Bitcoins have been the center of attraction for global investors since the coronavirus pandemic hit in 2020. With approximately 106 million owners, 200 million wallets, and 270,000 bitcoin transactions daily, it won’t be wrong to understand that bitcoins are the investors’ favorite and the first choice.
Also, apart from its popularity, it enjoys being the center of many debates about whether it has a futuristic approach and if it is worth the hype and investment or not?
Each kind of investment, be it stocks, shares, debentures, mutual funds, etc., are risky, but the risk degree varies. The same is true with cryptos, where the risk is relatively higher.
So, if you are thinking of investing in bitcoins, you have all the right reasons to do so. Here are some figures that will help you strengthen your decision.
- The daily users stand at 400,000.
- As many as 53 million bitcoin traders are making it one of the most popular cryptocurrencies to be traded.
- In the last 365 days, the valuation increased by more than 763%.
- Many high-profile businesses and finance companies, amongst others, are promoting its use and accepting payments in the form of cryptos.
Bitcoin – The Simple Meaning
As a beginner, there are high chances that you might have heard this term but have no idea about it. It can be a single person or group of programmers, but no one exactly knows about its origin. The real founders are still unknown, but many suggest that ‘Satoshi Nakamoto’ is the mastermind behind it.
The initial idea behind developing and introducing bitcoins was to prevent cryptocurrency duplicity. It is a decentralized trading currency in the digital or virtual format that helps facilitate instant payments. You can relate them to coins and tokens, but they don’t have any cash value attached to themselves, which is a case of other investment options like metals and stocks.
The transactions are safe and obtain certification through network nodes. They are recorded in a blockchain which serves as a distributed ledger.
Working Of A Bitcoin
They are made of complex codes. In simple terms, you can understand bitcoin as a computer file. As traditional computer files are stored in folders or on the desktop, a bitcoin is stored in a digital wallet. The digital wallet makes its way to an app that is either a part of the investor’s computer or the smartphone.
As an investor, you can choose to keep them in the digital wallet and transfer them to others for trading or storage purposes.
As discussed above, the code for the bitcoin is broken into small pieces through the ledger – blockchain’s segments. Bitcoins contain the data in different formats and other places. Any changes are subject to cross-verification before implementation, ensuring the coin’s secrecy and the intent of the owner behind introducing this change.
They are safe in the wallets, and the private encrypted keys are the only way to access them. The overall process is known as mining, ensuring that a proper series is followed. Also, the mining process provides a competitive lottery; hence, not a single person has complete control over bitcoin trading and management. So, you can be sure of its authenticity and the profits it has in store for you.
5 Step Guide To Begin Investing In Bitcoins
Now, when you are through with the basics of bitcoins, and it’s working, here is a 5-step guide to ensure that your bitcoin investing experience is good.
1. Choosing The Platform
There are a lot of crypto exchanges like Bitqs that will act as the first step for bitcoin trading. You can go for the most popular ones. Still, because you are a beginner in this field, you should ensure that you are choosing a platform that helps you with a balance of a minimal fee for signing up and good security to keep your information and your purchases safe.
2. Entering The Right Credentials And Cross-Checking
Bitcoin transactions cannot be reversed, so you must enter the correct details and cross-check them before choosing the enter button. Once you click it, all the transactions will be under the entered name only, no matter whether it is right or wrong.
In unfortunate circumstances, if you enter the details wrong, it can lead to losses, data theft, misuse, and leaks. Also, it would be best if you were sure of the monetary details. Imagine that if you enter the wrong information, you will lose your money with no investments in hand.
3. Selecting The Payment Options
Further, it would help if you mentioned your interest in the payment options. It is more of a country-specific thing. You can choose to opt for bank transfers, and there are other payment options like QR code scans, net banking, and of course, with the help of your cryptocurrency wallet.
But, there is one thing you should keep a check on before selecting your mode of making crypto payments. Many payment platforms charge an amount for such transitions. The quantum of the charge varies. Hence, it would help if you chose accordingly and ensured that the payments are secured and trustworthy.
4. Order Placement
Post the account funding; you can use your bitcoin ticker symbol or BTC to represent your interest in trading. Then, you need to disclose the amount you are interested in investing. With this, your transaction will be complete, and you will become a bitcoin owner. The size of your ownership will depend on the bitcoin’s overall price against the price you have invested in it.
5. Storage And Security
Now, you need to look for storage that ensures the security of your bitcoin. You can store it with the help of internet connectivity, but the risk of hacking prevails over there. So, you can divide your investment into online and offline storage options and withdraw it by paying a fee when you need it.
Cryptocurrencies are skyrocketing; hence, it will feel like the right time to invest in them. It is undoubtedly an incredible investment, but you need to take care of the amount that you are interested in investing in it.
Apart from that, there’s nothing you need to worry about!