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How to Choose a Platform to buy Crypto? Cryptocurrencies to buy 2021

How to Choose a Platform to buy Crypto? Cryptocurrencies to buy 2021

Cryptocurrencies

Summary

  • How to choose a platform to buy cryptocurrencies? 
  • What are the cryptocurrencies to buy in 2021?
  • What are the costs of cryptocurrency platforms?
  • What are the AMF's recommendations on cryptocurrencies?
  • How to declare your cryptocurrency income?

How to choose a platform to buy cryptocurrencies?


 
When preparing to buy cryptocurrency, it is important to select a few criteria to choose a platform that will meet your expectations. But we advise you to take a look for yourself. 


  1. Create a test account with play money. This will allow you to take control of the platform, see the costs and confirm your desire to actually invest money.
  2. Platform fees. The fees can vary greatly depending on the platform. They are often quite obscure and it is important to understand them well.
  3. The language of the platform. Many platforms do not have a English version and unless you have a perfect mastery of Shakespeare's language, we recommend that you use a platform that is available in English. 
  4. The reliability of the platform. It may be useful to follow the news of the platform. Is the platform always available when there are a lot of connections? (For example when the price of Bitcoin undergoes significant variations). Is the platform secure enough?


What are the cryptocurrencies to buy in 2021?

2020 has been a very eventful year for cryptocurrencies. Bitcoin went from 6,500 to 35,000 €, Ethereum went from 125 to 2,800 €. By April 2021, Bitcoin had even climbed to over € 50,000 and Ethereum to almost € 3,500 before experiencing significant adjustments in recent months. These 2 crypto-currencies are the most traded and represent the highest capitalization. These significant variations and this craze resemble the one that took place at the end of 2017 even if today many institutional players, such as Tesla who bought $ 1.5 billion worth of Bitcoin, strengthen its credibility in the time. It is still likely that many fluctuations will occur, April 2021 is the perfect example with Bitcoin falling nearly 25% from its highest level.
We still advise you to direct your investments towards cryptocurrencies that are established such as Bitcoin or Ethereum.

What are the costs of cryptocurrency platforms?

The fees are numerous and often complex on cryptocurrency platforms. We present a list of fees that you can find on most platforms:
Fees on deposit. When you deposit money on a platform, it will often take a commission. This commission will always be higher if you deposit money with your credit card rather than by installment.
Transaction fees. Whenever you go to arbitrate, for example if you want to sell Ethereum to buy Bitcoins.
Spread. This is the difference between the buy price and the sell price for the platform. This is how eToro pays for itself, for example.
Fees on withdrawal. Platforms may take a percentage when you withdraw your funds.
Currency conversion fees. On eToro, the euros you deposit will have to be converted into dollars, Etoro will take a commission.


What are the AMF's recommendations on cryptocurrencies?

The watchword of the AMF when it comes to cryptocurrencies is caution. Be careful with many platforms that are scams, be careful with the volatility of these values. A caution that we also recommend that you have. Our comparator is here to help you choose a platform that we consider safe, but that hasn't stopped some from getting hacked.

How to declare your cryptocurrency income?

If you make capital gains when selling cryptocurrency, you will be taxed on it under the Flat Tax. However, there is a solution to shift your taxation when your money is out. 


Discover our articles on cryptocurrencies

Future of Crypto Currencies in the next 5 years
How to think of Cardano ?
What to think of Coinbase?

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