How to Invest in Bitcoin: A Beginner’s Guide

Seasoned traders have been speculating in cryptocurrencies for years, but what if you’re new to the market and want a piece of the action? Here’s how to start investing in cryptocurrency and what you need to look out for.

The Beginner’s Guide to Crypto Investing

Cryptocurrency is absolutely on fire these days, and many investors are looking to profit from its red-hot growth. Well-known cryptocurrencies such as Bitcoin have risen again, and other popular digital currencies are also on the rise. Seasoned traders have been speculating in cryptocurrencies for years, but what if you’re new to the market and want a piece of the action? Here’s how to invest in bitcoins and what to look out for.

Bitcoin and cryptocurrency have been around for over a decade, but many still perceive them as new and different. If you’re one of those who have sworn off traditional currency until now, you may have started to wonder a little about what Bitcoin really is.

Currently, there are many different cryptocurrency investment tips on the Internet for private investors who are just starting out. However, in 2009, when Bitcoin was just introduced, no one really knew about it. Although some people saw its potential, it wasn’t until many years later that a really strong interest in cryptocurrencies arose.

Bitcoin cryptocurrency is simply explained as a digital currency that has no connection to authorities or banks. Therefore, cryptocurrency is also called “decentralized currency”. Currency control is not centralized in a central bank but through a distributed database. A distributed database is typically a blockchain, which can be thought of as a public database where information is shared across multiple computers or “nodes”. Using advanced technologies such as cryptography, transactions can be secured and verified.

The Right Path to Investing in Bitcoin

Bitcoin cryptocurrency is a digital currency that is decentralized and encoded with a certain cipher. The most attractive characteristic is its anonymity. When buying cryptocurrency, you can be sure that no one will know how much and in what volume you have purchased it. The next feature is the ease and speed of transactions. All you need to start working with cryptocurrencies is to create a wallet on any of the exchanges, pass authentication, and you’re done. No brokers, contracts, or limits.

Follow the next simple steps to invest in Bitcoin:

  1. Create an account.

As part of the check, you may be asked to provide a scanned copy of your passport or driver’s license. The platform will then ask you to upload a selfie to match with your driver’s license or a passport photo.

  1. Depositing currency.

To buy cryptocurrency on an exchange or from a broker, you must have fiat currency in your account. You can pay for it using a bank transfer or your debit/credit card.

  1. Choice of cryptocurrency.

Once your deposited money is available for use, you will be presented with hundreds, if not thousands, of cryptocurrencies to choose from.

  1. Choice of storage method.

Crypto exchanges are prone to hacking, and you can lose your money if you do not ensure the safety of your investment.

Tip for beginners: Whether you invest centrally or decentralized, you will almost certainly need to use a number of crypto exchanges as part of your investment strategy. Because of this, we recommend trying out several major platforms to see for yourself which one best suits your needs – considering security, asset selection, trading options, liquidity, reputation, and more.