3 Things to Know Before Investing in Bitcoin
- 5 May 2017
- Posted by: Mskhepri
- Categories: Articles, Cryptocurrency, Innovation, Technology, tips
If you’re thinking of investing in bitcoin, there are some things you NEED to know before you start.
In this article, I’m going to explain the basics of investing in bitcoin. It’s important you know these fundamentals, so you avoid losing money.
I’m going to explain how to buy bitcoins safely with reputable wallets, protecting and appropriately securing your Bitcoins, ways you can fund your account and some of the risks involved with investing in bitcoin.
1. Buying Bitcoins Safely
There are numerous ways to get Bitcoins. In addition to buying, you can mine, trade and earn bitcoins with various vendors around the world. If you want to buy bitcoins as an investment where you buy low and sell high, there are several ways to do this securely.
The wallet you choose is one of the most important factors when purchasing and holding your bitcoins safely. Each wallet comes with their advantages and disadvantages around security, anonymity, and extra services. So it’s important you weigh up the pro’s and con’s of each before selecting your wallets. You can also have more than one wallet if needed, although it’s best to start with one.
2. Choosing your Wallet
Just like your bank, your wallet must be able to deposit, transfer and withdraw in a timely and secure way. The blockchain does that anyway. However, your wallet is what stores your currency. If anything goes wrong with losing Bitcoins it’s likely to happen with your wallet provider, not the actual system bitcoin operates from, so it’s important to remember to choose the right wallet. It’s your responsibility when it comes to good practices, so always do your due diligence and try and connect with others in the investment community for their reviews.
3. Investing your Bitcoin
There are several ways to invest in Bitcoins. You can save them in your wallet and wait for the value to up. An ideal strategy for those who want to lower their risk. Bitcoin prices can be volatile, but it’s seen it’s stability and value increase over ten years, especially since Japan recently made Bitcoin a legal currency.
If this is how you want to invest your Bitcoins, the safest way is to ensure you choose the right wallet to secure your private keys (your ‘PIN’ so to speak). You also need to consider if anything ever happens to you. Will you have a nominated person who could access them? Do you have a will to whom will take over your private keys?
I hope that’s given you some basics on investing in Bitcoin. If you decide to start investing, always evaluate the risks and do your homework. There are some great opportunities in the bitcoin and cryptocurrency; however, they are also many scams.
If you’d like to learn more about investing in Bitcoin and cryptocurrencies, join our Facebook group; Crypo-Talk #Future Finance and become part of our Bitcoin and cryptocurrency investment community.
Our website and Bitcoin and Cryptocurrency investment community are places where you will find simple, but to the point, intelligence and information on the cryptocurrency investment market backed by timely, accurate information and presented in an easy way that you can understand and apply.