As recently as just a few years ago, the average American didn’t have any idea what cryptocurrency was. But in 2021, about 10% of Americans say that they now hold crypto investments.
A large percentage of these people have taken a liking to invest in Bitcoin. They’ve put at least a little bit of money into Bitcoin investments in the hopes that the value of Bitcoin will continue to go up as it has in recent months.
Are you interested in pulling the trigger on cryptocurrency and investing in Bitcoin? If you are, you should take the time to learn how to invest in Bitcoin first.
This will begin with finding out the answer to the question, “What is Bitcoin?”. It’ll also include finding out about other Bitcoin for beginners’ strategies.
Check out the ultimate guide to investing in Bitcoin below. It’ll put you on the right path as you invest in Bitcoin for the first time.
Start by figuring out what bitcoin is?
Before you begin investing in Bitcoin, it’ll be imperative that you figure out what Bitcoin actually is and get a good understanding of it. You obviously don’t want to sink a single cent into Bitcoin without having a better idea as to what it is and how it works.
We could literally spend the next 5,000 words breaking down Bitcoin for you to give you a comprehensive understanding of it. But generally speaking, Bitcoin is a type of digital currency that has been around for more than a decade now. It’s decentralized in that it’s not distributed by a central bank, and it’s designed to help people buy and sell things without the use of actual money.
Bitcoin relies on what is called cryptography and peer-to-peer software to make sure that any digital currency you invest in is unique to you and not accessible to others. A single Bitcoin is currently worth over $60,000, though the value of it changes on a regular basis.
Make sure you feel comfortable investing in bitcoin
Now you (hopefully!) have a slightly better idea as to what Bitcoin is, you might see why it would be worth investing in it. If you buy Bitcoin today and it goes up in value over the next year or so, you could end up making a pretty penny.
One thing that’s definitely worth noting, though, is that Bitcoin investments and all crypto investments for that matter can be very volatile. The value of cryptocurrency is always going up and down, and there is some skepticism as to how good of long-term investment crypto really is.
With this in mind, you’re going to have to do some soul-searching to see if you’re comfortable investing in Bitcoin. If you think you’re going to spend all your time worrying about where it’s at, it might not be worth investing in it. There are safer investment opportunities out there that could be a better fit for you and your personality.
Look around at the different bitcoin exchanges
If you wanted to buy Bitcoin several years ago, it was not easy to do it. There weren’t many Bitcoin exchanges that you could use to buy and sell it since Bitcoin was still a relatively new concept to most people.
But now that Bitcoin is in the public eye more and getting a reputation for being a good investment, there are Bitcoin exchanges popping up all over the place. You should do your homework on them to see which one might be the best option for you.
You’re likely going to be putting up a decent amount of money to invest in Bitcoin. So you shouldn’t trust just any Bitcoin exchange to lend a hand to you. Instead, you should look for one that is well-known within the cryptocurrency industry so that you know you’ll have a great experience with them.
Open up an account with a bitcoin exchange
After you’ve done your homework on the crypto exchanges that exist, you should choose the one that you like the most and begin the process of opening up an account with them. It’s actually way easier to do this than you might think.
To open an account with a Bitcoin exchange, all you’ll need to do is set the exchange up with some basic information about yourself. You may, of course, need to be prepared to pay taxes on any crypto investments that go your way, so you’ll have to provide an exchange with the necessary info for tax purposes.
Add funds to your bitcoin exchange account
Once you’ve established an account with your preferred Bitcoin exchange, the real fun will begin. You’ll get the chance to add funds to your account so that you can begin investing in Bitcoin.
More often than not, the easiest way to go about doing this will be by linking one of your bank accounts to your Bitcoin exchange account. You’ll be able to throw money from your bank account directly into your Bitcoin exchange account so that you can buy Bitcoin whenever you want.
There are also some Bitcoin exchanges that will let you take other approaches to fund an account with them. For example, you might be able to use PayPal to do it at some Bitcoin exchanges.
You should keep this in mind when you’re signing up for a Bitcoin exchange account in the first place. You’ll want to utilize one that’s going to make it possible to begin investing in Bitcoin as quickly as you can.
Pay close attention to the value of bitcoin
As we’ve alluded to a couple of times now, the value of Bitcoin is never the same from one moment to the next. It’s always changing, which is a big part of the reason why it’s so exciting to invest in it.
