A few years ago, a completely new means of payment appeared. We are of course referring to the means of payment «cryptocurrency», but this is probably not the description most people have of this. However, if you use the term “bitcoin”, then many more will know what you mean.
Bitcoin is a type of cryptocurrency that took the world by storm a few years ago. Technically, this cryptocurrency saw the light of day for the very first time in 2008, but it would be a few years before the cryptocurrency really took off. It first happened in the period 2014-2015.
Since Bitcoin first appeared in 2008, more and more people have opened their eyes to this market. This led to the emergence of many other cryptocurrencies in the years that followed. Some examples are Ether and Litecoin which appear in 2015 and 2011 respectively.
Despite the fact that cryptocurrencies have gained a better foothold in society now, it is not to be underestimated that it is a process that is much more risky than using traditional payment methods. Therefore, we will give you some buying tips in this article![main] Familiarize yourself with the market and with the relevant cryptocurrency
The first, and perhaps one of the most important, tips we can give you in connection with cryptocurrency, is that you should familiarize yourself with both the cryptocurrency market and the relevant cryptocurrency before you start investing.
Cryptocurrency is not the same as it was when Bitcoin entered the market before the first time. There is quite a lot that has changed since then, and it is very important to keep that in mind at all times when dealing with cryptocurrency.
It may be tempting to seek advice from someone who seems to have more experience than you in this area, but that does not necessarily mean that it is a good idea. Because it is not certain that what worked for them will work just as well for you.
With that said, it’s not like you should not take advice from others. What we are really trying to say is that you are welcome to do so, but by all means – it is you who will make the decision in the end. And then your own opinions should outweigh the opinions of, for example, your best friend.
Cryptocurrency is a risky sport
In addition, it is important to keep in mind that cryptocurrency is actually a risky sport. It’s easy to forget it in the heat of the moment, but it’s a game of chance you’re doing. The reason for this is that most cryptocurrencies are characterized by very high volatility.
Volatility is a term used in connection with how the value of the relevant cryptocurrency increases and decreases. This is something that can be done relatively quickly. The value of cryptocurrencies may have changed from the time you start writing a sentence until you finish.
This is also the reason why many people choose to steer clear of cryptocurrency as an investment tool, simply because of the uncertainty that it entails.
However, not all cryptocurrencies are characterized by high volatility. Believe it or not, there is actually an exception, and this exception is called stablecoins. In Norwegian, it translates to stable coins, and that’s exactly what it is. Stablecoins offer stability!
Stablecoins – a safe investment .
Cryptocurrency can be a good investment
Despite the fact that most cryptocurrencies have high volatility, it is in fact the case that cryptocurrencies can actually be a good investment. It is of course important to see it all from a slightly critical point of view, but such an investment can lead to positive things for you!
The enormous development that the cryptocurrency Bitcoin has had is a good example of how investing in cryptocurrency can be very profitable in the long run. The value of Bitcoin has increased greatly over the years. At the time of writing, 1 Bitcoin is worth over half a million!
This naturally means that you were one of those who let the doubt benefit the cryptocurrency when it first appeared on the crypto market in 2008 and suddenly became hugely popular in the period 2014-2015!
But do not jump into it with both legs immediately
After reading what we wrote above about cryptocurrency, it may be tempting to enter “new cryptocurrencies with enormous potential” in the search field on Google, and then start the investment process immediately.
But there is something we really advise you not to do. Instead, it will be wise to have your tongue straight in your mouth, and not jump into it with both legs as soon as the opportunity arises. As mentioned, most cryptocurrencies are characterized by high volatility , and it is important to keep this in mind.
What seems like a good investment today does not have to be tomorrow. This is what high volatility means in practice in connection with cryptocurrency. For the same reason, you should be critical of taking part in projects that are very new to date, because it can have fatal consequences for you.
Use only certified sellers
Today’s crypto market is full of different crypto exchanges, and it can be difficult to decide which crypto exchange to use.
There are many crypto exchanges out there, on which you can buy and sell cryptocurrencies, but that does not mean that they are all equally good. In fact, it is important that you do proper research and find out which crypto exchange is the very best. But how can one really know that?
The safest way is to use only certified salespeople. But what does it really mean to be a certified salesperson? In short, this means that the platform is registered with Finanstilsynet – or in another state, if you use a foreign crypto exchange.
Below we will look at some good examples of Norwegian crypto exchanges that are registered with Finanstilsynet. It is not that difficult to find a good crypto exchange – you just have to take the time to look for it!
