As of September 2017, 16.5 million dollars worth of bitcoin circulated the cybersphere.
Bitcoin emerged into public discussion and fired up public interest in recent years, but it was created in 2009 by an anonymous inventor.
Cryptocurrencies such as Bitcoin, are digital currencies not controlled by any single entity. Unlike traditional currency, the value of Bitcoin is controlled by the investors of Bitcoin and the perceived value in obtaining them.
As interest and perceived use and value of Bitcoin increases, so too does its value!
We all want to find investments that will prove to be a long-term success. Investing in Bitcoin may lead to success, but as a beginner, it’s best to know exactly what you’re getting into. There are no guarantees when it comes to investing!
This beginner’s guide will show you exactly where to start and how to invest in Bitcoin.
How to Invest in Bitcoin for Beginner’s
1. Buy a Secure Crypto Wallet
A cryptocurrency wallet is a data storage tool that protects your Bitcoin. Therefore, finding a secure, and easy to use hardware wallet is highly important prior to investing in cryptocurrency.
For the most protection of your cryptocurrency, you should have an online wallet with a reputable exchange for trading, and an offline hardware wallet for holding mid/long term.
Cryptocurrency exchanges and trading websites can provide you with an online wallet, but it’s best to only keep what you’re actively trading on these exchanges.
While we’re on the subject of cryptocurrency hardware wallets, please make sure you buy your hardware wallets directly from the maker for your security for your safety. I personally use the Ledger Nano X.
2. Consider How Much You Can Afford
Remember, when investing there are no guarantees! Consider your capacity and ability to take on investment risk. Find a number that suits your needs and risk tolerance and stick to it. Bitcoin’s value, like stock, can grow and fall.
Be prepared for the variance in value prior to investing. Look at the big picture. Consider you and your family’s everyday needs, bills and goals.
3. Find a Reputable Exchange Platform
Compare cryptocurrency platforms in detail prior to signing up. When you do choose an exchange platform, be ready to provide your name, address, phone number, and a scanned ID or passport to verify your account and identity. It’s best to also directly link your bank account instead of a credit card to avoid processing fees.
Coinbase is one of the most reputable cryptocurrency exchange and beginner-friendly exchange websites for investing in Bitcoin. Do your research and consider your trading and investing needs to find the best fit.
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4. Hold It, Buy It, Sell It
Holding on the Bitcoin you purchased through your chosen exchange website can lead to profit. Check the Bitcoin market value prior to selling your Bitcoin. To make a profit, you must sell your Bitcoin for more than you bought it for.
Purchase more Bitcoin as your budget allows and be patient when determining the best time to sell.
Want to Learn More About How to Invest in Bitcoin and Altcoins?
Then check out our advanced cryptocurrency trading guide.
And as always, make sure to visit our blog on a regular basis to fine-tune your Bitcoin knowledge and how to invest in Bitcoin and other cryptocurrencies.