Cryptocurrencies like Bitcoin and Ethereum are trending. More and more retail investors are adding digital currencies to their portfolios in anticipation of extremely high returns.
For many beginners, however, there are some obstacles to getting started. Questions arise about the right cryptocurrency or the best crypto exchange. To ensure that entering the crypto space is as easy as possible, this article also takes the hands of less inclined investors and explains step by step how bitcoin dummies can successfully buy their own cryptocurrencies. money.
Original Cryptocurrency or Crypto Derivatives
There are various ways to participate in the performance of cryptocurrencies. Beginners are recommended to buy real cryptocurrencies. Strictly speaking, Bitcoin and Co. are of course never real – they only exist digitally on the blockchain. However, unlike crypto derivatives, they are less speculative and operate without leverage or complicated contracts.
Real cryptocurrencies are also good for holding digital coins for the long term. Especially in the highly volatile crypto market, an investment over several years can offset temporary price losses.
Find the right market
Real cryptocurrencies can be bought on crypto exchanges or crypto trading brokers. There are substantial differences between providers. For example, purchased coins cannot be transferred anywhere in your wallet; it doesn’t work, especially with some online brokers. They then commission external custodians to ensure safe custody. Click here to buy
The payment option offers other advantages. For example, digital currencies can be used as payment at some online retailers. With intermediaries to whom no transfer is possible, cryptocurrencies are only suitable as speculative commodities.
Trading cryptos should be simple
For inexperienced crypto traders, the layout and management of the user interface is especially important. It should be clear and easy to use. Modern markets are structured in such a way that investors can buy cryptocurrencies with just a few clicks. Some have even developed special applications to allow beginners to trade intuitively.
Step by step to the first cryptocurrency
Anyone who has chosen a provider must first open an account. This is very easy to do on the website of the respective platform.
Complete registration also includes personal verification. The procedure is called know your customer and is designed to combat money laundering. During the process, new customers have to upload various documents or verify them through a video call. Users must always have their ID card with them.
Exchange cryptocurrencies for euros
The first deposit is made upon successful account opening. Investors load their clearing account with euros in order to trade on the platform. The cheapest option is the classic Sepa transfer. Almost all providers do not charge a penny for this service. On the other hand, credit or debit card deposits are usually expensive, so there is no waiting time.
Then the actual purchase happens. There is usually a clearly visible field on the respective provider’s home screen or app that indicates the purchase of cryptocurrencies. All you have to do is specify the desired quantity and select the preferred order type.
What cryptocurrency should I buy?
Each investor must decide for himself which cryptocurrency is best for him. However, in general, many cryptocurrency exchanges only offer a small number of digital currencies anyway.
Beginners should focus on major cryptocurrencies like Bitcoin or Ethereum. These are subject to less risk than lesser-known coins, as they already contain a lot of silver and many institutional investors also invest in them. Therefore, fluctuations in value are generally lower in percentage terms than those of small digital currencies.