How to invest in cryptocurrencies and use blockchain: A complete guide for beginners 🚀
📌 What are cryptocurrency and blockchain?
Cryptocurrencies are digital assets based on blockchain , a technology that allows transactions to be recorded and secured without intermediaries. Unlike traditional currencies, they are not dependent on any central bank and operate through a decentralized network of computers that validate each transaction .
🔹 Bitcoin ( BTC ) , the first cryptocurrency, was created in 2009 to offer a decentralized and tamper-proof means of payment. Since then, thousands of other cryptocurrencies have emerged, such as Ethereum (ETH) , which enables the execution of smart contract and decentralized applications ( dApp ).
💡 Blockchain relies on cryptography to guarantee the security and immutability of transactions. Each transaction is recorded as interconnected blocks, creating an unforgeable and transparent database.
📌 Why invest in cryptocurrency?
Investing in cryptocurrency can offer several advantages :
✔️ Growth potential : Assets like Bitcoin and Ethereum have seen exponential growth in recent years.
✔️ Portfolio diversification : Cryptocurrency allows exposure to an asset uncorrelated with traditional markets.
✔️ Reduced dependence on banks : Some cryptocurrencies offer an alternative to traditional currencies by bypassing conventional financial institutions.
However, cryptocurrencies are highly volatile . An asset can double in value in a few weeks, then lose 50% in a month. It is therefore essential to invest wisely and with sound risk management .
How to invest in cryptocurrency: Where to start?
Want to invest in cryptocurrency but don't know where to start? Don't worry, you're not alone. The cryptocurrency market can seem complex and risky , but by understanding the right mechanisms and strategies , you can invest safely and wisely .
In this article, we will explore the two main ways to invest in cryptocurrency :
- Via a centralized exchange (CEX) , which functions like a classic broker but specializes in the exchange and purchase of cryptos .
- Through a decentralized wallet , which allows you to manage your cryptos yourself without intermediaries .
We'll look at the pros and cons of each method , as well as the mistakes to avoid . As a bonus, a free guide is available to through your first investments step by step complete with screenshots ! 📘💡
Table of Contents
1️⃣ How to invest in cryptocurrency 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 , enabling the purchase, sale and exchange of cryptocurrencies .
💡 Examples of popular platforms :
On these platforms, you create an account , deposit funds in euros/dollars , then buy cryptos (Bitcoin, Ethereum , etc.) in a few clicks.
How does it work?
1️⃣ Account creation : registration with email + identity verification ( KYC ).
2️⃣ Fund deposit : via bank transfer, credit card, or stablecoin .
3️⃣ Crypto purchase : select the desired asset and place a buy order.
4️⃣ Storage and management : your crypto is stored on the platform.
Advantages of CEX ✅
✅ Easy access : ideal for beginners.
✅ Intuitive interface and customer support.
✅ High liquidity : fast transactions.
Disadvantages of CEX ❌
❌ Hidden fees : beware of undisclosed spreads on some exchanges that can inflate your costs (I've already seen high fees deliberately omitted by some platforms).
❌ No private key management : the platform holds your crypto.
❌ Risk of funds being frozen in case of a problem with the exchange (e.g., FTX ).
2️⃣ How to invest in cryptocurrency with a decentralized wallet (DEX & Wallet) 🔐
What is a decentralized crypto wallet?
A decentralized wallet is a non-custodial wallet , meaning that you alone possess the private keys to your cryptocurrencies. Unlike CEXs, there are no intermediaries : you manage your assets directly on the blockchain .
💡 Examples of popular portfolios :
Online wallets:
How does it work?
1️⃣ Creating a wallet : generating a recovery phrase (12-24 word seed phrase) .
2️⃣ Buying crypto : some wallets integrate a credit card payment method; you can then exchange crypto via a DEX (decentralized exchange) like Uniswap or PancakeSwap, or from the interface of your chosen wallet (some offer integration of decentralized exchanges within the interface).
3️⃣ Secure storage : keeping your crypto in your personal wallet .
Advantages of decentralized wallets ✅
✅ You truly own your crypto : total control over your assets.
✅ Enhanced security : no risk of an exchange going bankrupt.
✅ Direct access to decentralized finance ( DeFi ) to generate returns and access a whole universe of decentralized applications (yields, lending, borrowing, gaming, art, real estate, etc.)
Disadvantages of decentralized wallets ❌
❌ Slightly more technical : requires understanding blockchain transactions .
❌ Possible errors : sending crypto to the wrong network results in its permanent loss.
❌ Full responsibility : if you lose your seed phrase , your crypto is lost forever.
