Bitcoin has been around for quite some time now. And it has definitely outlasted all the statements that said that the Bitcoin bubble will pop really quickly. For those who don’t know, Bitcoin is a cryptocurrency; a digital currency that can be “mined” with powerful computers solving algorithms. It isn’t the only cryptocurrency out there either. After seeing the popularity of Bitcoin, loads of people tried making cryptocurrencies of their own. But none of them has been as stable as Bitcoin.
Bitcoin was introduced in 2009 by Satoshi Nakamoto. Fast forward to 2020, Bitcoin is still around and in use. People are regularly investing in it and also mining it. A report in 2018 stated that out of the 21 million Bitcoins available (the limit set by its creator) 18.15 million had been mined. Based on this, we can surmise that the number of Bitcoins in circulation will be hitting their peak very soon. And once that happens, it will only be a matter of time before the supply exceeds the demand. And as we all know, when this happens, the value of the item being demanded begins to increase.
In 2020, Bitcoin is a worthwhile investment. It has become a well-known asset that is regularly being traded amongst people. However, the value of Bitcoin is known to be really volatile. This can be, both, good or bad. Bitcoin investments can help you make money really quickly if you buy and sell at the right time.
How to Invest in Bitcoin
If you want to invest in Bitcoin, you will have to start by making a few preparations. The very first being to check whether Bitcoin is legal in your country. Many governments have decided to make Bitcoin trading illegal due to safety concerns. The US is one of those countries that have not banned Bitcoin trading. So, if you’re in the US, you’re in luck.
Obtain a Bitcoin Wallet
Being a digital currency, Bitcoin cannot be stored like regular money. Bitcoins wallets are basically secure locations in which you can store your Bitcoins. At the moment, people have two kinds of options to choose from: software and hardware wallets.
Software wallets work a lot like traditional online banking. You interact with them through an app. They’re easy to use and provide you with quick access to your money. Their drawback is that software wallets require you to store your money with third-parties. Unfortunately, these third parties haven’t been able to provide as much security as traditional banks. While there are a handful of companies out there that are popular amongst users, there have been incidents where software wallet companies have been hacked.
Software wallets are okay for storing small amounts of money. If you have a larger sum that you want to store, you should look around for a more secure option. This is where hardware wallets come in. Hardware wallets are basically physical storage devices (that are quite similar to USB drives). They let you store your Bitcoin on your person and come with plenty of security measures. A downside of hardware wallets is that if they get damaged, the Bitcoins stored in them are lost forever.
Get a Bank Account
Having a bank account can make accessing your wealth easier. This is mostly recommended for people who are new to Bitcoin trading.
Join a Bitcoin Exchange
Bitcoin exchanges work a lot like the foreign exchange. People gather here to buy and sell all kinds of cryptocurrencies. You can find plenty of legit Bitcoin exchanges that are being used by people from all over the world. Finding the right exchange for you can be tricky. Each exchange has its own way of handling trades. And if you’re new to the concept of trading currencies, you will have to deal with a pretty steep learning curve as well.
Fortunately, there are crypto exchanges out there that are designed to help newcomers ease their way into trading. These exchanges more or less hold your hand while you trade. They place restrictions on your actions in order to keep you safe from losing your money as well.
Learn The Ropes
It will take you some time to figure out how to make trades on an exchange. If you have an understanding of how the Forex works, then you will have an easier time figuring out crypto exchanges.
Keep in mind that you will have to experiment a bit before you get the hang of things. Once you’re there, you can begin buying Bitcoin and storing it in your wallet. You can hold onto it till the price appreciates and then sell it to make a profit. Or you can use Bitcoin as a currency to buy various things. Most people tend to buy Bitcoin for investment purposes.
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