How to invest in crypto currency: full guide for beginners 🚀
📌 What is cryptocurrency and blockchain?
Cryptocurrencies are digital assets based on blockchain you to record and secure transactions without intermediary. Unlike traditional currencies, they do not depend on any central bank and operate thanks to a decentralized network of computers validating each transaction.
🔹 Bitcoin ( BTC ) , the first cryptocurrency, was created in 2009 to offer a decentralized and infalcyable means of payment. Since then, thousands of other cryptos have emerged, such as Ethereum (ETH) , which allows the execution of smart contract S and the development of decentralized applications ( dApp S ).
💡 Blockchain is based on cryptography to guarantee the security and immutability of transactions. Each transaction is recorded in the form of blocks linked together, thus creating an infalcy and transparent database.
📌 Why invest in crypto money?
Investing in crypto money can have several advantages :
✔️ Growth potential : assets like Bitcoin and Ethereum have displayed exponential growth in recent years.
✔️ Diversification of the portfolio : The crypto allows you to expose itself to an asset not correlated with traditional markets.
✔️ Reduction of dependence on banks : some cryptos offer an alternative to traditional currencies by bypassing conventional financial institutions.
However, cryptocurrencies are very volatile . An asset can double in value in a few weeks, then lose 50 % in a month. It is therefore essential to invest in an informed manner and with good risk management .
How to invest in crypto money: where to start?
Do you want to invest in crypto money , but you don't know where to start? Rest assured, you are not alone. The cryptocurrency market may seem complex and risky , but understanding the right mechanisms and strategies , you can invest in complete safety and intelligence .
In this article, we will explore the two main ways of investing in crypto money :
- Via a centralized exchange (CEX) , which works like a classic broker but specialized in the exchange and purchase of cryptos .
- Via a decentralized portfolio , which allows you to manage your own cryptos without intermediary .
We will see the advantages and disadvantages of each method , as well as the errors to be avoided . As a bonus, a free guide is offered to accompany you step by step in your first investments, supporting screenshots ! 📘💡
Table of contents
1️⃣ How to invest in crypto money with a centralized exchange (CEX) 🔄
What is a centralized exchange?
A centralized exchange , or CEX (Centralized Exchange) , is a platform managed by a private company , allowing the purchase, sale and exchange of cryptocurrencies .
💡 Examples of popular platforms :
- Binance
- Coinbase
- Kraken
- Bitvavo
- Crypto.com
On these platforms, you create an account , place funds in euros/dollars , then buy cryptos (Bitcoin, Ethereum , etc.) in a few clicks.
How does it work?
1️⃣ Creation of an account : registration with email + identity verification ( KYC ).
2️⃣ Foundation deposit : via bank transfer, bank card or stablecoin s.
3️⃣ Purchase of cryptos : select the desired asset and place a purchase order.
4️⃣ Storage and management : Your cryptos are kept on the platform.
Benefits of CEX ✅
✅ Ease of access : Ideal for beginners.
✅ Intuitive interface and customer support.
✅ High liquidity : rapid transactions.
Disadvantages of CEX ❌
❌ Hidden fees : Watch out for not declared Spreads in certain exchanges which can inflate your costs (I have already found high costs voluntarily not explained by certain platforms).
❌ Non-management of private keys : the platform holds your cryptos.
❌ Risk of frost frost in the event of a problem with Exchange ( FTX ).
2️⃣ How to invest in crypto money with a decentralized portfolio (Dex & Wallet) 🔐
What is a decentralized crypto portfolio?
A decentralized portfolio is a non-custodial wallet , that is to say that you are alone to own the private keys to your cryptos. Unlike CEX, there is no intermediary : you manage your assets directly on the blockchain .
💡 Examples of popular wallets :
Online wallets:
- Metamask ( Ethereum , BSC, etc.)
- Exodus
- Trust Wallet
- Ledger (secure wallet hardware)
- Tangem
How does it work?
1️⃣ Creation of a wallet : generation of a recovery sentence (seed sentence of 12-24 words) .
2️⃣ Purchase of cryptos : Some portfolios integrate a bank card payment method, you can then exchange cryptos via a DEX (decentralized exchange) such as Uniswap or Pancakeswap or from the interface of the chosen portfolio (some offer the integration of decentralized exchanges in the interface).
3️⃣ Secure storage : Conservation of cryptos in your personal wallet .
Advantages of decentralized wallets ✅
✅ You really hold your cryptos : Total control over your assets.
✅ Reinforced security : no risk of bankruptcy of an exchange.
✅ Direct access to decentralized finance ( DEFI ) to generate yields and access a whole universe of decentralized applications (yields, loan, loan, gaming, art, real estate, etc.)
