Bitcoin has been around since 2009, and in the time since it’s become one of the most popular cryptocurrencies available today. Although Bitcoin isn’t accepted in many places just yet, more vendors are accepting the digital currency every day, making it more accessible to purchase than ever before. If you’re interested in learning more about Bitcoin and how to get started with it, keep reading! Here, we’ll explain what Bitcoin is, how to invest in Bitcoin and how you can begin using it as part of your everyday life.
Why Invest In Cryptocurrencies?
Cryptocurrencies have been on a tear lately. There are more than 1,300 cryptocurrencies, and their collective market cap has grown to about $300 billion. Clearly, there is a lot of excitement around cryptocurrencies. Why are so many people excited? Cryptocurrencies give investors access to low-cost and peer-to-peer transfer of money and other assets with no or very low transaction fees. They do not exist in any physical form (hence crypto) but rather are stored online and protected by encryption, hence currency.
They also allow individuals to keep full control over their money, which makes them much different from traditional investments such as stocks and bonds. Since these questions can get pretty complicated, we’ve put together a short guide that explains everything you need to know about investing in cryptocurrencies—whether it’s an entirely new concept for you or just something that’s crossed your mind recently. If there is anything missing from here that isn’t clear, please let me know in the comments below!
The Common Mistakes New Investors Make
Here’s a short list of common mistakes to avoid: Not planning ahead. People jump into a new investment without any plan. Before you put your money in something, make sure you know what it is, and how you’re going to get it out when you want to. Don’t be afraid to ask for help—there are plenty of good resources available online for new investors.
Understanding market cycles. Markets go up and down, so don’t try to predict where things will go in two months from now; stay focused on where things are today, and then build a strategy that will give you profits no matter what happens tomorrow. Trying to time markets—or hop onto hot ones at just the right moment—is difficult enough even for experts. If you can stomach price volatility (and have some cash sitting around), there is no reason not to hold longer-term investments like bitcoin or Ethereum.
How To Secure Your Bitcoins
When it comes to securing your bitcoins, there are a few basics that you can follow to protect yourself. First and foremost, make sure you know what your coins are stored in. In other words, if they’re stored offline as a backup or on a computer that doesn’t access web services regularly, then you should be good. However, if you have large amounts of bitcoin residing with an exchange or any other service, then consider using a paper wallet to store them offline. Another very important factor is two-factor authentication (2FA).
Using 2FA not only keeps your account secure but also helps prevent hackers from getting into your account even if they guess your password correctly. And while we’re on the topic of security: Don’t lose those recovery keys! Your wallet will be nowhere without them. You should get into the habit of backing up your wallet frequently; depending on how much money you’ve got in cryptocurrency, regular backups might actually save your life one day. Also, please keep in mind that exchanges and online wallets aren’t regulated by anyone; thus, you shouldn’t keep too much value stored with them over long periods of time.