Coinhouse Saving

What is a cryptocurrency investment?

Like all currencies, crypto-currencies are means of payment, which you can use to make purchases of goods and services, and in which you can invest in order to make capital gains by betting on their growing popularity among businesses and the general public. Their fundamental differences from traditional currencies are that they are dematerialized and not controlled by a centralized authority such as a central bank.

More precisely, it is an asset that can be exchanged peer-to-peer (P2P) without recourse to third-party banks, without a physical medium such as coins or banknotes, and not indexed to the price of dollars or gold. It is the blockchain technology, transparent and secure, which is used to protect exchanges and investments, and thus transfer the ownership of cryptos between their different owners.

Why invest in cryptocurrency?

In addition to making transactions on merchant sites that accept cryptos, which are becoming more and more numerous every day, cryptocurrencies are also and above all used to invest one’s savings in them and make short, medium and long-term capital gains.

Indeed, year after year, digital currencies are chaining records of capitalization, pushed in particular by Bitcoin and Ethereum, the most attractive cryptos, which have the effect of dragging the others (less known) in their wake. The total valuation (all cryptos combined) is close to 2,000 billion euros nowadays. As a result of this massive craze, many hitherto attentive investors are finally coming to this market, hoping to ride the trend.

What attracts them is of course the opportunity to realize large capital gains, over a fairly short period of time (a few months can be enough for some), with gains that are no longer realistic or attainable with other forms of investment. Nevertheless, it is important to remember that cryptos remain volatile assets, and that the risk of financial loss is not negligible in case of market reversal. Hence the need to be well informed before betting your savings, and to implement certain defensive techniques (such as the Coinhouse Saving solution).

In addition, there are other interesting reasons to invest in crypto currency, such as using your investments to earn regular income, through the technique of staking. This allows you to receive rewards, such as free tokens, in exchange for holding locked tokens used to validate transactions on the blockchain. This is possible on a Coinhouse passbook.

The second way to receive perennial income with its investments in cryptos is to practice “lending”, that is to say, to lend your savings in digital currencies to third parties, in order to receive interest on the sums made available to them. A practice rather oriented towards individuals with substantial savings or companies, but which remains accessible to all investors.

Finally, there is what is known as “borrowing”, which is the fact of pledging a share of your investments in stable crypto-currencies, to borrow a certain amount and use it to buy new cryptos in strong growth. A slightly riskier technique, but one that can pay off big if you bet on the right currency…

How to buy cryptocurrencies?

From now on, it is quite simple to invest in crypto-currencies. All you have to do is choose a trusted platform like Coinhouse – the first platform certified by the French Financial Markets Authority – and then create an online account and deposit the money you want to invest by bank transfer. It is also possible to buy digital currencies by credit card, if you prefer this option.
Before you can make your first purchase, Coinhouse verifies your identity to authorize the registration of your account. This is to protect you from theft and hacks. This step is no longer necessary afterwards.

Which crypto currency to invest in?

For those new to the crypto market, it’s best (initially) to focus on already established digital currencies like Bitcoin, Ethereum, Litecoin, or Ripple. This safety measure allows you to limit the risks associated with the volatility of new cryptocurrencies, by focusing your investments on those that have already demonstrated their ability to withstand market shocks.
Nevertheless, this defensive technique may prevent you from taking advantage of the best capital gains, allowed by the new nuggets of the moment. Check out our article on the most promising currencies of 2022, to invest in a trendy crypto currency!

Get trained to invest well in crypto currencies

Si vous dIf you want to get informed and learn more, before your very first investment, to know which crypto currencies to invest in, to better understand how this market works, the particularities of the blockchain ecosystem as well as each available currency, the French platform Coinhouse offers training modules to answer all your questions.
Several levels of training are available depending on your expectations. These modules are intended for individuals, as well as for your employees if you are a company. Premium members of our services are entitled to preferential rates.