Article last updated: 15.05.2022
Many people are interested in the field of cryptocurrency, but simply don’t know how to get started. At this point, we will be happy to show you how to buy the popular digital currencies where Bitcoin, Ethereum and Co.
Especially the years 2020 and 2021 are considered the era of the digital currency. No wonder, because the peak naturally attracts the attention of many private and commercial investors. Especially people who do not yet really know to what extent, where and in what way they want to invest their money, inform themselves about the cryptocurrency.
Of course, trading coins is anything but easy or per se secure. You should first read a little knowledge before you start trading. Where can you safely buy cryptocurrencies? The Best Providers:How to Buy Cryptocurrency
First, you open an account with the provider eToro. You need this account so that you can trade safely. Our test winner eToro offers itself here because of its seriousness and because of the fair conditions. You simply enter your personal details and then confirm that you want to open an account.
The next step is about the deposit. You click on the link for the confirmation and then click on “Deposit money”. Select the payment method as well as the sum and top up the account. Once the money has arrived, you can buy the cryptocurrency of your choice,
Enter the currency in the search box, select the desired leverage and confirm the purchase. Think carefully about whether you want to use leverage, because these entail a greater risk. Cryptocurrency – what is it?
Already in the mid-2010s, the cryptocurrency was on everyone’s lips. Hardly anyone knows that the approach to the digital currency has been around for much longer. At first it remained quiet around the Bitcoin and Co. but that is quite different today. By the way, the currency is called so, because the component “crypto” says that the data and information are encrypted. Meanwhile, some digital currencies are considered an alternative to FIAT currencies. In addition to the euro, these include the US dollar, yen and the Swiss franc.
Probably the most popular digital currency is Bitcoin. Because of its great importance, we will focus on this in this article. How digital currency works in practice
Each coin is assigned a key to ensure that it is unique. There are now 21 million coins – as many as are approved. Most investors see it as a great advantage that there will not be an infinite number of coins. At the same time, this protects against possible rapid inflation. Two people can exchange coins by using their wallets for this purpose. The participants are uniquely identified by their assigned codes. The hash function encrypts the data so that the transaction takes place securely. The blocks, in turn, have a reference to the blocks that precede them. This is how the much-cited blockchain is created – a chain of blocks.
Important to know: The value of a coin does not provide reliable information about how much the coin is really worth in other currencies. Instead, the prices sometimes fluctuate strongly, so that there can always be profits or losses when you buy or sell the coins.
Thanks to a decentralized computer, the digital currency can be transferred and traded. Of course, this requires an enormous amount of computing power. Anyone who provides computing power will be rewarded with coins. This procedure is called “mining”.
If you want to trade Bitcoins, you have to create a wallet. This is a wallet specifically for digital currency. The wallet is a very long string of characters, which in turn can be uniquely identified. Otherwise, you have the opportunity to trade on a cryptocurrency exchange by trading with share certificates. Where can you safely buy cryptocurrencies? The Best Providers:These Features Make up the Cryptocurrency System
You can compare trading cryptocurrency with trading commodities or other currencies very well. It is important that the coins are balanced with an equivalent value. Essential features of the cryptocurrency are also the uniqueness of the currency, the uniqueness of the individual coins and the extremely large computational effort required to mine the coins.
The fact that the cryptocurrency is only available to a limited extent is also considered a very important criterion. This factor is comparable to limiting gold or other commodities that cannot be infinitely extracted, grown or mined. In addition to the points mentioned, there are a number of other special features that you should take into account.
The cryptocurrency is not managed by a bank, but by the blockchain. This means that it is an open source database. For this reason, trading Bitcoin and Co. remains much cheaper for all participants. Especially the area of administration makes hardly any financial effort. Therefore, it is worthwhile to invest in cryptocurrency
Digital currency can be bought, sold or transferred to someone else within a few seconds. This results in a high degree of flexibility. In addition, you are considered a buyer very reliable if you can transfer the money within a few minutes – the same applies in the opposite case.
Thanks to cryptocurrency, you remain anonymous when paying. This is important to many people because the recipient of cryptocurrency cannot clearly say who the sender is.
In some shops, you can already officially use the cryptocurrency as a means of payment. Perhaps there will be more and more such shops in the future. Some already offer only the cryptocurrency as a means of payment – a huge step forward!
Anyone who relies on a long-term increase in value could succeed. If you look at the history of Bitcoin, you can say: An increase of several hundred percent is theoretically possible. This is what makes the investments at this point so attractive for many investors who want to make as much profit as possible.
By the way, cryptocurrency is perfect for so-called CFD trading. This is mainly due to the fact that prices can rise very sharply within short periods of time and, conversely, fall very sharply. If you use leverage, you can even multiply the sums. However, this is very risky. What you should pay attention to when buying the cryptocurrency
Even if you are in a hurry, you should take the time to think carefully about your investment. Consider, for example, whether it is really worth buying. Is it the right time right now? Where should you buy the currency and where should you trade it? What risks and opportunities are associated with trading in your individual case? Define in clear goal
How much do you want to invest and how exactly do you want to make profits?
Depending on the goal, decide which cryptocurrency you can best use to implement your purposes. After that, it’s all about the risk
Keep in mind that it is a volatile way of investing. This means that you should only invest as much money as you can spare. Tomorrow it could be worth much more or not at all.
Also deal with the topic of wallets in order to decide on the right one and then use it correctly. The safe storage of the coins is extremely important. Think about the cost of the transactions
The transaction costs can be deducted directly from the profit. It is worth comparing different providers in terms of fees. Where can you safely buy cryptocurrencies? The best providers:These currencies are eligible
There are now over 1000 different digital currencies in which you can theoretically invest. Choose one that enjoys a high reputation and is especially suitable for beginners. Ethereum, for example, is a smart contract and not coins in the classic Sinne.So you can trade cryptocurrency
There are numerous platforms today where you can buy the cryptocurrency on the one hand and trade it on the other. If you want to own real digital currency, you need a wallet. In principle, this works like a cash book in allows you to receive and send coins quickly and easily.