A beginner’s guide to investing in bitcoin
Bitcoin has been gaining traction with each passing day. The cryptocurrency is also known as “digital gold” and is quite an eased-out way of transferring money all across the world. It has grabbed the interest of various investors and individuals involved in financial management; this has been possible owing to the enhanced growth rate with a 30% return on the investment. The easiest way to begin investing in bitcoin stocks is by buying the cryptocurrency. If you purchase a whole Bitcoin stock or even a fraction of it and do not do anything for it, it’ll either decrease or increase in value as soon as there is fluctuation in the market. This means that there is no requirement for you to spend on the bitcoin stocks as soon as you purchase the stock.
The best part of bitcoins is that it is quite an easy process and is as easy as transferring money. If you want to purchase bitcoins, the first and foremost requirement is a bitcoin wallet such as Luno or Copay. Most of the wallets used for bitcoins are perfectly fine for basic usage. Once registered, you can buy bitcoin using a bank transfer or a credit card. And finally, you can check for the fluctuations in the currency market.
How can one acquire bitcoins?
There are various ways of acquiring bitcoins. They are as follows:
- Earning bitcoins via competitive mining
- As payment for services or goods
- Buying bitcoins from a bitcoin exchange
- Exchanging bitcoins with anyone near you
How can one buy bitcoin stock?
Bitcoin stocks can be purchased in the following ways:
- Download a wallet: Download a wallet and connect it to your debit or credit card. You can download any of the bitcoin wallets on either your mobile or your desktop.
- Get yourself registered with a bitcoin exchange site: All around the world, bitcoins trade on several online exchanges. Therefore, in order to start purchasing and selling bitcoins, one needs to register with any one of the online exchange platforms. All different online exchange sites recognize similar trading prices.
- Select a buy-in amount: Once the exchange is selected, navigate to the “Buy” section and select the buy-in price.
- Browse a crypto marketplace: With bitcoins, you can either buy and wait or spend your bitcoins in a crypto marketplace.
What are the advantages of Bitcoins?
- Freedom of payment: Bitcoin keeps you in complete control of your money allowing you to receive and send money all across the world.
- Fewer risks for merchants: It is secure, safe, and irreversible. There are no chances of losses via fraud for merchants.
- Transparent and neutral: All the information concerning the money involved in bitcoin is readily available in real time for anyone to verify. No organization or individual can manipulate or control the protocol.
- Choose your own fees: No fee is asked to receive bitcoins and various bitcoin wallets allow you to control how much you can pay while spending. The higher the fee, the faster the transactions are confirmed. The same amount is required to send either 1 or 100,000 bitcoins.
- Security and control: The buyers of bitcoins are in complete control of the transactions.
What are the different bitcoin wallets that one can use?
Some of the popular bitcoin wallets are as follows:
- Bitcoin Core
What are the disadvantages of bitcoin?
Some of the disadvantages of bitcoins are as follows:
- The degree of acceptance: Each day, more and more people are accepting bitcoins as they wish to benefit from the same, but the risk involved is the same and requires to grow such that one can benefit from the effects of the network.
- Ongoing development: The bitcoin software is yet to have the features completely developed. New features, tools, and services are still being developed and are yet to be made more accessible and secure to the masses.
- Volatility: The complete bitcoin value is still quite small when compared to the businesses investing in bitcoins. Therefore, smaller trades, business activities, and events can be significantly affected by the price. Hence, as the technology and the vast bitcoin market matures, the volatility will begin to decrease.