How to Get Started with Bitcoin: What You Should Know

By  //  December 14, 2020

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Bitcoin is on a tear this year. The cryptocurrency just hit $17,000 — a level it hasn’t breached in nearly three years — continuing a wild run that’s reminiscent of its monster rally in 2017.

Bitcoin is the first and most thriving cryptocurrency in the history of cryptocurrencies and there is more buzz around it today than ever.

Recent statistics show that Bitcoin held a 66 percent share of the total cryptocurrency market in 2020 and understandably so, considering the level of authority it has held over the years in the crypto market.

However, as more people continue to explore this industry and invest more in bitcoin, here are a few important things every beginner should know before getting started.

The Security of Your Wallet

This is the first paramount thing you must consider, as you need to ensure that your funds are safe. Start by getting a secure and legit wallet that you are confident will protect your money.

You can always opt for popular wallets known for their transparency and security, among other things. Also, always remember that you must adopt good practices to ensure your wallet is as safe as possible.

This includes using strong passwords, keeping your private key secure, and backing up your wallet regularly.

Carefully choose your wallet and ensure the security is tight. You can also look for reviews about it online, like the one in this link- or check for comments and opinions on online forums from past or current users of the app.

It is Decentralized

Bitcoin or any cryptocurrency is not managed by an institution such as the bank or any third-party entity. This makes you solely responsible for your money and how you use it.

While this may be a great advantage, for the most part, it also has its downsides. For example, transactions are irreversible.

So if you end up making a wrong transaction or get scammed, you can’t retrieve the money back. Always confirm the bitcoin addresses you are sending money to, check for typos, and ensure you keep track of your transactions.

Price Volatility

The price of bitcoin is volatile, which means it can unpredictably increase or decrease over some time. This makes it a high risk, as you could lose money or gain much more.

The price could change dramatically in a few hours compared to fiat currency that depends on a lot more other factors. If you would invest in bitcoin, bear in mind that it is a high-risk asset and treat it as such.

This is why it is often recommended never to store money that you can’t afford to lose with Bitcoin. If losing the money would hurt you and your finances beyond repair, you must keep such an amount away from bitcoin.

Bitcoin Trading

This is one of the easiest ways to earn a good amount of money from cryptocurrency but it also requires some skills to make the best of it.

The idea is to buy when the price is low and sell when it goes high. With a good bitcoin exchange app, you will be able to trade bitcoin with other users but ensure the exchange service is regulated, licensed, and has a good reputation.