How To Invest In Bitcoin For Beginners Step by Step

In the world of investment today, investors around the globe have popularly started considering Bitcoin regardless there is a lot to debate about it and other crypto-currency. According to the proponents, investing in Bitcoin is the future. But the detractors keep arguing that it is just a risky investment choice that uncertainly offers big returns.

Our article entitled “How to Invest in Bitcoin” today will navigate you to understand the real value in the marketplace. Incredibly, Bitcoin’s valuation has significantly increased by over 73% in just one year, beating the traditional returns in the stock market and encouraging many people to buy Bitcoin now.

Who doesn’t know Elon Musk? His automotive empire is intending not only to purchase $1.5 Billion in Bitcoin but also allows payment in crypto-currency in the future. Thus, there is no doubt about investing in Bitcoin anymore.

So let’s understand Bitcoin comprehensively in our article today where you can read all about Bitcoin and get inspired to invest in this crypto-currency – who knows.

 

Contents

What Is Bitcoin Actually?

What Is Bitcoin Actually

 

Bitcoin was created either by a programmer or a group of programmers under the name “Satoshi Nakamoto” yet the public still don’t know the real Bitcoin’s creator(s) up to now.

Bitcoin is just one of the most widely used as well as the most popular crypto-currencies. The investors use virtual coins or tokens instead of o physical cash in terms of money. Coins do not have intrinsic and aren’t back up either by gold or silver.

Bitcoin was originated as a solution to a bundle of big crypto-currency flaws. First, Bitcoins were designed to avoid crypto coins duplication. As it is pretty easy to copy data from your computers, none would be able to make a copy of crypto coins for an unlimited amount of currency for oneself. Only $20 bill that someone can copy, anyway. Hence, there is a big necessity to prevent anyone from recreating crypto coins – by Bitcoins.

 

5 Easy Steps to Invest in Bitcoin

Here we go on the main topic of our article on how to invest in Bitcoin. Are you ready now? There are only 5 steps that even a beginner can do it easily. Those are:

  • Participate in Bitcoin exchange.
  • Gain a Bitcoin wallet.
  • Connect your wallet to a bank account.
  • Locate your Bitcoin order.
  • Manage your Bitcoin investment.

And here are the full review of each steps above.

 

Participate in Bitcoin Exchange

The very first step to invest in Bitcoin is simply to learn how to participate in Bitcoin exchange. In this case, most of investors use crypto-currencies exchanges. As Bitcoin is developed by open-source technology, there is no official Bitcoin company. Bitcoin transactions are facilitated by a number of different exchanges that become the middleman of investing in crypto-currencies such as the stock breakage.

If you intend to purchase Bitcoins from an exchange, make sure you know which exchange you want to purchase. There are some popular options to consider, as follows:

  • Coinbase

Coinbase is a very popular options for crypto-currency that insures losses due to the security breach.

  • Kraken

Kraken is a San Francisco-based exchange that permits you to invest in Bitcoin using many different kinds of currencies from around the world.

  • Binance

Binance was founded in 2017 as a crypto-currency exchange that has a strong focus on altcoins.

  • Gemini

Gemini was launched in 2015 by Tyler Winklevoss and Cameron. This exchange offers services for bith the casual and veteran Bitcoin Investors using various user-interfaces and fee structures for both.

  • Bitfinex

Bitfinex is the longest-running crypto-currency exchange optimized for advanced traders and lenders.

 

Gain a Bitcoin wallet

The next step to help invest in Bitcoin is gaining a Bitcoin wallet. Wallet is a place to store all of crypto-currencies including a coin after you purchase it. This way, there are two types of Bitcoin wallet available. They are hot wallet and cold wallet.

A hot wallet is usually operated either by a provider or by your crypto-currency exchange. Sometimes, some exchange have already come with a hot wallet automatically so you can easily open your account. In most cases, hot wallet is more convenient due to the accessible coins through a software program or the internet.

The most notable hot wallets include Electrum and Mycelium. Electrum is software that allows you to store your coins on your computer. Meanwhile, Mycelium is an app to store coins. It is a mobile app for iPhone and Android users. For coin storage, however, Bitcoin wallet isn’t the most secure option. Once its provider is hacked, your information may be at a risk.

On the other hand, the cold wallet is considered the most secure for storing coins. A cold wallet is actually a piece of hardware that functions to store your coins. It is a portable device that looks like a flash drive. You can buy this cold wallet at $60 to $100. Trezor and Ledger Nano are cold wallets that are mostly used by investors.

 

Connect Your Wallet to A Bank Account

The next easy step on how to invest in Bitcoin is to connect your wallet to a bank account. So, once you have your Bitcoin wallet, link it to your bank account. This allows you to buy and sell the coins. Optionally, you can also link your bank account to your crypto-currency account.

