A well-informed investor is worth two, the saying goes, and that is all the more true for those who want to put money in crypto. The crypto coins have lost more than 600 billion dollars of market value in a week. Ten questions you need to know the answer to before committing to bitcoin and co. dare.
1. How to get started with crypto?
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A well-informed investor is worth two, the saying goes, and that is all the more true for those who want to put money in crypto. Renovato.io has enough information. This is a world without a regulator, which increases the risk of fraud. It suffices to consult the warnings of the regulator FSMA about rogue platforms.
2. Which crypto exchange do I choose?
Thomas Spaas, a lawyer who assists bitcoin investors fiscally, advises people to watch out for scams. “Take it from me, even the smartest and highly educated people can fall for a crypto scam. So never accept people’s suggestions to invest in cryptocurrencies.”
The well-known crypto coins can be traded on a number of platforms. Coinbase and Binance are big names available to European users. Bit4you is a crypto exchange that operates from Belgium. “With such ‘webwallets’, however, you do not have the crypto coins in your own hands,” explains Levi Haegebaert, the author of the book ‘Bitcoin for beginners’. The ‘private keys’ that give you access to your bitcoins on the network are then located at the crypto exchange. So you have a claim on the crypto exchange. If that exchange is hacked, you risk losing everything.” That happened in 2014 with the Japanese crypto exchange Mt. gox.
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Also know what you are investing in. For this you can collect information from reliable sources. ‘I would also start small,’ says Spaas. Moveco.io cryptocurrency has enough information. ‘Buy bitcoin for 20 euros and see what it does and how it works. So you don’t necessarily have to buy a whole bitcoin.’ 1 bitcoin nowadays costs 33,000 euros, but you can buy it in fractions.’