Recently, Bitcoin's valuation has increased by more than 763% in just one year, easily surpassing traditional gains in the stock market. Bitcoin is one type of cryptocurrency that is currently the most widely used. This crypto asset was created by programmers under the pseudonym Satoshi Nakamoto. Bitcoin was created to solve some of the major cryptocurrency flaws. It's not too late to start investing in Bitcoin. Here are five easy steps to investing in Bitcoin.
1. Join the Bitcoin Exchange You have to decide where you want to buy Bitcoin. Bitcoin does not have an official company that specializes in selling these crypto assets because Bitcoin is an open source technology, but there are several different exchanges that facilitate Bitcoin transactions. These exchanges are cryptocurrency investment intermediaries, much like stock brokers. If you decide to buy from an exchange, you have to decide which exchange you want to buy from. Here are two of the most popular options:
Coinbase: A very popular crypto exchange that guarantees losses in the event of a security breach or fraudulent transfer. Bitfinex: The oldest cryptocurrency exchange optimized for advanced traders and lenders. 2. Get a Bitcoin Wallet When you buy Bitcoin, the coins are stored in a digital wallet. There are two types of wallets that you can get, namely, "hot wallets" or "cold wallets." A hot wallet is a wallet that is operated by your cryptocurrency exchange or by a provider. Hot wallets give you the convenience of being able to access your coins via the internet or a software program. Electrum and Mycelium are two well-known hot wallets. However, hot wallets are not the safest form of coin storage. If the hot wallet provider is hacked, your coin information may be at risk. Cold wallets are the safest storage method for your coins. A cold wallet is the actual piece of hardware that stores your coins, usually, a portable device similar to a flash drive. Most cold wallets cost between $ 60 and $ 100. There are two popular cold wallets, namely Trezor and Ledger Nano. If you only buy small amounts of coins then a hot wallet can be an option by adding insurance. On the other hand, if you are going to invest a large amount, cold wallets can be an option. 3. Bitcoin Wallet Relationship to Bank Account After getting the wallet, you will need to link the wallet to your bank account. This allows you to buy coins and sell coins easily. You can also link your account directly to a cryptocurrency exchange account.
4. Start Shopping Bitcoin When the three steps are complete, then you are ready to buy Bitcoin. Some coins cost thousands of dollars, but exchanges often allow you to buy fractions of one coin, you can invest from 25 dollars. Investing in Bitcoin is very risky, and it is important that you carefully determine your risk tolerance and review your investment strategy before buying any Bitcoin. 5. Manage Bitcoin investments After buying Bitcoin you can use Bitcoin to transact online or store it for a certain period of time in the hope that the value of Bitcoin will increase. Do day trading by buying and selling coins with other Bitcoin owners, which can be facilitated on cryptocurrency exchanges.
5. Manage Bitcoin investments After buying Bitcoin you can use Bitcoin to transact online or store it for a certain period of time in the hope that the value of Bitcoin will increase. Do day trading by buying and selling coins with other Bitcoin owners, which can be facilitated on cryptocurrency exchanges.