Cryptocurrency for beginners

With the development of blockchain technology, cryptocurrencies have become one of the most serious topics in the financial markets. Despite the fact that they are a certain controversy, for many they are an opportunity to multiply their wealth. Not only experienced investors can count on considerable profits from investments in cryptocurrencies. Even beginners often have little success.

In this article, you will learn what cryptocurrencies for beginners are a reasonable choice, how to start investing and what to look out for.

The cryptocurrency phenomenon

Before you start investing in cryptocurrencies, you should learn more about this market and its phenomenon.

The undisputed king and forerunner of cryptocurrencies is, of course, Bitcoin. This virtual currency has become a symbol of digitization of payments and an investment phenomenon. The popularity of this phenomenon is huge. Bitcoin was created in 2009. at that time, there was a breakthrough event not only in financial but also technological history, that is, the birth of the most famous cryptocurrency – BTC.

Bitcoin has become a phenomenon on a global scale and has changed the way we view money and economic transactions today. Interest in this cryptocurrency grew in direct proportion to the growth of its course. For example, in 2013, for one coin you had to pay about $ 1,000. Already in 2017, the price reached the ceiling of $ 20,000.

In 2021, Bitcoin reached its peak – $ 64,854 on the Binance platform, which is the largest cryptocurrency exchange in the world. As you can easily see, this most popular cryptocurrency has allowed many people to multiply their wealth on an unprecedented scale. The price of Bitcoin is now over 30,000. USD (July 2023)

One of the reasons Bitcoin and cryptocurrencies in general have become so popular is the anonymity of transactions. Moreover, the most popular digital currency can also be settled practically all over the world.

Cryptocurrency trading is at its best. A novice investor can buy Bitcoin on many crypto exchanges, such as Binance, Kraken or Coinbase. In the world of cryptocurrencies, risk calculation, luck and knowledge are all important. Moreover, thanks to technical analysis, the risk of loss can be minimized somewhat.

Blockchain and other cryptocurrencies

Bitcoin is not the only one that has become popular all over the world. Other cryptocurrencies have also achieved global success. There are so many of them now that it is difficult to list them all. One of the most popular digital currencies that has also gained notoriety is Litecoin. This cryptocurrency guarantees even faster transactions than Bitcoin.

It is hard to dispute that Ether is currently the second most popular cryptocurrency in the world. We are talking, of course, about the payment unit of the Ethereum platform, which allows you to create decentralized applications.

A very popular cryptocurrency is Ripple, which was created for the needs of banks. Examples of digital currencies that have gained notoriety around the world are very many. It is worth mentioning about Dogecoin, which is a real revelation in the cryptocurrency market. Initially, this digital currency was supposed to be just a form of joke, but over time it has become popular all over the world, and its price has gone up sharply.

The phenomenon of cryptocurrencies is that anyone can create them. It is the community that decides which digital currency will gain acceptance and will be used en masse.

Speaking about the success of cryptocurrencies, it is impossible not to mention the Blockchain technology, which turned out to be a real revolution. Thanks to her, digital assets had a chance to exist and so far they are doing great.

The basis of any cryptocurrency is Blockchain technology, which, however, has a much larger application. Currently, the network of blocks is also used in the creation of projects that help artists sell and promote their work. Moreover, Blockchain is used in organizing secure votes, and also gives the chance to create a global registry of patients and medical examinations.

This is not the end of this revolutionary technology. It turns out that Blockchain is also massively used to write software for modern mobile devices. In addition, in combination with artificial intelligence, it has the opportunity to bring the automotive market to a completely different level.

How to get started with crypto?

You can invest in cryptocurrencies in a variety of ways. The simplest option is to buy Bitcoin or other cryptocurrencies at a low rate and then sell them at a high rate. Of course, this is not so easy to do. The cryptocurrency market is volatile. Courses during one day can significantly increase or decrease.

Cryptocurrency trading requires freezing your money for a period of time. You can keep virtual currencies in your electronic wallet for a long time, hoping for a large return on your investment as soon as their price rises. For novice investors, cryptocurrency exchanges come to the rescue. It is on them that investors make more or less profitable transactions.

With crypto, you can also start with digging, that is, mining. We are talking here about extracting more coins from the resources of the system of a particular cryptocurrency. However, this requires a fast and expensive computer, which is also called an excavator. Such equipment keeps the system alive and allows users to make payments.

In order for you as a beginner investor to exist in the cryptocurrency market, you should know about the most common mistakes made in this world. It turns out that many “fresh” players make the same mistake, which is punishable. We are talking here about the melting of large sums in dubious and uncertain projects. Some of them are “scammers.”

