As knowledge about Bitcoin spreads, people are looking to invest in it. But what do you need to do in order to invest in Bitcoin?
To invest in Bitcoin, set up a Bitcoin wallet, link the bank account to a wallet, then place Bitcoin orders. Investing in Bitcoin is not a complicated process. Anyone with money may start investing through these simple steps. Though accessible, be responsible and understand investing limits.
As you can see, investing in Bitcoin is a simple process to get started in. Investing itself is the primary aspect that does require some level of intelligence and common sense, as irresponsibly investing can make one lose money unnecessarily. In this article, we will explore further how to start investing as well as address information about Bitcoin to promote investing responsibility.
Why Bitcoin?
Before we start with the investing process of Bitcoin, let’s quickly address why you should invest in Bitcoin.
An obvious answer could be that Bitcoin is at its highest peak in value and seems to only be going up. Another could be the reputation of Bitcoin itself, as it is one of the original cryptocurrencies out there and has made a name for itself based on its current trends and values. Generally, Bitcoin has been seen as trustworthy in security, traceability, and popularity.
In the end, whether you agree with the credibility of Bitcoin, you can’t ignore Bitcoin’s immense success and the continued growth that makes it one of the more desirable cryptocurrencies to invest in.
What is Bitcoin Exchange?
Now that we understand why Bitcoin is worth investing in, let’s now get into the meat of this. To start investing in Bitcoin, we need to be aware of what Bitcoin exchanges are and how they work.
A Bitcoin exchange is basically a place where you can exchange a variety of currencies for Bitcoins. You can also think of it as a place to exchange your USDs into pesos, euros, pounds, etc. It is a currency exchanger, but instead of money, you purchase Bitcoins. These facilitators are available to anyone from anywhere. All trading types are also welcome, as it operates the same as regular stock exchanges.
Perhaps one of the most recognizable and largest exchanges for cryptocurrencies is Binance. This is currently the leading company for cryptocurrency exchanges. Other cryptocurrency exchanges are Kucoin and Gate.io. This is currently the leading company for cryptocurrency exchanges. Other cryptocurrency exchanges are Kucoin and Gate.io. Both are great exchanges in their own rights, however, Binance is far more popular and credible in this regard.
There is no other way one may invest without using a Bitcoin exchange. A Bitcoin exchange is a must in the investment process. If you are still unaware of how it works, I would urge you to explore and read more about it to get full disclosure of how it works and how to successfully invest in Bitcoin so you don’t end up losing money.
How to Create Bitcoin Wallet
Now for the actual buying, selling, or trading of Bitcoin, one cannot use just any payment method one desires.
To use the Bitcoin exchange, one must create and use a Bitcoin Wallet. Bitcoin Wallets can come in three basic ways: online, software, and hardware. Online Bitcoin wallets are the most common form of Bitcoin Wallet that you will see most use because of their convenience and easy-to-use interface. Software Bitcoin Wallet secures Bitcoins on the individual’s computer.
Though considered a safe option, exactly how secure your Bitcoin is will be based on how secure your computer is. Lastly, Hardware Bitcoin Wallet is the most secure. If you plan on holding large amounts of Bitcoins over long periods of time, this would be the best option to use. The only caveat with this method is that it is not accessible for day-to-day exchanges since it is not an online Bitcoin Wallet.
A Bitcoin Wallet is free to use, and you can create one almost anywhere at any time.
Now, before we move on, one may wonder if they may use their mobile devices for a Bitcoin Wallet. We are happy to say that you can use a Bitcoin Wallet directly from your mobile device, assuming that all credentials and information are the same as the one you made on your personal computer or vice versa. You cannot create multiple accounts with the same credentials, but you can extend these accounts to different forms or usage of methods, such as mobile versus computer.
Lastly, during the process of creating a Bitcoin Wallet and adding in your credentials and confirmation of identity, you may then link any desired bank account to the Bitcoin Wallet.
Linking Wallet to Bank Account
Linking your bank account to your Bitcoin Wallet is what will enable you to then make transfers so you can start investing.
Just like creating the Bitcoin Wallet itself, it isn’t complicated and is easier than you may think. Once your Bitcoin Wallet is complete, it will then ask which bank account you would like to connect to. After you enter the bank account credentials according to the Bitcoin Wallet, your chosen bank account will be connected and can be used for the exchanging of real-world money into Bitcoins and vice versa.
As we said earlier, you cannot just invest using any form of payment such as your debit or credit card. You must use Bitcoin exchanges via a Bitcoin Wallet. Connecting your bank account fulfills these requirements in that whenever you do decide to start investing in Bitcoin, the money that is transferred out from your wallet will be automatically converted to Bitcoin values.
