Recently, it seems that everyone wants to buy cryptocurrencies. The very high profits when you buy cryptocurrencies are undoubtedly a powerful incentive. Unfortunately, not everything that glitters is gold.
Earning with Bitcoins and other cryptocurrencies is possible but risky (because of scams) and you have to trade in an intelligent way.
This guide explains how to buy cryptocurrencies without making mistakes and without paying for commissions. We will also talk about a secure (and easy to use) platform like eToro.
How To Buy Cryptocurrencies (Without Being Scammed)
Those who bought Bitcoin in 2014 or 2015 and then resold this in 2017 made spectacular profits. Probably, Bitcoin has been the financial asset that created more millionaires in the course of history.
Unfortunately, not all those who bought cryptocurrency became rich. In fact, many were cheated.
The best-known way to buy cryptocurrencies is to use exchanges. These sites offer the possibility to buy cryptocurrencies in exchange for dollars (rarely in exchange for euros) but throughout history, they have proved to be absolutely unreliable.
Just think that the first big scam, the MtGox exchange, was in 2014. The exchanges often close itself without warning making all the cryptocurrencies (and the traditional money) of the clients disappear.
Even more bizarre is the fate of those who had bought cryptocurrencies using the Quadriga exchange. Access to the system was lost with the death of the founder, who was the only one who knew the password. 140 million Bitcoins (and other cryptocurrencies) were lost forever.
There are some serious exchanges (or at least until now they have not given problems). However, they operate outside the rules and you never have the absolute guarantee of not being scammed by them.
Another type of fraud linked to cryptocurrencies is that of systems for making easy money. These are schemes that promise a very quick return on an initial investment. Unfortunately, these systems never work and those who fall into the trap lose all the money invested. An example of this type of system is Bitcoin Trader which we talked about some time ago.
What should anyone who wants to buy cryptocurrencies do then without the risk of being robbed? First of all, don’t believe in fairy tales since easy money doesn’t exist. Please use authorized and regulated platforms only.
Best Platforms to Buy Cryptocurrencies
The following platforms presented below are safe, reliable and honest because they operate in compliance with European legislation that defends savers’ money. These are authorized and regulated platforms because they have requested an authorization before starting to operate and are subject to continuous supervision by the competent authorities.
When you buy cryptocurrencies with one of these platforms, treat it as if you’re buying from a bank. But it’s not just a question of security: they are free platforms that do not charge commissions and we have also selected the easiest ones to use. Below we published a detailed review of some of the best (you can find full reviews of the best cryptocurrency platforms here).
eToro
eToro is a great option for those who want to buy cryptocurrencies and have absolutely no experience. It is very easy to use the platform but above all, it is the only one that offers the possibility to fully trade automatically.
How is this possible? eToro makes Copy trading available for free to all its members a patented software, called Copytrading. This new system allows you to identify investors who have earned the most with the lowest risk (Popular Investor).
These investors can be selected and copied automatically: all their transactions will be replicated automatically by the system.
Working with eToro offers the dual advantage of spectacular results right from the start and the possibility of learning to invest by watching live what the best investors in the world are doing.
You can subscribe to eToro for free by clicking here.Iq Option
Iq Option is used by many beginners who wish to buy cryptocurrencies. Aside from being really intuitive, it is the only platform that allows you to start with an initial capital of just 10 euros. The others usually require an initial investment between 100 and 250 euros (which is still a small investment).
This means that everyone can start trading. Subscribers have the opportunity to access hundreds of videos that explain in detail how to invest in cryptocurrency and other financial securities.
Iq Option offers a free, unlimited and unrestricted demo account and is perfect for those who want to do some simulations before starting to trade with real money.
How to buy Cryptocurrencies Always Go Up?
Until now we have seen how it is possible to buy cryptocurrencies without making mistakes and without getting scammed. Before continuing with our technical analysis it is essential to clarify one concept and that is “cryptocurrencies do not always go up”.
No financial security goes up forever. Cryptocurrencies went up a lot in 2017 and then in 2019 but in 2018, it collapsed.
Warning: this is by no means a problem for investors. The platforms where you can buy cryptocurrencies that we have presented in this article also allow you to sell them short.
Short selling is a purely speculative operation that generates a profit when the value of financial security falls. From a conceptual point of view, it is equivalent to selling a security that you do not own.
The smartest investors have the possibility of always earning money, both when the cryptocurrency increases in value and when it decreases. All they have to do is make the correct prediction.
Buy Cryptocurrencies: Bitcoins
To give a concrete example, simply make reliable Bitcoin price forecasts to decide whether to buy or sell it short. How can you make these predictions? Let’s say that those who use eToro do not have to make any forecasts, they just have to select the best investors to copy and they will make forecasts and decide what trades to do.
To make predictions on the Bitcoin trend, you can use technical analysis, which is based on the observation of the Bitcoin price charts, or fundamental analysis which is basically based on news. In practice, positive news makes the Bitcoin value increase, while negative news makes it decrease (it is a very intuitive notion).
What about the other emerging cryptocurrencies? Perhaps in this case deciding whether to buy or sell short is even easier because their value is closely related to that of Bitcoin. When Bitcoin goes up, they go up and when it goes down, they go down.
Buy Cryptocurrencies With Paypal
The impressive number of scams that have hit those who decided to buy cryptocurrencies have prompted many potential investors to look for solutions to buy cryptocurrencies with Paypal.
This way, these investors can at least secure their credit card number. It is not uncommon for less serious exchanges to sell customers’ credit card numbers directly to groups of hackers.
The solution, of course, lies in operating exclusively with authorized and regulated platforms that guarantee absolute security. Even with these platforms, you can use Paypal (as well as bank transfer and credit card) but in this case, it is a matter of pure convenience: whatever payment method you choose, Paypal will always remain secure.
Buy Cryptocurrencies On Facebook
Facebook recently announced that it will launch its own Libra cryptocurrency. As you can guess, as soon as Facebook made its announcement, the interest of investors went straight to the stars: everyone wants to buy Facebook’s cryptocurrency!
For a moment there, however, there is still no certain data on the launch date and the actual operation. It is not even certain when it will start to circulate. In any case, it will be a stable cryptocurrency designed to guarantee a more or less stable price.
In other words, with Libra, it will be possible to preserve its value but not earn profits from it. We do not have many details yet and we would have to wait to understand how to buy this and if it will be convenient to do so.
Conclusion
Buying cryptocurrencies is a great investment but you have to take into account of the many dangerous scams. It is advisable to operate only with authorized and regulated platforms that are safe:
In any case, cryptocurrencies, as well as any other financial security, cannot always rise. For this reason, those who decide to buy cryptocurrencies must choose the best transaction between buying and selling short depending on market conditions.
Leave a Reply