 

Locate Your Bitcoin Order

Now that you are ready to buy a Bitcoin, your crypto-currency exchange allows you to buy anything. Now a big question is; how much Bitcoin would you like to purchase? Some coins are priced at a thousand of dollars, allowing you to buy parts of a single coin. However, for your first investment, you could purchase as low as $25.

As Bitcoin investment is highly risky, make sure you carefully determine the risk tolerance along with the review of your investment strategy before you buy any Bitcoin.

 

Manage Your Bitcoin Investment

Once you know how to buy Bitcoin and finally purchased it, manage your investment. In this regards, it is highly recommended that you use your coins to involve in online transactions. Hold your coins for certain period of time to expect to appreciate in value. Later, follow the daily trading using your coins with the other Bitcoin owners by purchasing and selling the coins. This is facilitated by the crypto-currencies exchange.

 

Other Methods on How To Invest in Bitcoin

How To Invest in Bitcoin

 

There are a few other methods on how to invest in Bitcoin that you may want to learn and employ either directly or indirectly.

  1. First, invest your Bitcoin in a company that uses Bitcoin technology. Though Bitcoin investment is considered the high-risk option, many companies successfully sell the products incorporating both Bitcoin and block-chain technologies.

Some exchange-trade funds (EFTs) usually includes shares from many different block-chain-related companies such as Amplify Transformational Data Sharing ETF. You can join this exchange if you want to invest Bitcoin in a company.

  1. Second, join in Bitcoin mining. Bitcoin mining is simply letting you to use your computer as a node for the public ledger. We can call it a free-of-charge Bitcoin investment as you can gain free Bitcoin without purchasing it. One thing that you should know is when the Bitcoin miners are rewarded with actual Bitcoin for their participation.

 

Is It Good to Invest In Bitcoin?

One question that always comes up is whether it is good or not to invest in Bitcoin. Well, one thing all investors should know is that there is no investment which is good or bad. It much depends on the risk tolerance, investment strategy and financial goals determined by each investors.

Before you consider investing in Bitcoin, make sure your own goals and determine what you want to accomplish in your investment. Do you want to be a full-time investor or just develop a passive income? These questions will help you think about whether Bitcoin investment the right option you take.

As we have mentioned, Bitcoin investment is too risky due to the fact that it is a volatile asset, meaning that such investment value may arise or fall drastically only in a short time. Similar to all crypto-currencies, Bitcoin doesn’t have intrinsic value like silver or gold. It hasn’t either the central regulator to ensure that value stability. In addition, Bitcoin value isn’t linked to corporations’ profits. The Bitcoin value is much dependent on the market demand. The more people buy Bitcoin, the more the Bictoin value will increase.

To obtain a significant profit on Bitcoin, it is necessary to rely on “timing the market” at which the investment strategy is both difficult and ill-advise. Nevertheless, investing in Bitcoin is potentially gaining profit.

 

Bitcoin and Other Investment

Now you may think about the other investments whether they are just similar to Bitcoin or there is slight difference. Is Bitcoin safer than any other crypto-currencies? It must be confusing to decide which investment you are going to take.

Once you learn our tips on how to invest in Bitcoin and are successfully involved in Bitcoin investment, you might think that Bitcoin is can used along with today’s greatest assets. Real Estate has applied “Tokenization”. Tokenization is the way you are creating a virtual token that represents an interest ownership in real estate that joins the block-chain, the core technology backing up Bitcoin.

 

Why Bitcoin Is Preferable

The main benefit you can expect to gain from Bitcoin investment is the chance to generate a big return on profit that can up to 200% or even more. Definitely, it is challenging to accomplish the Bitcoin investment and be involved in all Bitcoin activities.

Purchasing a large amount of Bicton may enable you to dominate the market surge and sell the coin to get higher value when there are dozens of buyers.

There is also possibility that Bitcoin will become the future currency or the more traded asset. You can expect to generate returns from your long-term holdings. However, keep in mind that Bitcoin values are usually going down every year.

The success of investing in Bitcoin may depend on the “timing the market”. In other words, you should know when to buy Bitcoin. Most investors buy coins when they are at a low price and sell them when they are at the higher place. The high-risk investors always pay more attention to the market to gain the huge returns if they employ this strategy. They may even get the highest profit that are very much impossible in the world of government bonds.

 

Conclusion

Overall, Bitcoin is best described as a popular crypto-currency type that uses a large chain of interconnected computers to both store and save your digital assets. Though Bitcoin is highly volatile asset, it is quite promising to give you large returns.

Now learn our tips on how to invest in Bitcoin carefully and practice well. Have a successful Bitcoin investment!

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