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Investing in Bitcoin: A guide for beginners in buying Bitcoin

Bitcoin’s popularity is continuously rising. Many people have indulged themselves in the cryptocurrency industry and have been using currencies like Bitcoin to buy goods and services and trade online. If you’re interested in experiencing the crypto hype, this guide is for beginners who want to buy Bitcoin and invest in it.

Brief Background: What Is Bitcoin?

Bitcoin is one of the many cryptocurrencies – this money is available and used online. It is a decentralized digital currency with transactions that are recorded in a distributed ledger called the blockchain. To understand more, the best way you can do is to buy and invest in Bitcoin.

Why Do People Invest in Bitcoin?

Since you’ve probably noticed many people investing in Bitcoin, you’re curious as to why they did. For beginners like you, exploring, buying, and investing in Bitcoin can be confusing and intimidating. To provide more views as to why you should invest in Bitcoin, here are some:

The Adoption of Bitcoin Is Accelerating Globally

The global adoption of Bitcoin is quickly accelerating. This can be seen in the steadily increasing number of Blockchain wallet users last year. Data from a company shows that there’s an increase in wallets in the past year. There’s an increase from 47 million to 71 million wallets.

Bitcoin’s Value Is Still Increasing

In the past, Bitcoin has peaked and significantly dropped in the market. But over the years, it has shown that it can recover all the time. And currently, the price and value of Bitcoin continue to fluctuate, allowing its value to increase for every movement in the market.

Many Reputable Personnel Are Going Crypto

Bitcoin was considered to be an excellent performing asset class of 2020. And this strong performance has caused many investors, companies, and even Wall Street analysts to invest in Bitcoin. As proof, back in the middle of 2020, MicroStrategy, a business analytics firm, announced that they invested 250 million US dollars in Bitcoin.


What Would You Need?

Before buying Bitcoin and investing in it, you need to be prepared first. In buying BTC, there are two main things you will need:

  • A wallet where you will store it
  • An exchange where you will buy it

Additionally, when investing in Bitcoin, you need things like your:

  • Documents that show and prove your personal identification
  • A secured internet connection
  • Your bank account information

Steps in Buying and Investing in Bitcoin

If you have everything above prepared and ready, here is how you can invest:

  1. Choose and Join a Bitcoin Exchange

Decide where you prefer to make your first-ever Bitcoin purchase. There are no official companies for this crypto because it’s an open-source technology, but the transactions are facilitated by exchanges. These exchanges are like the middlemen or intermediaries in cryptocurrency investing. Before anything else, you have to decide which exchange you want to buy your coins.

  1. Get Your Bitcoin Wallet

Whenever you buy Bitcoin, it will be stored in your wallet. Generally, there are two types of wallets you can get: a hot wallet or a cold wallet. So you can choose between the two, here’s how they’re different from each other:

Hot wallet – is a wallet that can be in online and desktop forms. The highlight of a hot wallet is that it’s completely online. If you plan to buy small amounts of BTC, this is a good choice of wallet.

Cold wallet – is an offline wallet. It’s designed to be physical storage of cryptocurrencies and is considered by some users to be the safest storage for Bitcoin. Additionally, it’s a good choice of the wallet if you want to buy large amounts of BTC.

  1. Connecting Wallet and Bank Account

If you have your wallet already and completely signed up and created your account, you need to link it to your bank account. Connecting your wallet and bank account allows you to purchase and sell bitcoins.

  1. Place Your Order and Buy Your Bitcoin

Now that everything’s in place, you’re now ready to buy Bitcoin! Decide how much you want to buy and invest. You can invest as low as 25 US dollars. Investing is risky, so be very careful in making your investment.

So, you can explore the exchange or the wallet, and you’ll see a list of all cryptocurrencies you can buy. Remember to invest only an amount you’re willing to lose entirely.

  1. Manage Your Investments

When you have made the purchase, you can now make online transactions or keep your coins in the hope that they’ll appreciate in value. You can also decide to trade your Bitcoin, as most users do.

Conclusion

Buying and investing is easy, even if it may look confusing and complicated. You need the proper knowledge about what you’ll be dealing with and the right things you need to have before buying and investing. Remember to store your Bitcoin safely and manage it properly to avoid losing it quickly and have a chance to gain profit with it.

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