How to buy cryptocurrency for the first time?
If you are looking for an investment, you are willing to take risk with your saved money. Crypto trading is an investment option that can earn you a lot, in a volatile market. But how do you start buying crypto? And how can you get the most out of your investment? As a beginning crypto investor, it can all seem confusing. That's why we explain the process for you!
How much money should you invest?
Buying crypto for the first time consists of several steps. The first step is to determine how much you plan to invest. So the first question you need to ask yourself is: how much do I want to invest in total in cryptocurrency. Do I want to invest €10 or €10,000? The amount always depends, on how much you are willing to lose. After all, investing in crypto involves risks. You can lose your deposit in the volatile crypto market.
Where should I buy crypto?
Once you have determined your investment capital, it is time to choose where to buy crypto. Buying crypto is something you do as a beginning investor with a centralized party. Centralization means that the management of the platform is done by a central party. The advantage of buying from centralized trading platforms is that they often have high trading volumes and therefore buying crypto is easier. This is because you need a selling party (other investors) to make buying crypto possible. The disadvantage of centralized platforms is that in many cases you store your crypto on the platform. This is seen as unsafe, especially by experienced crypto investors. Even though this is not always the case. They often make use of personal wallets. Experienced investors are therefore more likely to use decentralised platforms (DEX), such as Uniswap and Pancakeswap. Still, centralised platforms, where usability is important, try to make it as easy as possible to send crypto to a personal wallet. As a beginning crypto investor, you can also opt for a personal wallet if that is your preference.
Actually, most brokers and exchanges are the same. They are all one-stop shops when it comes to buying crypto. Exchanges are companies where you buy crypto directly, while brokers act as intermediaries between buyers and sellers. Brokers add an extra layer of reliability and user-friendliness and make it easy for beginners who want to learn how to invest in cryptocurrency.
There are, however, a few things you can consider when choosing your ideal trading platform. The first consideration you can take into account is security. How safe and reliable is the platform? Of course you want the company to handle your data and money well. One way to find out is by looking for reviews. On Trustpilot, customers post reviews based on their experience with the company. Place of destination can also be an important consideration, as companies must adhere to the laws and regulations of the relevant country. Another important consideration is service. In case of problems, can you easily reach the company or are they unreachable?
The payment options may also play a decisive role. The larger exchanges often have the possibility to pay with payment methods such as iDeal, SEPA and Mastercard. Nevertheless, it is often easy to check.
How and how much crypto should you buy the first time?
When you have made your choice and created an account, it's time to place an order. To complete an order, you need to exchange fiat currency to the crypto you want to buy. In the crypto you decide how much you want to invest. You don't have to buy 1 BTC, but you can also buy 0.00001 BTC. You place your order in your shopping basket and unlike in e-commerce, you get your purchase immediately.
How much you will invest depends on how much you are prepared to lose. The market is very volatile and there is a risk that you could lose your deposit. Therefore, only invest money that you can afford to lose. Crypto investments should not cause you financial problems. As mentioned before, you do not have to buy a whole coin, but you can also buy a small part of a coin. For example, it is possible to buy Bitcoin worth €10. It all depends on what you can afford and what you feel comfortable with. Once you have decided how much budget you have to invest, it is wise not to invest your entire investment capital right away. Other investors suggest that it is best to divide your investment capital and only use a small percentage, depending on the risk you are willing to take. Somewhere between 5 and 30% to be precise. 5% is more risk-averse, while 30% is traditionally more risky. Of course, you always decide what percentage you are going to invest, but this is a good yardstick to take the first step.
If you are afraid of losing money, you might consider a less risky approach. Start with an investment of only €10 euro. This way you can get a taste of the crypto market without taking a big financial risk. In addition, spreading your investment capital is a good way to limit the risk. Spread your investment over several coins, so that you do not lose all your capital when a specific coin goes bad. In addition, dollar cost-averaging (DCA) is a popular strategy to expand your crypto portfolio. DCA is a strategy where you invest periodically (like monthly) regardless of the price of a coin. This helps to reduce the impact of volatility in the market. Some investors will constantly monitor their portfolio and buy and sell as prices change. But DCA has proven to be a successful strategy looking at the past.
Can you buy crypto immediately?
The question if you can buy crypto immediately is easy to answer. Simply put, the answer is yes. Provided that you have done all the necessary preliminary work. This means you have created an account at an exchange or crypto broker. You should always verify your account by sharing personal details with the company. Then you need to transfer money to your crypto provider so you can buy crypto. Most platforms offer different payment options. Bank transfers and bank card payment options are the most common.
How do I buy crypto for the first time on Anycoin Direct?
Anycoin Direct has been making the world of cryptocurrency accessible for years. It is available to all citizens in the EU, and the registration process is quick and easy. Once registered on the platform, you can choose the best cryptocurrency to buy. There is a lot of detailed information about all the coins we offer to help you choose. Once you have chosen a cryptocurrency to invest in, all you need to do is open your Anycoin Vault or link your personal wallet.
Then, all you need to do is choose a coin and provide the amount in euros or the number of coins you want to buy. Make the payment and voila, you will receive your coins directly in your Vault or the coins will be sent directly to your personal wallet.