3️⃣ How to invest in cryptocurrency: CEX vs. decentralized wallet
| Criteria | Centralized Exchange (CEX) | Decentralized wallet |
|---|---|---|
| Accessibility | ✅ Easy | ❌ A little more complex |
| Security | ❌ Risk of hacking/freezing | ✅ Safe if well protected |
| Cryptocurrency ownership | ❌ Exchange holds your keys | ✅ You are the only master |
| Use | ✅ Intuitive interface | ❌ Requires knowledge |
| Trading opportunity | ✅ Yes | ✅ Yes, thanks to decentralized perpetuals platforms ( Drift , DYDX , Hyperliquid, etc.) |
💡 Our advice : To start, begin on a CEX and transfer your cryptos to a personal wallet once you feel comfortable.
📘 Ready to invest in cryptocurrency?
You now have all the theoretical basics to invest in cryptocurrency. But taking action can seem complex without step-by-step guidance. That's 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 and make your first transactions on the blockchain while avoiding beginner mistakes with screenshots, step by step.
What you will find in the guide:
✅ The precise steps to buy your first cryptocurrencies and secure your account (with detailed screenshots).
✅ The differences between a CEX and a decentralized wallet , and which one to choose based on your profile .
✅ How to make your first transactions on blockchains.
✅ The best strategies to secure your cryptocurrencies and avoid losing your funds due to a mistake .
✅ The basics of crypto taxation : what you need to know to avoid unpleasant tax surprises .
🎁 Bonus: How to generate returns on your cryptocurrencies through staking and how to receive NFTs
📌 Can cryptocurrencies be used for payments?
Yes, but it's still limited . More and more companies are accepting Bitcoin and other cryptocurrencies as a means of payment.
💳 Crypto payment cards : Binance , Crypto.com, and BitPay allow you to pay with crypto while converting it to euros. Note that this means you don't pay directly with crypto; you automatically convert crypto to euros and pay with those euros.
🏬 Businesses accepting BTC : Tesla (sometimes), Microsoft, Shopify, and some travel agencies. Tesla also accepts Dogecoin .
🌍 Government adoption : El Salvador has legal tender Bitcoin , but few countries are following suit at the moment.
However, the volatility of cryptocurrencies remains a barrier to their widespread adoption as everyday currency .
Derived methods of investing in or generating cryptocurrency
1️⃣ Investing in a Bitcoin ETF: Is it possible in France?
In France, Bitcoin ETFs are not yet available due to strict European regulations . The UCITS (Undertakings for Collective Investment in Transferable Securities) directive imposes restrictions on ETFs investing in a single asset, preventing their launch on the European market.
💡 Bitcoin spot ETFs, recently approved in the United States , therefore remain inaccessible to French investors. And even if a Bitcoin ETF were to be listed in Europe, it would likely not be eligible for the French PEA (Equity Savings Plan), as it does not meet the criteria imposed by regulations (majority exposure to European companies, European indices, or synthetic replication).
📌 What are the alternatives in France?
While Bitcoin ETFs are not readily available, a similar : ETNs (Exchange-Traded Notes) , which are financial products listed on stock exchanges that track the price of Bitcoin . Unlike ETFs, ETNs are debt instruments, meaning they carry a risk related to the issuer's solvency .
📊 The main Bitcoin ETNs available in France:
✔️ VanEck Bitcoin ETN (DE000A28M8D0)
✔️ CoinShares Physical Bitcoin (GB00BLD4ZL17)
✔️ WisdomTree Physical Bitcoin (GB00BJYDH287)
✔️ 21Shares Bitcoin ETP – A BTC (CH0454664001)
21Shares ' , with over $750 million in assets under management , is one of the oldest physical BTC in the traditional market.
📌 Where to buy these ETNs?
These products are available on Euronext Paris and can be traded through regulated brokers such as Interactive Brokers, Saxo Bank, Swissquote, and Degiro . They allow you to gain exposure to Bitcoin's performance without directly owning the asset.
2️⃣ Gaining exposure to cryptocurrencies through stock market investments
Investing in cryptocurrencies isn't limited to directly buying Bitcoin ( BTC ), Ethereum (ETH) , or other ltc . It's also possible to gain exposure to the crypto ecosystem by buying shares in companies heavily involved in this sector. This allows you to participate in the growth of the crypto market while benefiting from the structure and protections offered by traditional stock markets.
📌 Here are some major actions related to cryptocurrencies:
✔️ Coinbase (COIN) → The gateway to cryptocurrency investing
Coinbase is one of the world's largest cryptocurrency exchange platforms . Listed on the Nasdaq , it allows individuals and institutions to easily buy, sell, and store cryptocurrencies.
