Crypto for beginnersCrypto for beginners

Crypto is digital money that lives on a network without a central boss. No bank, no government sitting in the middle. Compare it to ordinary money: a central bank can always print more euros. With most crypto that's not possible, the amount is fixed in the software.

All transactions are recorded on the blockchain: a public ledger kept by thousands of computers at the same time. Because all those computers check the same data, no one can falsify a transaction or attach incorrect values to it.

That ledger is public, so you can view it too. Every transaction runs through a wallet address: your own spot on the blockchain. Anyone can see what happens at such an address. But who is behind it stays private, because a wallet address is not registered to a name.

The best-known crypto is bitcoin. There are also thousands of others, such as Ethereum. Together you call these "altcoins". With altcoins, always research what you're investing in. Not every coin is equally reliable, and you can lose your investment.

BTC Direct has existed since 2013 and has since helped people take their first step into crypto. This guide is part of that.

With us you start a purchase from €30. So you don't have to set aside a large amount to begin.

Decide in advance what amount suits you. Only invest money you can afford to lose, so not money you need for things like your rent, groceries or an unexpected bill. The crypto market moves strongly: prices can rise and fall, and you can lose part or all of your investment. Want to invest more later? Then build up your investment calmly at your own pace.

Would you rather not pick the right moment every time? With our Bitcoin savings feature you automatically make a small purchase at set moments, without having to keep an eye on it.

There are thousands of cryptos and more are added every day. As a beginner you don't have to drown in that. Most people start with a large, well-known coin and build from there.

What do you look at when choosing? At three things: the market value (the larger, the more stable the price often is), the project behind it (what problem does it solve?) and the news around it. Below you'll see a few well-known coins that beginners often choose as a starting point.

• Bitcoin (BTC): the oldest and largest crypto, most traded. What to watch: the price moves less sharply than small coins, but it does move.
• Ethereum (ETH): a network for smart contracts and apps. What to watch: widely used, a bit more volatile than bitcoin.
• Solana (SOL): a fast network with low transaction fees. What to watch: younger than BTC and ETH, the price can move strongly.
• XRP (Ripple): aimed at fast international payments. What to watch: the price reacts strongly to news and regulation.

Want to see more coins? On our page with all cryptocurrencies you'll find the full range, with detailed information per coin.

Be careful with small, hyped coins that you mainly see passing by on social media. They can rise sharply, but fall just as sharply. Promises of "guaranteed returns" are always suspicious. Always do your own research before you get in. This is not investment advice.

Before you start, you can think about your approach. What is your goal, and for how long do you want to hold your crypto?

Some people look at the long term: they buy crypto and hold it for years, without worrying about daily price movements. Others follow the market more actively and buy and sell more often. That requires more knowledge, time and attention, and the risk is greater.

There is no approach that works for everyone. What fits depends on your goal, your knowledge and the time you want to put in. This is general information, not investment advice. Always do your own research.

Crypto carries significant risks. So only use money you can afford to lose. These are the main risks we've listed for you:

• Price risk. The value of crypto can fluctuate strongly. Market forces, regulation, economic events and technical developments influence the price. This makes the value hard to predict and you can lose part or all of your investment.
• Storage and management risk. You store and manage your crypto yourself, in your own wallet. Your secret key and recovery phrase are then your only access. If you lose them, you're permanently locked out, because there is no "forgot password". So take precautions, such as strong passwords, an offline wallet and backups.
• Fraud risk. Crypto is sometimes misused for scams, money laundering or hacking. Be careful with offers that seem too good to be true and research who you do business with.
• Transaction risk. A transaction on the blockchain cannot be reversed. Always enter the correct wallet address and take network fees into account, especially when the network is busy.

Yes, in the Netherlands your crypto counts towards tax. This doesn't happen at the moment you buy or sell, but via your assets in box 3. The Tax Authority looks each year at your total assets on 1 January: savings, investments and crypto combined.

If you exceed the tax-free allowance, you pay tax on the part above it. The exact amounts and percentages change regularly. So for your situation, check the Tax Authority's website or ask a tax advisor. Keep your records well and your tax return is done in no time.

This is general information, not tax advice.