Getting started with cryptos

Do you want to start with cryptocurrencies? A whole lot will come at you if you want to invest in cryptos. In this article we list everything you need to know. That way you’ll be well prepared!

Learn the basics of crypto

Do you also want to get started with cryptocurrency? Then first explore the basics. What is cryptocurrency, how does it work, and what can you do with it? In our cryptopedia you can read everything about bitcoin and other cryptos.

Also on our YouTube channel you can find information about cryptocurrencies. For example, check out this video explaining the Bitcoin halving.

Explanation about the bitcoin halving

Small market, big movements

Are you starting to invest? Then prepare for wild price swings. This is because the crypto market is still small. Especially if you compare it to the stock market or the real estate market. You need relatively little money to move the price.

That is an opportunity, but also a risk. Compare the crypto market to a wild sea, where you are the surfer. Step in or out at the wrong time? Then you can fall hard. But if you are an experienced surfer, then you can catch some beautiful waves.

In the investment world you talk of high risk, high reward. You can achieve nice returns, but you can also lose (part of) your investment. Therefore only invest with money you can afford to lose.

Open a crypto account

Do you know the basics? Time to get started! With the handy all-in-one BLOX app you have all your crypto in your pocket. You can start from just 1 euro and trade within 1 minute. Anyone can do it.

Download the app and open a free account. Confirm your identity to continue. Due to legislation regarding cryptocurrencies you are required to prove who you are. You can do this by sending a photo of an identity document. Don't worry, the app guides you through it in a few minutes.

You’re almost there. Deposit money into your BLOX account so you can buy cryptos later. You can do this from as little as 1 euro, using your favorite payment method. Now you can get started!

Crypto trading starts at BLOX

Choose your cryptocurrency

You have done your research and have a BLOX account. But which cryptos are you going to choose? There are thousands of cryptos, and each coin has a different function. How do you see the forest through the crypto trees?

We recommend that you do your own research, but of course we want to give you a helping hand!

Bitcoin

Coins come and go, but bitcoin stands tall. The very first cryptocurrency ever has existed since 2009. Over the years, the bitcoin price has retained its value the best of all cryptos. Do you want more certainty? Then you can consider buying bitcoin.

View websites..

What about other coins? Behind virtually every coin is a company, a foundation, or a group of enthusiastic programmers. And every project that takes itself somewhat seriously has its own website. Take a look there.

What purpose does a cryptocurrency serve? And do you think there can be demand for it?

A few examples: Chiliz seeks partnerships with major European football clubs by offering fan tokens. Orchid offers a decentralized solution for subscribing to VPN connections. And with VeChain you can trace the lifecycle of products.

No financial advice of course, but you can buy all these altcoins in BLOX.

..and follow the trend!

Crypto is developing at lightning speed, with one trend following another. And when something is trending in cryptoland, some cryptos shoot up like a rocket.

The technical terms are flying at you: ICOs, DeFi, NFTs, metaverse and more. How do you discover what the newest trend is?

Follow the latest crypto news. There are various crypto news websites in Dutch and English.

Check the top 100 in lists like CoinMarketCap and look for a correlation. Do SAND, MANA and AXS rise simultaneously? Then you know for example that the metaverse is popular

Read or watch price analyses on YouTube. Who knows, the price of your favorite coin might be about to break out.

But most importantly: keep a cool head and invest with your own plan. After all, there are always opportunities. If you miss a crypto boat, then you just catch the next one?

Determine your favorite strategy

Do you want to achieve a lot of profit in a few months? Or do you want to build your wealth over a period of a few years? Whether you invest for the short or long term, there is always a strategy that suits you.

Long term: DCA

Periodic investing with fixed amounts is also called Dollar Cost Averaging. It is an easy way to invest without having to worry about the price. How does it work? For example, you can arrange with yourself to buy 100 euros of Bitcoin at the same time every month.

With DCA you spread your investments. As a result, your investment is less sensitive to peaks and troughs. This strategy works well for cryptocurrencies that increase in value over the long term, for example bitcoin.

In the chart below you can see the power of DCA. Since June 2018 we have been investing 100 euros in bitcoin every month. In April 2023 we have invested 5,800 euros (blue line). The value in April 2023? Over 15,000 euros (orange line).

Short term: Daytrading

You can quickly build profits with day trading. The - seemingly - simple idea behind it? Buy low, sell high.

But be careful, this is more difficult than you think. You need knowledge of price charts and technical analysis to apply this strategy properly. And more importantly, you have to have the guts to trade against the market.

There is actually a lot of emotion involved in trading. Are prices low? Then journalists line up to write off cryptocurrency. Newspapers are full of headlines such as: Bitcoin is dead.

It sounds contradictory, but see this precisely as an opportunity. Why? Prices are low, and cryptos have the most room to grow from that point.

It can happen the other way around too. Do prices skyrocket? Then everyone talks about crypto. From the hairdresser around the corner to your neighbor. It’s tempting to jump in then, but you run the risk of buying close to a peak.

Start with a small amount

Is this the first time you are investing? Then it’s wise to start small. For example, start with an amount of 10 euros. Leave it in crypto for a week and see how it feels for you. You can always build this amount up.

We know it, cryptos can be very tempting! But make sure you always keep money on hand for your monthly expenses. So again: only invest with money you can afford to lose.

Take your profit from time to time

Are prices rising rapidly? Then the moment may eventually come when you own (much) more than you initially invested. In that case, it can be reassuring to sell your original investment. That way you only trade with your play money.

What are the risks of investing in cryptos?

Whether you invest in stocks, real estate or crypto, every investment carries risk. What exactly should you look out for when trading crypto?

volatile price

We’ll start off with a no-brainer: crypto prices are much more volatile. That’s an opportunity and a risk. You can make a lot of money, but also lose it. So one more time: only invest money that you can truly afford to lose.

Rotten apples

If the crypto market is a fruit basket, then unfortunately there are rotten apples among them. In that case trust your senses. Does something smell like a scam because it seems too good to be true? Then it usually is. There are no guaranteed returns, not even in the crypto world.

When you trade via BLOX, you know that you are buying and selling trusted cryptocurrencies. Each coin is carefully selected based on the project, reliability, and market value.

Regulations

Cryptocurrency is new, and governments are busy with regulation. That can be a risk. Could there be a ban on bitcoin mining? Or will you have to pay more tax for owning cryptocurrency? That could have a negative effect on prices.

At the same time, regulation can also provide opportunities. When clear regulation is enacted in the cryptocurrency space, it can be positive for confidence in the crypto market. And that is precisely beneficial for the price.