Therefore, if you want to start investing in the crypto market, bet mainly on proven projects. As you deepen your knowledge of crypto, you may be tempted to invest in new projects where you can make the most money. The largest increases are taking place in the case of the latest cryptocurrencies, however, in their case, the risk of loss is the greatest.

However, you need to know that all investments in the cryptocurrency market involve a lot of risk. Also, when investing in the most popular digital currencies, such as Bitcoin or Ether, you can lose a lot. For this reason, investment experts do not recommend beginners to invest such amounts, which, in case of failure, significantly deplete their capital.

In the case of cryptocurrencies, you need to remember that their market is very volatile. Just knowing about blockchain technology or BitBay platforms is not enough to achieve success in investing.

It is very helpful to invest with your head, that is, to draw first-hand information, for example, from experienced investors. You can gain this valuable knowledge, for example, on discussion forums. It is worth looking for groups on Facebook, following the best investors on Twitter or reading specialized portals.

However, the cryptocurrency market is extremely unpredictable, so even the most in-depth knowledge about it will not protect you from losing your capital. The risks are huge, but the potential gains are also huge.

You should also keep in mind that cryptocurrencies are divided up to eight decimal places. Therefore, you do not need to buy the entire Bitcoin, which would involve an investment of several tens of thousands of dollars. You can buy a smaller part of the unit. The same goes for other cryptocurrencies.

A noticeable trend is also that many novice investors want to start investing from the most popular digital currencies. Blockchain-based cryptocurrencies have been the most popular for years. When buying Bitcoin, however, you need to remember that investing in it is also associated with a lot of risk. Despite the fact that the largest Hossa has long been behind, in the future, however, its price may again reach record levels.

Where to buy cryptocurrencies?

If you want to invest in cryptocurrency, bet on cryptocurrency exchanges, which are by far the best option for beginners. It is very convenient to sell and buy Bitcoins and other cryptocurrencies.

Currently, the most popular crypto exchange in the world is the Chinese platform if you want to start investing in cryptocurrencies, start here. Alternatively, you can bet on other crypto exchanges, such as Coinbase, Coinmama or Kraken.

There are also many other cryptocurrency exchanges. However, it is worth putting those that have an established position in the market. Investing in them will be safer. In the past, there have been events where crypto exchanges have collapsed and their users have lost their digital assets irrevocably.

The advantage of the largest cryptocurrency exchanges is undoubtedly that their operation is simple and intuitive. Even a novice investor can easily start investing in virtual currencies on such platforms. High profits can be made on them. On the largest cryptocurrency exchanges, it is possible to trade not only the most popular virtual currencies, but also new ones.

The cryptocurrency exchange mediates the conclusion of transactions between two market participants – between the seller and the buyer. Of course, he charges a commission for this. The largest crypto exchanges (Binance, Kraken, Coinbase) apply small fees. Registration on these platforms is quick and convenient. However, in order to buy cryptocurrencies, it is necessary to verify the identity of the user. The prices of cryptocurrencies on such platforms are similar. The courses are only slightly different from each other.

The advantage of larger exchanges over smaller ones is that they offer more liquidity. This means, in short, that the more trades are made daily on a particular platform, the easier it is to trade cryptocurrencies with a good spread (the difference between the buy and sell price).

The advantage of large cryptocurrency exchanges is that you can buy cryptocurrencies that are not available on other platforms. Often new projects are presented, which are a great opportunity to multiply the property. Of course, you also need to remember that the risk of loss in their case is also much higher.

A major asset of the largest crypto exchanges is the issue of security. Such platforms guarantee two-factor authentication and advanced encryption. As a result, investing in some cryptocurrencies is much safer than on less popular exchanges.

Less well-known cryptocurrency exchanges are known for cheating their users. Moreover, the risk of their fall is much greater.

How to store cryptocurrencies?

The topic of cryptocurrencies has been discussed for years. Just buying them on the most popular crypto exchanges is not everything. As you know, even the largest platforms can collapse, which is associated with the loss of property of their users. Fortunately, you can protect yourself from this.

Cryptocurrencies themselves are worth buying and selling on the most popular crypto exchanges. However, their detention is a completely different matter. If you are interested in the cryptocurrency market, you need to know that holding digital currencies in your account on a cryptocurrency exchange is not a good choice.

A reasonable approach is to buy cryptocurrencies on the stock exchange and then transfer them to an external wallet. It can take two forms. The first of these is a virtual wallet, which is based on a mobile application intended for this task. It is worth mentioning here, for example, the Coins application.

You can also store the cryptocurrency in your physical wallet. We are talking here about equipment resembling an external disk on which cryptocurrency data is stored. This type of wallet is best kept in a safe. If you just want to sell the digital assets encoded on it, you just need to connect it to your PC or laptop, and then to the machine intended for withdrawing funds. Alternatively, you can use a QR code.

