How to Buy Crypto on an Exchange
A beginner walkthrough of buying crypto on a centralized exchange, from creating an account and verifying your identity to placing your first order and keeping it secure, using LBank as the example.
By GN Media
Buying crypto on an exchange looks a lot like using any other trading app: you create an account, verify who you are, add funds, and place an order. This guide walks through that whole process step by step, so your first purchase feels familiar instead of confusing.
For the walkthrough we use LBank as the example exchange. Note that LBank is a cryptocurrency exchange. It lists digital assets such as Bitcoin and Ethereum, not shares of traditional companies, so this guide is about buying crypto assets only. The same steps apply, with small differences in wording and layout, on most centralized exchanges.
Quick summary
In this guide, you will learn:
How to create an account and secure it with two-factor authentication.
What identity verification (KYC) is and why exchanges ask for it.
How to deposit funds so you can trade.
How to find the spot market for the asset you want.
The difference between a market order and a limit order.
How fees work, and how to keep your funds safer afterward.
Step 1: Create your account
Go to the exchange's official website and choose the sign-up option. On LBank, that starts at lbank.com. You will usually register with an email address or phone number and a strong, unique password. Type the address into your browser yourself or use a bookmark instead of clicking links in messages, since fake exchange sites are a common scam.
Once you are in, turn on two-factor authentication (2FA) right away. Use an authenticator app if one is offered, since it is generally safer than receiving codes by text message. Also consider setting an anti-phishing code, if the exchange offers one, so you can recognize genuine emails.
Step 2: Complete identity verification (KYC)
Most centralized exchanges ask you to verify your identity before you can deposit larger amounts, trade freely, or withdraw. This is called KYC, short for know your customer. It typically means uploading a photo of a government-issued ID and taking a selfie so the exchange can match you to the document.
Verification can take anywhere from a few minutes to a few days. Requirements and available features also depend on your country, so check the exchange's own help pages for what applies to you.
Step 3: Deposit funds
You need something to trade with before you can buy. Exchanges generally offer two routes:
Deposit crypto you already own, often a stablecoin such as USDT, by copying the deposit address shown in your account and sending funds to it from another wallet.
Buy crypto with regular currency through a card or a payment partner, where the exchange offers this in your region.
When depositing crypto, always choose the correct network for the coin and double-check the address. A deposit sent on the wrong network or to the wrong address usually cannot be recovered. If you are unsure, send a small test amount first.
Step 4: Find the spot market
Spot trading means buying an asset at the current price and owning it outright, as opposed to futures or margin trading, which use leverage and carry much higher risk. As a beginner, stay on spot.
Open the exchange's spot or trade section and search for a trading pair, written as the asset you want followed by the asset you pay with, for example BTC/USDT. The trading screen shows a price chart, an order book of open buy and sell orders, and an order form.
Step 5: Place your order
On the order form, make sure you are on the Buy side, then choose an order type:
Market order: buys immediately at the best available price. It is the simplest option and fills quickly, but the final price can be slightly different from what you saw, especially in fast-moving or thin markets.
Limit order: you set the maximum price you are willing to pay. The order only fills if the market reaches your price, so it gives you price control but may not fill at all.
Enter the amount you want to spend or buy, review the summary, and confirm. When the order fills, the asset appears in your spot wallet balance on the exchange. Start with a small amount while you learn how the screen works.
Understanding fees
Exchanges usually charge a trading fee, taken as a percentage of each order. Many use a maker and taker model: a taker order, such as a market order, removes liquidity from the order book and often costs slightly more, while a maker order, such as a limit order that waits in the book, often costs less.
Deposits, withdrawals, and network transfers can carry their own charges, and card purchases through payment partners often cost more than spot trading. Check the exchange's current fee schedule before you trade, since rates can change.
Keeping your crypto safe afterward
Keep 2FA on, and use a password you do not reuse anywhere else.
Do not leave funds on the exchange longer than you need to. On an exchange, the platform holds the keys to your crypto, so your balance depends on its security and solvency.
For longer-term holdings, consider moving them to a wallet where you control the keys, and back up the recovery phrase offline.
Be wary of anyone who messages you offering support, giveaways, or guaranteed returns. Genuine exchange staff will never ask for your password or 2FA codes.
Only invest an amount you can afford to lose. Crypto prices can move sharply in either direction.
This guide is educational and is not financial advice. LBank is used only as an example of a centralized crypto exchange, and its availability, features, and fees vary by region and can change. Cryptocurrency trading involves substantial risk of loss, and it is not the same as buying shares of a company. Review any exchange's terms and security practices before depositing funds.