Cryptocurrencies like Bitcoin and Ethereum are trending. More and more retail investors are adding digital coins to their portfolios in anticipation of extraordinarily high returns.
For many beginners, however, there are some hurdles to getting started. Questions arise about the right cryptocurrency or the best cryptocurrency exchange. To ensure that entering the world of cryptocurrencies is as easy as possible, this article gets the hands of even the least like-minded investors and explains step by step how bitcoin dummies can successfully buy their first cryptocurrencies.
Genuine cryptocurrencies or cryptographic derivatives
There are several ways to participate in the performance of cyber currencies. Beginners are advised 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 cryptocurrency market, an investment over several years can compensate for temporary price losses.
Find the right market
Real cyber currencies can be bought on cryptocurrency exchanges or cryptocurrency trading brokers. There are fundamental differences between providers. For example, purchased coins cannot be transferred anywhere to your wallet; it doesn’t work, especially with some online brokers. Then they commission external custodians to ensure secure storage. Click here to buy.
The possibility of payment offers other advantages. For example, digital coins can be used as payment at some online retailers. With brokers to whom no transfer is possible, cyber currencies are only suitable as a speculative commodity.
Cryptocurrency trading should be simple
For inexperienced cryptocurrency traders, the layout and handling of the user interface is especially crucial. 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 apps 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.
Full registration also includes personal verification. The procedure is called know your customer and is designed to fight money laundering. During the process, new customers have to upload various documents or have them validated via a video call. Users should always have their ID card at hand.
Exchange cryptocurrencies for euros
The first deposit is made after successful account opening. Investors load their clearing account with euros to trade on the platform. The cheapest option is the classic Sepa bank transfer. Most providers don’t charge a dime for this service. Credit or debit card deposits, on the other hand, are usually expensive, so there’s no waiting time.
Then the actual purchase takes place. There is usually a clearly visible field on the home screen or in the app of the respective provider that indicates the purchase of cryptocurrencies. All you have to do is specify the desired quantity and select your preferred order type.
Which cryptocurrency should I buy?
Each investor must decide for himself which cryptocurrency is best for him. In general, however, many cybercurrency exchange venues offer only a limited number of digital currencies anyway.
Beginners should focus on big 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. The fluctuations in value are therefore generally lower in percentage terms than those of small digital currencies.