Crypto Exchanges

How Can I Invest in Crypto Like Bitcoin?

To invest in Bitcoin and other digital currencies, you can turn to a broker specializing in cryptocurrencies or an online cryptocurrency trading platform. Both options allow you to purchase digital currencies using conventional currencies, such as dollars and euros.

Purchasing Through an Exchange

A cryptocurrency broker serves as a conduit between the traditional financial system and the digital currency market. This means you can buy digital currencies like Bitcoin or Ethereum with traditional money. After paying in a currency like euros, you receive the digital currency. You either receive your newly purchased digital currencies in a digital wallet managed by the exchange (broker) or you can have them transferred to your own wallet. Besides buying digital currencies, you can also sell them through a broker. Some brokers additionally offer the option to exchange your purchased currencies for other digital currencies they offer. 

Purchasing Through a Trading Platform

The primary goal of a cryptocurrency trading platform is to facilitate the trading of digital currencies. This mainly involves exchanging currencies, such as swapping Bitcoin (BTC) for Ethereum (ETH). Yet, more and more platforms now also allow the purchase of digital currencies with conventional currencies. For instance,Coinbase, Bitvavo and Binance also accepts euros. 

Are There Costs Associated with Buying Cryptocurrencies?

A broker or trading platform is a commercial enterprise that needs to generate revenue. Therefore, transaction fees may be charged for the services they provide for you. This can include buying, selling, or trading transactions. The fees charged vary by provider. Want to know more about the fees a particular provider charges? Read the information earlier on this page.

Do I Have to Verify My Identity with a Broker or Trading Platform?

Dutch providers of digital currencies are legally required to verify the identity of their clients before offering services. Typically, the verification process takes a few minutes. This verification is intended to safeguard the security of clients and their funds as much as possible.

How Safe Are Brokers and Trading Platforms?

Brokers and trading platforms take measures to protect their clients' digital currencies. Nonetheless, theft or loss is not completely avoidable. Fortunately, Dutch providers fall under strict regulations designed to ensure safety. Keep in mind that when you allow a third party to manage your digital currency, you are dependent on their security measures. Alternatively, you can manage your digital currency yourself in a personal wallet, giving you more control over your securities' safety.

In Summary

The best place to buy and trade digital currencies depends on your personal preferences. Here are some questions you might ask yourself when looking for a broker or trading platform:

• What payment methods are offered?
• Which digital currencies are available?
• What measures does the provider take to safeguard my funds?
• What fees are charged?
• In what language can I receive support?
• What do other users say about the provider?

Remember, it's always wise to conduct your own research to ensure you can invest and trade as securely and confidently as possible!