Buying cryptocurrencies is a potentially (very) profitable investment activity but unfortunately, not all beginners know how to go about getting the best results.
Indeed, to be precise, many beginners not only fail to make money by buying cryptocurrencies but even lose money. Some are directly scammed, others make blatant (and easily avoidable) mistakes.
It is a shame because buying cryptocurrencies can generate very high returns, as evidenced by the stories of the many investors (often beginners) who have achieved spectacular results. You just need to know-how.
In this guide, we explain in detail how to buy cryptocurrencies without cheating. It's not difficult, but there are some key things to keep in mind (beginners often ignore them).
We also present the best platforms for buying cryptocurrencies. We have chosen only serious and safe platforms (there are still many scams) and are easy to use even for beginners.
Among these, we want to immediately report eToro because it is the simplest to use, even for those who start from scratch. For example, eToro allows you to copy what other investors on the platform are doing, selected based on the returns they have achieved in the past (obviously this is not a guarantee of future returns).
In this way, even a beginner can immediately obtain the results of other investors with more experience (about the invested capital) and can also learn by observing what they do live.
How to buy cryptocurrencies
Let's start our guide right away by talking about the most common mistake that beginners make when they want to invest in cryptocurrencies.
It is a mistake due to ignorance, which can be very costly both in terms of losses and lost profits. Beginners think that the only thing to do to make money with cryptocurrencies is to buy them, wait for the price to go up, and then sell them.
This strategy works but it must be borne in mind that cryptocurrencies are a particularly volatile financial asset. This means that the price can go up but it can also go down quite dramatically.
The best platforms for investing in cryptocurrencies provide two fundamental operations:
Short selling cryptocurrencies to make money when the price goes down
Short selling is a purely speculative transaction that generates a profit when the price of financial security falls.
Thanks to short selling it is possible to earn even when the price of cryptocurrencies falls.
Thanks to this operation, it does not matter how the cryptocurrency market goes, if we are in a boom phase like in 2017 or in a (strong) descent phase like in 2018. You always earn, as long as you make correct predictions (and it is not difficult to do them).
Obviously, not all platforms for buying cryptocurrencies also allow you to sell them short: this is why it is important to choose carefully which platform to operate with. We will discuss this in detail in the next paragraph.
Best platforms to buy cryptocurrencies
Some of these platforms offer truly spectacular support tools and free courses.
Let's see the reviews in detail.
eToro
eToro is considered to be one of the best platforms to buy or sell cryptocurrencies. It is safe and reliable, easy to use even for those starting from scratch.
The main advantage of eToro is the ability to copy what other investors on the platform are doing.
Thanks to the innovative Copytrading software, in fact, it is possible to find investors who have achieved good results in the past with minimal risk. These investors can be selected for copying: eToro's software will do it all, copying trade by trade in real-time.
Beginners who start buying cryptocurrencies with eToro get the same results from day one as other more experienced investors, selected based on past returns, and can also learn (if they want) just by observing the best trades live.
eToro allows you to use various tools to make the deposit, so for example you can buy cryptocurrencies with Paypal, credit card, bank transfer, etc ...
XTB
XTB is the other great opportunity for beginners who want to start buying cryptocurrencies without mistakes.
The platform is really simple and intuitive, even for those who really start from scratch. Furthermore, all subscribers are assisted on the phone by a true cryptocurrency expert who provides precise indications.
Those who want to learn have the opportunity to download one of the best courses for investing in cryptocurrencies for free. This is a spectacularly successful course with hundreds of thousands of downloads.
Why did this happen? It is a free course, while other courses have a rather high course. Plus, it's a simple course to study, even for beginners. Finally, it is a practical course: in the end what people are interested in is making money with cryptocurrencies, not studying the theory.
However, the advantages of XTB are not over yet: all members can use a demo platform for free that allows you to buy and sell cryptocurrencies with a simulation. In this way, it is easier and faster to learn and you can start getting serious with a good experience behind you (it is a factor that makes the difference).
You can sign up for free on XTB by clicking here.
XTB also allows you to buy cryptocurrencies with Paypal, bank transfer, credit card, and other payment tools.
Iq Option
Iq Option is a platform for buying cryptocurrencies particularly appreciated by beginners for two fundamental reasons: it is very simple to use and allows you to start investing with just 10 dollars (other platforms require around 250 euros/ lumpsum dollars).
Those starting from scratch have a very complete didactic area available on the official Iq Option website. These valuable resources are available free to all members.
Iq Option also offers an unlimited, free, and unconstrained demo.
Cryptocurrencies and scams
So far we have presented the best safe platforms to buy cryptocurrencies.
