Interested in cryptocurrency trading? Before trading, it is important to know how to invest in cryptocurrency, what are the promising digital currencies but also the investment strategies to put in place. In this article, let’s find out in which cryptocurrency to invest, how to buy cryptocurrencies, and the tips to follow to succeed.
How to Invest in Cryptocurrencies for Beginners – 4 Simple Steps
In just four simple steps, you can invest in cryptocurrencies through a regulated online broker in less than five minutes. To do this we recommend eToro, on this broker you can instantly pay your investment in cryptocurrencies in euros and without paying transaction fees.
- Register on eToro: Opening an account on eToro is super easy since you only need to provide the broker with some personal information. You will also need to upload a copy of your ID for anti-money laundering purposes.
- Verify identity and make a deposit: All you need to do is deposit $10 on eToro when you open an account for the first time. Choose from a debit/credit card, e-wallet, and more to make your deposit.
- Cryptocurrency search: Now registered, use the search bar to find the crypto you want to invest in. If you are not sure which digital asset you like, click on the “Discover” button to browse the cryptos supported by eToro.
- Invest in cryptocurrency: After clicking on ‘Trade’, you will see an order box appear on your screen. Enter your investment stake in the ‘Amount’ field and click ‘Open Trade’ to invest in the crypto of your choice.
Cryptocurrencies are highly volatile unregulated investment products.
In which cryptocurrency to invest?
We’re going to tell you about some interesting projects to follow (and potentially buy). They could prove to be good investments in 2023 but also for the years to come. However, nothing prevents you from doing your research after reading our list of the top 10 promising cryptocurrencies.
1 – Love Hate Inu Beginner’s Guide
Love Hate Inu is our top pick of crypto to buy this year. Indeed, it is a token of the platform called LHINU, which is distinguished by its unique Vote to Earn function.
If the platform has made it its mission to make trading more accessible to the general public, it intends to do so through various events and make the right to vote accessible to all. A token to follow closely while its price is still very low, and currently in presale on its site.
IMPT.io (IMPT) Beginner’s Guide
IMPT is a crypto project aiming to revolutionize the carbon credit market. It uses the power of the Polygon blockchain to make it easy to buy, sell, and trade carbon credits by structuring them as NFTs.
If you want to know which crypto to buy when it comes to the environment, IMPT is an optimal option. The most attractive feature of the IMPT is how it allows users to earn carbon credits. Instead of having to go through a complex investment process, users can simply acquire carbon credits through their everyday purchases. This is made possible by IMPT’s partnership with over 10,000 leading brands, including Apple, Microsoft and Tom Ford
Dash (DASH) Beginner’s Guide
Before the name Dash (Digital Cash) was adopted, the cryptocurrency had several names since its launch in 2014 such as XCoin or Darkcoin.
The main attraction of the Dash network is the speed of transactions. Since Dash wants to become the go-to cryptocurrency for everyday spending, its creator (Evan Duffield) set out to develop a fast blockchain. Respect for privacy is also important for the network, which offers anonymous transactions (PrivateSend option), which is a major support for Dash prices.
4 – Stellar Lumens (XLM)
Launched in 2014 by Jed McCaleb, Stellar Lumens is now one of the safe bets in the cryptocurrency world. The Stellar blockchain validates operations in 2 to 5 seconds. The network is also capable of carrying out 1,000 transactions per second. It charges transaction fees at a relatively low rate. This is why its users have lent it the nickname “decentralized PayPal”.
Like the other virtual currencies to follow closely in 2023, Stellar Lumens has recorded a strong increase in price since its launch.
5 – NEO (NEO) Beginner’s Guide
NEO is the native currency of the NEO network. Initially, as Antshares, this NEO crypto appeared in 2014 by Da Hongfei and Erik Zhang. After its renaming in 2017, the NEO project was tasked with creating a “smart economy” that involves leveraging smart contracts to efficiently distribute digital goods.
6- EOS (EOS) Beginner’s Guide
OS belongs to the third generation of blockchain and cryptocurrency technology. Its ambition is simply to overtake Ethereum. Riding on an unprecedented craze, Daniel Larimer, creator of EOS, managed to raise funds via an impressive ICO (Initial Coin Offering) of 4 billion dollars.
Choosing this EOS crypto to diversify your cryptocurrency portfolio is a logical idea to hope to gain on resale even if other investments will undoubtedly opt for trading given the high volatility of its prices.
7- Cardano (ADA) Beginner’s Guide
Launched in September 2017, Cardano quickly reached a multi-billion dollar market capitalization. Inspired by Ethereum, Cardano aims to use blockchain technology for more than just payments. This allows developers to create their blockchain applications using the platform. Cardano’s dual-layer structure runs each layer separately, unlike Ethereum, where the two layers are tied together.
8- IOTA (IOTA)
Launched in 2015, IOTA is based on a proprietary “blockless” blockchain called Tangle. Iota stands out from competing cryptocurrencies, in particular, thanks to strategic partnerships with well-known brands such as Cisco Systems Inc. and Samsung Electronics Ltd. to create a data marketplace that can be monetized later.
