Bitcoin’s market soared up to $60 thousand, thus attracting more and more interested investors into its market despite the risks it comes with investing in this so popular digital asset. Buying Bitcoin and starting trades can be a fun learning experience, so investing too much in the start is not really suggested. You should invest what you can afford to lose, test the Bitcoin market first, see if it is for you. It is never too late to back down if you find out it is not your cup of tea – it better happen at the start than when you are in too deep.
You might already know that Bitcoin, the first and leading cryptocurrency, has the largest market cap with $1.148 trillion and with almost $10 billion daily trade volume. Although Bitcoin is seeing a high soar in its market prices now, we can’t really say for sure how long it will last due to its volatility. But taking this opportunity to invest and start trading while it is at its high can still be considered a good time, especially if you want to take Bitcoin investment in the long run. However, know and remember that wherever you buy your bitcoin, there are risks to this investment, as it is in other investments.
Furthermore, according to experts, you should always bear in mind to keep your Bitcoin or any other cryptocurrency investment at 10% of your investment portfolio since it is considered a risky investment.
So, if you are still interested in trying bitcoin as an investment even after knowing the risks it comes with, and you think Bitcoin trades are still worth the try, this article is for you. This article will discuss the varied ways to buy Bitcoins so you can officially start trading.
Here are the four steps in buying Bitcoin and other cryptocurrencies
1. Research and decide where to buy your bitcoin.
There are varied ways to buy Bitcoin. You can go for cryptocurrency exchanges or brokers or sign up for a trading platform, such as Bitcoin Evolution. Know that each of them offers different advantages and disadvantages. Many even charge a certain percentage of the purchase price of Bitcoin. So better research which one will work best for you.
2. Create a crypto account.
Once you have decided where to buy crypto, you would need to set up and create a crypto account. This account that you have created must be used only for your crypto investment only.
The truth is setting up a cryptocurrency account is really easy. It will just take minutes. So here is some information that can help you safely and securely set up your account.
You will need to provide some personal information like your Social Security Number, and of course, you will need to provide the information on your Bank account number, debit card, or credit card number, which will fund your crypto purchase. Some Bitcoin trading platforms even ask for your ID with a picture.
Although some platforms allow credit card purchases, it is still not a good decision to buy Bitcoin using your credit card. Since you will be making a high-risk investment using a high-interest product, the chance of you losing what you cannot afford is highly likely to happen.
Furthermore, remember to use a secure and private internet connection because you will be providing personal data and making investments. You wouldn’t want to be a victim of hacking or cyber theft at your first attempt at Bitcoin investment. So remember not to make these financial decisions while you are in the hotel or a coffee shop. In addition, you would need a strong password to this account. Remember to not take this for granted and keep a record and secure the password of your crypto account, for this is the only way you are accessing your Bitcoins.
3. Decide how to store your Bitcoin
There are two ways of storing your Bitcoins through digital wallets, and this could be through a hot wallet or a cold wallet. The main difference between the two is that a hot wallet is an online wallet. Thus your Bitcoin transactions will be faster but are also riskier due to compromises from hacking and cyber theft. On the other hand, a cold wallet is an offline wallet, so transactions are safer since it sets up more security measures and eliminates risks of hacking in your investment, although since it is offline, transactions tend to be slower.
4. Make your purchase
Right after linking your Bitcoin wallet to the bitcoin exchange of your choice, you can now make your first Bitcoin purchase. Remember to think about how much you will invest and also set up your investment limits. Although this is just a suggestion, your finances are still more secure when you set up your investment limits, most especially at the first time since you will have to experience how everything works first and see whether Bitcoin trading is for you. Thus, setting up your investment limits can help you not to lose money that you could not afford to lose.
5. Manage your investment
You should plan out your Bitcoin investment. If you are not planning to keep on Bitcoin investment, in the long run, one option for you is to buy Bitcoin now and sell it later – maybe within the year – when the Bitcoin value moves higher. But if you see the potential of Bitcoin going on for years in the future and not crashing and disappearing, you can consider holding on to your coins for now and selling them years later since Bitcoin has shown its price potential to go up and skyrocket in value over the years as compared to its original market price of less than a dollar.
In the end, whatever your investment plan is, whether to invest in Bitcoin short-term or long-term, you should know that these two investment options have different tax situations and different risks, thus requiring different strategies.
Although many have achieved high gains and profits from Bitcoin investment, it is all a result of a good investment plan and strategy, for one can only succeed in Bitcoin investment through knowledge, skill set, and diligence.
Bitcoin is highly volatile; thus, it is a high-risk investment. Trade due diligence!
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