Making bitcoin investment seemed to be complicated, especially when in its early years. However, if you are willing and is committed to breaking down into small steps, you’ll find it engaging and easy. Computer programming isn’t essentially needed when doing this, especially the businesses, banks, bold, and brash that crash in cryptocurrencies. So, this guide below will help you become more aware of the steps on how to do investing properly in Bitcoin. Another thing it is important to keep in mind that this platform brings speculative risks.
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KEY TAKEAWAYS
- The Bitcoin value is dependent heavily on its investors’ faith, integration into financial markets, performance when compared to other competitors, and the public’s interest to use it.
- A digital wallet is needed by an investor to trade and store bitcoin.
- Bitcoin investing still involves some security and technical issues that they need to be aware of since the beginning.
- Investors can freely join an online marketplace or exchange to trade their traditional currencies, cryptocurrencies, and bitcoins.
- Buying bitcoins is also needed and is usually achieved through making connections to a credit card, debit card, or a bank account.
Now, let us proceed to the steps!
Step 1: Get your own Bitcoin Wallet
The very first thing that you need to do is to get your own bitcoin wallet to store your earned and traded bitcoins. When choosing this, you are given a lot of options to choose from. However, the cryptocurrency world of Gucci and Louis Vuitton currently are hardware and software wallets. When we say hardware wallets, it refers to actual and physical wallets we have. On the other hand, a software wallet refers to those installed in mobile applications connected to a traditional bank account. This kind of wallet allows you then to access quickly and easily your bitcoins. The only drawback of this is that it can put your money in the third-party company’s hands.
Although it is a leading software wallet representing trust, there are still reported instances wherein third-party companies collapsed and have been hacked. You can also take the reference from the the-blockchain.com to clarify your doubt as per your requirements.
Step 2: Connect to a Bank Account
For you to purchase bitcoin, you must connect your bitcoin wallet to a bank account, credit card, or debit card. These methods for payments perform similar functions, specifically exchanging traditional currency for bitcoin. Each still carries its own set of fees.
Also, transactions made using your bank account can only take an average of five working days to be processed on Coinbase. By simply linking your bank account to your wallet, you can deposit money directly to an account, as well as buy and sell bitcoins. Generally, bank accounts are recommended if you deal with large amounts of money.
Step 3: Join Bitcoin Exchanges
The next step is joining bitcoin exchanges, which refers to online marketplaces wherein you can trade bitcoins for traditional currencies such as for USD from BTC. This is similar when you purchase online, as you also have options. There is Amazon, Alibaba, Etsy, and eBay that are all used by private retailers to sell products. The same thing goes around in Bitcoin.
Even though when two exchanges trade similar cryptocurrencies, they offer different services. It can vary in reliability, processing fees, reputation, exchange rates, and available cryptocurrencies for trading.
Step 4: Place an Order
Lastly, the step you need now to take is to place an order. This simply means that you are now ready to purchase bitcoin. It may be crucial to remind that one bitcoin can cost several dollars, but it can also be divided into eight decimal points. Satoshi is the known smallest unit of bitcoin, and even if the price reaches skyrockets, satoshi can still be purchased using only a fraction of a cent.
