Cryptocurrencies are the newest craze of the tech world and are making steady inroads into the investment market. The fact that Bitcoin shot into record-high prices last November has made a lot of people around the world interested in investing in cryptocurrencies. But how exactly does one begin to invest in Bitcoin? Take a look at the beginner’s guide below to find out more about investing in cryptocurrencies.
How to Invest in Bitcoin – A Beginner’s Guide
Though there are many cryptocurrencies in the market now, Bitcoin remains one of the safest and most prominent. If you invest in this cryptocurrency, you can make a significant profit within a year.
If recent figures are anything to go by, the crypto craze is just beginning and the market has a lot of room to grow. Despite the fact that Bitcoin was released way back in 2009, not many people understand how to invest in cryptocurrencies.
We’ve come up with a simple guide to help you understand how to make a cryptocurrency investment and rake up high profits when the time is right. Let’s start with the basics:
Enter the Crypto
Cryptocurrencies are very easy to invest. Unlike real or fiat money, these coins are digital and come at a significantly lower price. So if you started investing in Bitcoin from 2010, you could have amassed a valuable sum by now. Though now Bitcoins are somewhat costlier, as an alternative asset they are still a worthy investment.
What is the Purpose of Bitcoin?
Bitcoin and most other cryptocurrencies are primarily designed for online trading. This means that once you have an investment in Bitcoin, you can trade on digital platforms like Coinbase, Bittrex, Polinex, Kraken etc.
Please note that not every cryptocurrency exchange is available everywhere. So before you make an investment on a particular one, make sure it is available and more importantly, legal in your region.
How Do I Use Crypto Exchanges?
Bitcoin is traded on virtually all cryptocurrency exchanges like Kraken, Cex, Coinbase, etc. What you need to do in order to purchase Bitcoin is to first register yourself on the website of the exchange. Every exchange has its pros and cons. Read up a little about the most prominent ones and you will have some idea where to put your investments.
You will need to provide your email id and other personal info. Once you have signed up, you will get an email. After your verification is complete, you will need to select your state. Once that is done, you will have the dashboard of the exchange opened in front of you. From here, you can track the currency exchange rates and also purchase Bitcoins.
How Do I Secure my Exchange Account?
The very first and most basic thing you need to do in order to secure your account is to establish a 2-step authentication process. This will not be a big deterrent to a seasoned hacker, but it will provide you with some security. To set up the 2-step authentication, Different exchanges will have different processes but you can expect them to involve your phone number. Do the needful and secure your account.
What is the Payment Mode for Bitcoin Purchase?
Most prominent exchanges offer two types of payment options – bank account and debit/credit card. We recommend choosing the 1st option because this will save you some money in transaction fees. Also, since your account is new, there will probably be a daily purchase cap on it.
How Do I Buy Bitcoin?
The interface of each exchange differs slightly from the other. But you are sure to have a Buy/Sell tab. Click it and you will be transported to an exchange page. From here, you can choose whether to buy or sell your Bitcoins. You will be using this interface a lot, so get used to its features and functions.
Now, select Bitcoin in the exchange option. Check the price and fill in the amount for which you would like to make the purchase. Once you have filled in the amount, the system will tell you how many Bitcoins you can purchase with the amount you have just entered. If you like the trade, then click Buy or Purchase and you will get your first Bitcoins in your exchange wallet.
Now that you have your first Bitcoins, it is time to wait and watch. Cryptocurrency prices fluctuate a lot and depending upon the prevailing market trend, you can buy more or sell what you have. Just like a regular stock exchange, there will be Bullish and Bearish tenures. It is up to you to decide how you want to take advantage of the market and net some profit.
How to Invest in Bitcoin – Anything Else to Consider?
Some exchanges charge higher than others for crypto trading. Their logic is that they make it easy for novices to trade in Bitcoin. However, after you have become familiar with how the market works, you might want to choose a less user-friendly, but less transaction fee-charging exchange.
There is no doubt in the investment market that Bitcoin and other cryptocurrencies are here to stay. The only real question is how much profit can they generate? Bitcoin provides one of the best cryptocurrency investment options today. But your profit will largely depend upon your trading instinct and time-sensitive investment strategies. Happy Trading!