Binance is a foreign crypto exchange. This is a crypto exchange that was launched for the very first time in 2017, and since then it has become very popular. In the few years, this crypto exchange has managed to become one of the world’s largest crypto exchanges. It’s quite impressive!
This is a crypto exchange that was originally launched in China, but which after a few years on the market decided to move operations to Malta. This change was a fact in 2019!
Binance is characterized by a large selection of cryptocurrency-based services, as well as the fact that they operate with very low trading fees. In other words, this crypto exchange has very low fees!
This crypto exchange will work well for you, no matter how much experience you have. Whether you are considered a beginner by yourself or others, or have many years of experience in the field, you can use this platform as easily as just that.
eToro is a Norwegian crypto exchange, which has been part of the crypto market since 2006. This crypto exchange is popular with both Norwegian and foreign users, which has led to this crypto exchange being regulated by several players.
To give you a slightly better indication of how popular this platform actually is, we can say that worldwide there are 9 million people who use eToro when they buy or sell cryptocurrency. We do not know about you, but we think it is very impressive!
Therefore, this may be self-evident, but we still say it: eToro is one of the world’s most popular crypto exchanges. It is not beneficial for only those who use this platform. Because it is also practical for those who run this service.
The fact that the platform is so popular has led to the platform being listed on the stock exchange. In practice, this means that it is possible to invest in the company itself by buying shares in it. In other words, it is a platform that offers much more than just investing in cryptocurrency.
There are also other Norwegian crypto exchanges you can use, and one of them is the crypto exchange Firi. This crypto exchange is probably better known as MiraiEx, which is the name this platform went under earlier. But now it picks up Firi.
You can feel completely confident that Firi is a safe player, because this crypto exchange is registered with Finanstilsynet. In other words, Finanstilsynet has approved this cryptocurrency exchange, and it tells us that this is a very good alternative in connection with cryptocurrency.
As this is a Norwegian crypto exchange, this crypto exchange operates with Norwegian currency. This means that you can pay with Norwegian kroner, and that is perhaps what makes this such a popular platform among Norwegians. Because it is very easy for Norwegians to understand!
Firi requires that you identify yourself using BankID, and you can use your regular bank to make deposits and withdrawals. For those who are generally skeptical of cryptocurrency, this can act as a kind of security. And it is without a doubt beneficial for this platform!
Coinbase (or coinbase.com)
Here we have another foreign crypto exchange. This crypto exchange is called Coinbase, but it also goes by the name “coinbase.com” since it is the crypto exchange’s URL. This is a crypto exchange that can be used by people all over the world.
This is a crypto exchange that will work well for you, regardless of which cryptocurrency you want to buy or sell. Coinbase gives you the ability to handle both Bitcoin or other forms of Altcoin. In other words, there are many opportunities here!
This crypto exchange is suitable for both beginners and experienced users of cryptocurrency. This is possible thanks to the platform’s design which appears more or less seamless! The platform is also known for being very user-friendly, which is very positive.
Coinbase belongs to the category of crypto exchanges that allow you to complete transactions using a debit or credit card. There is another factor that makes this platform a very attractive option for most people!
Be sure to pay tax on your winnings
There is one other thing that is easy to forget when you are lucky enough to get a return on your investment, and that is that you actually have to pay tax on the gain.
Whether you have a role as a seller or buyer in the transaction, you must tax the gain. All gains in connection with cryptocurrency are taxable . This means that this is something that must be entered in the tax return when it is to be filled in.
However, it can be tempting to try to sneak away from just this. But we can tell you right away that would be a very stupid idea. The reason for this is that the Tax Administration (which is responsible for tax in Great Britain ) has developed tools to capture this.
If, on the other hand, you should be so unlucky to lose on your investment, then you should actually list this as well. What happens then is that you may receive a tax deduction. And it is without a doubt very positive if it turns out to be the case!
Keep your inventory in a safe place
After you have decided which crypto exchange you want to use, you are almost done. Once you have found a cryptocurrency exchange that works well for you, it is time to buy or sell cryptocurrency.
Whether you are selling or buying cryptocurrency, it is important that you keep your inventory in a safe place . The purpose of this is to ensure that you do not end up in a situation where your inventory is stolen.
To make sure you avoid it, it’s best to keep the cryptocurrency in a place that you have control over. Even if the crypto exchanges insist that it is safe to keep your cryptocurrency with them, we would recommend that you take this with a pinch of salt.
It is important to remember that crypto exchanges are something completely different from the banks in which you keep your regular money! Unfortunately, it is a fact that crypto exchanges are not insured in the same way as regular banks.
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