How to invest in Bitcoin for the beginners
For a few years, cryptocurrency has managed to capture the attention of many users, some digital currencies that are still in expansion process and that have their maximum exponent in Bitcoin, the main cryptocurrency, although there are also many other alternative currencies, known as altcoins. Many people are looking for how to invest in Bitcoin and throughout this article, we are going to detail how to do it as well as the rest of particularities and aspects that you must take into account.
How to invest in Bitcoin
In the case of Bitcoin, you should know that the control of this cryptocurrency falls on the users themselves, who are the ones in charge of validating any operation through P2P exchanges, without any institution intervening in the process. This means that it is impossible to manipulate their value due to the structure of cryptocurrencies and the security that implies for users and investors.
Bitcoin and cryptocurrencies are generally money that is fungible (exchangeable), non-wearing, that allows portability and dissipation and that has durability, as well as being safe (cannot be faked), easy to handle and scarce (predictable supply). It is also intelligent (programmable) and decentralized, without being issued by the government or controlled by any institution.
Due to its characteristics, it has become a type of currency that has managed to attract the attention of a large number of users around the world. They have taken advantage of the huge opportunity to make investments in cryptocurrencies and continue to do so.
The investment in cryptocurrencies
Investing in cryptocurrencies is booming since it is considered by many to be one of the safest investments currently, although it also has many detractors behind them.
In any case, some of the main advantages of investing in them are:
They help increase net worth
Cryptocurrencies are, according to different studies, a good way to protect money taking into account the loss of value that occurs in most currencies.
Greater security with the blockchain technology (blockchain)
The blockchain technology, called blockchain, provides more security thanks to being a totally encrypted process in which the information can only be deciphered by the sender and receiver. It is also a universal currency that can be used anywhere in the world unless it has been restricted in some country.
The Bitcoin was the first cryptocurrency that saw the light and did so in 2008. The first who decided to invest in digital currencies have benefited greatly from the price increase, so it is shown that investment in digital currencies It is a good opportunity to obtain benefits, even if they occur in the long term.
Risks of bitcoin investment
Before indicating how to invest in Bitcoin you should know that you can read very positive opinions about the cryptocurrency and many others in which it shows the opposite. The problem is that many traditional financial institutions are reluctant to work with them and do not adopt blockchain technology in their transactions.
In addition, cryptocurrencies are not governed by any law or supported. It is also about coins that have a high volatility, so they can make us a lot of money quickly and also lose as fast, this being their main drawback and risk.
Best cryptocurrencies to invest
Currently, there are many cryptocurrencies that go beyond Bitcoin, so before proceeding to know how to invest in Bitcoin it is important that you know which cryptocurrencies are the best to invest in them:
- Bitcoin: It is the main cryptocurrency, which was born from the hand of Satoshi Nakamoto in 2008, being the pioneer and, therefore, one of the best to invest.
- Ripple: Many consider that this altcoin is the successor of Bitcoin. It was created by the same developers as Bitcoin but with the intention of having better benefits. It has a totally secure system.
- Litecoin: Created in 2011, it is another of the main alternatives to Bitcoin, currently there are around 55 million Litecoin in circulation.
- Ethereum: This is one of the most profitable digital currencies of the last year 2018, being the second digital currency in terms of market capitalization.
How to invest in Bitcoin and cryptocurrencies step by step
Decide on what cryptocurrency you want to invest
The first step when it comes to investing is obviously to decide which cryptocurrency interests us the most to invest, something that will not be easy considering the large number of digital currencies that exist today. After comparing and evaluating them, the decision to invest in any of them will be made.
How much you want to invest
When you have decided the cryptocurrency you are going to invest, you must plan and set objectives, a planning in which the amount of money you want to invest must be present. Once you have clear the cryptocurrencies in which you want to invest and determined the amount of money that you are going to invest, it is important to be attentive and observe what time is the right one to carry out the investment. It is follow out the same strategy as the investment in stock exchange.
Get a portfolio of cryptocurrencies
You must obtain an address through which to request and receive cryptocurrencies. There are different types of cryptocurrency portfolios and each of them is used for some types of digital currencies.
Join an exchange
When you already have a portfolio of cryptocurrencies it will be time to join an exchange, since that is where the transactions will be carried out. Today there are many exchanges, such as Coinbase, Bittrex, and so on.
Once you have all of the above clear, you have your portfolio and an exchange account. It is time to buy the cryptocurrencies, which can be purchased from the web page of each cryptocurrency.
If you already have your cryptocurrencies that you will start investing, make sure to have an offline storage where you are able to store the cryptocurrencies in a safe way, away from the dangers of the internet.
To follow the bitcoin quote, simply connect to our virtual wallet, from where you can observe the evolution of the cryptocurrency and how it fluctuates. You should look at the price that marks the platform you use since the quote also depends on the purse you are using.
Also, you can also use platforms such as Coingecko or Coinbase or other specialized media that can give you information about the Bitcoin price or the chosen cryptocurrency, although in these cases the data may not be completely accurate. When investing in Bitcoin, keep in mind that it is a very volatile asset, being completely normal that there are big oscillations in the Bitcoin price on the same day.
Ways to buy Bitcoins
Knowing how to invest in Bitcoin as you can see is quite simple but you must do some previous steps such as having the cryptocurrency mask and join an exchange. However, there are different ways to get bitcoins to invest, such as: mining bitcoins, selling a service or product and being paid in Bitcoin. You can also do the aforementioned method of buying bitcoins through your website or a platform.
Mining is the traditional and primitive way of achieving Bitcoins, a mining job that involves the use of powerful computer equipment that is responsible for solving different mathematical problems while exercising as currency security. To mine bitcoins in your home, you need a high-powered team that is specialized for it, given that there is great competition, domestic equipment does not have enough power for the task to be profitable.
Take a look before investment in Bitcoin
Although there are voices against the investment in cryptocurrencies, the reality is there are many users around the world very satisfied with the results obtained since they decided to invest in Bitcoin and other altcoins. Remember that altcoins can be purchased in the same way as Bitcoin through brokers and so-called exchangers.
The usual thing in this sense is to buy bitcoins and then transform them into one of these alternative cryptocurrencies. Therefore Bitcoin serves as a gateway to the entire cryptocurrency market and uses as a backup in the face of transactions.
Ending with a positive hope
If you want to know how to invest in Bitcoin, here you have been able to know different basic aspects that are necessary to get started in the world of cryptocurrencies. Although to completely master the issue of investing in digital currencies it is recommended that you complete your training by going to different publications specific about Bitcoin and the rest of cryptocurrencies. You also take into account that in the network you can access a large amount of quality content to help you to solve all those questions you may have before your investment.