Cryptocurrency investing – is it worth using bitcoin?

If you do not want to trade cryptocurrencies over the internet, i.e. on cryptocurrency exchanges, you can use an alternative solution – a stationary form of trading these assets. It is worth using bitcoins, which are becoming more and more in Polish cities. In the United States and Western Europe, there is no such thing.

It is estimated that there are currently 40,000 in the world. bitcoins. They resemble traditional ATMs. In Poland there are about 250. Bitomat is a machine that allows you to exchange cryptocurrencies for cash or vice versa. The name of these machines took its name from the most popular digital currency, which is Bitcoin (BTC), however, you can buy and sell in them not only Bitcoins, but also other cryptocurrencies.

Bitomats are machines that look virtually the same as traditional ATMs that have been with people for decades. However, they operate quite differently. Bitomat allows you to easily invest in cryptocurrency, and then sell it – the realization of profits from this title. These machines are connected to the network, so customers have the opportunity to buy digital currencies with deposited cash, which is no small revolution in the world of cryptocurrencies.

It is worth noting that bitomats carry out transactions based on the block chain, that is, on blockchain technology. They guarantee to transfer funds to your private, digital wallet, for example, using a QR code, which is a very functional solution – transactions are very fast.

Bitomates and security issues

Many investors, both beginners and experienced ones, are considering using bitcoin. The biggest concerns here are security issues. Users often wonder whether transactions performed using bitmaps are not fraught with high risk, whether they are free from fraud and attempts to intercept funds.

It turns out that the use of bitcoins is completely safe. They guarantee not only security, but also anonymity. Therefore, no one should be surprised that such machines appear in the world more and more. Also in Poland over the past few months, their number has increased significantly.

Is it worth using bitcoins?

Investors passionate about cryptocurrencies (both beginners and experienced) are increasingly looking for alternative options to buy and sell virtual currencies. Their eyes often fall on bitcoins.

It is obvious that bitcoin owners must have some profit from their business. Therefore, the convenient purchase or exchange of cryptocurrencies for fiat money (fiat currency) is associated with a commission. Most of these machines charge a fee for using them.

The biggest disadvantage of bitcoins is a high spread, that is, the difference between the price of buying and selling. Each machine can charge a different Commission. However, most often it is 3.5-5.5 percent. from each transaction made in bitomat.

Therefore, before using a particular bitomat, familiarize yourself with the amount of fees. It is possible that in another bitomat on the territory of the same city a smaller commission is applied.

Bitcoin withdrawals and tax issues

To exchange your cryptocurrencies for fiat currency, e.g. zlotys, pounds or Euros, you need to use the sell option in bitomat. Just enter the amount of a particular crypto, authenticate transactions via e-mail or SMS, and then wait for the QR code with the wallet number to which you need to transfer your cryptocurrencies.

After the approval of the process, the cash is conveniently withdrawn from bitomat. Typically, such machines offer several currency options.

Bitomat can also be used to buy cryptocurrency. The instruction is just as simple – you just need to follow the instructions displayed on the machine screen.

A frequently raised issue is the tax related to transactions made in bitomat. According to the law in force in Poland, a person selling a digital currency should account for the profit from the transactions made.

The tax authority treats profits derived from the sale of cryptocurrency, including through bitmats – we are talking here about income from property rights. In this case, the tax rate is 19%. profit from the sale of virtual currency.

What crypto for beginners?

The situation in the cryptocurrency market is currently at a relatively stable level. Some well-established digital currencies can be bought cheaper and expect them to rise.

Novice investors often do not know what is best to invest in at the beginning of their adventure with the world of crypto. Before you start investing in specific digital assets, you should set your investment goal.

If you want to bet on a long – term investment, the best choice will be cryptocurrencies with less volatility-those with growth potential.

On the other hand, for short transactions aimed at making a profit in a short time, it is worth betting on cryptocurrencies with greater price fluctuations. Especially new crypto projects are a good idea in this case.

Read: How to invest in crypto for beginners!

Bitcoin (BTC)

Your adventure with investing in cryptocurrencies can begin with the most popular digital currency – Bitcoin.

The market capitalization of BTC is more than $ 500 billion. The largest cryptocurrency in the world is often the first choice for many investors. This is not surprising, since the price of Bitcoin has increased by less than 10 million percent since its launch.

Currently, there is a downward trend in BTC, which means that this may be the right time to open a transaction – you can expect a boom in the current or next quarter.

Bitcoin is resistant to price fluctuations, which makes this cryptocurrency the right choice for long-term investment.

