Before you get started with crypto, you need to know what platforms exist (Credit: Getty Images)
Anyone wishing to get into cryptocurrency investing will be faced with an avalanche of information and opinions.
Where to start ? What platform should you use? What coins should you invest in?
The very first thing to keep in mind is that you should only deal with reputable exchanges – places where cryptocurrency is bought and sold.
Since January 2020, any crypto exchange operating in the UK must register with the Financial Conduct Authority (FCA) under money laundering rules.
There are 31 companies (at the time of writing) that are on the FCA’s listing, including well-known exchanges like CoinJar and eToro.
While that doesn’t make cryptocurrencies themselves any less risky, it does at least mean that the companies dealing with them have been vetted and approved by the city’s watchdog.
However, it is important to note that there is still no Financial Services Compensation Scheme (FSCS) protection in place if the exchange fails.
Once you have selected the exchange you want to use, buying cryptocurrency is relatively easy to do.
How to buy cryptocurrency
You will need to create an account and register a bank account. Then just check the current value of the different coins and select the amount you want to buy.
It is crucial to look at the trading fees that the exchange may charge you. In many cases, opening an account may be free, but there may be a percentage fee for buying and selling crypto.
There are literally thousands of cryptocurrencies to choose from, and more are created all the time.
The most recognizable remain Bitcoin, Ethereum, Ripple, Cardano and Litecoin, so if you want to get started, it’s worth focusing on one of them. Ignore ‘same coins’ like Dogecoin and Shiba Inu Coin for now.
Bitcoin has always been and remains the most valuable cryptocurrency by market capitalization – by a significant margin.
In fact, Bitcoin alone accounts for around 60% of the crypto market. So if you are still unsure which coin to choose, it makes more sense to start with Bitcoin.
Sam Volkering says…
Sam can help you find the right platform to start with
You need to go to what is called an “on-ramp”, which is really just an exchange that you would use to buy cryptocurrency with your books.
Bottlepay is a local UK company that makes it easy for you to buy Bitcoin.
Sam Volkering writes about cryptocurrencies and other tech-based investing trends at Exponential investor.