9 – Tezos (XTZ) Beginner’s Guide
Created in 2014 by the Breitman couple, Tezos is one of the main cryptocurrencies that uses smart contracts to perform anonymous and fast transactions. This crypto also makes it possible to create decentralized applications and uses blockchain technology.
The XTZ protocol is a code in the OCaml language. It is almost impossible to encounter cases of hacking or freezing of funds thanks to formal verification.
In addition, Tezos is conquering the financial world with a total valuation of billions of euros. Renowned companies have chosen to trust the chain of Tezos. We can cite among others: Dalma Capital, BTG Pactual, or Elevated Returns.
10 – Monero (XMR) Beginner’s Guide
Released on April 18, 2014, this virtual currency uses the CryptoNote algorithm to ensure greater confidentiality. In other words, anonymous payments are guaranteed by this cryptocurrency.
The main purpose is to fight against the disclosure of personal data of users of the Peer-To-Peer network.
Only the sender and receiver have access to the single-use address created by the transaction. The rise in the value of Monero since its launch is undoubtedly explained by this requirement of anonymity.
Investing in Cryptocurrency: 5 Easy Steps Beginner’s Guide
- 1 – Choose a broker to invest in cryptocurrencies – we recommend eToro
- 2 – Register with your online broker
- 3 – Fund your trading account
- 4 – Choose your crypto among the promising cryptocurrencies
- 5 – Open a crypto position
Step 1: Choose a Broker to do Crypto Trading Beginner’s Guide
First of all, you have to choose among the best crypto trading brokers available on the market in France, to invest by putting all the chances on your side. There are many platforms where to invest in Bitcoin and other cryptocurrencies. But how do you choose? A crypto broker will offer you all the tools but also trading training for very affordable trading commissions. Here’s a nudge from us, and a full tutorial to get started.
eToro is one of the most popular crypto trading platforms in the world, trusted and regulated by CySEC (Cyprus), FCA (UK), and ASIC (Australia). Founded in 2007, eToro has over 11 million users worldwide. It offers a very capable platform for investing in the cryptocurrency markets.
On eToro you will be able to trade 26 cryptocurrencies (including Bitcoin, Ethereum, Dogecoin, and more) with low fees. Their social platform allows investors to share their experience and expertise through an interactive platform. Their Copy Trader technology allows users to copy the trades of successful stock traders with 1 click and benefit from their expertise, making it an ideal choice for beginners.
Additionally, eToro also has one of the most user-friendly trading apps for trading on the go from iOS and Android devices.
Step 2: Open a Cryptocurrency Trading Account Beginner’s Guide
Our recommended platform is eToro. In the rest of our example, we will therefore use eToro to illustrate how to open your trading account, deposit funds, and open a position.
First, open your trading account on eToro. Then just follow these 3 steps:
- Find and click the “Join Now” or “Trade Now” button
- On the next web page, you will see an electronic form where you can enter the personal data that is needed to open a new trading account.
- Please enter all relevant personal information in this form. Logging in via Facebook or Gmail is an additional option.
Once your account is created, log in to it.
Step 3: Fund your Account Beginner’s Guide
The eToro platform allows you to open your trading account with a minimum deposit amount of just 50 US dollars (USD).
You should know that all customer accounts, including those of the French, are held in US dollars (USD) and not in euros (EUR). This is why your deposit will be immediately converted into USD dollars at the exchange rate in effect at the time of deposit.
It is also possible to credit your eToro account by the payment method of bank transfer, with a minimum deposit of 500 USD. But in this case, the funds will not be credited immediately to your account, it will generally take between 24 hours to 72 hours depending on the bank.
Cryptocurrency Investing: How Much Money Can You Make Beginner’s Guide?
To better understand how much money you can earn by trading cryptocurrencies, let’s take the example of the virtual currency ChainLink, which has seen its value multiply by 10 over the recent period.
Let’s imagine that you bought 1 ChainLink in August 2019. You paid 1.50 euros for it. By keeping it until August 2020, i.e. for 1 year, you would have earned 13.50 euros, the ChainLink having reached 15 euros last August, i.e. a gain of almost 900% in 12 months.
To get a better idea of the money that can be earned on the virtual currency ChainLink over time, let’s take a numerical example, with the following assumptions: an initial investment of 100 euros and an annual return of 900% realized on this investment.
- After 1 year, your starting capital increases from 100 euros to 1,000 euros.
- After 2 years, your starting capital increases from 100 euros to 10,000 euros.
- After 3 years, your starting capital increases from 100 euros to 100,000 euros.
So, Beginner should you invest in cryptocurrency in 2023? What are the main cryptocurrencies? From now on, you should probably see more clearly how to invest successfully in the most promising crypto-currencies. Investment in virtual currencies should remain buoyant today in 2023. But also in the years to come, according to cryptocurrency specialists.
To put the odds on your side, turn to a trusted broker like eToro. It will allow you to diversify your investment portfolio easily. However, remember to invest only what you can afford to lose.