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Unless you’ve been living in the jungle with no access to wifi, you’ve heard of Bitcoin.
It’s grown from a weird concept — digital money?! — to an investment opportunity that many investors have been taking advantage of.
It’s not going away anytime soon, either!
Bitcoin continues to make waves, with its value estimated to surpass $50,000 by 2024, according to Bloomberg.
Either you’re already investing in it, or you have no idea how it works…
… If you’re in the latter camp, this article is for you!
Bitcoin is a type of cryptocurrency, and is a giant in its own right: it’s the largest cryptocurrency by market capitalization.
So how can you invest in it?
What are its upsides, and what are its risks?
We’ll answer all that — and much more — in this bitcoin guide.
Ready?
Let’s get started!
What Is Bitcoin?
Bitcoin is a cryptocurrency — a digital asset that can be bought and sold like stocks and other investments.
Now, let’s address the elephant in the room: security.
But fear not.
Thanks to blockchain technology, the data is as secure as Fort Knox, making it immune to hackers.
It’s decentralized, meaning no central authority can control its value.
But, the price of Bitcoin can have large swings because its value increases and decreases based on market conditions.
Let’s take a closer look at some of Bitcoin’s advantages and disadvantages.
Advantages of Investing in Bitcoin
Bitcoin’s advantages include:
- Diversifies your investments
- The fastest way to move money between accounts
- Low transaction costs
- Accessible to everyone
- Highly secure
- Keeps your transactions private
Disadvantages of Investing in Bitcoin
With these advantages comes Bitcoin’s disadvantages, including:
- Regulations can change at any time
- Wild price swings
- Not widely accepted yet
- No buyer protection
- No physical form
How to Start Investing in Bitcoin
Step 1: Decide the Cryptocurrency Exchange
To get started, decide which cryptocurrency exchange you want to use.
As the name suggests, a cryptocurrency exchange is a platform for buying and selling Bitcoins with fiat currency like USD or other cryptocurrencies.
Popular crypto exchanges include:
- Binance
- Coinbase
- Gemini
- Kraken
- eToro
- OKX
Step 2: Create an Account
Next, create an account with the chosen cryptocurrency exchange.
Provide your information, like your name, email, and wallet ID — if you need a crash course on buying a cryptocurrency wallet, check out this guide — to create an account.
Make sure you secure it with a hard-to-crack password — and not your dog’s name!
Also, be ready to verify your details through 2FA, such as email or text message, to complete the registration process.
Step 3: Fund the Account & Buy Bitcoins
Once your account is ready, you can move money into it by doing a direct transfer from a bank account of your choice.
With the account funded, you’re set to buy however many Bitcoins you would like.
Step 5: Store the Bitcoins in Your Wallet
Finally, store the Bitcoins in a hot or cold digital wallet for safe keeping.
Then, as with any investment strategy, keep track of your investment to ensure it follows your investment strategy.
The Bottom Line: Investing in Bitcoin
Bitcoin can be an incredible investment opportunity — but it comes with its own risks.
Follow the steps in this guide to ensure that you are investing in Bitcoin the right way: with a solid investment strategy, robust security, a cryptocurrency wallet and more.
Above all, commit to following Bitcoin’s roller coaster ride in real time, because by doing so, you can not only protect your investment; you can learn the deep intricacies of the Bitcoin and cryptocurrency market and make even better investment decisions in the future.
