Investing in cryptoHow do you invest in cryptocurrency?

1. Open a free account

Enter your details and complete the identification. This is a legal requirement and usually takes just a few minutes.

2. Deposit money into your account

Transfer money via iDEAL or bank transfer. Your money is ready to invest instantly or within one business day.

3. Buy your first coins

Choose which coin you want to invest in and how much you want to spend. You don't have to buy a whole coin: a purchase starts from just 30 euro.

Crypto has grown quickly as an asset class in recent years. Three reasons people choose it:

• Bitcoin is scarce. There will only ever be 21 million bitcoin. That's fixed in the protocol and no one can change it. The pace at which new bitcoins enter the market halves roughly every four years (the halving). Scarcity plus rising demand has had a positive effect on the price so far.
• Higher returns possible. The crypto market is young and smaller than the stock market. Prices therefore move more sharply. The risk is higher, but so is the potential return.
• Tradable 24/7. The crypto market never closes. Whether it's Saturday night or Tuesday morning, you can buy or sell at any time. No exchange opening hours to keep in mind.

Start small. Especially the first time, it's wise to start with an amount you can easily afford to lose, for example 30 euro. That way you learn how buying, storing and selling works without much at stake.

Feels good? Then you can slowly build up your investment. Important: only invest money you can genuinely afford to lose. The crypto market is volatile. You can be up 20% one day and down 10% the next. Money for rent, groceries or an unexpected bill doesn't belong in crypto.

There are thousands of coins and new ones appear every day. So how do you choose? Three things to look at:

1. Market cap

The market cap (price × number of coins) tells you something about how big a coin is. The higher the market cap, the more stable the price often is. Bitcoin has by far the highest market cap, so its swings are less extreme. Smaller coins can deliver high returns, but can also drop hard. Compare it to a rock on a mountain: a large boulder won't budge easily, while a small stone rolls straight down.

2. The project behind it

Behind every serious coin is a team, company or foundation with a goal. What do they want to achieve? What problem does the coin solve? Most projects have their own website or whitepaper where you can read up on this. Always do your research before you get in.

3. The news

Is a protocol update coming soon? Is there a lawsuit? Is the coin being adopted by a big company? News moves the price and gives you an idea of where the project is heading.

Important disclaimer: This is not investment advice. Always do your own research before you get into a coin.

• Bitcoin (BTC)
• Ethereum (ETH)
• Ripple (XRP)
• Litecoin (LTC)
• Bitcoin Cash (BCH)

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Before you get in, it's smart to decide on your strategy. Two common approaches:

Long term, Dollar Cost Averaging (DCA)

With DCA you invest a fixed amount at regular intervals, for example 50 euro a month. The benefit: you don't have to worry about wild price swings. By spreading your investment you get an average price and lower the risk of buying in at a peak. DCA suits investors who want to hold crypto for years.

Short term, day trading

Day trading means trying to buy at the bottom and sell at the top, often within a single day. Sounds simple, but it takes a lot of knowledge of technical analysis, price movements and market psychology. Most beginning traders lose money on it. Only start day trading if you're truly willing to put time into learning it.

Read more about DCA

Every investment carries risk. With crypto that risk is higher than, say, a savings account, but so is the potential return. The three main risks:

• Volatile prices. The crypto market is young and smaller than traditional markets. Prices can rise or fall sharply in a single day. Over the long term the market will probably become more stable as it grows, but there's no certainty.
• Scams. Among the thousands of coins are projects that only exist to raise money and then disappear. Promises of "guaranteed returns" are always suspicious. At BTC Direct, the coins on offer are pre-selected on market cap, project and reliability.
• Regulation. Crypto is new and governments are working on rules. Stricter legislation can have a short-term effect on the price (think of China's mining ban). At the same time, clear regulation can actually boost confidence, which is often beneficial in the long run.

Important disclaimer: Never invest more than you can afford to lose. The value of crypto can fall sharply in the short term. Past figures are no guarantee for the future.