Cryptocurrencies - how to get started in 2024?

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What is cryptocurrency?

Cryptocurrency is digital money, a virtual investment asset and a modern means of payment, the functionality of which is usually based on a distributed accounting system. Most cryptocurrencies are decentralized, which means that they are not managed by any state, central bank or any financial institution. The operation of cryptocurrencies is most often based on blockchain technology and advanced cryptographic solutions. Thus, according to some, cryptocurrencies are synonymous with a modern approach to finance.

The most popular cryptocurrency is bitcoin. However, there are over 10,000 different cryptocurrencies on the market, which represent different visions of the future, different philosophies and completely different functionalities. Not every cryptocurrency is based on a traditional distributed, or decentralized, accounting system - like Bitcoin or Ethereum.

On the cryptocurrency market, we also have projects such as IOTA, which, instead of Blockchain, base their functionality on DAG, i.e. Directed Acyclic Graph. While the Blockchain of cryptocurrencies such as Bitcoin has nodes that verify user transactions, IOTA and its DAG presented a completely different functionality - each new transaction must confirm the two previous transactions.

The mentioned solution has the potential for enormous scalability - once the DAG technology is mastered by developers, it is highly probable that cryptocurrencies based on this solution will be able to surpass the functionality of VISA cards, which can handle up to 65,000 transactions per second.

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What are cryptocurrencies used for?

You already know that one of the uses of cryptocurrencies is payments. You've probably heard somewhere that cryptocurrencies offer instant, anonymous and safe transactions that take the same amount of time, regardless of the distance between wallets, directly between them without any intermediaries.

This all sounds perfect. However, blockchain technology has its drawbacks.

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Poor scalability - support for multiple transactions

When the mentioned VISA supports as many as 65,000 transactions per second (TPS - transactions per second), Bitcoin will support a maximum of 7 TPS.

Ethereum? Not much better - 45 TPS.

The best performer at this point is Ripple, which, depending on the data, can handle up to 1,500 TPS.

Cryptocurrencies will certainly dominate the payment sector, but we will have to wait for that. The most likely solution will be DAG and scalability with the number of transactions on the network, which, for example, IOTA offers.

Why is scalability a problem for older cryptocurrencies?

Bitcoin was created as a prototype. Its creator, still anonymous, Satoshi Nakamoto, did not expect such mass adoption. Due to the fact that the first cryptocurrencies were only intended to show an innovative approach and not scalability, they remain unscalable to this day. Currently, the low bandwidth of blockchain networks such as bitcoin or ethereum means that the cost of transactions on these networks often exceeds $20. Fortunately, there are more and more blockchain projects such as Polygon or Solana, which are more efficient due to their architecture.

Cryptocurrency applications:

  • Cryptocurrencies are a great store of value - of course, you cannot generalize at this point, not every cryptocurrency holds value as well as gold. At the moment, the most popular cryptocurrency used to store value is Bitcoin, which, despite gigantic increases and drastic decreases, is gaining in value over a long period of time.
  • Long and short-term investments - rapid price changes are a positive advantage for many speculators. However, many of them treat the cryptocurrency market like a roulette - buying cryptocurrencies without prior analysis and research, based solely on the hope of growth, is not always a good solution. Despite this, many investors decide to make such moves, making a lot of short-term buying and selling actions.
  • Performing anonymous transactions - anonymity is a huge and powerful magnet. So far, only this one factor has attracted millions of investors and users to cryptocurrencies. Are cryptocurrencies really fully anonymous? Well - not really. If we know the wallet address, we can track the funds. However, despite knowing the address or public key, we do not know the identity of the user behind the 160-bit alphanumeric string.
  • Full access regardless of location. Cryptocurrencies enable not only the transport of large sums of value, where you can have millions on one address, but also the ability to use them anywhere in the world. All you need is Internet access to send the transaction to the network.
  • Growing adoption - you can buy more and more things with bitcoin. From time to time, the media is shocked by information about the purchase of an exclusive property or a fabulously expensive yacht or car for cryptocurrencies. While buying a sports car is eccentric, buying it with cryptocurrencies is a new level of extravagance. Some brands, such as Tesla, openly accept bitcoin payments every now and then just to gain extra publicity.
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How to buy cryptocurrencies in Poland in 2024?

