Cryptocurrencies – where to start? How to start buying? –

It happened – you are fascinated by Bitcoin and its vast possibilities, you finally decide to invest in this popular cryptocurrency. However, you immediately face serious obstacles. How to buy something that has no physical form? Where are cryptocurrencies bought and what is needed for this. Finally – how to allocate capital so as not to lose out? These kinds of questions are asked by virtually every novice trader entering the crypto market. Before spending BTC or any other such asset, it is worth knowing where to start your adventure with virtual coins and how to skillfully start trading effectively.

Probably everyone is talking about cryptocurrencies today. More and more people know what they are and how they work. People invest in it mainly for profit. Over the past two years, the prices of individual assets of this type have reached very high prices, which, for a large group of investors, equated to making huge profits. Although the cryptocurrency market is currently facing a crisis, many people are ready to act on this ground. It is not surprising – the price of the most famous cryptocurrency – Bitcoin – is at its lowest since August 2020. Many traders see it as a fantastic opportunity to make money. And although the future of the market is terribly difficult to predict, and the risk of loss of capital must be described as considerable, many daredevils want to start their adventure with crypto now. But how skillful is he?

Why exactly cryptocurrencies?

First of all, it is worth understanding what distinguishes cryptocurrencies from other assets and in fact what should be of interest to a novice trader. This is not about a quick profit – with luck this can also happen when you invest in other funds. Cryptos are tempting first and foremost because they are relatively young. Their market is constantly changing, which makes it subject to various fluctuations. This has its pros and cons. This increases the risk of getting off to a huge start, and on the other hand, it gives you the opportunity to make substantial gains in a short time. It is worth taking a closer look at cryptocurrencies, as it seems that they have definitely settled into our reality. They may play an increasingly important role in daily life over time. The last two years have shown that they can also effectively save traditional money, for example against the effects of inflation, provided, of course, that you skillfully allocate the savings in the selected crypto and take decisions on the possible purchase or sale of coins at the most favorable time.

Or buy?

Another challenge for a beginner trader – how to buy cryptocurrencies? It’s not particularly complicated. The most popular solution is to use special exchanges. These are dedicated platforms on which an account is created, it is fed with FIAT currencies, and then the capital is invested in selected crypto-assets. An important note here – it is recommended to use the largest, most popular and proven exchanges possible, as they are the best protected, for example, against hacker attacks.

An alternative to exchanges are cryptocurrency exchange desks. Bitcoin can also be purchased at special Bitomats. It is possible to buy a given crypto directly from another user, but this method is only recommended if the counterparty is a trusted person.

It is important to note that if you want to buy a given cryptocurrency, you do not have to buy its entire unit. You can only buy the appropriate coin, for example, for 50 or 100 zlotys (although the price of one coin is, for example, $30,000).
Cryptocurrencies also do not need to be purchased. Trading based on these assets is possible through CFDs.

What do you need to start your crypto adventure?

The most serious purchase will be an investment in a cryptocurrency wallet. To put it simply, it is a technological solution intended for the secure storage of your parts. There are two types of wallets – hot and cold. The former are nothing but network-connected applications. They are less secure, but also cheaper. Their interface looks a bit like traditional banking apps. Cold models are external solutions, that is, they are separate devices, often resembling a USB flash drive. They are created in such a way as to best protect the contents of the medium and so that the funds accumulated on it do not fall into the wrong hands.

Also, you need to develop your own investment strategy. This should assume experience, time that can be spent on trading, capital, etc. It doesn’t have to be a very complex tactic to start with. However, it is important not to act on the spur of the moment and emotions, but to evolve in the market according to a self-designed framework.

Some useful tips

1. It always pays to be cautious in the crypto market. Prices change quickly, sometimes even quickly. Bravado can quickly lead to the loss of all your capital.
2. On the other hand, excessive caution leads the trader through good profit opportunities. You should not be afraid to enter any given asset, but it should be done wisely. Passivity also makes it difficult to learn the market and its rules.
3. You invest as much as you can actually lose. Such a ceiling must always be fixed and must in no case be exceeded.
4. You should not trade under the influence of emotions. Loss does not always mean an immediate reaction. Commerce turns into gambling this way. You have to be guided by logic and rigorous analysis.
5. When buying, you need to know how much you want to sell a given asset for.
6. It pays to diversify your portfolio – invest in multiple types of crypto and multiple types of assets.
7. It pays to be aware of all the news in the world. Cryptocurrencies are sensitive to many factors, not just economic ones. It is good to read a lot, to expand your knowledge, to research the connections of given phenomena with the world of crypto and to emancipate yourself from possible developments of events.

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