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01.06.2022
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You should keep this in mind when buying cryptocurrency
In Great Britain , anyone who wants to can buy cryptocurrency . Are you one of those people who googled the coin price of one bitcoin and were intimidated by the value that came up? At the time of writing, one bitcoin is worth 392,477.89 Norwegian kroner, but you do not have to pay this.
392 677.89 is the price you have to pay to buy one whole bitcoin, but it is not the only option. You may have heard it, but then we can reassure you that this is only a myth. The reality is that there is no framework in connection with this. If you want to buy bitcoin or another cryptocurrency for 500 kroner, then you can.
Purchasing cryptocurrency can be done in different ways. You can either do it as an individual or your business can do it. The latter, of course, presupposes that you own a business or that your boss engages in this type of speculation.
Buying cryptocurrency is a very extensive process. Since there is a lot going on at once, it can be easy to forget some little things. Therefore, this article will include some tips that you should keep in mind when buying cryptocurrency.
[etoro]It is becoming increasingly easier to buy cryptocurrency
Yes, it is actually becoming easier to buy cryptocurrency. Before, there were only two approaches:
- An individual could buy cryptocurrency from another individual.
- You could buy cryptocurrency directly from foreign exchanges.
But in recent years it has said, but certainly become much easier to buy cryptocurrency. Not so many years ago, Finanstilsynet came up with a scheme where companies that wanted to sell cryptocurrency could register. This scheme can be described as a kind of turning point for crypto investment in this country.
In the past, it was often the case that cryptocurrency was something you could have. It was not possible to use it, as cryptocurrency is not considered an official means of payment. In 2022, however, this is about to change. At first, many were very skeptical of the concept of cryptocurrency, but now it has become more accepted in society in general.
It has also made it easier to use. In some countries, it is actually allowed to pay with cryptocurrency for quite ordinary things, such as buying a bottle of water while walking in the streets. But with that said, it is not like that in Great Britain yet. Here’s how to put one together for use today:
- You decide which cryptocurrency you want to buy.
- You will find a cryptocurrency exchange that offers this cryptocurrency.
- You create an account with this crypto exchange and verify your account.
- Then you buy as much cryptocurrency as you want to buy.
6 more tips when buying cryptocurrency
Although it is becoming increasingly easier to buy cryptocurrency, it is important to emphasize that it is a comprehensive process where it is important to do thorough research.
In this process, it is also important to focus on details. Below we will go through some of the details that are easy to forget in the heat of the moment.
[etoro]Remember that cryptocurrency is risky
It is important to keep in mind that it is very risky to engage in cryptocurrency. But why is it really like that?
In connection with cryptocurrency, it is not uncommon to hear expressions such as “volatility”, and in front of this word the adjective “high” has often been placed. High volatility indicates that the exchange rate for cryptocurrency varies to a very high degree. This means that you can earn a lot on the investment and then lose as much and maybe even more the next day.
With that said, there are some exceptions (such as different types of stack coins). The meaning lies a bit in the concept itself, where the course tends to stay at a slightly more stable level. Nevertheless, this is not a typical characteristic of cryptocurrencies, as most are associated with high volatility.
Therefore, you take a big risk by buying cryptocurrency. It may be easy, but you risk losing a lot of money if the graph shows the wrong way.
Do not focus on new and unknown projects
This point is somewhat related to the previous one. Because cryptocurrency is so risky, it would not be a good idea to invest in unknown projects. In addition, you should steer clear of projects that appeared very recently.
As mentioned in the introduction, this is an industry that is constantly evolving, and the development means, among other things, that new cryptocurrencies appear here and there. If not daily, then at least on a very regular basis. These actors often have some common features that it is important to be a little aware of:
- Some cryptocurrencies market themselves by claiming that the service is based on a technology that will blow the competitors off course.
- The players promise you gold and green forests, for example through the fact that you are guaranteed so and so much return in such and such a short time.
It is easy to be flattered by these obvious benefits. But what sounds too good to be true is usually the case. Therefore, it will definitely be a good idea to steer clear of these offers, as well as to familiarize yourself properly with the service that you decide to accept.
There is also a real chance that these great deals are ultimately an attempt to deceive you. Therefore, you are doing yourself a disservice by using only well-known and well-established projects.
Only shop with serious players
As mentioned in the introduction, it is possible to buy cryptocurrency in different ways. As a private person, you can buy both from another private person or through a crypto exchange. Although it is possible to do both, it is without a doubt the latter that is most beneficial.
But there is one thing cryptocurrencies and cryptocurrencies have in common, and that is that there are many different ones out there in the cryptosphere. There are hundreds of cryptocurrencies, and the same goes for crypto exchanges.
Crypto exchanges can also be divided into two categories, and they are “ordinary crypto exchanges” and decentralized exchanges. The latter are also called DEX exchanges. The amount of crypto exchanges makes it a bit difficult to navigate through the huge selection, but you should steer clear of the DEX exchanges, because they are not regulated in the same way as the “regular” ones.
Our best tip when it comes to trading cryptocurrencies is that you only use serious players. But how do I know they are serious, do you think? Take a look at Finanstilsynet’s register. All serious players are listed there. If you do not find your current player, then it may be a sign that you should continue the search.
[etoro]Do not buy more than you can afford to lose
This is a point that should say itself, and that it belongs a bit with the two previous points, and perhaps especially the last. And it’s like this: Do not buy more than you can afford to lose!
It is important to keep in mind that most cryptocurrencies are associated with high volatility, and that means you may lose money. Even on stack coins, which are known to have a slightly more stable exchange rate, you can lose money, because there is no guarantee that the graph money up or down.
Buying cryptocurrency is not something you should jump in with both legs at once. Do not take the risk of investing your entire monthly salary, because you may suddenly end up taking a full-year salary. And of course no one wants to experience that!
Store the cryptocurrency in a safe place
It can be tempting to store your cryptocurrency at the stock exchange you have bought, but what happens if the stock exchange you traded at goes bankrupt? Then the values go into the suction, and you are left with nothing.
Being left with zero and nothing is very awkward, so you should make sure to store your cryptocurrency in a safe place. Here, too, there are many options, and several of them are good, but creating cryptocurrency in one of your cold wallets is one of the better options. This also protects you against hacking.
Familiarize yourself with the applicable tax rules
Another thing that is important in connection with the purchase of cryptocurrency is to familiarize yourself with the tax rules that apply to you .
Gains from any investment in cryptocurrency are taxable. This applies regardless of the size of the win. You are obligated to pay tax on it anyway, and it is your responsibility to file it in the tax return.
It may be tempting to drop it, but it does not have consequences for anyone but yourself. The tax authorities have a number of tools that they use to map this, so it is best to be honest from the beginning.
