Investing in cryptocurrencies can be an exciting journey, but it can also be quite overwhelming. Among all my girlfriends, I’m the only one who has taken the plunge into crypto. Even though some of them are pretty tech-savvy, they still feel lost about how to start and what it’s all about.
I’m here to simplify things and give you a basic strategy for buying and holding, much like you would with stock market shares. Instead of going through a broker, you can buy crypto with a credit card and hold onto it.
First things first:
Getting Started
Before we dive into how to open an account and start trading, let’s talk about the basics. Even investing just €50 per month over a longer period can help you build a portfolio that might bring some benefits. Keep in mind that even with a well-researched portfolio I’ve been building over the last five years, I still have some tokens that are, well, crap. But the good ones usually cover any “losses” the bad ones generate. And remember, you only lose money if you sell at a loss. Some projects seem great at first but don’t last over time. Balance your investments to avoid losing too much on any single bet.
WTF Are Tokens and Coins, and How to Choose the Right One
To make it easier to understand coins and tokens, let’s compare them to familiar concepts in the real world.
Coins = National Currencies
- Example: Bitcoin (BTC), Ethereum (ETH)
- Definition: Coins are like national currencies such as the US Dollar (USD) or the Euro (EUR).
- Function: Used in the digital world for transactions, investments, or as a store of value.
- Independent Systems: Each coin has its own blockchain, like a country’s financial system.
- Analogy: Bitcoin is like digital gold—valuable and widely accepted. Ethereum is like a multi-purpose currency, used for transactions and powering applications.
Tokens = Store Credits or Loyalty Points
- Example: Tether (USDT), Chainlink (LINK)
- Definition: Tokens are like store credits or loyalty points you earn from specific stores or services.
- Function: Used within specific digital platforms or applications to access services or special features.
- Dependent Systems: Tokens rely on existing blockchains, like Ethereum.
- Analogy: Tether (USDT) is like a digital dollar used within the cryptocurrency world. Chainlink (LINK) is like a reward point for accessing and paying for specific services within certain platforms.
Practical Examples
- Coins: Bitcoin and the US Dollar
- US Dollar: Buy a coffee, pay rent, save in your bank account.
- Bitcoin: Buy digital goods, pay for services, or hold as an investment.
- Tokens: Store Credits and Platform Tokens
- Store Credits: Shop at a store, earn points, get discounts or special deals.
- Tokens: Use an app, earn or buy tokens, access special features or services.
How Do I Know Which One to Buy?
Basic Research:
- Check Reputation: Opt for well-known and stable options.
- Community: Look for large and active communities.
Market Check:
- Market Cap: Bigger is safer.
- Easy to Trade: High liquidity is essential.
Security & Legal:
- Past Issues: Avoid tokens with a history of hacks.
- Regulations: Ensure compliance with laws.
Price and Volatility:
- Stable Growth: Less risky.
- High Volatility: Higher risk, higher reward.
Quick Tips:
- Set Your Criteria: Balance stability vs. potential growth.
- Diversify: Don’t put all your money in one investment.
- Use Trusted Platforms: KuCoin, Coinbase, Binance.
- Stay Updated: Follow crypto news
Step-by-Step Guide to Opening an Account on KuCoin
I chose KuCoin because it’s one of the world’s leading cryptocurrency exchanges, highly recommended by Forbes Advisor and winner of Finder’s Highly Commended Award as one of the best global crypto trading platforms for 2023, with over 30 million users.
Sidenote: When you enter the platform, you’ll notice many tabs, which can be overwhelming for beginners, especially since it’s a trading platform. Trading involves buying and selling cryptocurrencies to capitalize on market fluctuations. However, if you’re not ready to become a trader, you can still use KuCoin to buy and store your coins. Simply hold onto them until you’re ready to sell.
Step 1: Visit KuCoin’s Website
- Open your web browser.
- Go to KuCoin’s official website and ensure it’s the correct site.
Step 2: Sign Up for an Account
- Click on “Sign Up” in the top right corner.
- Enter your email or phone number and create a strong password.
- Agree to the Terms and Conditions and hit the “Sign Up” button.
Step 3: Verify Your Account
- Check your email or phone for the verification code.
- Enter the verification code on the website.
Step 4: Secure Your Account
- Set up 2-Factor Authentication (2FA) using an app like Google Authenticator for extra security.
Step 5: Verify Your Identity
- You will need to go through identity verification to be able to make the purchase.
Step 5: Start Buying Crypto
- Go to the “Markets” tab: This section can be overwhelming at first, but it’s full of opportunities. It’s a place where you can learn which tokens or coins are worth investing in.
- Select the cryptocurrency you want to view: Apart from Bitcoin and Ethereum, explore categories like infrastructure, Web3, and DeFi, which represent projects that those tokens/coins support.
- When you are ready to buy, navigate to the “Assets” tab and click “Buy Crypto Directly.”
- Choose the amount you want to purchase with a credit card and select the cryptocurrency. Bear in mind that there are transaction fees, similar to any regular banking system.
- Finally, confirm your purchase.
Step 7: Store Your Crypto
- Your Crypto will be visible under the “Assets Tab”, in the “Funding”
- Keep it on KuCoin or transfer to a secure wallet for extra security. Consider a hardware wallet like Ledger or Trezor for long-term storage.
Step 8: Withdrawing Your Crypto
To withdraw funds from your Kucoin account, please follow these steps:
- Ensure you have a verified credit card and/or bank account linked to your Kucoin account.
- Navigate to the “Assets” tab and select the cryptocurrency you wish to withdraw.
- Click on the “Withdraw” button next to the chosen cryptocurrency.
- You will be prompted to add a new bank account. Accurately enter your bank account details, including the account holder’s name, account number, and SWIFT/BIC code.
- Confirm the withdrawal.
Note: Ensure you have sufficient funds in your Kucoin account to cover the withdrawal amount and any associated fees. Insufficient balances can result in failed withdrawals.
Step 9: Celebrate!
- Relax and enjoy your new crypto holdings. You’ve taken the first step into the world of crypto investing!
And there you have it, ladies! You’ve got the basics down, and you’re ready to join the crypto club. Remember to start small, do your research, and most importantly, have fun with it!