There has been an increasing popularity of Bitcoin among the current investors over recent years. Again, there have been a lot of debates concerning Bitcoin and some other cryptocurrencies at the same time. Of course, one must expect two different arguments from the debates. On this one, in particular, the proponents argued that Bitcoin holds a bright future for currencies and investments. The detractors argue that it is an investment option that involves many risks and may generate only small returns for the investors.
It is essential to investigate its recent improvements to understand Bitcoin’s value better. In just one year, a recent study shows that the value of Bitcoin increased by 763%. This trend shows that Bitcoin will quickly outpace the traditional gains within the stock market. The fact that more people are buying into Bitcoin makes it more decentralized and a global currency.
Bitcoin valuation is also evident from the fact that renowned high-profile investors and businesses highly accept it. For instance, Elon Musk, the master of Tesla and SpaceX, announced that his automotive intends to accept payment with cryptocurrency in the future. Furthermore, he wants to buy $1.5 billion in Bitcoin.
Therefore, what is this Bitcoin exactly, and how will you know whether it is a suitable investment for you or not? Continue reading this guide to the end to discover how you can invest in Bitcoin.
What is the Meaning of Bitcoin?
Bitcoin is an online currency that maintains transaction records and generates new units due to the automated solution to financial mathematical problems. Bitcoin is independent of the central bank in its operation.
Although the real developer(s) of Bitcoin is not known to the public still, it is good to note that Satoshi Nakamoto, a name used by a programmer or group of programmers, was behind the creation of this fantastic cryptocurrency platform.
Today Bitcoin is gaining widespread use in the cryptocurrency market. In a cryptocurrency system, virtual ”coins” or ”tokens”, so to speak, instead of cash, are used to facilitate online transactions between individuals. Of course, there are no gold or silver backups for coins hence their lower intrinsic value.
The 5 Easy Steps to Invest in Bitcoin
If you are ready to invest in cryptocurrency, then you are lucky because it is simpler to buy Bitcoin than you ever thought. Below are the five easy steps to follow to invest in Bitcoin.
- Choose a Bitcoin Exchange
Here, it would help if you decided where you want to purchase your Bitcoin. Note that many investors are using exchanges on cryptocurrency platforms. However, Bitcoin has no official company since it is a technology whose sources are open to anybody.
Even so, you can still choose to use any exchange platform that facilitates Bitcoin transactions. Exchanges act as the middlemen while investing in cryptocurrency, and you can find them on different crypto platforms such as bit alpha, immediate edge, bitcoin evolution, and bitcode prime.
- Find a Bitcoin Wallet
It is in the wallet where all your cryptocurrency, including the coins you purchase, are stored. Currently, there are two main types of wallets you can get. Namely: cold wallet and hot wallet.
Only the provider, or your cryptocurrency, can operate the hot wallet. Most exchanges provide a hot wallet immediately after a person opens an account; the system automates this operation.
In whichever case, you will still be able to access your coins via the internet or a software App. Some tremendous hot wallets include electrum and mycelium.
A cold wallet offers you the safest method to store your coins. It is a piece of hardware, particularly a portable device like a flash disk. The most used cold wallets are Trezor and Ledger Nano.
- Connect the Wallet to your Bank Account
After getting your wallet, the next thing is to connect it to your bank account. Linking the two makes it possible to buy and sell the coins. It is also possible to link your bank account to your crypto account.
- Make your Bitcoin Order
You can now buy Bitcoin. With your cryptocurrency exchange account, you can get everything you want to buy. However, you may be wondering how much Bitcoin you can buy. Well, it is common for some bitcoins to cost thousands of dollars. But most platforms often allow you to buy a percentage of one coin. So, you can invest from as low as $25.
- Bitcoin Investment Management
You can carry out the following activities after purchasing your bitcoin:
- Do online transactions with your coins
- You can hold the coins for as long as you wish with the hopes their value will appreciate.
- Trade with your coins. Now you can buy or sell bitcoins with other traders. It is possible by using cryptocurrency exchange platforms.
Bitcoin is a currency that facilitates faster transactions in crypto trading. Bitcoin trading has more benefits than traditional financial institutions. One needs to follow only five steps to open a bitcoin account and start an investment. Start investing in Bitcoin today to gain fantastic returns from the crypto market. Be the Bill Gates now!