In recent years, there is a particular concept that has been on everyone’s lips, and that concept is cryptocurrency. Regardless of whether it is something you have a relationship with or not, the chances are high that they know what it is. Most people have also formed an opinion about the phenomenon.
Cryptocurrency can become an obsession for those who believe in technology
If you belong to the group of people who are fascinated by cryptocurrency as a payment method, then you have probably familiarized yourself a bit with the topic. And then you have probably found out that there are quite a few details behind it for this to work optimally.
Therefore, using a guide will be very relevant for those who use cryptocurrency as a means of payment for the very first time. And that is what this text should be for those who feel that this is a paragraph that concerns them.
Below we will take a closer look at some of the most popular cryptocurrencies available in the cryptocurrency market, as well as various crypto exchanges that most people apparently like to use when investing in cryptocurrencies.
Cryptocurrency for beginners .
In connection with cryptocurrencies, you can also see that there are several of them that may be a little (or quite a lot, in some cases) similar to each other. Then it is very likely that the latest cryptocurrency is the result of a ” hard fork ” that has arisen behind the scenes.
Very often it is precisely a “hard fork” that is the reason why a new cryptocurrency appears. In practice, this means that there are two or more parties who have not agreed on how to proceed.
It is not uncommon for a “hard fork” to lead the parties to choose to break off cooperation. After the collaboration is broken, the breaking party begins the work of implementing the changes they wanted in something new. And that results in just that – a new cryptocurrency!
The very first cryptocurrency that appeared in what we know today as the cryptocurrency market was the cryptocurrency Bitcoin. This cryptocurrency was developed by a man named Satoshi Nakamoto in late 2008.
Bitcoin is developed based on an open source code and a peer to peer network. In practice, this means that you are not dependent on an independent third party to complete a transaction, and that anyone can use the code to develop something new if they want to.
At the time of writing, we are in 2021, and now we know that those who chose to invest in bitcoins in the very beginning did something that would later prove to be quite smart. The value of one (1) bitcoin today is 568 660.58 Norwegian kroner. That’s over half a million kroner!
This means, however, that bitcoins will be an expensive investment today, which in practice means that it is certainly not equally relevant for absolutely everyone.
If you are one of those who think that bitcoins may be the most expensive made for you, then there is also something called altcoins. This is a summary of the words «alternative» and «coins», which in Norwegian is translated into alternative coins.
It is easy to think that it is believed to be another alternative to the traditional means of payment, but that is not actually what this term refers to. The term “altcoin” actually refers to an alternative to bitcoins.
Thus, it can be said that Altcoin is a collective term for a collection of cryptocurrencies that people can use instead of Bitcoin. These are some of the cryptocurrencies that are often referred to as an “altcoin”:
Traditionally, when it comes to cryptocurrencies, the value of the various cryptocurrencies varies greatly. At the time of writing, 1 Bitcoin Cash is equivalent to 5876.54 kroner, while 1 Ether and 1 Litecoin are equivalent to 40 864.59 and 2370.86 kroner, respectively.
In addition to bitcoins and altcoins, there is one other cryptocurrency in particular that is very popular. It goes by the name Stablecoin, and there is a specific reason why the cryptocurrency has been given this very name.
Most cryptocurrencies are characterized by high volatility , but Stablecoin stands out here. As the name of the cryptocurrency suggests, Stablecoin is a cryptocurrency that is a little more stable than the other cryptocurrencies on the market. Stablecoins thus have a much lower volatility.
Like Altcoin, Stablecoin is a kind of collective term, because there are different types of stablecoins as well. Stablecoins can actually be divided into three different main groups:
Stackable coins with security in fiat.
Stablecoins with security in cryptocurrency.
Stablecoins without security.
There are many examples of each major group of Stablecoin. For example, the cryptocurrency DAI is a good example of Stablecoin with security in cryptocurrency. This means that you can buy stack coins with security by combining, for example, Bitcoin and Litecoin.
No matter what cryptocurrency you want to invest in, you depend on a cryptocurrency exchange to do so.
It is a relatively simple process, but it works in exactly the same way with cryptocurrencies as it does with cryptocurrencies. Crypto exchanges are something many people need, and it has resulted in many people investing in this as a business.
The result of this is of course that there are many crypto exchanges to choose from. There are both Norwegian and foreign crypto exchanges, and several of them are good. Therefore, it is important to familiarize yourself with what options you have when it comes to this as well.
Below we will give some examples of both Norwegian and foreign crypto exchanges, as well as go a little closer to each crypto exchange in the same way as we did above in connection with some of the cryptocurrencies that exist on the crypto market today.
English e crypto exchanges
First of all, we will take a closer look at some of the Norwegian crypto exchanges. Some classic examples of this are the crypto exchanges Binance, eToro and Firi.
