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An introduction to bitcoin
Bitcoin may seem like your next-door currency that can be used to pay for goods and services just like dollars, yen, or euros. But aside from this primary function, it is so much more than the traditional currencies.
The following core traits differentiate the bitcoin from traditional currencies:
The values that bitcoin will hold in the market totally depends on how well and truthfully investors invite it, how well it is connected to financial markets, and its performance as compared to other cryptocurrencies.
Investing in bitcoin seems to be difficult, and that is the reason we at Bitcoin Era have broken down the whole process into four distinct steps. Let us look at the steps.
Steps on how to invest in bitcoin
The first and foremost step in bitcoin investing is getting a bitcoin wallet. You can either go with hardware or a software wallet.
Software wallets are mobile applications connected to your bank accounts. These wallets are very flexible and allow for each access to your cash. The disadvantage associated with software wallets is that they put your cash in the hands of a thief force not associated with your bitcoin trade whatsoever. Software wallets are not feasible for massive bitcoin trades. If you are trading on a large scale, you would want to store your money more securely.
Hardware wallets are said to be more conventional but are a safer option as compared to software wallets. These wallets work through a private passkey which is stored in a physical hardware device. This prevents hackers from using the trader’s pass key through an internal connection.
To trade and purchase bitcoins, you must connect your wallet to your bank account, debit, or credit card. All such methods of payment will facilitate the exchange and trade of bitcoin. But all these methods are differentiated on the kind of fees that they charge for the trade. For beginners or fresh bitcoin traders, it is recommended to choose the bank account option. Bank accounts take at least three to five days to process transactions. Linking a bank account to your wallet will let you trade bitcoins and deposit cash directly in your account.
Credit or debit cards allow you to buy bitcoins on a quick basis. But with most exchanges, these cards can only be used to buy bitcoins and not for trade. Traders cannot sell or deposit money through debit cards.
Bitcoin exchanges are online marketplaces that facilitate the trade and exchange of bitcoins. Here, the traditional currencies can be exchanged for BTC. Just like shopping sites; Amazon, eBay, and more have a lot of manufacturers and retailers connected to them, the same goes with the bitcoin trade.
Even though two or more exchange websites can offer similar cryptocurrencies, their services and functioning mechanism tend to be different. The variation can lie in their reputation, fees, processing time, exchange rates, and more.
The last step is to start placing trades and buying bitcoins in the exchange market. Since you are ready to step into the market, you must remember that a bitcoin might cost several dollars, but each bitcoin can be broken down to eight decimal points.
Conclusion: Is it safe to invest in bitcoin?
Bitcoin Era has become a really popular investment due to the high volume and liquid trade it offers. But while investing one must also keep in mind the risk associated with this virtual currency. Bitcoin is not authorized or regulated by any agency or central bank. This means there might not be any accountability associated with the trade. Concurrently, the demand is very high, and it is said that in the future, bitcoin might become so popular that the government will hold it as reserves.
Bitcoin, as a currency, is becoming a mainstream investment option for a lot of investors.