There you have it. You can start investing using the newly create Bitcoin Wallet and the bank account connected to it. However, just a quick word of caution, Bitcoin Wallets are not government-regulated compared to regular bank accounts, so be careful in how you deal with the linkage of a bank account, especially one that has a large amount of money tied to it.
Start Investing
Now we have successfully explored our Bitcoin exchange options and linked all appropriate Bitcoin wallets to our desired bank account. The next step is to simply invest.
Investing can come in many forms such as buying shares/stocks, becoming a co-investor, or crowdfunding to name a few. In this case, we are concerned with digital investments, so you most likely will be dealing with buying shares or stocks from a chosen company. Bitcoin isn’t unique in this process and follows the same principle as other things on the stock market.
If you want to invest in Bitcoin, you first must have the money in your Bitcoin wallet and then decide how many shares/stocks you would like to purchase. Lastly, keep the money for as long as possible or when the stock’s value starts to decline.
The basic principle of “buying low and selling high” is an all too familiar practice recognized by experienced and inexperienced investors. It means that when the value is perceived as low, one should buy a share. If a stock is at its perceived lowest value, the only direction it can possibly make is up, thereby increasing value and gaining a return on the money you invested. Once it seems to reach a certain peak, one should sell their share(s).
This means that once a stock is at its highest value, the chances of it going up will significantly slow down, and declines are bound to happen. Sell when the opportunity is present. There is nothing worse than being too dedicated to a stock and it dropping more than you thought, causing you to lose money in your investment.
If possible, consider using others as “reference points”. What I mean by this is that if you know someone personally who is investing in Bitcoin, get an idea of how they work and perhaps get advice from them, assuming they are making money from investing in Bitcoin. You may also use famous people as references, but I would not count on this since most do not disclose everything they do.
In the end, the actual investment process will depend on the individual’s willingness to invest in what money they have available to invest and how they treat certain trends that would warrant investment decisions such as buying, selling, and holding (keeping money over long periods of time) Bitcoin.
Invest Responsibly
Now that we have addressed the investing process, let’s finally share a word or two about how to invest responsibly.
When it comes to investing, it is very easy for one to get caught up with the trend and/or moment and feel like they can invest and receive something out of it. However, this is not always the case. When we put money into Bitcoin, for example, we need to be aware of possible consequences that can come from certain investing trends not going in our favor.
For example, if you decide to invest while Bitcoin is high, you will most likely not receive any large quantities of money in return, especially if Bitcoin is at its highest value when you purchase it. When this happens, you may be waiting for a long time before any significant money is returned to your pockets, or you will lose more money than you put in.
When you buy high, your chance of losing money is higher in that decreasing values of any stocks are more likely to happen than increasing ones. If you invest in Bitcoin, which is a recent reputable investment, you may earn money from it, but you likely won’t do so for a long time, as the growth in the value of Bitcoin is typically quite slow. If you invested at the beginning of Bitcoin when it was at a low value, you will likely make money when you sell it.
However, considering that Bitcoin is currently worth $2 trillion, good luck trying to get a solid foothold. It also doesn’t help that a single share of Bitcoin is currently worth around $40k–$59k USD. When it was first released, a share of Bitcoin was only worth about $1 USD. Overall, never assume you will earn money quickly when you invest in Bitcoin.
Lastly, keep in mind that there is only so much Bitcoin available on the Bitcoin market, and the value of this cryptocurrency might go down over time. Only invest as much money in Bitcoin as you feel comfortable losing, as you never know if or when you will lose your Bitcoin or when it will go down in value.
Overall, it is not extremely hard to invest in Bitcoin, which is one of the reasons why so many people have invested in it and keep purchasing more. Before you start investing in Bitcoin, make sure you know how to read the trends in the market, and keep an eye on the market beforehand. After all, you don’t want to purchase a lot of Bitcoin when it costs a lot of money, only to lose some of the money you spent when you are ready to sell your Bitcoin because it isn’t worth as much money as when you purchased it.
If you are unsure about investing in Bitcoin, only invest a few dollars at a time. Then you can stockpile your Bitcoin as the value potentially increases. Plus, if the value of your Bitcoin drops when you want to sell it, you won’t be losing too much money if you only invested a small amount of money in Bitcoin.
If necessary, consult a Bitcoin expert before you start investing in the cryptocurrency. Ask them many questions and ask them if Bitcoin is the best cryptocurrency to invest in, as there are many different types of cryptocurrency available for you to invest in.
Also, look at the available Bitcoin exchange platforms and determine which one is right for you, especially because these platforms often charge you various fees that will vary depending on the platform and what it decides to charge. Plus, you want the exchange platform to be easy to use, especially if you are new to investing in Bitcoin.
We wish you luck investing in Bitcoin!