Learn How to Invest in BTC!

Ethereum (ETH)

If we talk about long-term investment in cryptocurrencies, we can not fail to mention the second most popular cryptocurrency, namely ETH. Ethereum also boasts a huge market capitalization. This is the leading altcoin, which in terms of popularity for years occupies the second place.

ETH is also a good idea for a long-term investment. This currency is also resistant to price fluctuations. It also changed its consensus mechanism from proof of work to proof of stake, making it more environmentally friendly.

Cardano (ADA)

Cardano is also a recommended cryptocurrency for beginners who want to bet on a long-term investment. It allows users to use their blockchain for many different functions. It is worth mentioning here the conclusion of smart contracts or the creation of decentralized applications.

The creators of the Cardano project are working closely to solve the scalability problems that affect most of the most popular virtual currencies. The goal is that the production of this cryptocurrency takes place with lower energy use, which is supposed to increase competitiveness with respect to Bitcoin and Ethereum.

The entire Cardano cryptocurrency blockchain is secured by a proof-of-stake consensus mechanism, which makes the network work in the best interests of its and the user. ADA is a frequent choice of investors whose goal is a long-term investment. Forecasts for the third quarter of 2023 are promising.

What short-term crypto for beginners?

If you are interested in a short-term investment that involves more risk, consider investing in new cryptocurrencies that have higher price fluctuations. There is considerable potential for projects such as.:

  • Launchpad XYZ,
  • Deelance,
  • EcoTerra,
  • yPredict,
  • AiDoge Coin,
  • many others.

However, you need to remember that investing in new crypto projects is much riskier than in Old, proven cryptocurrencies. This is mainly due to their price fluctuations. Therefore, if you are a beginner investor, you can also start your crypto adventure by investing in Old, well-deserved projects. In their case, the risk of loss is slightly less.

How much does 1 cryptocurrency cost?

There are many places on the internet where you can track cryptocurrency rates, even the latest ones. A popular source of information about the prices of virtual currencies is CoinMarketCap. This is a website offering up-to-date data on not only the rates of individual cryptocurrencies, but also their market capitalization or trading volume. It also presents other important indicators for thousands of cryptocurrencies.

Users of the CoinMarketCap website can sort and filter the results according to their preferences. You can easily and conveniently compare the prices of individual cryptocurrencies.

If you want to find out how much one particular cryptocurrency costs, you can also check out the CoinGecko portal. It is a reputable platform providing information on the prices of individual virtual currencies. It is similar to CoinMarketCap. You can check cryptocurrency prices, trading volume, etc. The platform stands out for its detailed data on crypto projects. For example, we are talking about the number of users, the assessment of the community and not only. This includes statistics on developers.

You can also check the prices of individual cryptocurrencies on cryptocurrency exchanges. Worthy of recommendation is the Binance platform, which is currently the largest such site in the world. It offers numerous trading functions. Binance is great for monitoring the prices of individual cryptocurrencies. The platform provides advanced charts and analytical tools.

Another popular crypto exchange is Coinbase. Also on it you can conveniently monitor the exchange rates of individual cryptocurrencies. The site offers alarm functions to notify you of significant price changes.

How much can you lose by buying cryptocurrencies on Revolut?

Revolut is a mobile application offering a wide range of financial services. Its users can conveniently handle currency accounts and not only. Currency conversion and other options are also available.

Revolut has also been offering cryptocurrency investing for some time. Currently, this is one of the most intriguing aspects of this popular platform. Thanks to Revolut, investors have the opportunity to sell, buy and store various cryptocurrencies.

The platform offers to open an account in Bitcoin, Ethereum and many other crypto. Especially novice investors decide to use Revoluta. This is mainly due to the convenience of using this platform.

Selling and buying cryptocurrencies on Revolut is very easy and convenient. Moreover, this platform is secure, which can not be said about many cryptocurrency exchanges.

Without having a traditional account on the crypto exchange, you can comfortably invest in cryptocurrencies. Thanks to this, more and more crypto beginners are turning their attention to Revolut. To sell, buy and store cryptocurrencies, you just need to create a free account. The wallet needs to be replenished with funds and you can start investing in virtual currencies at any time.

Revolut is a simple and intuitive platform. Therefore, if you are a novice crypto investor, it is on this page that you should consider the beginning of your adventure. Without experience, you can easily and pleasantly start investing in cryptocurrencies.

Investing in digital currencies through the Revolut platform is not much different from investing in popular crypto exchanges. There are risks involved and the potential losses can be huge. Cryptocurrency prices are subject to significant fluctuations, so it is not worth investing significant funds. Experts recommend safe financing-such amounts that will not significantly deplete the portfolio.