Why are these platforms considered so safe and reliable? Because they are authorized and regulated platforms, therefore they are required to comply with the very strict European standards that protect investors. The competent authorities (CONSOB in Italy) supervise compliance with these regulations.
We make this clarification because in recent years the number of cryptocurrency scams has been really high.
Some people think that Bitcoin is a scam precisely because the number of scams is really high.
Why so many scams? Below is a list of cryptocurrency-based scams to stay away from:
Bitcoin Trader
Immediate Edge
Bitcoin Evolution
bitcoin revolution
Bitcoin Profit
Simple: people now know that with cryptocurrencies you make money but they don't know-how. Scammers take advantage of this, presenting opportunities to make money easily, for a small investment.
Many fall for it precisely because the message is plausible: as we have said, investing in cryptocurrencies can be very profitable. What the unwary victims don't know is that to get the desired results you need to use secure and reliable platforms and only regulated platforms are.
Buy cryptocurrencies with Paypal
Is it possible to buy cryptocurrencies with Paypal? Yes, in two ways. For those who are residents in the USA, it is possible to buy cryptocurrencies directly from the Paypal application.
Obviously, there are heavy commissions to pay (Paypal is always very expensive) and it is not possible to use financial leverage or carry out short sales.
The other option, much more convenient, is to use the best cryptocurrency platforms that accept Paypal, among other payment methods.
Buying cryptocurrencies in the bank
Just to avoid scams, some people would like to buy cryptocurrencies in the bank. Unfortunately (or fortunately) it is not possible.
Indeed, cryptocurrencies at least at the beginning were born in opposition to the banking system, considered expensive, inefficient, and not very transparent. Over the years this revolutionary charge of cryptocurrencies has faded and they are now considered an investment class like any other.
Buying cryptocurrencies in a bank (especially in Italy) is not possible. Some Asian banks have started trading Ripple, but our banking system is extremely backward.
In any case, there are no problems. The licensed and regulated platforms that we have presented in this article offer exactly the same guarantees that a bank could offer and are simple to use.
Buy cryptocurrencies without commissions
Furthermore, we have exclusively selected platforms that allow you to buy cryptocurrencies without commissions.
If ever one day the Italian banks allowed buying cryptocurrencies, they would do so against the payment of high commissions.
Paying commissions is never a good deal and working with intermediaries who apply them (or who have other costs, fixed or variable) is a very painful mistake, typical of beginners.
How then do the cryptocurrency platforms we have presented make a profit?
They apply a small spread, i.e. a tiny difference between the price at which cryptocurrencies can be bought and the price at which they can be sold (a much more advantageous system for the investor).
Cryptovalute Exchange
Many beginners think that the only way to buy cryptocurrencies is to go through exchanges. We confess that we don't like cryptocurrency exchanges at all and in fact, we haven't talked about them yet.
Why so much mistrust? The problems of exchanges are basically two:
Lack of reliability
High commissions
In fact, since the beginning, exchanges have proved to be a real sieve, completely penetrated by hackers and the scene of all kinds of scams.
For this reason, savvy investors avoid exchanges. But there is also the question of fees: all exchanges apply high fees, sometimes even double.
In practice, many exchanges do not allow you to directly buy minor cryptocurrencies using dollars. First, you have to go through Bitcoin. In this way, you have to make a double purchase and then pay double commissions (and they earn double the money).
For the sake of completeness, we mention two of the most famous cryptocurrency exchanges: Bitstamp, Kraken, and Coinbase.
Which Cryptocurrencies to buy
So far we have talked in a rather generic way about buying cryptocurrencies. But what are the cryptocurrencies to buy? Let's make a brief summary of the main cryptocurrencies you can invest in today.
Buy Ripple
Ripple is one of the most capitalized and most traded cryptocurrencies for investment purposes. It is characterized by being the only cryptocurrency that already has a practical purpose today: it supports international transactions between financial entities in a cheap and fast way (much faster than Swift, with enormously lower costs).
Buy Bitcoin.
Bitcoin is the most famous cryptocurrency and was also the first to be created. In practice, it all started with Bitcoin and, even today, Bitcoin has an overall capitalization that is higher than that of all the others.
Buy Ethereum
Ethereum is the second most important cryptocurrency. Born on the wave of Bitcoin's success, it has greatly improved it. Among the main advantages of Ethereum are smart contracts, smart contracts that can be programmed to automatically manage transactions.
Buy Bitcoin Cash
Bitcoin Cash was started by Bitcoin miners and developers concerned about the future of cryptocurrency and its ability to scale effectively. However, these individuals had reservations about how to proceed to develop the future of Bitcoin. So they decided to create the most important hard fork of the famous currency.
Buy Tron
Tron is a decentralized platform based on a blockchain that aims to build a free and global entertainment system of digital content with distributed storage technology and allows for easy and inexpensive sharing of digital content.
