Cryptocurrencies particularly Bitcoin (BTC) have become the talk of the town in the past few years. Many people around the globe are investing in BTC, thanks to its enhanced profitability.
But, as a beginner, are you ready to invest in Bitcoin?
The concept of digital money has changed the perspective of using money. Bitcoin has withstood the test of time and become the world’s largest cryptocurrency by market capitalization.
The BTC sensation can be a success or a loss for investors for which everyone has to tread carefully. As a Bitcoin investor, you would want to take the road to success in a hassle-free manner.
Let us find out what Bitcoin is and how you can start investing safely.
What is Bitcoin?
Bitcoin can be defined as a first-generation cryptocurrency which was launched in 2009. In its early years, BTC was not a popular investment since only a few people knew about it.
But with time, Bitcoin has grown in popularity and many global leaders have labelled it as the best alternative to fiat or traditional currency. One such global leader is Carl Runefelt, alias, The Moon, who is pushing for the mass adoption of BTC.
He says, “Bitcoin is the only non-political money in the world. Remember guys your bank money can get frozen, and your gold can get confiscated, but Bitcoin remains whether you’re in Slovenia or Sweden or Dubai. No matter where you are, Bitcoin is always online, always working for you, and for everyone else. I think that is revolutionary, and I am so happy to be part of Bitcoin, especially in times like these of massive global uncertainty.”
Bitcoin exists on blockchain technology where its transactions are recorded on a publicly distributed ledger. Each transaction of BTC is permanently recorded and can be accessed at any time.
To ensure enhanced safety, blockchain technology is protected by cryptography which consists of complex mathematical problems.
Each Bitcoin is created through an encrypted code and is a decentralized currency which means that neither a bank nor any central government can have any regulations over it. In addition, the protocols of Bitcoin are designed in a way that only a limited number of BTC can be traded to ensure inflation protection.
Once you are aware of the terminology of Bitcoin, the next step is to understand how to become a BTC investor and that is what we are going to discuss further.
How to Buy Bitcoin?
You can either buy BTC through a crypto exchange or can create Bitcoin through mining. But mining can be an expensive procedure that you might not be able to afford.
Furthermore, there are some other popular ways through which you can buy Bitcoin, which are:
- You can buy Bitcoin by investing in crypto exchanges or buying shares in companies which accept BTC payments.
- Bitcoin ETFs are another way to become an investor in BTC funds.
- Investing in the blockchain network is becoming a popular way to buy Bitcoin.
- Bitcoin funds are being launched by several companies and it is easy to become part of these funds.
Fees Included in Bitcoin Purchase
When you are buying BTC, the following fees are usually paid:
- Deposit fee
- Transaction fee
- Trading fee
- Escrow fee
- Withdrawal fee
But you should not be worried about these fees since they are lower as compared to a bank or any other financial fees.
Things to Remember before Buying BTC
As a beginner, you would not want to lose your funds to crypto volatility. So, you must become aware of some of the safe investment tips.
You should be careful about the following things when investing in Bitcoin:
- It is largely recommended that you should never invest all your life savings in cryptocurrencies.
- The best you can do is gamble with a small amount in the beginning and increase it as you grow in the business.
- Never invest in Bitcoin more than you can afford to lose.
- Bitcoin like other cryptocurrencies is volatile and subject to market crashes and bull runs.
- You should examine the current trade charts of BTC to help yourself in finding the right time to invest.
- Avoid looking for short-term benefits with Bitcoin since cryptocurrency is a long-term investment.
Conclusion
Bitcoin has changed the fortunes of many investors across the globe in the past few years.
An investment in BTC can be a huge success if you start investing in it carefully and then trade it intelligently.
You can follow the above-mentioned tips to become a successful Bitcoin investor of the future.
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