How to Buy Cryptocurrency – Easy Beginner’s Guide 2020

Bakkt exchange

Cryptocurrencies are becoming mainstream, and nearly everybody has at least heard of Bitcoin in the past two years. At the moment, there are over 3.000 cryptocurrencies available, and new crypto projects are starting every day. Large companies like Google and Facebook are exploring options to leverage the technology and possibilities cryptocurrencies offer, and even the big financial movers like JP Morgan are into crypto. It is, therefore, not surprising that investing in cryptocurrencies a hot topic around the globe. The big financial institutions are ready to move into crypto, but are you ready?

One of the fastest options to buy cryptocurrency is using a cryptocurrency exchange that offers the option to buy crypto via credit card. Binance fits the bill and offers its customers easy and quick Bitcoin and Ethereum credit card purchases. If you would like to buy some crypto now, simply follow the quick guide below:

Quick Guide – Buy Ethereum (via Credit Card)

  1. Register on Binance & set up your account
  2. Click on “Funds” and then “Deposits.”
  3. Click on “Buy BTC & ETH with credit card” in the upper right corner.
  4. Choose the amount and click on “Buy now” after selecting Ethereum
  5. Follow the payment processors instructions

After you have confirmed the transaction, your balance on Binance will be updated shortly. You should also receive a receipt via email once everything has been processed. Now you can either keep your Ethereum or Bitcoin on Binance, exchange it for other cryptocurrencies or withdraw from the exchange.

How do I store cryptocurrencies?

Here are the available options:

  • Software Wallet
  • Online Wallet
  • Mobile Wallet
  • Hardware Wallet
  • Paper Wallet
  • Exchange

Why should I invest in cryptocurrencies?

Investing in cryptocurrencies is not for the faint of hard as there is a lot of volatility. Really. Prices for cryptocurrencies move often and violently. On some days, the entire market can move down or up in the tens of percent, easily wiping out our adding billions of dollars in market capitalization. The volatility, the risk, and the myriad of options, however, make buying cryptocurrencies so interesting. Where else do you have the chance to realize gains that eclipse 100x, 1.000x, or even 10.000x of your investment? Some might now say that this is not different from using leverage to bet on traditional stocks or commodities but is very different. If you are speculating with leverage, your risk scales with your leverage. True, a 100$ investment with a 10.000x factor may turn into a million dollars, but you might just as well lose a million dollars due to how leverage works. With traditional cryptocurrency investing (no leverage or margin), you cannot lose more than your invested capital in the worst and stand to make fantastic profits if crypto goes mainstream. Cryptocurrencies could be the once in a lifetime chance for average Joe to make it big with a high but justifiable risk.

But why is investing in crypto better than simply gambling?

The answer to this question is simple. The underlying technology and the possible use cases are what fuels the growth of the cryptocurrency market.

How much profit is possible with cryptocurrencies?

A difficult question to answer. With about 200 billion USD in market capitalization, cryptocurrencies are still far away from the heavyweights in the financial world. Even the global gold market dwarfs crypto by a factor of 40x.

To put crypto in perspective:

  • The global market for derivatives is worth 542. USD – 542 Trillion USD
  • The global market for debt is worth USD – 244 Trillion USD
  • The global market for stocks is worth USD – 78 Trillion USD
  • The global market for gold is worth 7.700.000.000.000 USD – 7,7 Trillion USD

But what does this mean for the possible profit?

Let’s take gold as an example. Should crypto reach the same market cap as the global gold market, it’s market cap would increase by about 40x. Should crypto replace the entire financial system, we would be looking at a factor of about 2700x in terms of market cap. While the latter may be quite farfetched, many analysts believe that cryptocurrencies have a lot more potential than just catching up to the relatively small global market for gold. There is a reason why institutional money is seriously considering crypto as an investment and why a lot of governments and businesses are looking into blockchain and crypto tech in the past few years.


But what are cryptocurrencies?

Cryptocurrencies describe a type of digital currency that leverages blockchain and cryptography technology to achieve to serve as a decentralized, transparent, and immutable currency.

Are cryptocurrencies legal?

Cryptocurrencies are legal in most countries around the world. Crypto is not even regulated in most countries. You should, however, make sure that you check whether a certain cryptocurrency is legal in your country or not as there are currently over 3000 different cryptos on the market.

Are cryptocurrencies safe?

Many cryptocurrencies are safe to use, buy, or sell. Especially the well-known cryptos like Bitcoin, XRP, Ethereum, etc. are considered to be safe by most users in the community. You should, however, always be careful with smaller and lesser-known projects. Not all cryptocurrencies are made and distributed by honest people, and there have been many scams over the last ten years since Bitcoin was first released. Always do your due diligence research and never invest more than you could afford to lose.

Could I lose all my money?

Yes, that is possible. While the chances of cryptocurrencies going away at this point are slim, it is not impossible. The technology could become outdated and replaced by something better, a breakthrough in quantum computing could render the cryptography protecting most cryptocurrencies obsolete, or countries could start to completely ban crypto and make it impossible to convert crypto into FIAT or vice versa. Not likely, but one should keep in mind that unforeseen things could happen that completely crash the market.