Introduction – Bitcoin
Bitcoin is a kind of virtual money. It is also described as a digital currency, a virtual currency, and a cryptocurrency and is a digital version of cash. Bitcoin is not paper money like euros, yen, or dollars controlled by monetary authorities or central banks. It is an example of crypto produced by businesses and people glocally using superior computer software and programs that solve mathematical issues.
How to Buy Bitcoin?
Investing in Bitcoin may look complex, but it’s simpler than you think. Buying bitcoin is becoming simple, and the authenticity of the wallets and exchanges is increasing too. There are a few things that every new Bitcoin investor requires. It includes a crypto exchange account, a secure Internet connection, a payment method, and personal identification documents. Below is a step-by-step guide on how to buy Bitcoins:
Step 1: Select an Exchange
Once you sign up for the crypto exchange, you can hold, buy, and sell cryptos. You should sign up for an exchange that lets its users withdraw their cryptocurrency to their wallets. A vital thing that you should consider while making a crypto exchange account is using safe internet practices. Ensure to use a long and unique password and 2-factor authentication. If you are choosing a Bitcoin robot then you should check its legitimacy and choose an authentic platform like Bitcoin Future. You should check out experts’ reviews for the same.
Step 2: Connect the Exchange to A Simple Payment Option
After you select an exchange, you then need to collect your documents. They may include a copy of your driving license, your social security number, and your source of funds information based on the exchange. The required information may vary based on the area you live in as well as its laws.
Once the exchange verifies your legitimacy and identity, you can now connect your payment option. You can either connect your bank accounts or connect a credit or debit card.
Step 3: Place Your Order
After you complete the above steps, you are ready to buy Bitcoin. Exchanges have grown a lot when it comes to their features and liquidity. Getting your account on a crypto exchange is all you require for buying Bitcoins. However, you need to consider some other vital steps to stay secure and safe.
Step 4: Safe Storage
Bitcoin wallets are where you can store your digital assets securely. Having crypto in your wallets, outside the exchanges, guarantees that only you can get control of the private keys to your funds. It also helps avoid the risks of an exchange getting hacked, resulting in loss of funds.
Other Options to Buy Bitcoins
Though exchanges are the most famous ways to buy Bitcoins, it isn’t the only way. Below are the other methods that you can use to buy bitcoins.
Peer-to-peer exchange services, unlike decentralized exchanges, offer direct connections between the users. Once you create an account on one such exchange, you can post your request to buy/sell Bitcoins, including payment methods information and price. You can also surf through the listings of sell and buy offers, selecting trade partners you want to transact with. While a P2P exchange does not offer anonymity like a decentralized exchange, it lets users look for the best possible deals.
These ATMs work like in-person exchanges. People can insert money into the machine and utilize it to buy Bitcoins that are transferred to secure digital wallets. In recent years, Bitcoin ATMs have gained immense popularity.
Why is Bitcoin popular?
Bitcoin has been gaining immense popularity because businesses have started accepting bitcoins as payments in their business. It has made trading a lot simpler. Let’s have a look at the various reasons that makes Bitcoin so popular:
Limited Supply: Bitcoin’s limited quantity in circulation is a reason behind the craze it is presently witnessing. Though it is well-known for its fluctuations, Bitcoin’s value rose slowly in 2020 and even observed lesser volatility.
Simple And Cheap Transactions: This digital currency does not depend on any bank or central authority because there is no intermediary. Without the involvement of intermediaries, there is no transaction fee as compared to the traditional currencies. Transferring funds using bitcoin is a simple affair, and it takes a few minutes only to finish the transaction, and a minimal fee is involved. Moreover, Bitcoins can be accessed globally, and very few laws and restrictions are there while completing transactions.
Lesser Risks of Frauds: Most traders are attracted to bitcoin since it is digital. There are no risks of fraud because Bitcoin does not have a physical appearance, and financial institutions or central authorities do not control it.
Highly Volatile Market: Bitcoin, or say cryptocurrency market is a highly volatile market, and it works as per demand and supply. In a volatile market, you can lose your bitcoins. But with the knowledge of bitcoin trading and investing, traders can make huge gains. Despite a highly volatile market, Bitcoins have a great impact on various businesses and are expected to quickly become the best cryptocurrency.
Current trading price of Bitcoin and Future Prediction
The digital currency of Bitcoin that was earlier viewed as a mystery by people has now grown and exploded both in popularity and value. It has become mainstream now because many giant financial institutions are providing crypto services. Thus, increasingly more investors are now interested in buying Bitcoin. In March 2021, Bitcoin reached a record high of $61,701 and is closer to $100K. The latest developments around this flagship crypto globally are a piece of evidence to the reality that it is going closer to become a mainstream asset.
Should you invest in Bitcoin?
Known as a crypto market disruption liberation by its fans and demonized as volatile and dangerous creation by critics, Bitcoin is not out of the news ever. Since December 2020, Bitcoin has witnessed a dramatic series of ups and downs. For the very first time, Bitcoin hit its all-time high of $20,000 on December 16.2020. In January 2021, it soared above $39000 and made a record high of nearly $48,000 at the beginning of February 2021. On February 21, 2021, Bitcoin made a new high of $58354 and then fallen dramatically to a low of $44845 two days later. This flagship crypto then made a new record high of $61,701 on March 13, 2021. As of writing, the value of Bitcoin was $57,777.
Thus, we can say that Bitcoin is a high-risk investment. Its price is highly volatile. Like with any other investment, you should do your diligence and never pin your hope on just one crypto. Spread your money to spread your risk. Always ensure to invest what you can lose.
Considering all the above facts, we can conclude that investing in Bitcoin is highly risky. But with the right due diligence and the right timing, you can still make a lot by investing in Bitcoin. You should invest less than 20 percent of your overall portfolio in Bitcoin. Still, people can invest money in cryptocurrency or Bitcoin based on their risk appetite.