To buy cryptocurrencies in Poland, you must choose the appropriate method. There are many ways, but the easiest way is to buy cryptocurrencies on Egera - a cryptocurrency exchange platform with the QuickSwap function, a cryptocurrency exchange and a network of stationary bitcoin machines.

How to buy cryptocurrencies for PLN?

The easiest way to buy cryptocurrency for PLN is to trade on EGERA. All cryptocurrencies on our platform are paired to the Polish zloty, which means that the transaction can be made immediately and at the lowest cost.

How to buy cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin or Doge) for PLN?

The first step is to find the right platform - you have already found it, because you are on Egera. All you need to do is register an account and verify your identity. The process is intuitive and will take just a few minutes.

After successful registration, simply deposit funds. We are the only platform in the world that supports BLIK deposits, link payments directly from your bank and deposits and withdrawals via bank transfer in this instant Express Elixir booked 24/7.

After making an instant deposit, simply use the quick exchange module, selecting PLN as the source currency and any cryptocurrency as the target currency. Enter the exchange amount and confirm the proposed rate. That's it! You have your cryptocurrencies.

Cryptocurrencies - how to start your adventure on the cryptocurrency market in 2024?

If you already have an account on Eger, you actually have 3 options for purchasing cryptocurrencies:

  • Fast exchange - thanks to QuickSwap you can buy Bitcoin, Litecoin, Ethereum and other cryptocurrencies in the blink of an eye. Just select the target currency, enter the amount and confirm the exchange.
  • Limit order - if you value full control, you can now place a purchase or sale offer at the rate you set. Now all you have to do is wait for the person who wants to take advantage of your offer!
  • EGERA Bitcoin ATM - if you value privacy and cash more than card payments, use an ATM. Transactions not exceeding PLN 4,500 can be made completely anonymously!

Cryptocurrency portfolio - how to build it in 2024?

At EGERA you can build a wallet based on leading cryptocurrencies. You can choose from, among others:

  • Bitcoin
  • Litecoin
  • Ethereum
  • XRP
  • Dogecoin
  • Big/ShortBet$
  • AdShares

Each of these projects has its own huge community and international recognition. If you treat our platform as the so-called on-ramp and you want to be anonymous, remember that in EGERA bitcoin machines you will also find leading stablecoins:

  • USDCoin
  • USD Tether

If you are a beginner investor, choose a conservative portfolio. Altcoins such as Dogecoin can grow significantly during a bull market, but they lose the most during a bear market. Basing the portfolio mainly on Bitcoin and Ethereum seems to make the most sense.

What is better? Bitcoin, Ethereum or something else?

Every cryptocurrency has its use. Bitcoin is the cryptocurrency that started it all. Many people started their adventure with it and still keep it in their wallet to this day. Bitcoin, as the currency with the largest capitalization, also stabilizes the entire market.

Ethereum was created as a development of bitcoin. Its creator was guided by the idea that cryptocurrency can not only be a carrier of value, but also its creator. The first smart contracts were created on Ethereum, including tokens, which became separate assets. Ethereum, as the first blockchain 2.0 cryptocurrency, became the progenitor of current blockchains such as Solana, Polygon and Polkadot.

When creating a wallet, also pay attention to stable coins. Their graph is an endless parallel line. Their purpose is to reflect the exchange rate of the dollar or other fiat currency. They were created to increase cryptocurrency adoption by simplifying calculations. Now you know much faster whether you have earned in relation to the dollar or whether your earnings are only caused by the decline in the value of bitcoin relative to the currency you bought. A stable coin can be a great investment of capital "outside the system", which will allow you to buy other cryptocurrencies on declines and realize profits without going to traditional national currencies.

What portfolio to build for 2024?

Remember that the best portfolio is the one you work for yourself. No one can guarantee you which project will grow. Follow the communities, conduct fundamental analysis and keep your fingers crossed for growth!

The most important step to safe investments - a cryptocurrency wallet.

One of the first steps you take when investing in cryptocurrencies should be to set up a cryptocurrency wallet. In the case of the Bitcoin market, there is no appeal body, hotline or any method that will allow you to get your funds back. Only you can keep them safe or risk losing them.