Disadvantages of decentralized wallets ❌
❌ A little bit of technical : requires understanding blockchain transactions .
❌ Possible errors : send cryptos to the wrong network leads to their final loss.
❌ Total responsibility : if you lose your seed phrase , your cryptos are lost forever.
3️⃣ How to invest in crypto money: Cex vs Wallet decentralized
| Criteria | Centralized exchange (CEX) | Decentralized wallet |
|---|---|---|
| Accessibility | ✅ Easy | ❌ A little more complex |
| Security | ❌ risk of hack / gel | ✅ secure so well protected |
| Possession of cryptos | ❌ Exchange holds your keys | ✅ You are the only master |
| Use | ✅ Intuitive interface | ❌ requires knowledge |
| Possibility of trading | ✅ Yes | ✅ Yes thanks to decentralized perpetuals platforms ( Drift , DYDX , Hyperliquid etc.) |
💡 Our advice : to start, start on a CEX and transfer your cryptos to a personal wallet once at ease.
📘 Ready to invest in crypto money?
You now have all the theoretical bases to invest in crypto money. But taking action may seem complex without steps. This is why we offer our free guide. 🎯
📥 By filling out the form below: you will receive our guide: a clear and structured plan to buy your first cryptos by avoiding beginner errors with screenshots, step by step.
What you will find in the guide:
✅ Precise steps to buy your first cryptos and secure your account (with detailed screenshots).
✅ The differences between a CEX and a decentralized wallet , and what a choice to make according to your profile .
✅ How to make your first transactions on blockchains
✅ The best strategies to secure your cryptos and avoid losing your funds because of an error .
✅ The basics of crypto taxation : what you need to know to avoid unpleasant tax surprises .
🎁 Bonus: how to generate yields on your cryptocurrencies thanks to staking and how to receive NFTS
📌 Can we use cryptocurrencies for payments?
Yes, but it's still limited . More and more companies accept Bitcoin and other cryptos as a means of payment:
💳 Crypto payment cards : Binance , Crypto.com or Bitpay allow you to pay in crypto while converting to euros. Note that this means that you do not pay in crypto directly, you have converted cryptos into euros automatically and paid with these euros.
🏬 Companies accepting BTC : Tesla (sometimes), Microsoft, Shopify, certain travel agencies. Tesla also accepts Dogecoin .
🌍 Government adoption : Salvador has made bitcoin a legal currency , but few countries follow this path for the moment
However, the volatility of cryptos remains an obstacle to their massive adoption as everyday currency .
Derivative means of investing in crypto money or generating it
1️⃣ Invest in an ETF Bitcoin: possible in France?
In France, Bitcoin ETFs are not yet available due to strict European regulations . UCITS Directive (Undertakings for Collective Investment in Transferable Securities) requires restrictions on ETF investing in a single asset, which prevents their launch on the European market.
💡 ETF Bitcoin Spot, recently approved in the United States , therefore remain inaccessible to French investors. And even if an ETF Bitcoin were to be listed in Europe, it would probably not be eligible for the PEA (equity savings plan), because it does not meet the criteria imposed by the regulations (majority exposure to European companies, European indices or synthetic replication).
📌 What alternatives in France?
Although the Bitcoin ETFs are not accessible, there is a similar : ETN (Exchange-Traded Notes) , which are listed financial products that replicate the price of bitcoin . Unlike ETF, ETNs are debt instruments, which means that they have a risk linked to the solvency of the transmitter .
📊 The main and Bitcoin available in France:
✔️ Vaneck Bitcoin etN (de000a28m8d0)
✔️ Coinshares Physical Bitcoin (GB00BLD4ZL17)
✔️ Wisdomtree Physical Bitcoin (GB00BJYDH287)
✔️ 21Shares Bitcoin ETP - A BTC (CH0454664001)
The ETP Bitcoin of 21Shares , accumulating more than $ 750 million in outstanding , is one of the oldest physical products linked to the BTC on the traditional market.
📌 Where to buy these etn?
These products are available on Euronext Paris and can be negotiated via regulated brokers such as Interactive Brokers, Saxo Bank, Swissquote, Degiro . They make it possible to expose themselves to the performance of Bitcoin without directly holding the asset.
2️⃣ Expose themselves to cryptos via stock market stocks
Investing in cryptocurrencies is not limited to the direct purchase of Bitcoin ( BTC ), Ethereum (ETH) or others at ltc OOS. It is also possible to expose themselves to the Crypto ecosystem by buying business actions strongly involved in this sector. This provides access to the growth of the Crypto market while benefiting from the structure and protections offered by traditional stock markets.
