HOW TO INVEST IN BITCOIN OR CRYPTOCURRENCY
And why would someone want to know how to invest in Bitcoin and other cryptocurrencies?
Click The Button And Follow The Video Below to Join Binance And Buy Cryptocurrency!
Hi, I'm Scott Nailon.
After being asked how to invest in Bitcoin a few thousand times since 2017, I created this website. I do semi-regular research on buying and selling cryptocurrency.
WARNING: I’m not a ‘financial professional’ or a financial advisor. I’m just someone who likes to build websites and write articles. I am not responsible if you make losses
Although I am far from being a financial genius, I would encourage serious cation when investing hard-earned money in cryptocurrencies.
Be really careful and make sure you do study into it if you’re brand-new to investing. Toy with percentages to reduce your danger of losses.
Scott Nailon
Please Read This Warning!
Learning how to invest in bitcoin or other cryptocurrencies can be an enjoyable way to check out possible new investment avenues. It’s also true that any investment in cryptocurrency must bring a caution label like cigarettes:
“This item might be hazardous to the health of your financial resources. Never ever purchase more than you can pay for to lose.”
The value of bitcoin, the world’s very first and most popular cryptocurrency, has actually increased from recent lows but is still trading far above the 2017 highs. Like all cryptocurrencies, bitcoin is subject to far more volatility than lots of other investment types, such as stocks, bonds and shared funds.
It's Totally Unregulated!
I hate seeing people lose money, it’s terrible. So please take a look at my own rules of engagement below and think about creating some of your own. The cryptocurrency industry is not accountable or controlled by any government in the world. It’s the Wild West. So don’t trust ANYONE. EVER.
For example:
Scenario 1 - 'Social Crypto'
A friend tells you about this great ‘Platform’ where you buy some crypto and then invest it into the platform to see some amazing returns over the next X amount of days/weeks/months. Also, if you sign others up under your code you will be given some extra income for yourself!!!
NO. Just Say No. That’s called a Ponzi Scheme. You won’t come out of it without loss. The owner will end up VERY well off though.
A good example of this is USI-TECH, please click that link and have a good read of that story – I was one of the people who lost a lot of money to them.
Scenario 2 - 'Amazing Opportunity'
You receive a phone call to let you know about a new “ICO” that is about to be launched and you are being given special investors knowledge in advance. Stop them there, hang up. They will ask you to buy crypto and then exchange it for theirs, you won’t ever see it again.
I get these calls almost daily! I usually pick them a mile off and just hang up now, however, I used to stay and play with them a while. The key to spotting them is they call from over sea’s countries, often pretending to be in Europe but are almost always calling out of India somewhere. Just hang up.
Ok, now Lets Talk About How To Invest In Bitcoin or Other Cryptocurrencies!
There are so many avenues in this industry, its hard to know which one to choose. Although I Cannot and will not ever give any form of financial advice I can tell you how I would go about it myself.
Purchase It
Ensure you purchase from the right place. Some platforms are easier to use but update much more slowly and cost more to buy cryptocurrencies and in other fee's.
Store It
Your cryptocurrency will need to be stored somewhere. You need a crypto wallet. This can be done a number of ways so make sure you learn about it or you will lose it.
Manage It
Managing your cryptocurrency is essential to success. Learn about different methods of using it, choose one and learn it very well in order to minimise your risk!
Lets Go Into More Detail
There are so many avenues in this industry, its hard to know which one to choose. Although I Cannot and will not ever give any form of financial advice I can tell you how I would go about it myself.
1. PURCHASE IT: How To Buy Cryptocurrency
When learning how to invest in Bitcoin you can acquire bitcoin from a number of cryptocurrency exchanges. Some of the more popular exchanges consist of:
Binance
Binance: The world’s biggest exchange by volume for all cryptocurrencies, at the time of writing this article Binance charged a 0.1% cost for all crypto trades (some discount rates are readily available), plus a withdrawal charge. Usually, you can just make purchases utilizing cryptocurrency, though Binance did just recently include the choice to pay by charge card for an extra fee.
Bittrex
Bittrex: Yet another exchange. Simple and easy to sign up to.
Coinspot
Coinspot: One of Australias most popular places to buy bitcoin. It is very user-friendly for beginners as well. This was the first place I started to buy and sell when I was learning how to invest in Bitcoin.
Coinbase
Coinbase: This is a popular option for U.S. bitcoin purchasers, in part due to the fact that you can quickly connect your bank account. Coinbase likewise provides access to etherium, litecoin and other cryptocurrencies.
Kucoin
Kucoin – A great place to buy with a detailed trading system. I enjoy this one too. Lots of extra currencies.
Gemini
Gemini: This U.S.-based crypto exchange trades bitcoin, ether, bitcoin money, litecoin and zcash. Deal costs vary from $0.99 to 1.49% of your order, depending upon the size of the purchase or sale, plus a charge of about 0.5%.
Coinmama
Coinmama. This exchange sells 8 cryptocurrencies, consisting of bitcoin. Coinmama needs a minimum $60 purchase and charges a deal charge of 5.9% (plus an extra 5% cost for charge card purchases).
Other Methods Of Purchasing Cryptocurrency
(Not For Beginners)
Bitcoin ATMs. These work like regular ATMs, just you can use them to buy and sell. ATM Radar reveals more than 3,000 bitcoin ATMs around the U.S. I have not seen any in Australia though!
