You probably heard about crypto from a friend or read about it online—how someone went from broke to millionaire within weeks or months, or how they’re still “HODLing” to potentially double or triple their capital in a few years.
If this is you and you’re interested to learn how to invest in cryptocurrency, this article has all the basic things you need to know. However, please know that crypto is not a quick rich scheme. The crypto market is highly volatile; so while you may earn in a snap, you can suddenly lose all your funds, too, and not get them back at all. As we always say in the crypto community, please do your own research (DYOR) and only invest what you’re willing to lose.
Now that it’s clear, let’s discuss how you can invest in cryptocurrency using a beginner-friendly online crypto wallet.
Disclaimer: This article was written for educational purposes only, and should not be considered financial, investment, legal, or tax advice. Investing in crypto carries significant risks, including the potential loss of your funds. Please consider your financial situation, investment objectives, and risk tolerance before making investment decisions.
First Things First: What Is Cryptocurrency?
Cryptocurrency is what we call a digital currency that uses cryptography for security. Unlike traditional currencies issued by governments (like euros or dollars), most cryptocurrencies operate on a decentralised network through a technology called blockchain. This means the network it's not controlled by any single authority, such as banks or the government, and it records and verifies transactions in a way that is secure, transparent, and resistant to tampering.
The First Known Cryptocurrency
Bitcoin (BTC), the first known cryptocurrency, went live in 2009. An anonymous individual or group known as Satoshi Nakamoto introduced BTC amid the 2008 financial downturn, a time characterised by widespread distrust in banking institutions and their economic behaviors.
During its initial stages, BTC could only be obtained by miners (those who work to verify and secure the network's transactions). This era was more of a trial phase, with BTC not yet recognized as having financial value then. Yet, a breakthrough came in May 2010, a year after BTC’s creation, when someone exchanged 10,000 BTC for two Papa John’s pizza, worth around $25 at that time. This paved the way for exchanges and discussions on BTC’s utility for purchasing goods and services on internet forums.
Since then, thousands of other cryptocurrencies have been developed, each with unique features, uses, and underlying technology. However, BTC is still the most popular and the largest crypto by market capitalisation today.
What Are Crypto’s Use Cases?
Crypto’s use cases are diverse and continuously evolving. But for the most common ones, you can use crypto as a speculative asset, payment method, and for staking, a way to earn rewards or annual percentage yields (APYs) by holding and using certain types of cryptocurrencies.
Stablecoins, a less volatile type of cryptocurrency that mirrors the value of a fiat currency like the US dollar, are also popular for crypto remittances, accepting salaries in crypto, and an option to protect funds against inflation.
How to Invest in Cryptocurrency: 4 Easy Ways on Ka.app
If you’re new to crypto, investing may seem like navigating uncharted waters, but with platforms like Ka.app, it's actually quick and easy. Whether you're looking for opportunities to earn, diversify your portfolio, experience blockchain technology, or just satisfy your curiosity about crypto, starting your journey is convenient on Ka.app, with different purchase methods to choose from.
a. Buy Crypto with IBAN
The most popular way of buying crypto with euro on Ka.app is using IBAN. In a nutshell, you just have to activate your personal crypto IBAN on Ka.app (we call it Ka. IBAN), so you can transfer euros from your external IBAN into the platform. Here’s the step-by-step guide:
- Sign up on Ka.app (if you haven’t already).
- Log in on the platform.
- Activate the Cash feature to automatically generate your Ka. IBAN.
- Once activated, copy your Ka. IBAN; go to your external IBAN; then transfer euros from your external IBAN into your Ka. IBAN.
- Upon receiving euros on Ka.app, go to the home screen and click ‘Convert.’
- Choose to convert euro to your preferred crypto (e.g., BTC).
- Enter the amount of crypto you’d like to buy.
- Confirm the purchase with your passcode.
- And you’re done! You can HODL your crypto on Ka.app for potential gains.
b. Buy Crypto with Credit/Debit Card
Do you prefer to use a credit/debit card when buying online? You can do it with crypto, too! Here’s how you can use your card to invest in crypto on Ka.app:
- Log in on Ka.app.
- Click/tap the ‘Buy’ icon.
- Select your preferred crypto (e.g., BTC). The Ramp page will load.
- Select a fiat currency and your preferred crypto, then enter the amount of crypto you’d like to buy.
- Select credit/debit card as your payment method.
- Enter your card details and proceed.
- Verify the transaction to complete your purchase.
c. Buy Crypto via Bank Transfer, Google Pay, or Apple Pay
If you enjoy the convenience of using Google Pay, Apple Pay, or bank transfers for online transactions, you can also buy crypto with wire transfer on Ka.app. Here’s how it works:
- Log in on Ka.app.
- Tap/click the ‘Buy’ icon.
- Select your preferred crypto (e.g., BTC). The Ramp page will load.
- Select a fiat currency and your preferred crypto.
- Enter the amount of crypto you’d like to purchase.
- Select your payment method: Apple Pay, Google Pay, or bank transfer.
- Enter the required details and proceed.
- Verify your purchase to complete.
d. Lock Up KASTA Tokens
In case you didn’t know, Ka.app has a native cryptocurrency called the KASTA token. While you can trade or HODL KASTA, you can also lock up KASTA tokens on Ka.app to earn APYs up to 8%, plus other benefits. All you need to do is choose a KASTA tier and lock your tokens in the app for 6 months. Here’s how you can do it:
- Log in on Ka.app.
