A new form of investment has been stirring up the web zone these days. We hear the terminologies (which often sound very complicated with all its jargon) like cryptocurrency, online investment, or digital wallet. We cannot help but wonder if this is an excellent money-making venture for us. Others are even curious about how to invest in cryptocurrency since some people claim that they are earning from it.
This article will delve into the basics of investing in Bitcoin as it is the most popular cryptocurrency to this time being. Investing in cryptocurrencies – or investing per se – requires extensive researches and continual practice. We zero in on what Bitcoin is and if it is worth investing in this year.
What is Bitcoin?
Bitcoin is a digital currency – meaning there are no physical coins. You purchase this on a universal system that controls and tracks it. There is no regulating body like a government, for instance, that controls it. Just imagine that it is a system with humongous accounting books that record who owns what and how much owns what. Coins can be bought in a matter of minutes. Presto! You are a viable investor.
To reiterate, Bitcoin is not a physical tender. So the question is: how do we buy them? A primary method is to buy from a Bitcoin exchange or invest in a fund. If you are interested, try to learn more about “Satoshi” and get a free wallet app (this will help in understanding the necessary procedure). Remember that you should never invest significant amounts in something you do not fully understand.
Often, we are skeptical when making simple purchases online. This is even the case when there is a physical exchange (product or service). What more for investing online digitally! Bitcoin and investing in Bitcoin is legal unless you partake in scamming or coin mining. Any form of investment is healthy and encouraged.
How to Invest in Cryptocurrency
Assuming that you have learned and researched what Bitcoin is really about. You may now start buying Bitcoins. Keep tabs on these requirements that you need to prepare and take note before purchasing.
1. Get a digital wallet. Now you know that Bitcoins are not coins; so digital wallets are not leather wallets. They are online services that allow electronic transactions. It is used for purchases using a computer or a smartphone. Your bank account will also be linked to this digital wallet.
2. You will need to verify your identities through the wallet. You should secure personal documents like passport, driving license, or social security number during verification.
3. As this is the digital world, hackers may pose a critical problem. Transact only insecure networks.
4. You will also need a Bank Account, debit card, or credit card to link. These will fund your transactions.
5. Visit Bitcoin exchanges from online market places where you can exchange conventional currency to Bitcoins.
Is investing in cryptocurrency worth it?
Well, for one, the market is still young, so there is an expectation that prices will go higher. Cryptocurrency is also the new pink. This trend-setting investing is seen to be the medium of exchange in the future – Forbes said.
Although you will stumble upon many pros and cons in this kind of investment, when you start digging for knowledge about cryptocurrencies, its ten years of existence and operation cannot be denied. It is still in the trend this year. When proper timing on buying and selling is mastered, you can often buy low and sell high.
Now that you know how to invest in cryptocurrency, this will no doubt make you think that it is an interesting way to make money.