Buy Dash
Launched in 2014, Dash was originally known as Darkcoin and was designed to ensure users' privacy and anonymity. Indeed, the cryptocurrency whitepaper was co-created by Evan Duffield and Daniel Diaz.
Comprare Ethereum Classic
Ethereum Classic is an open-source, decentralized, distributed blockchain-based platform running smart contracts. Based on the “Code is Law” principle, smart contracts are self-executing self-running digital applications, capable of running on their own as programmed as "the first privacy-centric cryptocurrency" based on the work of Satoshi Nakamoto.
Buy Litecoin
Measured by market capitalization (or the amount of the currency in the market), Litecoin is the third-largest cryptocurrency after Bitcoin and XRP. Litecoin, and like its contemporaries, functions in a sense as an online payment system. Like PayPal or a bank's online network, users can use it to transfer currency between them.
Buy IOTA
IOTA is a decentralized cryptocurrency platform that offers extreme scalability and speed for the Internet of Things (IoT). Unlike blockchain systems, the IOTA Tangle is built for machine-to-machine communication that can form the basis of the homes and smart cities of tomorrow, using its MIOTA token.
Cardano is a decentralized system, based on a chain of blocks, powered by the ADA coin, the cryptocurrency that runs on the Cardano platform. Just like Ethereum, it is a smart contract-based system and can be used to run decentralized applications (called DApps). But Cardano is a multi-level system, that is
It has a separate layer that performs the ADA swap, and
A separate one that manages Smart Contracts.
Buy Stellar
Stellar is a decentralized and open-source payment protocol that allows for fast cross-border transactions between any currency pair. Like other cryptocurrencies, it works with blockchain technology. Its native asset, a digital currency, is called lumens (XLM). XLM powers the stellar network and all its operations, similar to how ether (ETH) powers the Ethereum network.
Comprare EOS
EOS is a cryptocurrency designed to support large-scale applications. There is no cost to send or receive EOS. On the contrary, the protocol rewards entities that run the network periodically with new EOS, effectively substituting inflation for transaction fees.
Buy NEO
NEO (formerly Antshares) is an open-source decentralized blockchain application platform founded in 2014 by Da HongFei and Erik Zhang. Since its rebranding from Antshares to NEO in 2017, the project's vision is to achieve a 'smart economy' using blockchain technology and smart contracts for issuing and managing digitized assets.
Buy ZCash
Zcash is a privacy-focused blockchain system and cryptocurrency that was developed in response to bitcoin's flaws. It uses the same algorithm as bitcoin but improves it by allowing semitransparent processing. Put simply, this means it avoids the radical transparency of the bitcoin blockchain for a more nuanced implementation. In this implementation, user transaction data is selectively disclosed.
Comprare Binance Coin
The Binance Coin is a digital currency issued by the Binance exchange. The cryptocurrency is indicated by the BNB symbol. Binance Coin is used by users to pay the fees collected by the Binance exchange for using the services. These fees include, but are not limited to trading fees, exchange fees, and listing fees.
Buy Tezos
Tezos (XTZ) is a blockchain network linked to a digital token, which is called tez or Lizzie. Tezos is not based on the extraction of tez. Conversely, token holders receive a reward for participating in the proof of transaction consent mechanism.
After a promising start and a very successful Initial Coin Offering (ICO), Tezos was troubled by numerous delays and legal issues. However, Tezos survived, in part thanks to its unique proof-of-stake mechanism. The price of texas more than tripled between October 2019 and February 2020 and hit record highs.
When to buy cryptocurrencies
What is the time to buy cryptocurrencies and what is the time to short sell them? In other words, how can you make cryptocurrency predictions that prove accurate?
First of all, let's say that those who copy the best with eToro can also avoid making forecasts: they will buy when the best investors buy and sell when they sell.
And for the others? There are two systems for making accurate predictions, technical analysis, and fundamental analysis.
Technical analysis is based on looking at cryptocurrency price charts. Based on past performance, reliable forecasts of future trends can be obtained.
Fundamental analysis, on the other hand, is based on news, positive or negative, related to cryptocurrencies. If there is positive news, the price goes up. If there is bad news, it goes down.
It must also be said that the price of alternative cryptocurrencies is usually tied to Bitcoin. When Bitcoin rises, the other cryptocurrencies also rise. And when Bitcoin goes down, the others go down too.
Conclusions
In this article, we have presented the best tools and techniques for buying cryptocurrencies.
Buying cryptocurrencies is also suitable for beginners but you have to be very careful with scams and mistakes. For this reason, we have also presented in this article the best platforms (easy to use and without commissions) to buy cryptocurrencies:
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