Step-by-step guide: Investing in cryptocurrency for beginners
Thinking about investing in cryptocurrency? Follow along here, where we’re giving you the most important pros and cons of investing in cryptocurrency, and a quick step-by-step guide to get you started.
SOME QUICK BACKGROUND INFO: WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a digital currency that you can buy and sell goods with - just like any other currency. And like other currencies you can also choose to invest directly in the currency.
An important characteristic is that cryptocurrencies are built on blockchain technology. A blockchain is a network of computers who are sharing information with each other - transaction information for example.
Like that, all transactions made with crypto will be registered in the blockchain network - spread out to the many hundreds of computers in the network. You can read more about blockchain here.
Another important characteristic for cryptocurrency is that the currency is decentralized. That means that there’s no central middle man - such as a bank. When you buy something with crypto the money goes directly to the seller.
If you’re looking for some more in-depth information about cryptocurrency, you can find it in our blogpost “What is cryptocurrency”
PROS AND CONS OF INVESTING IN CRYPTO
If the rate of a cryptocurrency rises, you could make money from your purchase.
From 2015 to 2022, the value of bitcoin has risen by a little over 9,000 %. But just as quickly as the value can rise, it can fall again because cryptocurrencies are an unregulated market. You can read more about that here. So even if you do yield gains, you could also risk losing the money you’ve purchased crypto with.
Traditional markets for purchasing and selling stocks and assets are closed on certain days - i.e. during the weekends. Crypto markets are open all hours of the day.
When you invest in regular stocks, bonds, and other assets, it takes place via a centralized exchange - such as the Copenhagen Stock Exchange. Exchanges are also closed during weekends and holidays. Crypto exchanges are not centralized, and are thus open all hours of the day.
Be at the forefront of the future.
Some say that cryptocurrency is the currency of the future.
If this turns out to be true that cryptocurrencies are the currencies of the future, you’re already one step ahead when you begin now.
The value of cryptocurrencies can rise and fall very dramatically from one day to the next.
Investing in cryptocurrency is investing in assets with great fluctuations - or a high volatility. This means that the price of a cryptocurrency can rise and fall greatly within a short amount of time.
If the price of a cryptocurrency that you’ve invested in falls drastically from one day to the next, it would be a disadvantage for you because you could risk losing the money you’ve purchased cryptocurrency with.
On the other hand, a drastic rise will be an advantage for you, because you could make money in this instance.
These are the general dynamics when you’re investing in volatile markets - and here, cryptocurrencies are one of the most volatile markets to invest in at the moment.
Foreign platforms feel unsafe.
Up until recently, trading cryptocurrencies has only been possible on foreign platforms. And it’s often on platforms who may be difficult to understand
The fees may be not be transparent, and therefore it may not be easy to tell how much you actually need to pay for your trades.
On top of that, the foreign platform could be difficult to understand due to complex buzzwords and strange tech-lingo.
So, it could be an advantage to choose a simple platform, which talks in an easy-to-understand language and that’s easy to navigate - even for a beginner. This is what you’re getting with the new Danish crypto platform, Lunar Block .
Here, it’s also completely clear what you’re paying for your trades, and all in all, it makes you feel like you’re in safe hands.
It can be hard to get started.
Crypto platforms can be hard to use if you don’t choose the right one.
If you’ve previously researched different crypto platforms and apps, you’ll know that they’re often pretty complicated to use.
This is especially true for Danish and Nordic investors, who up until now haven’t had any local option for crypto trading. Lunar Block is a Danish platform, specifically developed to make it easy for you to get started investing in crypto.
Buy crypto now
STEP-BY-STEP GUIDE: HOW TO INVEST IN CRYPTOCURRENCY WITH LUNAR BLOCK
If you want to try your hand with cryptocurrency, Lunar Block is a great place to start. You have access to Lunar Block directly through your Lunar app.
The prices are transparent, so you always know exactly how much your trades will cost. And all information is written in a simple language so you’re never uncertain about what you’re dealing with.
This means that you can get started in a few minutes even if you’re a beginner
How to get started
Download Lunar for free
Go to App Store or Google Play and download the Lunar app. Find your photo ID, as you need that to sign up.
Sign up to Lunar Block in the app
Find Lunar Block under “Products” and sign up. You’ll be asked to take a test about crypto first - among others things, it’s to see if you’re aware of the risks. You can learn more about the risks in the app before you take the test.
Buy cryptocurrency with a single swipe
When we’ve approved you, you can buy crypto immediately. Choose your cryptocurrency in the app and buy with a single swipe.
Cryptocurrencies can rise and fall
When you trade cryptocurrencies, you need to be aware that it carries a large risk. The value of your cryptocurrency can both rise and fall, and you can risk losing the entire amount you’ve invested in cryptocurrencies.
Cryptocurrency trading is done through Lunar Block. Lunar Block is not regulated by the Danish Financial Supervisory Authority (Finanstilsynet). That means you won’t have the same protection as when trading e.g. stocks or other regulated assets.
We do not counsel
We do not advise on currencies and do not make recommendations for either buying or selling. We can provide factual information about the different currencies, but past price developments are not an indication of future developments.
No information from Lunar Block should therefore be considered as recommendations and all decisions are up to you alone.
GET ANSWERS TO YOUR QUESTIONS ABOUT INVESTING IN CRYPTOCURRENCY
Are cryptocurrencies a good investment?
Which cryptocurrency is the best to invest in?
Where can I trade cryptocurrency?
Which coins can you invest in through Lunar Block?
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