Bitcoin has been around for more than a decade. Many people expected it to shrivel, but until now, cryptocurrency keeps on attracting people. Those who know the tactics are those who pursue them, but those who have tried and failed seem discouraged. Cryptocurrency is unstable and unpredictable, which is why non-risk-takers do not attempt it, but some get excited because of its volatility.
In an article from NextAdvisor on August 10, 2022, Alex Gailey and Ryan Haar forecasted the future of Bitcoin and cryptocurrency. Despite the rough start of Bitcoin this year, experts predict that it will still reach 100 thousand dollars. However, due to the volatility, financial advisors recommend that crypto investments be limited to 5% of your portfolio. It is also predicted that Ethereum, the cryptocurrency measured next to Bitcoin, can soar for the rest of 2022. Since cryptocurrency is not stable, experts say that you must only invest what you can afford to lose.
Keep your investments to a minimum and prioritize other more important investments, such as retirement, educational plans, and many more. But for beginners, it’s worth a try.
One of the main purposes of cryptocurrency is for secured gambling. You can gamble while retaining animosity. Nobody will be able to stalk your wins, activities, and personal information. Cryptocurrency allows for transactions without having to pay expensive fees. There are also instant payouts because when you gamble using cryptocurrency, your winnings will automatically be sent to your wallet.
Here are some tips for beginners who want to invest in cryptocurrency.
Buying Bitcoin: The Initial Step
If you are a beginner and you want to know the ropes, you have to know the basic terms first. Cryptocurrency is like electronic currency, and one example is bitcoin. There are transactions involved using cryptography, codes, and data encryption. Bitcoin is not fixed. It is volatile, and the value fluctuates now and then. Traders are well-aware of this, and yet they pursue it because of the probability of winning or losing.
The majority of cryptocurrency enthusiasts buy Bitcoin from a crypto exchange. Virtual platforms are available to trade money with Bitcoin. Examples of these crypto exchange platforms are Coin Rivet, Coinbase, and Crypto, among others. Beginners prefer Robinhood, a more user-friendly and general platform, but the main concern is that users cannot withdraw their cryptocurrency.
As a beginner, try to understand the charges for the trades as well as the obligatory minimum account balance established by the platform.
Settle on a payment modality.
Trading has different payment modalities. It is usually through wire transfers linked to your bank account or card. Other electronic transactions include Paypal and Coinbase. Take note that deposits made through the bank are free of charge, but other payment options have minimal charges, for example, PayPal.
Most, if not all, payment modalities require that you sign up and confirm your account. They require verification documents like valid IDs and other documents that show your address.
Begin by buying bitcoin.
After registering, account verification, choosing a payment option, and depositing cash in your account, you can start placing your order. With Coin Rivet’s simple process, with only a Buy and Sell button to click, you can go trading.
You can place your order through a market order, stop order, or limit order. But whichever you choose, remember that trading allows you to purchase a fraction of bitcoin. If the price of Bitcoin is expensive, you can always purchase 0.01 or 0.1 bitcoin according to what you can afford.
Keep your cryptocurrency in a secure location.
Despite recent improvements in the security of trading platforms, fraud is inevitable, especially if some are good at hacking. It would be best to keep the cryptocurrency in their cryptocurrency wallets. There are two types: First, cold wallets. These are hardware wallets that keep the Bitcoin address’s private key. They are not accessible through the internet; hence, a lower probability of hacks. Second, software wallets, or hot wallets, are applications that also keep the Bitcoin address’s private key. Of the two (cold and hot wallets), hot wallets are not as secure because they can be accessed through the internet.
Other tips for beginners
- If you want to make a profit in this industry, make sure to stay for the long term (buy and hold strategy). Cryptocurrency is not quick or easy money; it requires strategy and patience, as well as experience with losses and gains.
- Traders suggest that beginners exchange or trade Bitcoin by employing a dollar cost averaging approach by purchasing a small amount every month or every week.