Buying cryptocurrencies

The most popular route to buy digital assets is through a centralized exchange. Platforms like Binance or Coinbase act as an intermediary, connecting buyers and sellers. The purchase process is simple and resembles using an online exchange office. However, it is necessary to verify your identity, known as the KYC procedure, which involves uploading a scan of your identity document. Once you have funded your account with a traditional currency, such as dollars or euros, you can make your first trade. This approach offers high liquidity and a wide selection of cryptocurrencies.

An alternative are cryptocurrency exchange offices, both stationary and online, which allow quick purchases for cash or transfer, often with simplified verification. Another path is through decentralized exchanges like Uniswap. They run directly on the blockchain, without a central intermediary, which provides greater anonymity. However, operating them requires some technical knowledge, including having your own cryptocurrency wallet. The choice of the right method depends on the investor's priorities: convenience, costs, anonymity or security. Regardless of the choice, it is worth using proven platforms, and knowledge on this subject can be gained through training presentations or consultations with experts.

Every transaction comes with a cost. Exchanges charge transaction commissions, usually between 0.1% and 1% of the order value. You should also pay attention to the so-called spread, i.e. the difference between the buy and sell price, which is a hidden cost. Before opening an account, it is worth comparing the tables of fees and commissions, as well as checking the available payment methods. The cheapest is usually to top up your account by bank transfer, while credit card payments are associated with higher commissions, reaching up to 3-4%. Sensible cost management is the first step to a profitable investment, and you can look for support in this area from advisors such as lion money partners.

• Secure crypto storage

Owning cryptocurrencies is actually having private keys, i.e. secret codes that give access to funds stored on the blockchain. Whoever controls the keys, controls the assets. Therefore, the fundamental rule in the crypto world is "not your keys, not your coins". Keeping all funds on the stock exchange is convenient, but risky – in the event of the platform's bankruptcy or a hacker attack, the investor may irretrievably lose their capital. The responsibility for safety lies with the user. Understanding this is key, and a credible training portal always highlights this aspect as the foundation of safe investing.

The solution to this problem is cryptocurrency wallets, which fall into two main categories. Each offers a different trade-off between security and convenience:

• Hot wallets

They are constantly connected to the internet, which provides convenience and quick access to funds. They include mobile apps, desktop wallets, and the aforementioned exchange accounts. Their main disadvantage is their vulnerability to hacking and phishing attacks, so it is recommended to keep only small amounts intended for current trading on them.

• Cold wallets

These are physical devices (e.g., Ledger, Trezor) that store private keys offline. They offer the highest level of security against online threats because transactions are authorized on the device, without revealing the key. They require greater user responsibility for securing the device itself and the recovery phrase.

The most important element of any wallet is the recovery phrase, which is a set of 12 or 24 words generated when you create it. This is a backup that allows you to access your funds on any other device in the event of loss or destruction. This phrase should be written down on a piece of paper and stored in several secure, physical locations. It must never be stored in digital form – on a computer, in the cloud or taken photos. Its loss means the loss of funds, and its takeover by a third party is tantamount to stealing all the capital. Lion money partners'  in-depth guides and training presentations explain exactly how to manage this key element of security.

The point of owning cryptocurrencies

The motivations for investing in cryptocurrencies are varied. For many, the main reason is speculative potential. The history of Bitcoin and other projects has shown that it is possible to increase in value in the order of hundreds or even thousands of percent in a relatively short period of time. However, this huge volatility is a double-edged sword – the declines can be just as sharp. This market attracts people with a high tolerance for risk, who count on above-average profits and are ready for the possibility of losing some or all of their invested capital.

For another group of investors, especially in the case of Bitcoin, its role as "digital gold" is crucial. Its supply is mathematically limited to 21 million units, making it a deflationary asset, unlike traditional currencies that central banks can print without restrictions. In the face of rising inflation and economic uncertainty, part of the capital is invested in Bitcoin as a form of securing purchasing power in the long term. In this narrative, it is seen as a decentralized, global, and censorship-resistant store of value. Every serious news portal in the financial industry regularly analyzes Bitcoin's correlations with traditional assets.

The technological aspect is also becoming increasingly important. Investors buy tokens like Ethereum not only for speculative purposes, but because they believe in the potential of blockchain technology. They see it as an investment in the decentralized infrastructure of the future internet, known as Web3. Owning tokens for projects in the area of decentralized finance, NFTs or blockchain-based games is a form of participation in building a new digital ecosystem. Regular news monitoring provided by the lion money partners news portal allows you to stay up to date with innovations in this sector.

Finally, cryptocurrencies are also becoming a tool for portfolio diversification. For a long time, they showed a low correlation with traditional stock and bond markets, which meant that their price moved independently. While this correlation has increased in recent years, they can still be a valuable addition to a diversified portfolio, reducing its overall risk. This approach, promoted by investment portal lion money partners, assumes treating cryptocurrencies as a small but strategic element of a broader investment strategy.

Entering the cryptocurrency market requires caution and solid preparation. These are assets with great potential, but also incomparably high risk compared to traditional financial instruments. The key to success is education, understanding of technology and awareness of threats. You should never invest more than you are prepared to lose, and decisions should be based on your own in-depth analysis, not on temporary fads or emotions. The security of funds, implemented through the use of cold wallets and careful key management, is an absolute priority. Cryptocurrencies are a marathon, not a sprint, and patience and strategic thinking are more valuable than chasing a quick profit.