ID to verify the account.
Step 4. Deposit money
Copy link to sectionMost of the top exchanges accept deposits in fiat currency (such as GBP or USD), so the easiest way to fund your account is via a bank transfer or credit/debit card. Note that this usually comes with a fee of around 1-2% for bank transfers and 3-5% for cards.
Some exchanges only operate in cryptocurrency. In those cases, the easiest way to fund your account is with Bitcoin. You should learn how to buy that first, and then deposit your new coins into the exchange account.
Step 5. Purchase your altcoin
Copy link to sectionTo find the right coin you need to search for its ticker symbol. If you were looking for Ethereum, the ticker would be ETH. Then you’ll be able to see a list of ways to pay for it, which are normally presented in pairs. The ETH/GBP option, for example, is the one where you can exchange your pounds for Ethereum.
There are usually two ways to buy a coin. With the ‘market’ option you can buy it instantly at the current market rate, while ‘limit’ means you can set the price at which you want to buy and the platform will execute your trade when the market rate hits that level.
As soon as the purchase has gone through, the coins will be credited to your account. You can see your holdings by going to the ‘wallet’ section of your account, and you can hold a range of different altcoins at once.
Step 6. (Optional) Get a crypto wallet
Copy link to sectionMany people simply leave their coins in the exchange account. However, if the exchange were to be hacked or the victim of some malicious activity, those coins could be lost. An alternative option is to transfer the coins you buy into a dedicated cryptocurrency wallet. These are separate applications that are like online banking apps and store your money behind a pin code or password.
How to trade altcoins online – a step-by-step guide
Copy link to sectionStep 1. Find a CFD broker
Copy link to sectionDay trading refers to the practice of using contracts for difference to buy and sell coins many times over the course of the day. This strategy requires an online broker. You want to find one that offers free trading or charges a low fee per trade, otherwise it can become a very expensive approach.
Step 2. Set up and fund your account
Copy link to sectionYou have to create an account before you can use a broker. The process is much the same as an exchange, where you have to provide some personal information, contact details, and attach a form of photo ID. Then you can add money to your account through a bank transfer, a card payment, or by sending money from PayPal or another payment provider.
Step 3. Learn how to perform technical analysis
Copy link to sectionPrice analysis is the foundation of a successful day trading strategy. This means studying historical price charts to look for trends and then using these to predict how the coin might perform in the future. The most basic of these are ‘support’ and ‘resistance’ levels, which are usually signals to buy and sell, respectively.
There are lots of different indicators in total and you can mix-and-match them to create your own unique strategy. You can find out more about the different forms of analysis in detail in our education section, or take the course on short term trading to learn how to interpret them.
Step 4. Decide whether to buy or sell
Copy link to sectionAn advantage of CFDs compared to buying coins outright is that they give you more flexibility. You can use them to ‘short’ an asset, which means selling the CFD now in order to buy it back later at a lower price, as well as to buy it. Choose which position to take based on your analysis. If that leads you to believe a coin is going to rise in value, you should go ‘long’ (buy). If the reverse is true, then you can ‘short’ (sell) it.
Step 5. Execute the trade
Copy link to sectionChoose how much money you want to stake and then hit ‘buy’ or ‘sell’ to finalise your trade. You can now see it in the ‘open positions’ section of your account. Your work doesn’t end there, however. You should immediately start analysing the price again to work out when to close the trade by taking the opposite position.
That’s because a key part of trading is being active and sticking rigidly to your plan. The idea is to make lots of trades and earn a small amount of money on each trade, rather than achieving one or two big wins.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Should I invest in altcoins?
Copy link to sectionThat depends on the state of the cryptocurrency market and whether you have a particular coin in mind. Altcoins collectively perform better when the whole market is trending upwards and they’re often the first casualties when sentiment starts to turn. Take time to research a coin before you put money into it so that you understand the factors that might affect its price.
Day traders should also stay on top of the latest news and trends because hype plays a large role in how an altcoin’s price fluctuates. Many of them have a small market cap, which makes them more volatile to small flurries in activity. A single tweet from a famous name or a few posts on a messageboard can cause dramatic swings in price.
Still undecided?
Copy link to sectionIf you still aren’t sure whether altcoins are for you, don’t worry. It’s a good idea to take some extra time before you put your money into something new. Here is a list of their main pros and cons, followed by a few final questions to help you decide.
Pros
Copy link to section- There are thousands of different altcoins available
- Many coins are cheap and can see dramatic increases in value over a short period of time
- You can earn interest or other rewards for holding some coins
- Some coins can be used as a means of payment to purchase items online
Cons
Copy link to sectionFinally, here are three more questions to consider before you invest in altcoins.
1. Is now a good time to buy an altcoin?
Copy link to sectionThat depends on which coin you’re interested in. Before you do anything you should research that cryptocurrency in more detail and investigate the project behind it. Then you can decide whether to buy now or wait for a better opportunity.
Then you need to consider what your goals are. Do you want to buy and hold coins in the hope that they appreciate over time? Or are you more interested in trading them to try to make a quick profit? That shapes whether you should consider the overall potential and quality of a project or simply focus on technical analysis of the coin’s price.
Here at Invezz we regularly perform our own analysis of different cryptocurrencies that have been in the news. You can find our latest altcoin features below, and you can use these articles to get an idea of the indicators you should look out for, as well as part of your background research.
2. What problem do altcoins solve? What are their future prospects?
Copy link to sectionBetween them, altcoins solve all sorts of different problems. There are coins that offer financial services without the need for a bank, ones that support innovative new video games, and ones that offer alternative forms of file sharing that don’t rely on the benevolence of Big Tech firms.
There are many more on top of that and their prospects can be quite different depending on the level of competition and how serious their project is. For example, it’s unlikely that many Dogecoin-imitators can maintain value in the long term but it is possible that coins which solve a practical problem, like ones that offer an alternative form of digital advertising, can succeed.
In a broader sense, all altcoins rely on cryptocurrency becoming more mainstream and easier to access. Any regulation of the space or negative news stories can adversely affect the entire market. Use the links below to stay up to date with the latest developments.

Binance.US restores USD services nearly 2 years after SEC crackdown

MANTRA becomes first DeFi platform to secure VARA license in Dubai

Short UNI: 20 and 200 DMA crossover may work as a string resistance for UNI
3. Do you want to invest in altcoins for the long term?
Copy link to sectionThe answer depends on what sort of investor you are and which coins you’re interested in. It can also change, as if the market is trending up it’s better to hold, while more turbulent times can suit a short term trading strategy. Here are some final considerations for each different approach.
Considerations for a long term investment strategy
If you have picked a coin that you expect to increase in value over time, then you should dive in and get some straight away. The best way to do this is to pick an exchange and then find a wallet to store your new coins in.
Considerations for a short term trading strategy
This approach means finding a platform that makes it cheap and easy to make lots of moves. For the more mainstream coins, you can use a broker to do this and you should brush up on technical analysis to identify the right time to buy and sell.