How to start with cryptocurrency?
Last Updated on 16 November 2023 by CryptoTips.eu
On our website you will find a lot of information about cryptocurrency, companies that make trading possible and other things you need to know to start with crypto. On this page, we bring all the information together to give you a good overview of what you need to consider as a beginner. This page leads you to other pages to get more information.
Do Your Own Research (DYOR)
It is not only important to do proper research on the projects you are going to invest in. You should also have some basic knowledge about crypto in general. You need to know what you are investing in.
- What is blockchain?
- What is cryptocurrency?
- What is Bitcoin?
- What is cryptocurrency mining?
- Crypto knowledge base
You can obtain a lot of information on various crypto-related topics, especially in our knowledge base. Once you have gained some basic knowledge, you can start looking at interesting projects.
Use the search function to find more information about a project that seems interesting to you. Make sure you use multiple, up-to-date sources for your research. Never invest based on advice from websites (yes, also websites like us), YouTubers, influencers or other crypto personalities. Often people who give advice have a financial gain, especially with small, unknown projects.
Invest in cryptocurrency
When you know more about the techniques that are used and you did some research on projects, you can make a list of coins that you think are interesting. There are dozens of different brokers and exchanges where you can invest in crypto. Keep in mind that investing in crypto is very risky. Prices can change very quickly.
In general, people find the costs that are charged (service fees) an important factor and so do we. Because, why would you pay more for the same product? Also, the amount of coins are interesting for many people, so you can invest in multiple projects on one website.
You can easily exchange your fiat currency for cryptocurrency at the Binance exchange. They use third party services to facilitate this. If you’re from Europe, the next broker might be a little bit cheaper as a fiat on-ramp.
In general, Bitvavo is the cheapest broker in Europe to do an euro-transaction. They offer over 200 different projects, including USDT with EUR markets. People often convert their euros to crypto through parties like Bitvavo, and trade at Bybit or Bitget.
It’s also possible to convert euro on the worldwide exchanges, but their fee are often high (around 3% vs 0.25% at Bitvavo).
Storing cryptocurrency secure
We do not recommend storing your cryptocurrency with a broker or on an exchange. In theory, an unauthorized person can gain access to your account or the company can be hacked. In either case, there is a chance that you may lose your crypto. For this reason, you can take several precautions.
- What is a wallet?
- How do you secure your account at a broker or exchange?
- Review of the Nano Ledger X hardware wallet
If you really want to trade cryptocurrency, we recommend using an exchange. By using an exchange the fees are lower and the offer, volume and liquidity are higher. Your orders will be filled faster and you save money paying low fees.
Do you still have questions or are you missing something in this guide? Feel free to contact us.
How do I start investing in cryptocurrency?
Begin by researching and understanding the basics of cryptocurrency and blockchain technology. Then, identify cryptocurrencies you find interesting and consider investing in them through a broker or exchange.
What should I consider before investing in cryptocurrency?
Understand the risks involved as cryptocurrency prices can be highly volatile. Also, consider the fees charged by platforms and the variety of coins they offer.
What are some reliable platforms for investing in cryptocurrency?
Platforms like Binance, Bybit, and Bitget are popular for trading cryptocurrencies. For European users, Bitvavo is a cost-effective option for converting euros to crypto.
Is it safe to store cryptocurrency on a broker or exchange?
It's generally not recommended due to risks like unauthorized access or company hacks. It's safer to store your cryptocurrency in a personal wallet.
Can I convert fiat currency to cryptocurrency easily?
Yes, many exchanges allow you to convert fiat currencies like USD or EUR into cryptocurrencies. Fees and options vary by platform.
What are the risks of cryptocurrency investing?
The main risks include market volatility, regulatory changes, and potential security breaches. Always invest what you can afford to lose.
What is the importance of doing my own research (DYOR)?
DYOR helps you understand the cryptocurrency market, identify credible projects, and make informed investment decisions.