Is trading Bitcoin and cryptocurrency safe for beginners?

The myths and reality.

The words “Cryptocurrency Trading” can strike fear into any man or woman. Cryptocurrency has endured a hard time being stereotyped and this sadly causes confusion from a lack of education throughout the financial world. This can hinder crypto currency adoption and mean that myths can come creeping out of the woodwork to make people think about it being an illicit scam. Let’s have a look at some of these stereotypes and move on to myth-busting! Read on to check out our top 3 reasons how come crypto currency trading gets a bad wrap and why…

1. Cryptocurrency trading is illegal

Many of us like traveling by car-sharing because you never know what sort of people you will meet on your way. The professions you can meet in a shared trip range from a waiter to a criminologist to a pilot, conversations are often real fun too. If in the past people would typically ask ‘if it’s legal to buy Bitcoin at all’, now, instead, the question is more like ‘how and where do I buy Bitcoin’?”. The stereotype of Bitcoin being illegal is being questioned by people themselves, throughout Europe where, yes, it’s totally legal. However, there are countries in the world where crypto trading is banned temporarily or permanently. Busted? It’s up to you, depending on your location that is.

2. You can easily get scammed

Stereotypes rule the world. It’s ok, it’s just the way it is. We need “frames” and “prefabricated” structures to rely on when processing all we see, hear and experience because otherwise, our brain would explode. So this means we will face another famous myth that has penetrated the minds of many people: by investing in Bitcoin anyone can become rich fast. Totally busted!

However, in December 2017, there was a huge rush for cryptocurrency. By taking advantage of this myth, scammers developed a myriad of tricks and tools to get rich themselves by exploiting the ignorance of newer users of crypto currency. Getting scammed with cryptocurrency is a bit like getting pickpocketed in Barcelona: if you follow the simple rules of self-protection, nothing will happen to you even in a busy pedestrian area such as La Rambla, in the heart of the city.

When trading cryptocurrency, you are protected by this same attitude. The rule is very simple: all you need to do is make sure the platform you’re using has a KYC and AML policy implemented, has a physical address and is a registered business in a real and trustworthy location (how about a paradisiac island in the pacific where there’s no regulation and where you will never get your money back from… or maybe better in London, what do you think?), make sure the terms and conditions are clearly stated on the website, and that it has been on the market for a long period of time which can be traced through its social media presence.

3. Buying cryptocurrency is difficult

A whole bunch of stereotypes can be related to this myth (or reality?):

• You need a special browser like Tor to buy crypto
• It’s difficult to buy Bitcoin because you have to know how to code and cipher
• It’s difficult to buy cryptocurrency because of too many steps: you have to exchange euros to dollars, then dollars to Bitcoin, then move to another platform where to buy your preferred crypto for Bitcoin and then the other way around to get your earnings back…
• Etc.

If some of these stereotypes might have been (partly) true, the reality has actually changed a lot. Now none of these statements represent the reality, the myth is busted!

If you’re searching for where or how to buy Bitcoin or other cryptocurrencies with euro, here’s our step-by-step guide:

a. Download the Lykke crypto app

b. Take a quick picture of your ID and utilities bill through the app to get verified

c. Create a euro account in the app and copy its details

d. Make a normal euro transfer from your bank app to your Lykke crypto app

e. As soon as you see your euros in the Lykke crypto app, exchange them to Bitcoin, Ethereum, Ripple (XRP), XLM or other popular cryptocurrencies.

Not sure which cryptos to choose? Then just opt for the LyCI index token — it combines 25 strongest cryptocurrencies in one token and it is perfect for beginners or for investors who like automated algorithms for trading.