It’s the same with Bitcoin and cryptocurrencies. You’re probably sitting in front of your laptop right now and somehow stumbled upon the topic of Bitcoin, looking for more information, and ended up searching right here. Great! You’ve come to the right place. We’ll show you the basics of dealing and trading with cryptocurrencies on this page. What are cryptocurrencies, why you need to invest in them and how to do it. We will show you step by step.
In this post, we want to give you the five most important steps along the way so that your journey into the world of Bitcoin and other cryptocurrencies will also be a success.
Sign up with a crypto exchange
To start trading cryptos, the first step is to find a suitable trading platform. We have created an overview of the largest crypto exchanges with their advantages and disadvantages. As a beginner, we recommend a platform that is as clear and easy to use as possible. Here we recommend Coinbase or crypto.com. If you already have some experience, Binance definitely offers the best overall package.
In the vast majority of cases, you will need to perform a KYC(Know-Your-Customer) during registration. This is a process in which your address details, tax number, ID, etc. are requested. After you have entered all the data, it usually takes only a few minutes and you can start trading to the full extent.
Deposit an amount of money to your wallet
Before you can really get started, you need to have an appropriate balance on your crypto exchange. Most trading platforms offer to top up your balance with a credit card or bank transfer. The bank transfer is free of charge, but takes 1-3 days. When topping up with a credit card, you have your funds available immediately, but there are also up to 5% fees. Therefore, it is better to wait a bit, even if it tickles your fingers.
Choose an investment or trading strategy
Probably the most important thing when trading Bitcoin and other cryptocurrencies is to think of an appropriate strategy. When choosing the right strategy, various influencing factors play a role. From the available capital, the time, the risk tolerance to the residence. So that you can think of a suitable strategy for yourself, we have put together a guide and possible resulting strategies here.
Stick to your strategy
Once you’ve thought about your strategy, write it down. Internalize it, stick to it. For example, if you want to invest in Bitcoin to accumulate some capital for retirement, then a buy-and-hold strategy is probably the easiest way to go. Don’t let FUD or a crash upset you then, but leave your coins on a hardware wallet and store them well until retirement.
Secure your assets
The last point is about storing your coins. Depending on how much capital you have invested and what your strategy is, there are different ways to secure your coins. Because just like a wallet, your coins can be lost, stolen, or cashed out. In the article Wallets, we have provided you with an overview of the different types of wallets and providers and a recommendation on when you should use which wallet.