One of the crypto exchanges you can consider is the crypto exchange Binance. Through this crypto exchange you get the opportunity to invest in cryptocurrencies while avoiding the very large fees that other crypto exchanges tend to operate with.
Binance is also a crypto exchange that gives you the opportunity to invest in different cryptocurrencies. It is very convenient, especially if this is something you want to do. Then a large repertoire may be a prerequisite for which crypto exchange you choose to use.
In connection with the crypto exchange Binance, the benefits come like pearls on a string. One of the other benefits is that you can use traditional payment methods such as Mastercard and Visa when investing in cryptocurrency using Binance.
Here it can also be mentioned that Binance is known for being very easy to use. This means that this is a crypto exchange that is perfect for you. In connection with Binance, it does not matter if you are completely new to the game, or if you already have a few years behind you.
eToro is a crypto exchange where you can access a large selection of cryptocurrencies. Therefore, this can be a good exchange to use, especially if your plan is to invest in some form of Stablecoin with cryptocurrency as security. Then you get everything done in one place!
However, this is not the only reason why eToro will be a good choice when it comes to choosing a crypto exchange. This crypto exchange will also be very easy to use. Therefore, there is no reason to hesitate if you are considering choosing eToro as a cryptocurrency exchange.
Another advantage of choosing this cryptocurrency exchange is that they allow you to use “traditional” payment methods to invest in the cryptocurrencies. By “traditional” payment methods we naturally mean payment methods such as Mastercard, PayPal and Visa.
Another crypto exchange that is considered to be Norwegian is Firi. To many it may sound like this is a relatively new crypto exchange, but it is as far from the truth as it is possible to get. Firi went by the name MiraiEx before, which is a term that is far more familiar!
No matter who you turn to when it comes to this crypto exchange, we can guarantee you that most people will characterize it as a secure crypto exchange. Because that’s exactly what it is! In addition, it is Norwegian, and there is something that further strengthens the overall impression.
There is one small detail that makes Firi an even better choice, and that is that this crypto exchange has a license from Finanstilsynet. In practice, this means that you can feel completely confident that this is a good alternative, because the Norwegian financial authorities have reviewed and ensured that it is.
By using Firi (formerly MiraxEx) you also get the opportunity to use bank transfer as a payment method. This simply means that Firi allows you to transfer the amount you want to invest in cryptocurrency directly from your bank.
Foreign crypto exchanges
There are also crypto exchanges that are foreign. But that of course does not mean that they are any worse for that reason! Which country the crypto exchange is operated from plays a relatively small role here. In fact, many of the foreign crypto exchanges are very popular among Norwegians.
Coinbase.com is a classic example of a foreign crypto exchange that has really fallen in love with Norwegians.
This is a crypto exchange that more or less gives you the opportunity to indulge in cryptocurrencies. In fact, they have such a large selection! To be a little more accurate, Coinbase.com offers well over 50 different cryptocurrencies, so there is plenty to choose from!
In connection with Coinbase.com, you can choose between two different options, and they are Coinbase and Coinbase Pro. Coinbase.com also offers a number of analysis tools that you can take advantage of in your investment.
Coinbase.com is a platform that is suitable for both beginners and people who have invested a lot in cryptocurrency before and who can be described as “advanced” in the game.
Coinbase was early to create a platform for learning and trading.
Advantages and disadvantages of cryptocurrency
There are both advantages and disadvantages to using cryptocurrency. From our perspective, there are undoubtedly more advantages than there are disadvantages.
One of the biggest benefits of cryptocurrency is without a doubt that you avoid the large fees that you have to pay when you complete a transaction in the bank. It is also not uncommon for the bank to make it a more time-consuming process than cryptocurrency.
But in connection with cryptocurrencies, it is important to be aware that very many cryptocurrencies are characterized by high volatility. This means that the value of your inventory can, in the worst case, increase and decrease faster than you can pronounce the word “cryptocurrency”.
The exception to this is the cryptocurrency Stablecoin, which is known for its low volatility. In connection with the cryptocurrency, you do not have to worry about value fluctuations in the same way. And that has made this a very popular cryptocurrency for very many.
How to invest in cryptocurrency
And then to the question that many people are wondering: How do you actually invest in cryptocurrency?
As we have seen above, there is a huge selection of both cryptocurrencies and cryptocurrencies. In practice, this means that you have to find out which cryptocurrency you want to invest in, and then you need to find a cryptocurrency exchange that will let you do that.
After you have done that, you will have to create a user account on the relevant crypto exchange in order to proceed in the investment process. How this is done will vary slightly depending on which crypto exchange you choose to use:
Some crypto exchanges only require you to register.
But there are also crypto exchanges that want you to verify yourself in other ways, such as using BankID. This is very often the case when you choose to use a crypto exchange that is Norwegian.
After you have registered, and possibly verified yourself, the rest is more or less plank driving. All you have to do then is make a deposit to your user account. This will then be the starting point for your further investment!
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