Bitcoin has a market cap of close to 650 billion dollars. This is an astronomical amount of money that is higher than the GDP of many nations.
If you are wondering how to get a slice of this huge financial pie, it may be time to invest in bitcoin. Putting money in bitcoin can be a great idea, providing you figure out how to do it the right way.
Read on to learn some basic info about investing in bitcoin for beginners. That way you can walk the path of financial success in the crypto world.
What Is Bitcoin?
Bitcoin is a digital currency rooted in the foundation of blockchain. In short, it is a discrete form of electronic cash that self-regulates itself without the use of an outside centralized banking system.
It can be transferred around the world to anyone with a bitcoin wallet. It works as both liquid capital, and as a long-term investment.
What Makes It Valuable?
Producing bitcoin takes a lot of electricity and computer processing power so, in a roundabout way, the value of bitcoin correlates to the value of these two inputs. That said, cryptocurrency stability tends to be very volatile.
But like all forms of currency, bitcoin’s value is determined by the faith of the wider investing community. Bitcoin’s value is only as much or as little as speculators deem it to be.
How Should I Invest in Bitcoin?
If you are a beginner your best bet is to start small and slow. Put a nominal amount of money such as $100 into bitcoin and watch it fluctuate over a few months.
As you begin to understand the market patterns, you can start investing in cryptocurrency with more money. You can then branch out to other forms of investment such as bitcoin stock, or picking a new form of crypto altogether.
Where Can I Purchase Bitcoin?
You have a couple of different options when it comes to buying bitcoin. Some involve cloud storage of your assets, while others allow you to store your assets in hard storage.
The most widespread method of trading crypto is through exchanges. Be aware that new financial regulations are changing the way this is done.
You now need a government-issued I.D. to buy crypto with an exchange. Also, exchanges do get hacked from time to time. Do some research to see the major exchanges available in your area.
Person to Person
You can buy bitcoin from another person directly. This is risky and is not recommended for beginning investors.
To do this you can either electronically transfer funds, or buy a physical hard drive with the bitcoin stored on it.
You may have noticed a space-age ATM at your local supermarket or corner store. These are bitcoin ATMs and allow you to purchase bitcoin and upload it to your wallet or device.
Do some research if you want to learn more about this way of buying cryptocurrency. Bitcoin ATMs allow you a convenient and secure way to purchase crypto without the use of an exchange.
If you invest in bitcoin today, you could make untold fortunes by the end of the decade. Cryptocurrency is still in its infancy, and as it continues to develop its value should increase.
Buy bitcoin today using the information you learned in this article. Start small, and you are sure to succeed. For other useful information like this check out other articles on our blog!