Do you want to know how you can invest in cryptocurrencies such as Bitcoin?
We will explain to you.
Because while some people think it is very complicated, the opposite turns out to be true!
And we are not only going to tell you how you can buy the coins, but also which coins are best to invest in.
Cryptocurrency was conceived to make payments without the intervention of banks and governments. It is a payment system that is registered in a blockchain. This is a decentralized or distributed database. To explain it very briefly and simply:
All data of the transactions of coins are stored in several places (nodes). It is a system that is difficult or impossible to manipulate , because the nodes continuously monitor each other and it is impossible to hack them all at the same time. Bitcoin and Ethereum, for example, use a public blockchain with proof of work, where literally everyone is or can be a node.
Because the cryptocurrency market is still relatively young and many people have yet to discover it, there is still a lot of growth in this market and with it investments. Moreover, the number of coins for many types is finite, so the value can only increase because the demand will increase, but the supply cannot.
The growth opportunities plus the fact that crypto is seen by many people as the money of the future means that many investors are also finding it increasingly interesting to invest in cryptocurrency.
Many large companies have also already stepped in to use the technology. For example, the coin Ripple works together with Bank Seventies bank and American Express, and Facebook is even planning to set up its own currency Libra.
You can buy coins through so-called brokers or exchanges. A few years ago you had to go to a vague Korean website or something, but nowadays we also have good parties in NL, where you can even pay with iDeal!
The largest and most important, and in our opinion best crypto broker / exchange, that is Litebit.eu. They are located in Rotterdam and have many and also the most important coins in their offer. We advise you to become a customer here, but also read more about why we think they are the best crypto broker in the Netherlands .
As with other types of investing, there are costs / fees involved in the transactions. This is the case with both buying and selling. So keep that in mind and only sell again when you remove those costs + the desired profit.
So you can buy with iDeal, but also with BanContact, credit card, MyBank, giropay and normal bank transfer. But then you are not there yet, you also have to send the coins you buy somewhere to store them. But how do you do that?
You also have to keep the coins you buy somewhere. You used to keep coins in your wallet right? Well, these digital coins are stored in a digital wallet ! In the early days of the crypto exchanges, this meant having special USB sticks with software on them. Nowadays you can store all of this online.
The advantage of Litebit is that you can also immediately store your coins in their own wallets. These are also free. From the same place you can therefore trade in the coins and have your money transferred back to your regular account at the bank.
Okay, you now know how and where you can buy and store your crypto, but what should you do to really make profit with it? Which ones will do well in the future? That is of course the key question!
That is why we have also written an extensive article about it of course: 10 best cryptocurrency to invest in . We assume that the coins have a large market share and good underlying technology that will do well in the future.
We will not go into very new and small / unknown cryptocoins because nobody knows how they will do in the future. Everyone can come up with their own crypto coin, but you are not just going to bet your money on it, right? Maybe they will suddenly disappear again.
You now know how to get your crypto coins, which ones to buy and where to store them. But then what? How are you going to make money from it? Then there are roughly two strategies for:
1. Buy-and-hold . As the name says, this means that you purchase the coins and do nothing with them for a long time. Considering the long term it is almost impossible for the coins to rise, you just have to hold them. Example: there are only 21 million Bitcoins. More cannot be added.
But more and more people are coming who want them. That is going to drive up the price. The value has already been $ 15,000, but it is projected a value of 100,000 to as much as 1 million per coin in the future! If that works out, it is a very good investment.
2. (Day) Trading . In other words: actively trade in the coins! Precisely because the rates do not depend on regulation and governments, there are very erratic rates. And if you buy and sell well, you can always make a profit. Then you have to be close to it, but the good Litebit app is extremely suitable for this. One of many reasons is that we believe that being the best party.
An alternative to buying crypto coins is to speculate on the prices of crypto coins through CFD Trading or ETN. In both cases you do not have to buy or store the coins yourself, but you invest in a tracker that moves with the exchange rate of the coins.
CFH Trade has several options here, where you can also trade on a package of the Top 10 cryptocyrrencies. In addition, you can buy CFDs on Bitcoin, Ripple, Ethereum, Litecoin, NEO, IOTA, Stellar, EOS, BitcoinCash, Cardano, Tron and Monero.
A characteristic of CFD (contract-for-difference) is that you can use a 1: 2 leverage, which means that you profit twice as much from price changes. So you earn 2 times as fast because the profit increases twice as fast.
ETN is a type of ETF and fluctuates with the Bitcoin or Ether price with a ratio of 1/20. You can invest in this on the stock exchange in Stockholm via the best online broker in the Netherlands , namely Binck Bank . The advantage here is that you can also make further investments here, such as in normal shares, funds, bonds and options to spread your portfolio and risk. Request a free information pack.