Visualizing How To Invest In Bitcoin Like A Pro
By Space Coast Daily // February 11, 2022
Investing in Bitcoin is one of the most popular ways to spend your money these days. Bitcoin has become a multi-billion dollar industry that just keeps growing week after week. Bitcoin mining is a great way to enter the Bitcoin market, however, it takes a lot of time and patience before one can earn their first Bitcoin.
Visualizing How To Invest In Bitcoin Like A Pro
This article will discuss 10 easy steps on how to invest in Bitcoin like a pro. With this guide, you should have no problem jumping into the Bitcoin market with both feet. Spend some time reading up on each step before diving in headfirst, as education is key when it comes to investing your hard-earned dollars.
Remember the Bitcoin Era is highly unpredictable, so all investors should be prepared to lose their entire investment.
1. The first thing you need to invest in Bitcoin is Bitcoin itself. You can purchase Bitcoin through many Bitcoin exchanges using your government currency. Coinbase and Kraken are two of the most popular exchanges for purchasing Bitcoin.
2. Sign up for an account on the exchange of your preference. Make sure to supply them with the correct information as they will use this information to confirm your identity when making purchases or withdrawals. Use strong passwords that are unique to each site, it’s recommended you use a different password for each site but if that’s too hard then at least make sure one password is not used on multiple sites (password managers like 1password or KeePass are great free options).
3. Bitcoin exchanges are not international, so each country will have different Bitcoin rates depending on its popularity. Bitcoin prices are constantly changing due to their high volatility, which makes Bitcoin very good for day trading (buying and selling Bitcoin as the exchange rate rises and falls). Some Bitcoin brokers allow you to make Bitcoin purchases through direct deposit, which means you do not need to worry about Bitcoin rates changing before your transaction goes through.
4. The next step is to find a Bitcoin broker that fits your needs best. A Bitcoin broker is simply an individual or group that sells bitcoins at a markup whether it be higher or lower than market value. They also charge small fees for processing made between buyers and sellers. Bitcoin brokers usually offer Bitcoin through direct deposit, wire transfer, and cash transactions. There are Bitcoin brokers that only deal with Bitcoin sales (also known as Bitcoin traders), these Bitcoin traders will require proof of ID before buying or selling Bitcoin.
5. The last step is to make the actual purchase. You’ll need to send your Bitcoin from your wallet to the Bitcoin broker’s wallet before purchasing anything. Bitcoin wallets are where Bitcoin holders store Bitcoin. Bitcoin wallets can be online-based (cloud-based), offline-based (hardware-based), or even software-based. It’s important to remember that Bitcoin is only anonymous when it’s in your Bitcoin wallet, once you send Bitcoins to another individual that information can be viewed publicly on the blockchain making Bitcoin transactions traceable.
6. Remember never to leave large amounts of Bitcoin in an exchange; hackers target popular exchanges like Coinbase and Kraken because they know there will always be people leaving money at their disposal. It’s also not recommended to use cryptocurrency stock exchanges like Cryptsy as they’re notoriously known for stealing customers’ Bitcoin.
7. The rules of investing apply with Bitcoin just as much as any other type of currency, Bitcoin is a currency and all currencies are subject to inflation and deflation. Bitcoin may have seen a huge price increase over the last few months but Bitcoin isn’t invincible. Bitcoin faces threats from altcoins claiming to be superior to Bitcoin in some shape or form. Just as Bitcoin saw a huge price increase throughout 2015 so will the risk of Bitcoin’s downfall in 2016 increase as more cryptocurrency alternatives arise.
8. Don’t spend all your Bitcoin at once! As exciting as it might seem, leaving your computer on to mine Bitcoin can become boring after a while, especially if you’re only turning a profit of $0.10 per day. If you come across a good opportunity to spend your Bitcoin, do it! Investing your Bitcoin right away will help Bitcoin become more stable and increase Bitcoin’s value. Bitcoin can be used pretty much everywhere and Bitcoin also has a bit of history to it. Bitcoin ATMs are starting to pop up around the world, Bitcoin debit cards allow Bitcoin users to make purchases using Bitcoin while spending fiat currencies like USD or CAD, Bitcoin gambling sites have exploded in popularity over the past year along with new technologies such as smart contracts ensuring safer Bitcoin investments.
9. Mining is for those who want to get involved but don’t want to deal with Bitcoin exchanges. It allows people to buy mining equipment (usually ASICs) that provides hashing power for verifying Bitcoin transactions on different mining pools. You can either mine at a pool of your choice and get paid directly in Bitcoin