If you buy Bitcoin at the right time, you could end up making good money on your investment in a matter of just hours. So it’ll be important for you to get into the habit of paying close attention to the value of Bitcoin at all times.
It’ll be very easy for you to do this. There are tons of different cryptocurrency price trackers out there that you can use to keep tabs on where Bitcoin stands. You can get an exact price for Bitcoin at any moment with a few clicks of your mouse.
It might be worth spending a week or two paying attention to the value of Bitcoin to see how it fluctuates. It’ll give you a better sense of how Bitcoin operates and what you can expect if you make the decision to invest in it.
Choose the right time to invest in bitcoin
You wouldn’t want to buy stock in a company when it hit its highest price in a decade, right? Of course not. In most cases, that would result in you losing money in the short term and potentially the long term if you aren’t careful.
The same goes for Bitcoin. If you buy Bitcoin when its value is sky high, it might not prove to be the best investment for you.
So, when should you buy Bitcoin? Well, if we knew the answer to that question, we would all be relaxing in solid gold bathtubs right now. It’s impossible to predict when the value of Bitcoin is going to move up or down.
But you should be able to come up with an idea of when the right time to invest in Bitcoin would be by watching its value closely for a few weeks. You can strike while the iron is hot by jumping all over Bitcoin when its value goes down for a little while.
Turn your dollars into bitcoin
When you see the value of Bitcoin go down to a level that you feel comfortable with, that is when you should get on buying it. The Bitcoin exchange that you use should make it super simple for you to buy Bitcoin at a moment’s notice.
All that you’ll have to do is let your Bitcoin exchange know that you’re interested in buying Bitcoin ASAP. Your purchase order will go in, and as long as everything checks out, you’ll transform your dollars into Bitcoin in a short period of time.
Your Bitcoin will then be stored right in your Bitcoin exchange account. You can also set up a cryptocurrency wallet for yourself if you would like and use it to transfer Bitcoin out of your account so that you can use it to buy things.
Whatever the case, you will be the proud owner of Bitcoin at this point. You’ll be free to decide what you want to do with your Bitcoin next.
Decide what you’re going to do with your bitcoin
So, what are you going to do with Bitcoin once you get your hands on it? Are you going to:
- Let it sit in your Bitcoin exchange account and hopefully grow in value?
- Send it to a cryptocurrency wallet and spend it on something that you want to buy?
- Convert it back into cash?
The power will be in your hands once you have turned cash into Bitcoin. You’re welcome to do almost anything that you would like with it.
But if investing in Bitcoin is your goal, your best bet will probably be to just leave it alone. You can see how the value of your Bitcoin will change in the coming days, weeks, and months by monitoring it through your Bitcoin exchange.
If the value of Bitcoin ever slumps, you might be tempted to sell it off to cut your losses. But that could actually be the time when you’ll want to add more Bitcoin to your investment portfolio. It could put you in a position to make some serious cash if the value of Bitcoin goes back up again.
Take advantage of Bitcoin ATMs
You’ve likely used regular ATMs to deposit and withdraw cash for a long time now. But did you know that Bitcoin ATMs are on the rise and making life a lot easier for those interested in investing in Bitcoin?
If you want to take total control of your crypto finances, you should see if there is a Bit coin ATM anywhere in your general area. You can use this kind of ATM to convert either cash to crypto or crypto to cash. You can also use it to buy things like gold, gift cards, and more.
It would be well worth seeing whether or not you have any Bitcoin ATMs in your city. They’ll make you even more excited to start investing in Bitcoin and other types of cryptocurrency. They’re also all very secure and come with customer support that will blow you away.
Don’t be shy about taking advantage of Bitcoin ATMs. They could really open up the world of cryptocurrency to you.
Investing in Bitcoin Might Turn Out to Be a Really Smart Investment Idea
Financial experts will tell you that you shouldn’t invest all of your money into crypto investments. And they’re right. You don’t want to put all your money into investing in Bitcoin or any other cryptocurrencies.
But at this time, it wouldn’t be the worst idea to start investing in Bitcoin. Even though it has climbed to record highs over the last few months, it’s projected to climb even higher within the next year or two. It could result in your Bitcoin investment paying off in a major way in the not-too-distant future.
Discover more about buying and selling Bitcoin and other cryptocurrencies by browsing through our other personal finance articles.