Simple Beginner’s Guide on How to Invest In Bitcoin

 

Bitcoin is improving in price and worldwide adoption each single day. The crypto coin is now seen as a digital gold and also an affordable means of moving money all across the globe. Due to the high rate of growth that this digital coin has enjoyed over time, it has been able to pique the interest of a number of investors as well as those who are in the financial department. During the lower periods, Bitcoin has an ROI of 30%. One of the questions that many people currently ask is how easy it is to invest in Bitcoin. It’s fairly easy and hopefully Bitcoin mimics gold. Is history repeating?

 

Simple Ways of Investing in Bitcoin

 

The first and the simplest way to begin investing in BTC is by simply buying the crypto coin. By purchasing a fraction or even the entire BTC and failing to touch it, it will either gain or decrease in value as the market fluctuates over time. Unlike our fiat currency (the dollar), there is a limited supply of bitcoin and more cannot be made. There are only 21 million Bitcoins that can be mined in total. Once miners have unlocked this many Bitcoins, the planet’s supply will essentially be tapped out. So it could be a good idea to own one or at least part of one.

Investing is very easy and just as simple as transferring money. Those who want to buy the coins will first be required to get a Bitcoin wallet. Some of the most popular Bitcoin wallets are Luno and Copay. A number of Bitcoin wallets are perfect for the basic usage, but it is important to research each one before you purchase it. I personally favor exchanges where I can connect my bank account directly. Coinbase and Gemini make this very easy to buy and sell Bitcoin and other top digital currencies.

From that point, it is just a matter of checking for price increase in the currency. You can also diversify your investments anytime you feel like there is need.

Gemini Interface

 

More about the Wallets

 

Bitcoin and a number of the virtual coins are kept using wallets. Basically, a wallet signifies that you own the virtual coin that had been sent to the wallet. Each of the wallets has both a private key and a public address. Trust Wallet is one of the most popular wallets that you can download on your mobile device and keep the digital currency in rather than on the exchanges.

The public address is used for the purposes of receiving funds. On the other hand, the private key is used to spend the funds that have been kept.

 

How to Research Bitcoin

 

Once you have been able to purchase your first BTC, you can then begin researching on Bitcoin and even a host of other cryptos. One of the most common places for researching about the coin is Bitcointalk. Bitcointalk is a forum where the developers of the virtual coins can get together and discuss some of the leading virtual coins such as Bitcoin. Coin Market Cap is the go-to for all coins and their current prices, volumes, available exchanges, etc.

A white paper is a guide that educates the reader about the philosophy that is behind a service or a product. It also offers a solution on how it plans to solve a particular complex problem. Bitcointalk, for instance, is very resourceful for someone who wants to stay updated with the latest development and news as well as being able to discuss with other developers and investors in the market.

I also like to stay updated with my investments via Stocktwits. Another useful app for the mobile in which you can follow your favorite coins, chat, see headlines, news, etc.

Stocktwitz Interface

 

The More Advanced & High-Profit Way

 

Just like the tradable commodities such as stocks, BTC can be purchased and sold through any online exchange. Binance is the largest, most used and trusted exchange. (Binance review here) This just works similar to the stock market and is recommended for those who are relatively financially savvy. With the stock market (Mon-Fri 9-4pm), a good year is a 10% return of your portfolio. With the Crypto market (which is 24/7 Global), you can make 100%, 200% and even 400% returns in a month or even weeks. Having said that, you could go all in on a coin that drops to zero. Do your research!

Instead of leaving money in the Bitcoin wallet and wait to see if it either grows or loses value, it can be wise to trade it with other users. Users will be able to place an order for the currency, and the sellers can also propose prices for the purchase of the coin. As a result of the nature of the coin, all the transactions are entirely secure, as they utilize the Blockchain technology. It is anonymous, too. There are a ton of traders out there and a lot of them might be willing to pay more for the coins you are holding. This goes back to the “Buy low. Sell high.” strategy.

Buy the dips

 

 

How to Spend and Transfer Bitcoin

 

There is a bit of confusion when it comes to the issue of what you can do with Bitcoin. After all, it is a currency. And just like other currencies, Bitcoin can be used to buy both the digital and physical goods. Ulmart, which is the largest online retailer in Russia, for instance, recently announced that it would start to accept the coin as a form of purchase.

There are other several ways in which the coin can be useful. Another important usage of the coin is the ability to be used for transferring money across the border. It is possible to buy $100 worth of this leading cryptocurrency, and send it digitally to a friend who is in Japan. The friend can then opt to change the coin into Yen, the Japanese local currency. The cost of having all these done is quite affordable.

