Buy cryptocurrency: How to buy cryptocurrency safely?

By Flinston
11 Min Read
buy cryptocurrency

Introduction

Buy cryptocurrency; By their creative character, cryptocurrencies draw investors in a sector that is very competitive and in constant pursuit of performance. It is now simple to purchase cryptocurrencies and incorporate them into your portfolio. This tutorial will outline how to securely purchase or trade cryptocurrency.

Cryptocurrencies, which have been in the limelight for a few months, continue to captivate and draw new investors seeking to diversify their assets and achieve substantial short-term returns. These entirely digitalized and decentralised currencies of trade are rapidly establishing themselves as a reference value in an effort to emancipate themselves from conventional banks, so creating significant chances for those who seek to purchase a few hundred or thousands of them. €.

But these decentralised assets play by their notoriety a role of very strong attraction with a certain population of investors who are more or less educated and trained in the habits and customs of this type of very alternative investments, which can bring both brilliant success and bitter failure, all in the same day. Moreover, the renown enjoyed by these new assets does not just lure virtuous partners to you; thus, it is vital, even before spending your first “real” euro on the blockchain, to ensure that the intermediary you will use is trustworthy.

In this article, we will examine how you may purchase cryptocurrencies, as well as trade cryptocurrencies in a secure manner, and why it is crucial to guarantee the reliability of your financial intermediary.

What is blockchain technology?

You often see the term blockchain in articles and guides of this sort, but can you describe this renowned chain? The blockchain is a data storage and transmission platform that seeks to be safe, transparent, and above all uncontrolled by any entity. This information transmission route is fundamental to the growth of decentralised finance (DéFi). This transfer of information enables any user to view the information and history of every transaction that has occurred on the blockchain; it is a very straightforward method of ensuring its authenticity and integrity.

The blockchain relies on the participation of every user of this information chain; the transactions between network members are bundled into blocks. Each block is verified by network nodes referred to as “miners” using processes that vary by blockchain type. This approach is referred to as “Proof-of-Work” on the Bitcoin blockchain and consists of solving algorithmic challenges.

The block is timestamped and posted to the blockchain after it has been confirmed. The transaction is then accessible to the recipient and the network as a whole.

Due to the extreme difficulty of verifying each transaction using this technology, the blockchain is said to be anonymous (which earned Bitcoin a very bad press when it was set up, the technology being mainly used for actions money laundering).

Common knowledge knowledge: We often discuss blockchain in relation to financial transactions involving Bitcoins, Ethereum, and other cryptocurrencies that use this technology, but blockchain is now utilised in a variety of industries. Due to its high degree of security, it enables specific parties to exchange sensitive information in indecipherable blocks.

Why use a safe site while purchasing cryptocurrency?

To purchase cryptocurrencies, you must use a cryptoasset trading platform, and this is no longer an exception given the rising popularity of cryptocurrencies. On the other hand, it is essential to choose a platform worthy of the name for your asset acquisitions and sells.

Let’s rewind a little; if you’ve been following what we’ve said so far, you should recall that the blockchain’s fundamental premise is to give its users with a degree of anonymity while ensuring the highest level of security. This security feature may be quite protective if used properly. Due to the fact that confidentiality is a very strong concept of this sort of technology, a hostile firm may quickly take your money and go without a trace. Therefore, it is essential to establish that you control your assets and are aware of their whereabouts.

In addition, the majority of cryptocurrency trading platforms and other decentralised assets allow you to trade cryptocurrencies or invest in cryptoasset derivatives.

Whether you are a trader or not, you feel as if you are purchasing Bitcoin (btc) or Ethereum (eth), but in fact you merely possess an asset based on the official currency, with all the associated dangers. However, you are merely scraping the surface of the blockchain’s underlying principle: a CFD is not certified in blocks by the chain’s users; it is a financial asset in its own right. Therefore, we are out of place in this form of investing. However, we must remind you that cryptocurrency trading remains very dangerous.

During your first investments, it will be crucial that you invest in live assets, i.e. that you own a portion or the whole of Bitcoin or Ethereum (to mention a few). You may invest directly in decentralised currencies on platforms such as the French exchange portal Coinhouse or the cryptocurrency platform Coinbase, which also hold the validation information of your transactions on their safe servers. In addition, you will be able to deposit your coins into your dedicated wallet at fair commission rates. In addition, in France, four organisations, including our partner Coinhouse, have already achieved the designation of Service Provider on Digital Assets (PSAN) from the Autorité des Marchés Financiers, which was founded by the Pacte legislation enacted in May 2019. This certification is not required to engage in the buying and selling of cryptocurrencies, but it serves as a guarantee of credibility for investors.

How to buy cryptoassets safely?

As we discussed before, it is crucial to carefully identify the intermediary with whom you will do business in order to purchase cryptocurrency. Fraudulent firms are not widespread, but are on the rise. First: RUN if you come across a platform or are approached by a crypto-asset trading firm that promises to quadruple your pay rapidly and without risk.

After that, you may concentrate on selecting a service provider. In actuality, because the final result is irreversible, you need to consider the dependability of the partner. Other than navigating the various prices associated with these platforms, there is nothing particularly hard about the option. Depending on their offer, the amount of security they give, and the trading options available, you will be charged a fee on your first wagers and taxed on your gains.

This concept of expenses remains significant, though, since it may have a direct influence on your activities’ eventual profitability. If transaction costs consume fifty percent of your Bitcoin buy performance, then the platform in issue may not be the most efficient and you should search elsewhere.

Similarly, your options for purchasing these well-known virtual currencies have substantially expanded in recent years. It is even feasible to get the valuable sesame through a Bitcoin automated distributor (resembling two drops of water to a traditional distributor), which, in exchange for payment, will supply the corresponding cryptocurrency to your digital wallet. This method still requires the possession of a digital wallet, putting you at danger of loss. For some time, you have also been able to obtain cryptocurrencies by visiting a real shop or tobacconist.

The best method to begin investing is to utilise a platform like Coinhouse, which is designed specifically for this purpose. Then, you would not have to worry about storing and protecting your assets, but you will still be able to access your deposits from anywhere. Again, the ways of payment for the money are straightforward: you can simply use a standard bank card (nice snub to the classic banks which make it possible to feed the decentralisation of finance with their famous bank cards).

Conclusion

In recent months or years, cryptocurrencies have attracted an increasing number of investors, which is natural. Since the development of these virtual currencies, their instruments and approaches have grown, and an increasing number of investors, sometimes even institutional (i.e., major corporations, often listed on a stock market), opt to include cryptocurrencies into their cash management. It is now much simpler to invest a few hundred euros in the major currencies and so benefit from the potential for profit and revaluation of your financial assets.

Alternatively, if this amount of risk is consistent with your financial goals, it might be worthwhile to explore investing a portion of your capital in cryptocurrencies. Nonetheless, this procedure must be carried out with extreme caution so as not to risk capital loss or substantially hinder performance. This is the reason why it is essential to choose the platform you will use for this transaction, and possibly to discuss with your heritage project manager the most effective strategy to join the crypto-asset market.