Understand and learn about 100 Euro cryptocurrency

It’s a fact: You can’t learn to swim or ride a bike just by reading a book. It takes training to understand how cryptocurrencies work. Try, make mistakes and finally get the click. It’s the same for cryptocurrencies. Bitcoin, Ether, Solana, Terra, Doge… With their names appearing out of nowhere, their volatility and their sulfur reputation, many still refuse to collapse.

Given the staggering sums that have already been invested (even if the number of bitcoins is limited to 21 million units according to their protocol), it looks like the cryptocurrency will survive. There is still a major hitch: all of this seems too complicated to understand in order to get started. It is not like with classic currencies or stocks where you just have to approach your bank to invest. But it has an advantage nonetheless: forcing us to truly immerse ourselves in the universe. Thus to understand the entrances and exits.

  • Cryptocurrency is a digital currency Which does not belong to any country and operates without a trusted third party (without a bank).
  • It’s an algorithm Who handles the money transfer? and transactions.
  • It is the blockchain as a great registry of propertyis constantly modified by new transactions.

100 euros to understand cryptocurrency

In this article, we will not give you financial investment tips. The best thing is to consider that the 100 Euros that we are going to invest here are already lost. We “pay to see” as they say. So you should not invest this amount if you think that you have a real need for it in the short or medium term. The goal here is to invest in the long term to understand how cryptocurrencies work and their volatility, not to speculate.

1. Choose a service provider to buy cryptocurrency

There are many services for buying cryptocurrency. They are brokers. The broker allows buying and selling of cryptocurrencies. We can mention for example Coinbase, Kraken, Quantfury, Binance or even CoinHouse, a French platform. For each, all you have to do is create an account and then link it to your payment system (your credit card, Paypal, etc.). Depending on the platform chosen, you may have to answer multiple questions and prove your identity. From there you can invest as much as you want, 100 euros or a little less because there will be costs.

You can also buy cryptocurrencies through your bank (some now allow it) or financial services like Revolut, N26, etc., or even apps like Lydia.

2. Buy your first coins

The easiest way is to initially choose Bitcoin (BTC) which is based on the named blockchain (but is only limited to this currency) and/or Ether (ETH), which is based on the Ethereum blockchain and which allows other applications to save their data on it. It is important to know this information because every transaction is recorded on the blockchain. If you want to switch the blockchain, you will need to transfer funds from one blockchain to another through an intermediary. It will cost you some money to go through a broker.

3. Blockchain Explained in 30 Seconds

Before proceeding, it is necessary to understand the workings of this huge database that contains the history of all the exchanges that have taken place between its users since its creation. With each new item (mostly transactions), that event will be added to a huge file which is the blockchain. And with each new block, the latter contains information based on everything that was described before.

In short, the blockchain is a registry of property that makes it possible to do without a trusted third party (a bank for example). Here, it is an algorithm that will verify the information (Do I have the money), manage the transfer and then save the data to the blockchain. it’s clear.

4. Take notes about your cryptocurrency purchases

Each price can be very volatile. To see if you make a profit or if you lose out over time, note the price of each cryptocurrency on the day you bought it (eg 100 € = 0.0031 Bitcoin). Also consider the username and password of the platform used … A note in your smartphone will be enough.

5. Dive into Web3 by opening Wallet

By now, you might have the impression that you have already taken a step towards Web3, but you haven’t. You are still on edge. Yes, you have purchased cryptocurrencies but it is still tied to a trading platform app as with any publicly traded stock. To really switch to Web3, you have to create a wallet (a wallet in French).

A wallet is a program that allows you to hold cryptocurrencies on your own. It is registered on the blockchain (some wallets are compatible with many blockchains, others are not) and is therefore completely secure. This is not necessarily the case if you keep your funds with a broker, which is why we advise you to create your own portfolio(s). Congratulations, you have one foot in Web3!

6. A 12-word key that never misplaces

There are many wallets. We can mention Metamask, ZenGo, Coinbase Wallet, Electrum, Exodus, Cr’ypto.com, Binance Wallet… It’s up to you to consider the advantages and disadvantages of each and check their compatibility with the blockchains that interest you.

When you create a wallet, you are assigned a private key, which is a string of 12 or 24 words in English. These words, presented in a very specific order, are the one and only way to find your account. Your unique password. It might look like: food-walk-page-table-smile-water-change, etc. Without them, your money is lost forever in the meanders of the blockchain. Do not share your private keys with anyone under any circumstances. Anyone with a private key can get all your money back without you being able to do anything. If you’re afraid to forget it, you can also invest in a physical wallet (a hardware wallet, a bit like a large USB key). The leader of this market is the French ledger.

In addition, there is also a public key (a bit like a RIB) that you can communicate with your broker to get your cryptocurrency back and put it in your wallet for example. From there, your money is completely in your hands.

7. In which cryptocurrency should you start?

You are wide-sighted! The two most popular currencies are Bitcoin and Ether, so it is easier to get started with cryptocurrencies. But there are a large number of cryptocurrencies. It can be interesting to gradually diversify your portfolio and explore other concepts. In fact, cryptocurrencies are often associated with a specific project.

Such is the case of Mana, the cryptocurrency from the Decentraland metaverse, The Doge (or Dogecoin, inspired by the viral Shiba dog meme). Originally a currency created on the principle of joke, the Doge is intended for transactions with small amounts, such as tips. It could soon be used on Twitter to make small payments (Tesla CEO Elon Musk’s favorite cryptocurrency).

8. Find out something else with NFTs

Now that you have cryptocurrency, you can get NFT (we explain what NFT is in detail here). You can find it on dedicated platforms, real digital art galleries, the most famous of which is OpenSea. Once purchased, all you have to do is store the Non Fungible code in your wallet.

9. Forget you have cryptocurrency!

Once you make investments, you may be tempted to follow prices as closely as possible on a daily basis, even several times a day. This first solution will undoubtedly cause some tension as these coins are very volatile, including the more popular ones like Ether and Bitcoin. It is not uncommon for the difference to be greater than 5% in a single day.

So you may get the impression that you are getting rich or ruining yourself in a few hours, but often these are simple price manipulations by speculators. Usually everything is in order after a few days. The best is to forget that you have these cryptocurrencies and only come back to them from time to time. What matters is long-term development. And the fact that you now know enough to invest in cryptocurrency.

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