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EGERA is not only a cryptocurrency exchange, it is also the first QuickSwap overlay, enabling quick and convenient purchase of cryptocurrencies including bitcoin, ethereum, litecoin, XRP and others in a few clicks.

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What distinguishes us is a professional and helpful customer support department working in Polish. Thanks to this, no technical question will be left unanswered and you will be able to feel safe.

Use the Platform recommended for starters! Buy your first bitcoins! bg cta

What wallet should I start with?

Types of cryptocurrency wallets

There are many classifications of wallets. At first, you may get lost between hot, cold, physical, paper, online, etc. However, security should be at the core of your wallet. Remember that a secure wallet is one for which only you have the private key and the recovery seed. However, there are situations in which you do not have such elements, and yet your cryptocurrencies remain relatively safe. We are talking about wallets on stock exchanges.

Cryptocurrency wallet on the stock exchange / currency exchange office.

Without a doubt, the most convenient form of storing funds is to keep them on a cryptocurrency exchange, where we can sell them at any time. Storing funds on the exchange also allows you to save small amounts needed to complete transactions between wallets. However, this does not change the fact that no exchange will provide you with private keys to wallets, so the security of your funds is valid as long as the platform exists.

Is it safe to keep funds on the stock exchange?

The function of the stock exchange is trading, i.e. exchange of cryptocurrencies. In theory, wallet systems on exchanges were not designed to store cryptocurrencies long-term. This does not change the fact that cryptocurrencies on the stock exchange are safe as long as the stock exchange exists. Remember, however, that if you keep a larger sum of cryptocurrencies and do not intend to cash them in quickly, it is worth considering transferring them to a private cryptocurrency wallet.

The wallet you have control over - how to choose?

As we mentioned above, the wallet you control is the one for which you have the seed and private key. There are many wallets on the market to choose from. Basically, there are 3 types of wallets:

  • Wallet in the form of an application - the choice here is really large. There are browser-based wallets such as MetaMask, and there are also mobile applications such as Exodus. Any wallet that allows you to create a seed or export a private key is safe. However, avoid wallets in which the owners of the private keys are their creators - then your funds are safe as long as the application exists.
  • Physical wallet - it looks like a pendrive. Unlike software wallets, the private key is stored on the device itself. The device, in turn, does not have a physical connection to the Internet most of the time, so it is very secure.
  • A paper wallet in which you have printed access to the wallet. It is only as safe as the place where you store it. A definite advantage is its virtually zero cost.

Beginner mistakes - how to avoid them?

Everyone started somewhere. Cryptocurrencies are a great market, but there are several risks for inexperienced investors. In addition to poorly secured funds in your wallet, you can also lose funds on the stock exchange itself. Check how to deal with this.

No calculations

Sometimes you make decisions impulsively. However, the cryptocurrency market, like any other, rewards a cool analysis of facts. Always calculate both purchases and sales. Sometimes a sparrow in the hand is better than a pigeon on the roof, and a profit of 300% is better than a correction of 90% the next day.

Frequent cryptocurrency changes

When the market is green, it is easy to be tempted to search for the most lucrative cryptocurrencies. However, remember to invest in cryptocurrencies mainly based on fundamental analysis. A project with foundations, even after major corrections, has a chance to turn out to be profitable. The same cannot be said about projects done in advance "for money".

No investment strategy

Before you start investing, always answer a few questions. The basic ones include:

  • What is my investment horizon?
  • How much am I willing to lose?
  • how much do I want to get out of my investment?

Think carefully about the answers to these questions and calculate them. Then write them down on a piece of paper and come back to it as often as you want to make an ill-considered decision on the market. Remember that the stock market is mainly a game of emotions and there are people just like you in front of you. May the force be with you!

Where to check cryptocurrency quotes?

Cryptocurrencies are a specific instrument. This is due to the fact that, unlike shares, they are listed on many markets at the same time. The exchange rate between exchanges may vary for various reasons, including: political or economic situation of the region where a given stock exchange operates. It is best to check the cryptocurrency rate on a given exchange. Some platforms have dedicated subpages for analyzing courses

Can you buy cryptocurrencies without identity verification?

Nowadays, purchasing anonymous cryptocurrencies is almost impossible. However, we at EGERA make miracles happen! From October 2023, we have put Bitomats at your disposal. Here you can complete transactions completely anonymously, up to PLN 4,500.

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