The buzz that Bitcoins have been making since 2009 has been quite hard to ignore. As you have clicked on the link to my article, chances are you like to keep a keen interest in Bitcoins.
If it is so, then this is just the article you are looking from. In this article, I will be telling you all the important details related to Bitcoins. From what a bitcoin is to how to invest in Bitcoin and make fortunes.
I am a Bitcoin investor myself, and I have been investing in all sorts of cryptocurrencies for the last three years. And without a doubt, I can tell that 2021 is the best time to invest in Bitcoins.
When Bitcoin first came under the spotlight, the price of one bitcoin was just a mere $0.0008, and now, at the time of writing this article, the price of one Bitcoin is a staggering 37,600. I guess that pretty much tells you why you should invest in Bitcoins, especially in 2021.
If you are here to learn how to invest in Bitcoin, you should first need to have complete knowledge of what a Bitcoin is, and only then will you understand things better. Bitcoin is a digital cryptocurrency that uses Blockchain technology.
It was founded in 2009 by a person or group of people called Satoshi Nakamoto. It is a virtual currency that shows promising potential to be an alternative to fiat currencies in the foreseeable future. Since it is a cryptocurrency, it is decentralized, which means it does not have any regulatory body backing it.
Whatever transactions you make are within you and the seller. No legal body is authorized to keep watch or intervene.
Why Should You Invest In Bitcoin?
There are several reasons why you should learn how to invest in Bitcoin
1. Inflation Proof
Mining is required to produce Bitcoins. Bitcoin is inflation-proof since there will only ever be 21 million Bitcoins that can be mined. It is a scarce digital asset. This is why you should know how to invest in Bitcoin.
2. Bull Run In 2020
When the pandemic hit, the price of one Bitcoin crashed down to $3000; when most investors were selling off their Bitcoins, many started buying more at a low price. This trend generated a bull market, and the prices of Bitcoins broke the roof.
Bitcoin is a decentralized cryptocurrency. Decentralization means it has no government backing. Since it is decentralized, all the payments are user to user encrypted.
4. Blockchain Technology
Bitcoins are based on Blockchain technology, which is based on the distributed public ledger’s concept to store data and events. It is added only, which means data can only be added; it cannot be changed or altered. This ensures it is safe from fraudulent activities.
How To Invest In Bitcoin?
All the above reasons, which I mentioned above, make Bitcoin a very lucrative option for investment. Bitcoin is a safe haven asset, which is why you should learn how to invest in Bitcoin. As an aspiring Bitcoin investor, you need certain things that will allow you to invest in Bitcoin.
You need a stable Internet Connection, a Crypto trading account, Identification documents for KYC (Know Your Customer) verification, and a payment method like debit cards and credit cards. I would also highly suggest you use your personal bank account, so you can transfer money to your bank account from your trading account very easily.
First Step: Choosing A Proper Crypto Exchange
The first step of learning how to invest in Bitcoin is to choose a proper crypto exchange. I would personally suggest you choose a cryptocurrency that lets you transfer your Bitcoins to your bank account.
Before choosing an exchange, make sure that you do your prior research on that crypto exchange. Fake exchanges have been on the rise; it is also a playfield for hackers. Search about the exchange on search engines and check the ratings and review. If it has got a low rating and negative review, chances are it is a fake one.
Some exchanges give the freedom to trade and invest anonymously; it is better to choose those since Bitcoin is decentralized, it is justifiable. These crypto exchanges are decentralized, which means it does not have legal backing, nor does it have a CEO or a manager.
Step 2: Connecting To A Payment Method
The next step to invest in Bitcoins would be to connect the exchange of your choice to a valid payment method. You will also be needing a bunch of other documents like your social security number, driver’s license, the source of your income.
Do note that the documents you need to produce vary from region to region. This is quite the thing you need to do before opening your trading account before investing in stocks.
After your documents have been verified by the exchange, you can link your bank account to your trading account. You can do so by using a credit card or debit card and learn how to invest in Bitcoin
Step 3: Buy Bitcoins
Once you are done with the above step, it’s time for you to buy Bitcoins. Make sure you know how the market has been performing, so you can learn better how to invest in Bitcoin.
Do not worry, as cryptocurrency trading is deemed normal trading in most parts of the world. It is widely covered by mainstream media as all the process is the same as stock brokerage.
Step 4: Choosing A Storage
Bitcoins are stored in wallets. Now it’s up to you whether you want to store your Bitcoin in software wallets or hardware wallets. Software wallets are virtual wallets, whereas hardware wallets are like a USB Pen Drive. Make sure you provide a strong Bitcoin wallet key.
Final Take Away
Now that you have learned how to invest in Bitcoin. You can start investing in Bitcoins. But please make sure you have good knowledge of how crypto markets work. Bitcoins are very volatile.
The price of Bitcoins swings every second, let alone every minute or hour. Also, never go out of the way to invest in Bitcoins; only invest if you have spare capital available.