Category Archive Cryptocurrency

5 Basic Steps for Beginners to have a Bitcoin Investment Strategy

Almost everyone is contemplating the prospect of buying the Bitcoin especially after having witnessed its meteoric rise earlier this year. At the same time, there is always the underlying fear that the Bitcoin bubble may burst. However, if you are keen to dabble with the Bitcoin you need to know how to get started as a newcomer. Understanding the working of the crypto world will take time and research. With Elon Musk pushing $1.5 billion into the Bitcoin project and popular fintech companies like PayPal declaring their intent to start embracing Bitcoins for payment, things look positive for the Bitcoin rookie.

Steps for beginners to have Bitcoin investment strategy:

  1. Wallet: The first thing to do when you are planning on a Bitcoin investment strategy is to download a digital wallet to store your Bitcoins. This wallet will keep a tab on your transactions and keep the coins safe from hacks and thefts. While you can keep a part of your coins on the exchange, keeping larger amounts is not recommended because exchanges have been prone to cyber attacks and hacks. You will find different kinds of wallets to choose from, both offline and online ones. Coinbase is one of the leading software wallets while Trezor and Ledger are the popular hardware ones.
  2. Bank account: Your next job is to link your wallet with a bank account or a credit/debit card for seamless transfers. Transactions made using bank accounts typically take longer. But once users are able to connect their account to a Bitcoin wallet, buying and selling Bitcoins becomes smoother. Debit or credit cards will let you invest in Bitcoins right away; however, the only downside is that they can be used only for buying but not selling the coins.
  3. Exchange: To invest or trade Bitcoins you will need a platform or exchange. This is an online marketplace that allows you to trade your Bitcoins against other cryptos and fiat currencies like Euro or USD. All Bitcoin exchanges will not be identical; they will have different fee structures and features. You can choose one after evaluating factors like security features, fees, transaction charges, exchange rates, reputation, etc. Read the Bitcoin Prime anmeldelse to understand how to trade cryptocurrencies using Bitcoin Prime trading bot.
  4. Place orders: When you have registered on an exchange and linked your wallet to a bank account you are free to place orders to buy Bitcoins. While a Bitcoin value may run into thousands of dollars, it is possible to buy a unit or fraction of a Bitcoin called a Satoshi. Since prices are very volatile, even owning a Satoshi can fetch you decent returns.
  5. Manage investments: Once you have invested your hard-earned money into Bitcoins, you can either hold onto the coins hoping that prices will keep rising or you can use Bitcoins for online transactions. Day trading is an option where you buy and sell Bitcoins with other traders through an exchange.

These are the fundamental steps for a first time crypto investor when making a Bitcoin investment. Knowing these steps beforehand is advisable so that you do not have to experience technical problems or security issues.