Contrary to popular belief, Bitcoin is not such a complex concept to grasp. All you have to do is to know the right time to invest in it and make the move.

 

    Motivation Niche

    10 thoughts on “Simple Beginner’s Guide on How to Invest In Bitcoin

    1. I am really interested in learning how trade money on the stock market..  It appears that the Bitcoin is similar to this.  It also appears that it is very simple and high in return.  I have actually been shopping online and saw where merchants accepted bitcoin as payment.  I didn’t quite understand the exchange rate.  I will definitely reread this and try it!

      1. Hi Angela, learning how to day trade stocks was what lead me to crypto in the first place.  I am on the west coast,  so the market opens at 6am meaning I would have to get up at 5am to do research and pick my stocks for that day.  Plus, Wall Street is not open on the weekends.  AND Wall Street is mostly run and manipulated by big banks.  On the other hand, the crypto market is 24/7 worldwide which means you can make money in your sleep if you pick the right coins and assert your position in time. 

        I believe within the next few years, we’ll see A LOT more retailers accepting bitcoin as payment.  Hell, you can pay your taxes in bitcoin in Ohio!

        Best of luck and let me know if you have any questions.  

    2. I might be old fashion, but I like having my $ in my pocket. Yes, I have those plastic cards, and I use those more than my “wallet” these days, but I’m a bit sceptic to “Crypto coins”. Can I be safe? Should I invest? And what if the internet is brought down? Anyway: I find your site interesting, and it is actually making me “smarter”. Thanks for sharing!

      1. Hi Sofus!  I like having cash too but in my opinion, cash will not always be king.  I very much doubt that in 50 years we will still be pulling paper money out of our back pockets.  Only invest if you truly believe.  As far as power outages, Bitcoin is a decentralized peer-to-peer cryptocurrency which works on different blockchain nodes being synced. As long as there is even one blockchain node running that is accessible via a network, Bitcoin will survive. In the case that the entire world’s power grid is destroyed in some apocalyptic scenario, given that servers and networks can still be operated by other means such as solar or wind power Bitcoin will still survive. Now in the case that those things are out of the question (major asteroid crash or nuclear fallout) – there will certainly be many more problems in the world that would need to be solved and Bitcoin will most likely be near the bottom of the list.

    3. I must say that this article is very helpful and informative. Bitcoin is really a currency of the future and I always wanted to invest in it. There is so many misleading information about Bitcoin which lead to people to be afraid of it. I was actually afraid of taking that risk of investing in it but after reading this article for beginners (as I am one of them) I will definitely take those first steps. Thank you for simplifying this process about investing in Bitcoin.

      1. Hi Daniel! I’m glad I can help!  I must say since I am not financial adviser, do not invest any money that you are not willing to lose.  A small investment in Bitcoin along with a hand few of alt coins, I personally think is a safe bet.  I have friends that became bitcoin millionaires in 2017 so I am trying not to let that cloud my judgment moving forward.  Having said that, happy investing!

    4. I have really never thought of purchasing BitCoins before but after reading your post, I’m quite open to the suggestion of purchasing some.

      I normally dabble in currency fluctuations but the profit margins can be very small for your investment – unless you invest hundreds of thousand $$$ of course.

      By looking ay your movement graph comparing Gold to BitCoin, is there a way we can predict good dips in the market to invest?

      Thanks, Jeff.

      1. Hi Jeff. Unfortunately, no one knows for certain what the crypto market and bitcoin is going to do.  Everyone has a prediction though.  There are a few people out there that perform extreme technical analysis and even they aren’t correct 100% of the time.  The crypto market at one point nearly had a trillion dollar market cap.  Most believe that not only will we hit that again but will surpass it bringing Bitcoin and other digital currencies to their all time high.  So if you believe that, now is a good time to get in because most coins are roughly down 80% from their ATH.   Best of luck! 

    5. I did manage to make a profit on BTC and XRP a couple of years ago, but it was more luck than anything else. I was just setting the lows and highs I wanted to buy / sell at. Since then I’ve been researching crypto trading a little further. I haven’t used Binance as an exchange though – is it fairly simple to use?

      1. Hey there!  That’s awesome!  It doesn’t sound like luck if you set your highs and lows.  That’s what trading is about.  Binance has a novice and advanced trading platform.  They are fairly easy to use. Plus, there are tons of interface tutorials on Youtube which can catch you up to speed in a few minutes.  

    Leave a Reply

    Your email address will not be published. Required fields are marked *