Investing in Bitcoin

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It is after the year 2017, with cryptocurrencies such as Bitcoin gaining in importance and popularity; people wish to invest in the market, trade it using systems like Bitcoin Billionaire. But they are still not sure how are they supposed to do this.

For someone just growing interest in cryptocurrencies, there’s the inquest of what to buy and when to buy it. Putting everything you wish to invest in a single entity at one time isn’t a good strategy.

Doing this will mean that you will be relying on one coin to do well from that point onwards. And this scenario is very, very risky.

You may buy that one coin today then have it crash tomorrow, or you could have it go down for a month only to rebound to double it is now and end up missing out on buying it at its lower prices.

The fact here to acknowledge is that this market and the prices are highly volatile, thus investing in it has to be done with comprehensive knowledge. If not, you might end up a very distressing note.

So for someone completely inexperienced, the best way to start investing is to purchase a collection of coins. Do not limit yourself to one, buy-in collections and buy them at frequent intervals in smaller volumes instead of purchasing them all at once.

Create your Bitcoin account on a good exchange platform and sign up for a safe Bitcoin wallet. This will help you in the longer run.

With all this information, the next thing to know is what steps are to be taken to invest in Bitcoin. Here are some simple steps that will help.

  • BUYING

The very first step towards investing in Bitcoins is deciding the platform for buying them. Although there are many cryptocurrency exchanges and brokers available on the Internet, choosing the right one can be very confusing.

To make this work a bit easy for you, here are the names of some famous cryptocurrency exchanges. The following cryptocurrency exchanges are good platforms to create a tour Bitcoin account.

COINBASE: it is the overall best digital wallet available in the market. It provides you with one of the easiest ways to buy sell and hold cryptocurrencies. It provides all the facilities along with good security to its users. It regularly updates the software to ensure proper security of the Bitcoin wallets.

BINANCE: it is the world’s largest exchange by volume for all the cryptocurrencies. It charges a 0.1% fee for all crypto trades along with a withdrawal fee. Here it is possible to purchase with a credit card and cryptocurrency. Anyone can sign up on Binance by creating a Bitcoin Account on it.

ELECTRUM: it is a software wallet, which implies that your Bitcoin is deposited in a set of files on your desktop computer or laptops. As of now, it is available for Windows, Mac OS X, Linux, and Android. It is one of the best desktop Bitcoin wallets.

Apart from these exchanges, if you wish to buy Bitcoins any other way, you can buy them through Bitcoin ATMs, peer-to-peer Bitcoin owners, etc.

  • STORING

Storing your Bitcoins is another important task you need to take care of while investing in them. To trade anything, you first need to store it. And cryptocurrencies are stored in digital wallets.

And when you are dealing with Bitcoins, it is called a Bitcoin wallet. Generally, there are two kinds of Bitcoins wallet available to store Bitcoins which are hot wallets and cold wallets.

  • Hot wallets

The basic purpose of hot wallets is to make transactions faster. Basically, all the exchanges provide a free Bitcoin wallet where the Bitcoins you bought will be saved automatically. Hot wallets provide you an option to trade the Bitcoins which is not the case with cold wallets.

Although the exchanges provide free wallets, people wish to save their money on third party Bitcoin wallets. Examples of a few hot wallet providers are Coinbase, Electrum, and Mycelium, etc.

  • Cold wallets

Like the hot wallet, cold wallets do not provide an option to trade your currency. They are more like small encrypted devices designed to safeguard your currency. It allows you to download your Bitcoin and carry it along with you. There are providers such as Trezor, Ledger Nano.

  • PURCHASING

After linking your Bitcoin wallet and Bitcoin account, you are left to move towards the last step of your investment which is buying the Bitcoins. You have to decide how much Bitcoin or what fraction of Bitcoin you want to purchase.

This decision completely depends upon the factor that your budget is. Remember it is good for the amount you can afford to lose. To keep a record of Bitcoin’s price in the market, go through the daily Bitcoin news.

  • INVESTING

Once you are done purchasing your Bitcoins, you can now trade with them to get good returns. There are many countries that allow payments through Bitcoins. So if you are lucky enough, you can pay for your parties or daily requirements through Bitcoins.

Also, you can sell them when the price of Bitcoin goes high to earn a good amount of money from them. Thus, we can say that investing in Bitcoin comes in two ways, either you can trade them to earn good returns or you can use them as any other digital currency for your daily works.

It’s important to realize how Bitcoin goes before investing any money. Bitcoin is yet new and it can take months to learn the actual influence Bitcoin can hold on the world. Thus before putting any money into it, better is to take some time to learn about Bitcoin, how it works, how to guard Bitcoins, and about how Bitcoin varies from fiat money.

Thus choose the right exchange platform as it will give you the right knowledge and will suggest you steps to follow.

Although Bitcoin can work wonders for some, the best way to be on the safe side will be never investing all your money or resources into it. Do not invest more than you can afford to lose. It will be good if you diversify your money, as this will make your loss less painful.

And this will be plausible only when you have an absolute understanding of Bitcoin. So, take out some time and read as much as you can about Bitcoin. Also, do not forget to secure your Bitcoin wallet, as there are many hackers out there who can claim your currency in no time.

Make the security of your Bitcoin wallet and Bitcoin account a priority. You can also go for cold storage if required.

Remember one thing that Bitcoin has no bodily reinforcement and can be sent electronically from one user to another, in any part of the world. Because there are a limited number of the coins, there is inadequacy so the value constantly fluctuates.

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