If you have ever thought of investing in bitcoins or any other cryptocurrency, the best time to do that is probably some years ago. The second best time is now.
If you have heard about bitcoin, then you should know all that there is about digital currency, especially if you plan on trading it. Learning about this digital currency may involve identifying the latest crypto coin news source and plugging it into it to get a proper perspective on the nature and strength of the coins.
While this may take some time, this article has aggregated some of the most important information that you need to know about bitcoin and how to go about trading it.
What is Bitcoin?
Bitcoin is a digital currency that is decentralized and based on Blockchain. Knowing how Bitcoin works can help you to better understand how to manage this digital currency and properly trade. Going by the underlying principles behind Bitcoin, it is safe to assume that the price will keep rising and this is owed to the fact that there is a finite amount of Bitcoin in circulation, making it a great store of value.
If you are interested in purchasing bitcoins, then this guide has been designed to put you on the right path.
How To Start Investing In Bitcoins
To get started with Bitcoin investment, there are two major things you need:
- An exchanger website where you can exchange your cash for Bitcoins.
- A cryptocurrency wallet where you can store the acquired Bitcoin.
Having put those two in place, you are now set to begin your foray into the cryptocurrency trading world. However, it is important that you pay attention to record your wallet address details safely and also note the correct website, lest you fall into the hands of some Multi-level Marketing or internet fraudsters.
What You Need To Start Investing
– Where to buy your Bitcoin
When planning on buying Bitcoins, first you need to understand whether you live in a country where there is an official Bitcoin exchange. If there is, then you need not worry about purchasing Bitcoin as you can seamlessly sign up for the exchange and have your money converted to Bitcoin.
However, if you reside in a country with no official Bitcoin exchange, then you may need to seek out the option of transferring funds from your bank account to a seller who will then credit your wallet with the equivalent of the monetary value. One of the major disadvantages of this is that the current market price will determine how much Bitcoin value you can get.
You may also choose to buy Bitcoin using other methods and platforms including credit cards, debit cards, Payoneer, PayPal, and the least recommended option, through cash payment.
– Storing Your Bitcoin in a secure wallet
After you have purchased your Bitcoin, similar to cash, there is a need to ensure that it is kept safe and secure. To keep your Bitcoin secure, you will need a secure wallet.
A simple online search for Bitcoin wallets will present you with several options to choose from. However, not all platforms can be trusted with your cryptocurrency.
When choosing a secure wallet from the multitude of options available online, it is recommended that you carry out detailed research on the platform and the wallet provider. Through research into the past reviews, you can better determine the integrity of the platform.
In addition, you should also avoid keeping a wallet in exchange. Seeing as most exchanges like CEX, Localbitcoins, CoinBase and others offer in-built Bitcoin wallets, it is least advisable as you stand a chance of losing your bitcoin if the exchange platform crashes.
When choosing wallets for storing your bitcoin, these are the different kinds of wallets you can come across:
- A desktop wallet which comes in the form of a software
- Mobile wallets are available as mobile applications supported by mobile platforms like Android and iOS.
- Web wallets that come in the form of a website
- Paper wallets, one of the most secure methods of setting up security for your cryptocurrency.
- A hardware wallet, also offering a high level of security.
Important Things To Know Before Your First Investment
- Bitcoin’s prices are continuously surging and this is largely being influenced by the continuous acceptance of the cryptocurrency in more parts of the world.
- Investing in Bitcoin requires lots and lots of information gathering. This means that it will take some time before you start to make valuable decisions.
- Be security conscious and understand at all times that you are responsible for the security of your online currency.
- Ensure that you are buying Bitcoins only from a trusted exchange that has been recommended by reliable parties.
More on this topic: Reasons Why Cryptocurrency Has a Good Return on Investment