How to get started in Bitcoin and cryptocurrency in 2018

Cryptocurrencies have the wind in their sails: as much try to enjoy! But what must be done to participate in this new digital economy? Some practical tips.

There are just seven years took place the first transaction of the Bitcoin system: two large pizzas were purchased by Laszlo Hanyecz, an American developer, which then spent 10,000 bitcoins for the precious commodities. Precious, these pizzas are now, while the bitcoin reaches and surpasses the 2200 € ...

As I was explaining last May 10, Bitcoin is currently in a feverish state : several financial regulators have indeed relaxed their position vis-à-vis electronic money which has noticeably helped the bitcoin price to rise above $ 1500 each.

However, the excitement has not abated since prices have continued to climb in recent days. Perhaps recent advances in Bitcoin governance have caused renewed interest in digital money? In any case, it seems reasonable to believe that the gradual implementation of these new measures will improve the reliability of cryptocurrency, and it is probably this idea that pushes investors to outbid its current price, propelling it now over from 2000 €.

This posed, one can very well take advantage of this effervescence (which confines, it must be said, to a certain hysteria). After all, there is no reason for capitalism to be reserved only for industrialists who are in the grip of power and as cryptocurrencies are on the rise, as much as trying to take advantage of them, especially since few tools are currently available. decent returns. That's why this little post will be essentially practical and will describe what you can do for you, too, to participate in this new digital economy.

Of course, it will not be a question here of taking undue risks: if you wish to embark on the adventure of cryptocurrency, do it with the money that you are ready to lose without flinching, typically not that of the races or rent, but rather the few euros you want to play to understand the new digital deal.

In the end, buying e-money is no different than buying the shares of an innovative technology company. This has a similar expectation of profit (if the company takes off, its share climbs and if the digital currency becomes dominant, its token gains in popularity and value) and also allows an interesting hike in the digital world; Beyond the simple financial profit, the operation also has an educational value that can allow any honest individual to get a better idea of ​​what these digital currencies are, much better than the often appalling articles of a traditional press largely outdated.

To start the small tour in the realm of digital currencies, we can start with trading platforms that will easily convert our euros into bitcoins. For that, I can encourage you to go to the side of Kraken or Bitstamp which both offer facilities for these exchanges. In both cases, you will have to register on the site.

In order to transfer a euro amount to these platforms, you will also need to provide some identification. Generally, it is an electronic copy of your identity card or your passport, as well as a recent bill (gas, electricity, internet) to prove your address. Yes: even if the rest of the transactions and digital currencies can travel at the speed of light, even if the protocols implemented by Bitcoin and other cryptocurrencies are extremely fast, interfacing with the real world is still as rough, and the state regulator is absolutely no stranger to it. Moreover, and especially for the French, bank-to-bank transfer from your traditional bank account to the platform of your choice will also be a painful step because it will, again,

Once this step is completed and your account is funded, serious things can begin since you can then buy and sell the cryptocurrency of your choice that is available on the platform. For the moment, beyond Bitcoin, I encourage you to look closely at cryptocurrencies like Monero, ZCash, Litecoin or Ethereum.

From the perspective of speculation, Ripple can also be an interesting alternative. For those who feel an even more adventurous soul, there are companies that take care of providing a return for bitcoins that are lent to them. Typically, these companies apply relatively aggressive trading algorithms in different markets and routinely collect around 0.5% to 1% per business day. Those of my readers who are interested are welcome to contact me about this.

For those who simply want to hoard their digital currency, the option to leave it in account on trading platforms can be a concern. After all, Bitcoin is entirely designed to do without trusted third parties: why, therefore, not to build your own bank using either efficient process on the market? Those who are tempted by an electronic purse will be able to refer to Ledger Nano S for example . Others will be able to study more or less light clients like Electrum or Armory , or consider using "online" clients like blockchain.info. These last customers are valid for Bitcoin, but one finds also the same ones for other currencies, even customers who support several currencies like Cryptonator for example. In any case, once the customer has chosen, all you need, on the exchange platform side, is to specify the destination address to which to send your purchases so that they are actually transferred, usually in a few tens of minutes.

As you can see, entering the cryptocurrency market is not insurmountable. Of course, the purchase or sale of these currencies is probably not the normal backbone of a diversified portfolio of prudent investors: this remains for the moment a niche operation that will be conducted primarily to test the market and understand the mechanisms, and thus benefit from low-cost training.

Admittedly, these few explanatory paragraphs will never replace the direct experience of buying / selling cryptocurrency in a particularly hot market. Certainly, trying trading or simply buying bitcoin remains a relatively more complex operation than buying a pack of chewing gum. But despite everything, the current period is relatively conducive to this type of experimentation: the cryptocurrency markets are particularly keen and the innovation they bring in the field of money and finance is in any case a revolution.

If no one knows if Bitcoin, in 5, 10 or 20 years, will still be the main cryptocurrency, and how much will be worth 1 BTC, it is certain however that anyone can now participate in this new market. And just for educational purposes, it would be a shame to miss.