- Tap/click ‘Tiers.’
- Select the tier you want to enter. Each one offers different APYs and discounted conversion fees. The highest tier you can enter as of writing is Tier VII.
- Enter the amount of KASTA tokens you’d like to lock up.
- Agree to the Terms & Conditions.
- Enter your passcode to confirm.
- Wait for the lock up period to finish and collect your earnings.
7 Things to Keep in Mind When Investing in Crypto
Investing in crypto requires thorough research, planning, emotional stability, and self-control. Here are the key things you must consider to start your crypto journey smoothly:
1. Understand Your Risk Tolerance
The crypto market is known for its rapid and significant price fluctuations, which can lead to major gains or losses within short periods. It's crucial to assess your ability to handle market ups and downs and their potential impact on your funds. Aim to reach a balance where the excitement of possible profits doesn't disturb your peace of mind, enabling you to make strategic and informed decisions.
2. Choose a User-Friendly Platform
Selecting a platform for purchasing, managing, and storing your crypto is way more than about convenience and security. It affects your transaction fees, how easily you can access your assets, and what else you can do with your crypto based on the availability of other features. For instance, on Ka.app, you can send crypto for free to other Ka.app users, convert crypto to other currencies, cash out your profits, and more.
Ka.app’s user-friendly interface can also improve your crypto experience by making it easy to check your funds, secure and verify transactions, see your transaction history, and reach out for support.
3. Develop a Clear Investment Strategy
Creating a solid investment strategy allows you to define your financial objectives, understand your risk tolerance, and prepare you for market volatility. Your strategy should guide you in whether you're in it for long-term growth or looking to profit from short-term market movements. Planning ahead can also help you stay focused, calm, and avoid impulsive decisions based on fear of missing out (FOMO), excitement, or other in-the-moment emotions.
4. Prioritise Security
Despite blockchain's inherent security features, vulnerabilities can arise at points where you interact with the network, like exchanges and wallets. Unlike disputable credit card charges, crypto transactions are usually final once confirmed. To safeguard your investment, choose platforms like Ka.app with robust security features. Be sure to enable two-factor authentication (2FA), use strong and unique passwords, and keep your software updated to protect against threats. Staying informed about security best practices is also essential.
5. Be Aware of Crypto-Related Taxes in Your Region
Crypto investments are subject to taxes in many jurisdictions, just like other types of investments. For instance, you may need to pay capital gains tax on profits from selling crypto at a higher price than its purchase price. Understanding the tax implications is crucial for compliance and optimising your strategy for after-tax returns. Please consult with a crypto tax professional to help you navigate these complexities.
6. Stay Updated with Crypto News
Crypto prices and trends are influenced by multiple factors, including technological advances, regulatory updates, and shifts in investor sentiment, most of which you can get insights on from the news. Staying updated can give you more information on market trends and potential movements, while helping you make informed decisions.
7. Community and Resources
The crypto community, filled with all sorts of crypto users (newcomers, enthusiasts, investors, developers, and experts), can be a rich source of ideas, strategies, and insights. Therefore, it would be beneficial to participate in discussions or ask questions through forums, social media, and events. At the same time, leveraging educational materials such as websites, courses, and blogs can significantly guide you in making beneficial investment choices.
Final Thoughts
Entering the crypto market is exciting, but it involves research, insights into market volatility, understanding your investment goals, and the use of a secure, user-friendly platform. The good thing is, with Ka.app, investing in crypto is easy as long as you’re located in a supported country. Choose from different payment options, including IBAN, credit/debit card, Apple Pay, Google Pay, and bank transfers.
FAQ
Is crypto a good investment?
Yes, crypto can be a good investment, but it's important to approach it with caution and understanding. The crypto market is known as volatile, which means the value of cryptocurrencies can quickly increase or decrease, and lead to potential profits or losses.
Can I make money with crypto?
Yes, it’s possible to make money with crypto through trading, staking, or HODLing tokens over time. It’s good to note though that earning from crypto investments demands a solid understanding of market trends and price volatility.
How much money do I need to buy crypto?
Different crypto platforms have different minimum crypto purchase requirements. Some platforms don’t have any requirements at all (meaning you can buy even just €1 worth of crypto), while some others require €10 to €100 as a starting point.
How much are the fees involved in buying crypto on Ka.app?
Purchase-related transaction fees on Ka.app vary depending on your payment method. If you’re buying from the European Economic Area (EEA) through IBAN, there’s an incoming Single Euro Payments Area (SEPA) fee of €1. For other payment methods, the transaction fee will depend on the purchase amount.
How can I secure my cryptocurrencies?
Protecting your cryptocurrencies against illegal activities requires using complex passwords on your crypto wallet, using 2FA, keeping your software updated, avoiding the use of public WiFi, being aware of phishing threats, and more.
Do I need to pay taxes when investing in crypto?
Investing in crypto may require you to pay taxes, depending on the laws in your country. For instance, some regions require individuals to pay capital gains tax when they sell crypto and make a profit. Cryptocurrencies you receive as payment (e.g., receiving salaries in crypto) or earn through mining can be considered taxable income as well. Again, specific tax rules can vary, so be sure to check the regulations in your country and consult with a tax professional to understand your obligations and ensure compliance.
