Invest Bitcoin? Let’s Follow These Steps!. Cryptocurrency assets have become a hot topic in various countries, even globally.
One of the hot discussions is Bitcoin. Bitcoin is getting brighter day by day, popular among various investors.
Anyone interested and want to feel comfortable using Bitcoin. Recently, Bitcoin’s valuation has increased by more than 763% in just one year, easily luring investors by surpassing traditional gains in the stock market.
Bitcoin is one type of virtual currency or the well-known term cryptocurrency and is currently the most in demand and used by investors.
Crypto assets were deliberately created by programmers using the pseudonym Satoshi Nakamoto. Bitcoin was created to solve some of the major drawbacks of cryptocurrencies.
Invest Bitcoin? Let’s Follow These Steps!
Here are five easy steps to investing in Bitcoin
Join Bitcoin Exchange
You have to decide where you want to make a Bitcoin purchase. Bitcoin does not have an official company that specializes in selling crypto assets, as Bitcoin is an open source technology, but there are several different exchanges that facilitate Bitcoin transactions. This exchange is a cryptocurrency investment intermediary, just like a stockbroker.
If you decide to buy from an exchange, you will have to decide which exchange you will buy from.
Here are the two most popular option
Coinbase: A very popular crypto exchange, guarantees losses in case of security breaches or fraudulent transfers.
Bitfinex: The oldest cryptocurrency exchange optimized for advanced traders and lenders.
Bitcoin Wallet
When we are going to buy Bitcoin, the coins can already be stored in a digital wallet. There are two types of wallets that can be used to store digital wallets such as “hot wallets” or “cold wallets.”
This hot wallet is a wallet that contains assets that will be run as an exchange for your cryptocurrency or by the provider. This application can provide convenience and comfort for users because they can access coins through the internet network.
Invest Bitcoin? Let’s Follow These Steps!
Electrum and Mycelium are two popular hot wallets. However, hot wallets are not the safest form of coin storage. If the hot wallet provider is hacked, your coin information may be at risk.
Cold wallet is the safest storage method for your coins. A cold wallet is the actual hardware that stores your coins, usually, a portable device similar to a flash drive. Most cold wallets cost between 60 – 100 dollars. There are two popular cold wallets, Trezor and Ledger Nano.
If you only buy a small amount of coins then a hot wallet can be a great choice by adding insurance. But on the other hand, if you want to invest large amounts, cold wallets can also be the best choice
Bitcoin Wallet Relationship to Bank Account
After getting the wallet, you need to link the wallet to your bank account. This It allows you to buy coins and sell coins easily. You can also link your account directly to a cryptocurrency exchange account.
Shop Bitcoin
When all three steps are complete, then you are ready to buy Bitcoin. Some coins cost thousands of dollars, but exchanges often allow you to buy fractions of a single coin, you can invest from 25 dollars.
Investing in Bitcoin is very risky, and it is important that you carefully define your risk tolerance and review your investment strategy before you buy any type of Bitcoin.
Manage Bitcoin
After making a Bitcoin purchase, you can use Bitcoin to transact online and store it for a certain period of time, hoping that the value of Bitcoin will increase.
Dive into the world of daily trading, buying and selling coins with other Bitcoin owners, so that there is feedback and is facilitated on cryptocurrency exchanges