How does investing in crypto work and why would you want to do it?

At Knaken, we want to be there for everyone seeking access to the promise of crypto. We offer a platform where you can buy crypto in a simple and secure way. Knaken is especially known for customer satisfaction. We provide our customers with extensive support and always respond very quickly.

Why invest?
Investing in your own future is certainly always a good idea. Saving is one thing, but it is also very important to manage your savings wisely. Of course, you want your savings to at least retain their value.
People who keep all their savings in euros in the bank are completely dependent on the value of the euro. High inflation and low interest rates mean that each year you can buy less with your saved euros. One way to protect yourself against this is to diversify your assets. For example, you can invest part of it in gold, other currencies like dollars, real estate, and stocks. Now, with crypto, a new way of investing has emerged.

Investing may seem risky and complicated to many people, but it could actually offer more security for the future. It is, of course, important that you do it wisely and conduct your own thorough research before you start.

How does investing work?
Companies, especially new projects, often have big future plans. In order to realize these plans, they first need capital. That’s why they look for investors who believe in their future plans. They buy shares or invest in other ways. If the future plans are realized and the project or company grows significantly, the value of the investment increases and the investors are rewarded.

Investing in crypto works in a similar way. Bitcoin is an important exception because there is no company or project behind it. It is therefore better compared to investing in commodities like gold. Just like Bitcoin, gold is scarce and interchangeable. Because Bitcoin is also useful for transactions and is more transparent, it is sometimes referred to as gold 2.0.

Investing is now possible for everyone. You no longer have to go to the bank; you can simply create an account at home and get started.

Why invest in crypto?
In the Netherlands, many people are accustomed to euros and the financial system we currently use. But technological development does not stand still, and new possibilities have emerged. The first and most important crypto is Bitcoin, which has existed for 13 years. It has proven itself as a reliable foundation for a payment network and a store of value.

There are many reasons to invest in crypto. Some people do it because they believe the price will rise, others because they are enthusiastic about the innovative technology, and still others because they are losing faith in the money we currently use. Besides Bitcoin, there are many crypto projects that offer different types of functions. You can buy stablecoins like USDC and UCDT that follow the dollar’s price. You can also invest in platforms like Ethereum, on which more and more applications are being built. There is now much more possible with crypto, and we are happy to help you find your way in this new world.

Why invest with Knaken?
We are a Dutch crypto company registered with De Nederlandse Bank. This means that we comply with strict Dutch legislation. Knaken is an understandable platform, and we offer extensive service completely in Dutch. With our up-to-date academy, we are also your guide in the world of crypto.