Peer-to-peer bitcoin owners. You can purchase bitcoins straight from other bitcoin owners, much like you would purchase products on Craigslist, through peer-to-peer tools like Bisq, Bitquick and LocalBitcoins.com.
Bitcoin futures. TradeStation uses a method for financiers to trade on bitcoin futures, however, this is pro-level stuff, not at all for beginners.
Grayscale funds. Grayscale Investments is a digital currency asset manager. Two of its investment trusts– Grayscale Bitcoin Trust (its ticker symbol is GBTC) and Grayscale Ethereum Classic Trust (ETCG)– are publicly traded over the counter, which suggests you can purchase them through numerous discount brokers.
There are charges, and GBTC frequently trades at a premium, that is, GBTC shares typically cost more than bitcoin, despite the fact that bitcoin is its only holding. The thinking is that some investors are prepared to pay more to purchase bitcoin through a traditional exchange, without having to stress about wallets and storage.
Before You Purchase
Have information you may require handy. Setting up a cryptocurrency account takes minutes. however, you’ll require to offer some details, including your ID (Passport or Drivers License if in Australia) or Social Security number (if in the USA) and your bank account details, debit card or credit card to pay your bitcoin account. Record and protect any brand-new passwords for your crypto account or digital wallet (more on those listed below).
Do not ever use Credit. Debit Cards are fine. Some companies enable you to buy bitcoin by credit card, making investments by obtaining from a high-interest item like a credit card is never ever a great concept.
Bitcoin and other cryptocurrency investments are not guaranteed by the Securities Investor Protection Corporation for exchange failures or theft, a protective cover that conventional stock brokerage accounts enjoy right up to $500,000. Some exchanges like Coinbase supply personal insurance coverage, however, that does not safeguard against private online breaches like someone else taking your password.
Utilising a safe, personal web connection is essential whenever you make monetary choices online. Purchasing bitcoin while at the coffeehouse, in your hotel space or utilising other public web connections is not encouraged
2. STORE IT: How To Store Cryptocurrency Safely
When you need to know how to invest in Bitcoin wallets are an important thing to consider. Bitcoin can be saved in 2 sorts of digital wallets:
- Cold Wallets.
- Hot Wallets.
With a hot wallet, deals are normally much faster.
A cold wallet frequently includes extra security protocols. These help to keep your purchase secure and will also take longer.
Hot Wallets
With a hot wallet, bitcoin is saved by a relied on exchange or company in the cloud and accessed through an app or computer system web browser on the web. Any trading exchange you sign up with will provide a complimentary bitcoin hot wallet where your purchases will instantly be kept. Numerous users choose to move and save their bitcoin with a third-party hot wallet service provider, likewise usually totally free to download and utilize.
Why select a wallet from a supplier besides an exchange? While supporters state the blockchain innovation behind bitcoin is much more protected than standard electronic cash transfers, bitcoin hot wallets are an appealing target for hackers.
As Bitcoin.org cautions:
“Online wallets and lots of exchanges struggled with security breaches in the past and such services usually still do not offer sufficient insurance coverage and security to be utilized to save cash like a bank.”
There are numerous hot wallet suppliers, providing a series of wallet types. Here are a couple of:
- Coinbase: Also a popular bitcoin currency exchange, Coinbase uses totally free online hot wallets and guarantees losses due to security breaches or hacks, staff member theft, or deceptive transfers.
- Electrum: Software that permits your bitcoin to be kept on your laptop computer or desktop.
- Blockchain: Like Coinbase, Blockchain is an online hot wallet; unlike Coinbase, Blockchain isn’t a currency exchange and is thought about a less appealing target for hackers.
- Mycelium: A mobile-only bitcoin wallet, with variations offered for Android or iPhone users.
Some hot wallet companies use insurance coverage for massive hack attacks, that insurance coverage might not cover one-off cases of unapproved access to your account.
Cold Wallets / Hardware Wallets
A cold wallet is a little, encrypted portable gadget that permits you to download and transport your bitcoin. Cold wallets can cost as much as $100 however are deemed a lot more protected than hot wallets.
Cold wallet suppliers currently consist of:
- Trezor: This business provides little, key-size cold wallets varying from about $80 to $170.
- Journal Nano: Designed like a thumb drive, Ledger Nano has cold wallets varying from about $60 to $120.
When producing represent your digital wallets and currency exchange, utilize a strong password and two-factor authentication.
3. MANAGE IT: How To Manage Cryptocurrency Wisely
One choice is to purchase bitcoin or cryptocurrency now and then sell it if and when its market value grows if you like the concept of day trading. If you see a future for bitcoin as a digital currency, possibly your investment strategy is to hold and purchase for the long haul.
Whatever your strategy, you should understand that owning bitcoin develops a complicated tax situation.
Trading
Cryptocurrency trading is a dangerous game. Without proper knowledge of how to trade cryptocurrency, you will almost certainly lose your money in no time. Please ensure you learn to trade first and even when you start only execute small trades in the early days. Learn about how to create a trading plan as well.
Holding (HODL)
Holding Cryptocurrency is a very wise thing to do. The term HODL came from online enthusiasts as they typed too fast and created a typo so often that it actually became a thing. In 2010 1 Bitcoin was worth $0.08, yes that’s right, 8 cents US! On April 14 2021 it was valued at $64,863 USD per coin. Holding Cryptocurrency is a safer move. The trick is choosing the correct cryptocurrencies outside of just Bitcoin!