📌 Here are some major actions linked to cryptocurrencies:
✔️ Coinbase (corner) → The gateway to crypto currency investment
Coinbase is one of the largest cryptocurrency exchange platforms in the world. Introduced on the stock market in April 2021 on the NASDAQ , it allows individuals and institutionalists to buy, sell and store cryptos with ease.
🔹 Why invest?
✅ Its turnover depends directly on the trading crypto volumes: the more the markets are bullish, the more Coinbase generates income via transaction costs.
✅ It diversifies its activity with CUSTODY Coinbase (secure guard service for institutional) and Cloud Coinbase (Blockchain Infrastructure).
⚠️ Risks: In the event of prolonged drop in the Crypto market, transactions volumes fall, which directly impacts its income.
✔️ Microstrategy (MSTR) → The company betting on bitcoin
Microstrategy is a business of business intelligence software that has made a name for itself in the crypto by converting most of its Bitcoin cash .
🔹 Why invest?
✅ His CEO, Michael Saylor , is a fervent defender of Bitcoin and continues to buy BTC with each drop in the market.
✅ The company holds more than 190,000 BTC (several billion dollars), which makes it one of the largest institutions holding Bitcoin.
⚠️ Risks: Microstrategy action is extremely correlated at the cost of Bitcoin , making it a very volatile placement.
✔️ Digital marathon (Mara) and Riot Blockchain (Riot) → Bitcoin mining giants
Digital marathon and Riot Blockchain are two of the largest American companies specializing in Bitcoin's mining .
🔹 How do they work?
✅ They invest in mining farms , made up of thousands of machines (ASIC) dedicated to the validation of Bitcoin transactions.
✅ They generate income by receiving BTC for each mined block.
🔹 Why invest?
✅ These companies directly benefit from the rise in the Bitcoin price. expensive the BTC
✅ With the transition to renewable energies, certain mining farms seek to reduce their carbon footprint, thus attracting investors concerned with ecology.
⚠️ Risks:
❌ Their profitability depends on the price of bitcoin and the cost of electricity . BTC prices or an increase in energy cost can reduce their profits.
❌ Bitcoin halving (half reduction of mining awards) can impact the profitability of these companies (to be nuanced because the transactions costs are adjusted).
3️⃣ Mining and staking : generate income
Mining and staking allow you to generate passive income in crypto currency .
⛏️ Mining : secure a blockchain network by validating transactions via powerful computers. Requires specialized equipment and energy . Note also that today, it is no longer profitable for a paritculier to mine Bitcoin. Other smaller networks can still be profitable.
💰 Staking : Hold and block cryptos on a Proof of Stake (POS) (Ex: Ethereum , Solana ) to receive rewards .
📌 Profitability :
✔️ Mining: strong investment in equipment, but potentially very profitable on smaller cryptos (bitcoin is no longer profitable for an individual).
✔️ Staking : accessible to beginners, yield between 4 % and 15 % per year depending on the crypto.
📌 Investment strategies in crypto money
📈 Long-term strategies :
✔️ HODL : buy and keep for several years.
✔️ DCA (Dollar Cost Averaginging) : Invest a fixed amount each month to smooth the risk.
📉 Short-term strategies :
✔️ Active trading (Range Trading, Scalping, Arbitration, Bot Trading).
✔️ Yield Farming : provide liquidity to DEFI protocols to affect yields.
📌 Secure its cryptocurrencies
Hacks and scams are frequent. Adopt these good practices :
🔹 Use a wallet hardware ( Ledger , Tangem).
🔹 Activate 2FA authentication .
🔹 Never share your seed phrase .
🔹 Check the platforms before investing (regulation, reputation).
📌 Crypto scams: how to avoid them?
⚠️ Signs of scam :
❌ Promises of unrealistic yields .
❌ platforms without regulation .
❌ Influencers who encourage to buy tokens without fundamentals
💡 Example of a classic scam :
👉 Messages that voluntarily take a seed sentence of a "trapped" portfolio containing visible funds but without sufficient balance to pay the transaction costs , encouraging the victim to add cryptos to unlock the funds , which allows the crooks to immediately recover the deposits thanks to an automated script.
FAQ - Frequent questions
❓ What is the minimum amount to invest in crypto currency?
👉 It is possible to start with only 10-20 €
❓ Is it mandatory to use a decentralized wallet?
👉 No, but it is highly advised to secure your funds.
❓ Are the cryptos risky?
👉 Yes, cryptos are volatile. Invest only what you are ready to lose.
Investments in cryptocurrencies are risky. Crypternon could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a property or service put forward in this article. Readers must do their own research before undertaking any action and investing only within the limits of their financial capacities. Past performance does not guarantee future results. This article does not constitute an investment advice.
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AMF recommendations. There is no guaranteed high yield, a product with high performance potential implies a high risk. This risk taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital .
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