Over the last few years, Bitcoin has become one of the most talked-about investments.
Many people have become wealthy as a result of it.
There are some people that have made an uneducated purchase on these investments and in this article we are going to discuss how to get started with crypto currencies and hopefully not lose money.
Also keep in mind that this article is made for entertainment purposes only and that I am not a financial adviser. When making an investment always seek out people who are licensed and trained to provide investing advice.
I want to give an introductory guide of how Bitcoin works so you are better informed before choosing whether or not it is the investment for you.
Bitcoin is the biggest form of Cryptocurrency and it’s also very popular. It has been accepted more than any other type of crypto currency in history, which makes bitcoin one of the most acclaimed digital currency units in use around the globe.
You may have heard that money is backed by gold, silver or another material with intrinsic value. But not all kinds of currencies are so lucky. The economy’s stability and national political affiliation play a role in the value of cash reserves. This is why the rise of crypto currencies has taken off, it’s currency without government or big bank interference.
Today’s printed money isn’t really backed by anything and there is no stopping a country from printing more. What happens is that the more money made available the lower the value of that currency.
With crypto it takes time to mine, what we call a digital coin. The value goes up based on demand and the amount of digital coins available to trade. So as with traditional currency supply and demand also play a part in assessing the value of the currency.
The fact that we’ve all agreed and accepted money as a means of payment is the only thing that makes it worth something. Now. The problem with money is that it is centralized to begin with and with crypto we have moved away from a centralized currency.
The government and the central bank are in charge of it.
This implies you’re completely at the mercy of their decisions when it comes to the dollar or any other currency.
The beauty of a cryptocurrency like Bitcoin is that it overcomes all of these issues because it is decentralized rather than centralized.
You don’t have to rely on a single central bank’s ledger, which none of us can access, to keep track of everyone’s money.
Okay, I’d like to quickly go over the process of investing in Bitcoin, and then we’ll address the most crucial question: is Bitcoin a good investment? To buy Bitcoin, you only need to follow three simple steps.
The first is you need a wallet just like with cash, you need to put it in your electronic wallet.
There are two types of wallets for Bitcoin: one is a software wallet which can be run on your computer or mobile device, and the other type is a hardware wallet.
A software wallet is evidently better and easier to use/operate with just small amounts of Bitcoin. The hardware wallets these devices connect to your computer meaning that they’re considered the strongest means for storing cryptocurrency.
So, after you have gotten the wallet then buy some Bitcoin through an exchange for example Gemini or Coinbase.
You can easily buy bitcoin from an exchange and then send it to your wallet. But keep in mind that the value fluctuates with time, so invest wisely!
Do you need to decide on whether Bitcoin is actually a good opportunity?
You need to do your research and only invest what you are prepared to lose. At this stage buying Bitcoin is sort of like gambling.
With time, more and more people learn about it and more people might be using it, but there is no guarantee that it will continue to do well in the long run.
After considering the potential rewards for Bitcoin, it’s not a surprise that people are so enthusiastic.
In conclusion, while some people say that Bitcoin is a scam, others say that it is the future of money and while some investors may not want to get involved with the potential volatility of the price, the potential reward for investment in Bitcoin could be huge.
Therefore, I would say invest in Bitcoin with caution.
