This Is How to Get Into Cryptocurrency and Invest in Bitcoin
Investing in Bitcoin is becoming a lucrative business because of the traction it gained. But with no prior experience, you have no chance of competing with other Bitcoin investors.
Don’t feel discouraged yet.
With this guide, you’ll learn how to get into cryptocurrency. That way, you can invest in Bitcoin and get more monetary gain. Read on and find out more:
What to Do Before Starting
Before you invest in Bitcoin, you must do several things to ensure the process goes well. Here are some:
- Digital wallet
- Personal identification documents
- Secure internet connection
- Payment method
- Cryptocurrency exchange account
Take note, these are the usual requirements but you might need more. In most cases, you’ll need either a bank account, debit card, or credit card for payment. You can also get Bitcoin using P2P exchanges and specialized ATMs.
If you opt for the ATM, know that the majority of these require government-issued IDs. Regardless, as a Bitcoin investor, your privacy and security are important. That’s why bragging about large holdings is a bad idea, even when you have no physical Bitcoins.
When you have large holdings, be cautious if you make a transaction. It’s especially when they see your balance and public address. A good idea is to use public addresses not directly connected to those used for transactions.
It’s because anyone can view everyone’s transaction history on the blockchain. But the good news is that identifying information for users isn’t in public records. Only your public key will appear next to a transaction, meaning it’s confidential but lack anonymity.
How to Get into Cryptocurrency
Did you know that only 4 million Bitcoins remain unmined? If you’re having second thoughts, you’re missing out. Here are the steps necessary to invest in Bitcoin and other cryptocurrencies:
1. Get a Bitcoin Wallet
This is the first thing you must do since the wallet is for storing Bitcoins. Choosing a wallet is easy since you lots of options. But software and hardware wallets are the best choices because the former connects with your bank account as an application.
Software wallets make it easier and faster for you to access your Bitcoin. Its only disadvantage is that you let a third-party company manage your money. The only good news is that most leading software wallets like Coinstash are popular and trustworthy.
Take note, this is the best option if you have meager Bitcoin holdings. Once you achieve a bigger holding, you have other ways of storing your money more securely.
Hardware wallets are older technologies, but they’re more secure because of its offline nature. These wallets hold your private key on a physical device akin to a flash drive. This ensures hackers won’t access your private key by using an internet connection.
2. Make a Bank Account
Before you can buy Bitcoin, you must connect your wallet to either a bank account, debit card, or credit card. These will accomplish the same objective: exchanging traditional money for Bitcoin. The only difference is the fees you’ll pay for these services.
If you’re making transactions using bank accounts, it takes 4-5 days to process on average. This might sound too long, but it’s better if you’re a first-time investor. You can link your bank account to your wallet to buy and sell Bitcoin or deposit currency into your bank account.
As for debit and credit cards, you can buy Bitcoin almost instantaneously. The disadvantage is that most popular exchanges only allow debit cards to buy cryptocurrencies. Even with this, you can only buy small amounts.
The worst part with debit cards is that you have no means of selling Bitcoins. You can’t even use your bank account to deposit money when you connect your wallet to this payment method.
3. Join a Bitcoin Exchange
These are online marketplaces allowing you to trade Bitcoin for physical currencies like American dollars. The good news is that lots of people sell or buy cryptocurrencies using these platforms.
Exchanges might deal with the same cryptocurrencies but will have a variation of their services. Each has a varied reputation because of its security, reliability, processing fees, exchange rates, and other factors. Before you settle for an online cryptocurrency exchange, you must look around and compare.
Another thing you must remember is that security isn’t an exchange’s primary business. That’s why even when they offer user wallets, it’s not advisable to use them for long. It’s especially when you have large cryptocurrency holdings.
Bitcoin exchange and the Bitcoin wallet aren’t the same. The former is like a foreign exchange market, functioning as a digital platform to exchange Bitcoin for fiat currency. The latter can operate outside of exchanges, and most professionals recommend transferring your Bitcoins to a secure wallet.
4. Place Your Order
After finishing all steps above, you’re ready to buy Bitcoin. Always remember that you can divide Bitcoins up to eight decimal points. That means even if a single one costs thousands of dollars, you can get fractions to fit your budget.
Satoshi is the smallest unit of Bitcoin. That’s why even when the price of Bitcoin increases, you can still buy some Satoshi without breaking your budget.
How to Earn Bitcoin Without Mining
Earning Bitcoin isn’t exclusively because of mining and investing. Some websites allow you to earn cryptocurrencies by performing specific tasks. One of these is taking surveys, where you pick ones to complete and earn its corresponding payouts.
Another method is to become an affiliate marketer. It’s an especially lucrative method if you have a large online following. You earn Bitcoins by directing these people to avail services from businesses willing to pay you with this currency.
Invest in Cryptocurrency Today!
These are things to consider on how to get into cryptocurrency. Use these to ensure you have the best chance of turning in a profit for your Bitcoin investment.
Is this financial guide about Bitcoin helpful? If so, we encourage you to browse our other posts and learn more valuable financial tips and tricks.