The best way to understand bitcoin or other cryptocurrencies is to buy them. We will tell you how to do it. To start, it is best to invest a few euros to avoid taking any risks. To buy it, you’re going to need a place to buy it (an exchange) as well as a place to store it (a wallet).
First step: Choose an exchange platform
Register on a cryptocurrency exchange to be able to buy bitcoins. We advise you to find a platform on which you can withdraw your crypto-currencies to store them in your wallet (this is not the case for all platforms, in particular eToro). You can compare cryptocurrency platforms and find out about variable fees.
To get started, we advise you to start with the Binance platform . You can download the app to your phone.
Binance’s wallet is not the most secure, but the advantage is that it is a wallet in addition to an exchange. Getting started is easier and more fluid.
When you want to trade your cryptocurrencies, you are going to need a private key. If you lose it, you will no longer be able to access your crypto-currencies. Binance will store this key for you. This means that if Binance goes bankrupt, if Binance gets hacked, if France decides to block this platform or if China decides to do so (Binance is located in Hong Kong), you can lose your money. But to start with a few euros is fine.
Second step: Create an account
The platforms will ask you for documents such as your identity card to identify you and allow you to register on Bitcoinxxo.
When the platform confirms your identity, you can deposit money into your account. You have the choice between making a bank transfer or depositing money with your bank card. We strongly recommend depositing by bank transfer as it is much cheaper.
To give you an idea, when depositing, the fees by credit card will be around 4% against 1.5% by credit card (but 0% by transfer and 1.8% by credit card at Binance, our partner) .
Beware of some platforms that guarantee you no fees when making deposits. For example, eToro does not charge a fee but you will have to convert your euros into dollars (with 2.5% fee).
Third step: Buy cryptocurrencies
In your application, now that you have money, you will have access to a large number of cryptocurrencies, including Bitcoin (BTC) or Ethereum (ETH).
We can never repeat it enough but only invest what you are ready to lose. It is not uncommon to see impressive, even worrying fluctuations. You will be able to see the value of your portfolio being divided (or multiplied) by 2 in one night. This is a very volatile market. If you are not ready to lose money, we strongly advise against turning to cryptocurrencies.
Remember that your cryptocurrency earnings are taxable.
Fourth step: Manage your portfolio
Now that you are the proud owner of a cryptocurrency wallet, you can buy more or resell. The safe bets are Bitcoin and Ethereum, but nothing prevents you from investing in lesser-known cryptocurrencies.
If you like it and want to invest more money, we recommend that you then use a more secure wallet, a so-called “cold wallet”. The best known are Trezor and Ledger Nano (Ledger is a French company). It is a small encrypted portable device. It looks like a thumb drive and is considered much safer. This type of product costs around 100 €.