Bitcoin has had a massive price increase in 2020, and it broke $20,000 in December. Consequently, there was an increase in the demand for cryptocurrencies, and thanks to modern technology and online trading sites investing in Bitcoin is a viable option for anyone that wants to become an investor.
If you’re new to the world of crypto, you might feel overwhelmed by the information out there about Bitcoin. That being said, in this article, we have compiled a list of four steps that will help you get a grip on investing in BTC.
Understand the Technology
Bitcoin is a cryptocurrency, the first of its kind to achieve spectacular success, mainly because it is not owned or controlled by any organization. This cryptocurrency is powered by blockchain technology, and it’s important to understand it and how it basically operates.
Actually, the more you know about Bitcoin, the easier it will be to make the right decisions about your finances. With that in mind, blockchain technology was built in a way that makes it impossible for anyone to control the entire network or edit the data in the network.
In the blockchain network, the recorded transactions are stored and distributed across a cluster of computers in the network. But, even though the data about the transactions are visible in the blockchain network, the information about the users is not shared. So, one of the perks of the network is anonymity.
Furthermore, the transactions are completed quickly, with negligible processing fees. Currently, on average, it takes about 10 minutes for your transaction to be confirmed in the blockchain network.
Choose the Right Online Exchange Platform
The rise of cryptocurrencies could not be possible without the rise of online trading platforms. On an online exchange platform, you can sell and buy BTC and hold BTC. It is the most accessible way for the general population to obtain BTC, compared to mining, for example. All you need is a stable internet connection, and you can visit different sites, do your own research before you pick the right one for you.
Bitcoin Code is an AI-based trading platform which means, the technical aspects of trading are completed automatically. Hence, it is actually easier for beginners to start trading here.
Moreover, they also offer video tutorials for the members, a trading guide, and other resources helpful for beginners. Another advantage of being a member of bitcoin billionaire is that you can gain up to £1,200 by trading here. If you want to register, you need to make a deposit of $250.
Pick a Bitcoin Wallet
Having a Bitcoin wallet is extremely important because it is a safe storage option for your assets, but you also need a Bitcoin wallet to make payments and receive BTC on the blockchain network. There are different formats that come with their own set of disadvantages and advantages. But, what they have in common is that a Bitcoin wallet is associated with your private key and a public key that are unique to your Bitcoin address and are required for every transaction you want to make.
You can have a mobile wallet, web, desktop, and hardware wallet. The most convenient wallet is the mobile wallet, as it can also be used for offline shopping. The web wallet stores your BTC on a third-party server that you don’t control. A safe and relatively inexpensive option is considered the desktop wallet that you have complete control of, and you store your own private keys. Lastly, the hardware wallet is pretty secure as your BTC is stored on a physical piece of equipment like a USB port.
Another cold option is a paper wallet, and the private key is generated typically by a website, but you need to make sure your paper wallet is stored safely. Otherwise, someone can easily access your funds.
The Price of Bitcoin
Bitcoin is generally seen as a volatile asset, and the price is mainly affected by the interaction of supply and demand. Otherwise, some events can have a bigger influence on the price, like Bitcoin halving, for instance. The halving splits in half the reward miners get, thus mining becomes even less rewarding for the miners. Furthermore, this impacts the supply of new BTC, which means, when the demand for BTC is high, the price goes up.
Historically, this has happened after each halving, which generally occurs after four years. Otherwise, the news in the media and speculations can also affect the price. That being said, as an investor, it is very important to keep up with the latest trends in the crypto world and to learn as much as you can about them. Ultimately, your knowledge is the main factor that helps you make the best decisions for your financial health.