Bitcoin, the world’s largest cryptocurrency, was created by an unknown entity only known as Satoshi Nakamoto in 2008. More than a decade later and Bitcoin is the most valued currency in the world. As of April 2021, one bitcoin is worth around $50k.
Like any other cryptocurrency, Bitcoin presents a thrilling and potentially lucrative investment, but not always.
If you want to invest in Bitcoin, this year presents the perfect opportunity to do so. However, this doesn’t mean that investing in Bitcoin will be a cakewalk. You need the right information and tips to make your Bitcoin investment a lucrative venture.
In today’s post, we’ll be highlighting a few things you should know before pouring your money into Bitcoin.
1. Understand Bitcoin
The first thing to do if you’re planning to invest in Bitcoin is to understand the cryptocurrency. Bitcoin is a form of digital currency first advanced by Satoshi Nakamoto in mid-2008. When discussing Bitcoin, you should be aware of two things:
A Bitcoin: A bitcoin is essentially a computer file that you store in a digital wallet.
Digital Wallet: This is a type of software that allows users to store Bitcoins. The piece of software also allows for the sending and receiving of Bitcoins. This wallet works on various platforms including, mobile, desktop, web, and hardware
Blockchain technology that records every Bitcoin transaction allows Bitcoin to function without a central authority. However, because there’s no central regulating authority, Bitcoin tends to be very volatile, making it a somewhat risky investment.
The hype surrounding Bitcoin shouldn’t have you making rushed decisions to invest in the cryptocurrency without doing your research. Bitcoin is a profitable investment, but it’s not without its risks and convolutions. Make sure you have at least the basics down pat before you consider investing in Bitcoin.
You can learn a lot about bitcoin news, prices, and vendors on websites online. You should also get acquainted with matters like bitcoin mining, bitcoins ATMs, and the likes before you start trading.
2. Scammers Are Everywhere
The internet is rife with so-called cryptocurrency gurus looking to swindle you out of your hard-earned cash. If you’re looking to invest in Bitcoin, you need to be on the lookout for online scammers. Unfortunately, they’re everywhere on the internet, from Facebook to Reddit.
If you come across Bitcoin investment strategies that promise you wads of cash in only a short time, it’s probably a scam. You also need to be on the lookout for folks who make exaggerated claims on the value of Bitcoin.
Lots of people have lost fortunes to Bitcoin “investors” and similar Ponzi schemes. Tread softly when investing in Bitcoin and beware of scammers.
3. Cryptomarkets Are Easily Accessible
Contrary to popular thought, crypto markets are accessible by the average person. That’s right; you don’t have to be a tech guru or rich to trade Bitcoin and other cryptocurrencies. In 2021, cryptocurrency is more mainstream than ever.
Before you start trading Bitcoin, you need to know where to buy and sell Bitcoin. This brings us to our next point.
4. Where to Buy and Sell Bitcoin
You’re dead set on trading Bitcoin, but where do you even start buying and selling it? For starters, you can check out these Bitcoin atms across the country. If you can’t find one nearby, you can check out some on the internet.
The internet is awash with crypto-trading platforms where you can buy and sell Bitcoin. However, don’t just click on the first trading platform that pops up after Googling “Bitcoin trading platform.” You have to check out reviews and testimonials to find a platform that will suit your fancy.
Automated trading platforms can trade on behalf of users by considering certain underlying factors. These platforms make it easier for beginner traders to get the hang of things and make a decent profit. However, you still need to understand how Bitcoin works before you can start using automated trading platforms.
5. You Don’t Need a Fortune to Get Started
An entire bitcoin could cost well over $60,000, but you don’t need that kind of money to purchase Bitcoin. You can purchase a fraction of a Bitcoin for as little as a dollar. That’s a huge relief for most because they don’t have to use up all their life savings.
A great approach is to set up recurring deposits of a specified amount after every week to slowly build your portfolio. This is a much better approach than diving full-on into the cryptocurrency game and spending your entire savings on the venture.
This approach helps you enter the Bitcoin market gradually at different price points. In other spheres, this is what is known as the dollar-cost-average technique.
6. You Can Start Trading From the Get-Go
You can start trading the minute you set foot into a crypto-trading platform by depositing government currencies into the trading platforms. Once you’ve bought enough Bitcoin, you can then reconvert it into government currency and get the money instantly.
The speed you get your money in and out of the platform depends on the vendor you settle for. That’s why you need to do your homework and pick only the best Bitcoin vendors for seamless trading.
7. They Are Tools to Reduce Risk
Investing in Bitcoin is risky owing to the volatile nature of the digital currency. However, features like stop and limit orders help reduce risks and minimize losses. These are price-triggered limits that don’t allow your Bitcoin to fall below a certain value without selling it.
That way, you can minimize your losses and maximize your profits without even logging into your account.
Invest in Bitcoin Today
The best time to invest in Bitcoin was yesterday, so what are you waiting for? People around the world are making a fortune from Bitcoin; it’s time to join the bandwagon. However, be on the lookout for scammers who want to take advantage of your ignorance and steal your hard-earned cash.
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