🔹 Why invest?
✅ Its revenue is directly dependent on crypto trading volumes: the more bullish the markets, the more Coinbase generates through transaction fees.
✅ It diversifies its business with Coinbase Custody (secure custody service for institutional investors) and Coinbase Cloud (blockchain infrastructure).
⚠️ Risks: In the event of a prolonged decline in the crypto market, transaction volumes fall, which directly impacts its revenues.
✔️ MicroStrategy (MSTR) → The company betting on Bitcoin
MicroStrategy is a business intelligence software company that made a name for itself in crypto by converting the majority of its cash reserves into Bitcoin .
🔹 Why invest?
✅ Its CEO, Michael Saylor , is a staunch Bitcoin advocate and continues to buy BTC every time the market dips.
✅ The company holds over 190,000 BTC (worth several billion dollars), making it one of the largest institutional Bitcoin holders.
⚠️ Risks: MicroStrategy stock is extremely correlated with the price of Bitcoin , making it a very volatile investment.
✔️ Marathon Digital (MARA) and Riot Blockchain (RIOT) → The Bitcoin mining giants
Marathon Digital and Riot Blockchain are two of the largest American companies specializing in Bitcoin mining .
🔹 How do they work?
✅ They invest in mining farms , composed of thousands of machines (ASICs) dedicated to validating Bitcoin transactions.
✅ They generate revenue by receiving BTC for each block mined.
🔹 Why invest?
✅ These companies directly benefit from the rising price of Bitcoin. The more BTC is, the higher their profits.
✅ With the transition to renewable energy, some mining operations are looking to reduce their carbon footprint, thus attracting environmentally conscious investors.
⚠️ Risks:
❌ Their profitability depends on the price of Bitcoin and the cost of electricity BTC prices or an increase in energy costs can reduce their profits.
❌ The Bitcoin halving (reduction of mining rewards by half) can impact the profitability of these companies (this should be qualified, as transaction fees are adjusted).
3️⃣ Mining and staking : Generating income
Mining and staking allow you to generate passive income in cryptocurrency .
⛏️ Mining : Securing a blockchain network by validating transactions using powerful computers. Requires specialized hardware and energy . It's also worth noting that today, mining Bitcoin is no longer profitable for individuals. However, other, smaller networks may still be profitable.
💰 Staking : Holding and locking cryptocurrencies on a Proof of Stake (PoS) (e.g., Ethereum , Solana ) to earn rewards .
📌 Profitability :
✔️ Mining: High investment in equipment, but potentially very profitable with smaller cryptocurrencies (Bitcoin is no longer profitable for individuals).
✔️ Staking : Accessible to beginners, yield between 4% and 15% per year depending on the cryptocurrency.
📌 Cryptocurrency Investment Strategies
📈 Long-term strategies :
✔️ HODL : Buy and hold for several years.
✔️ DCA (Dollar Cost Averaging) : Invest a fixed amount each month to smooth out risk.
📉 Short-term strategies :
✔️ Active trading (Range trading, Scalping, Arbitrage, Bot trading).
✔️ Yield farming : Providing liquidity to DeFi protocols to earn returns.
📌 Securing your cryptocurrencies
Hacks and scams common . Adopt these best practices :
🔹 Use a hardware wallet ( Ledger , Tangem).
🔹 Enable 2FA authentication .
🔹 Never share your seed phrase .
🔹 Check the platforms before investing (regulation, reputation).
📌 Crypto scams: How to avoid them?
⚠️ Signs of a scam :
❌ Unrealistic return promises .
❌ Unregulated platforms .
❌ Influencers encouraging the purchase of tokens without sound fundamentals.
💡 Example of a classic scam :
👉 messages that intentionally share a seed phrase of a "trapped" wallet containing visible funds but without sufficient balance to pay transaction fees , prompting the victim to add cryptos to unlock the funds , which allows the scammers to immediately recover the deposits through an automated script.
FAQ – Frequently Asked Questions
❓ What is the minimum amount to invest in cryptocurrency?
👉 It is possible to start with just €10-20
❓ Is it mandatory to use a decentralized wallet?
👉 No, but it is strongly recommended to secure your funds.
❓ Are cryptocurrencies risky?
👉 Yes, cryptocurrencies are volatile. Only invest what you are prepared to lose.
Cryptocurrency investments are risky. Crypternon cannot be held liable, directly or indirectly, for any damage or loss resulting from the use of any product or service mentioned in this article. Readers should conduct their own research before taking any action and only invest within their financial means. Past performance is not indicative of future results. This article does not constitute investment advice.
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