Crypto

Are you one of many Norwegians who have taken an interest in crypto? Digital currencies such as Ethereum and Bitcoin have taken the world by storm, and many dedicate their time to trading crypto.

If you are a little unsure of how to get started, you should read through this guide. We explain to you what crypto is in a simple way and how you can succeed with crypto trading.

What is crypto?

Crypto or “cryptocurrency” as it is actually called, is a digital currency that is not controlled by any bank or government authority. Ordinary traditional money, also known as the fiat currency, is exposed to both inflation and the central bank’s key interest rate.

Crypto will not be directly affected if a nation gets a bad economy, and you are in many ways your own bank. Cryptocurrency is not regulated by governments and banks. When it comes to fiat money, the central bank has control over transactions, accounts and balances.

Block chains and nodes

For cryptocurrency, which is digital currency, the above functions will be decentralized across a number of computers – also called nodes – within the cryptocurrency network. Each node is a total copy of the blockchain, and one cannot change one without having to change all of them.

A block chain can be described as a chain consisting of blocks. These blocks contain a data set with information about senders, amounts, recipients and the like. This data is used to form a general ledger, where, among other things, transactions are stored.

The general ledger will be stored on the network of computers. All transactions will be performed via the relevant blockchain. Bitcoin was the first form of crypto, and introduced the world to this smart technology.

Each block in a blockchain has a unique hash code. This makes it possible to identify the block in question and its contents. The block also contains the code of the previous block, so that a virtual “chain” is formed.

Why is crypto so secure?

Blockchains have a number of safety mechanisms. If someone tries to hack a block for financial gain by changing the information there, the hash code must also be changed. Since the block has stored the code of the previous block, the chain will be broken.

In addition, Proof-of-work is used, a safety mechanism that regulates how long the production of new blocks takes. This makes it more difficult to change the blocks.

Another security measure for crypto is the distribution of nodes between people who want access to the blockchain. All users can be a node, and then have a full copy of the relevant blockchain. Should anyone add another block, this is sent to all nodes in the chain.

The block is then checked and often approved by using algorithms with advanced cryptography.

Advantages and disadvantages of investing in crypto

Crypto can have a number of benefits. Many people invest in crypto in the hope of making money. Cryptocurrencies can rise (or fall) in value in a short time, which can lead to a lot of gain or loss. Such investments are therefore risky, but can also be profitable.

Many people also want to have crypto as a simple, secure and fast payment method. The number of websites and shops that allow you to pay with cryptocurrency is limited, but there are some. For example, many people use Bitcoin as a means of payment at online casinos .

A big advantage of crypto is the security aspect and the fact that you do not have to share sensitive information when trading cryptocurrency.

However, there are also some challenges related to the fact that it is difficult to see who the funds come from and where they may be sent. Blockchains are therefore used by some criminal enterprises, as no third party is needed to document the transaction.

How to get started with crypto?

It is easy to get started with buying, exchanging and selling crypto. The first thing you need to do is sign up for a crypto marketplace. This is a platform that allows you to buy, store, exchange and sell crypto. An example of such a site is eToro.

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eToro is registered and approved by Finanstilsynet, which is important to take into account before you register on a crypto marketplace. Register a user account with the platform, and then deposit a desired amount of money.

You can usually deposit money using traditional payment methods – such as PayPal or Visa. Once the deposit is confirmed you can start buying crypto. You can then choose between different types of crypto, such as Bitcoin, Ethereum, Dogecoin and the like.

If you are unsure of exactly what you should invest your money in in cryptocurrency, it may be a good idea to use copy trading for crypto. This means that you can copy the actions of other more experienced users. It does not get any easier, and even beginners can succeed.

What is the most popular crypto on the market?

Bitcoin is without a doubt the most popular form of crypto in Great Britain and elsewhere in the world. This was also the first form of crypto ever launched, back in 2009.

However, there are other popular types of cryptocurrencies as well. In total, there are more than 2,000 different varieties worldwide. Below you will find an overview of some of the most popular types:

• Bitcoin (BTC).
• Litecoin (LTC).
• Bitcoin Cash (BCH).
• Monero (XMR).
• Ethereum (ETH).
• Ethereum Classic (ETC).
• Tether (USDT).
• Binance Coin (BNB).
• Cardano (ADA).
• Ripple (XRP).
• Solan (SOL).
• Dogecoin (DOGE).
• DAI .
• Polkadot (DOT).
• Dash.

Do you want to buy crypto?

If you want to get started with crypto, it is relatively easy to get started without any particular prior knowledge. Today, almost anyone can trade crypto, thanks to user-friendly solutions such as copy trading and the like.

You can buy crypto via platforms such as eToro, or other solutions we recommend on this page. Choose from countless types of cryptocurrencies, including Bitcoin and Ethereum.

Maybe you will be the next person to trade crypto on eToro or other marketplaces?

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FAQ

[sc_fs_multi_faq headline-0=”h2″ question-0=”Må man betale skatt på krypto?” answer-0=”Ifølge Skatteetaten skal krypto betraktes som et formuesobjekt. Det betyr at du må betale formuesskatt om beløpet overstiger 1,5 millioner kroner. Du må også skatte 22 % av gevinst.” image-0=”” headline-1=”h2″ question-1=”Hvor kan jeg kjøpe krypto?” answer-1=”Du kan kjøpe krypto på markedsplasser som eToro og andre børser med kryptovaluta. Du trenger bare å registrere deg og gjøre et innskudd for å starte.” image-1=”” headline-2=”h2″ question-2=”Hvor mange nordmenn eier krypto?” answer-2=”I dag finnes det mer enn 200 000 nordmenn som har investert i kryptovaluta. Skatteetaten anslår at opptil 235 000 personer i Norge eide krypto i 2019. I dag er nok tallet høyere.” image-2=”” count=”3″ html=”true” css_class=””]