What is Bitcoin?
Bitcoin (; code: BTC) is a decentralized digital currency and peer-to-peer electronic payment system without a central bank or single administrator. Some of its main characteristics include:
First cryptocurrency: Bitcoin was the very first cryptocurrency and has smoothed the way for many others.
Digital currency: It allows safe and anonymous transactions among users.
Payment system: It is used in many cases to purchase products and services like any other currency.
How to Invest in Bitcoin 2024?
If you are interested in investing in Bitcoin, do the following:
Learn how cryptocurrencies and the Bitcoin market work. There are ample resources available that include videos and articles.
Choosing a platform: Choose one where you can exchange your money for Bitcoin. Among the most popular ones are Coinbase, Binance, and Kraken.
Account Creation: Open your account in the platform of your choice and verify your identity, which is quite a standard procedure for most of them.
Funding: You will finance it through a bank transfer or by credit card.
Buying Bitcoin: Log in and purchase Bitcoin after funding your account. You can buy full amounts or fractions of Bitcoin.
Safe Storage: Store your Bitcoins with a wallet. There are digital and hardware wallets available for storing your cryptocurrency.
Stay Informed: Keep up-to-date with news and trends in the cryptocurrency market to make informed investment decisions.
How to invest in bitcoin?
Currently, Bitcoin is an overwhelming leader in the market and is very far from being matched, let alone surpassed. Hence, investment in this crypto is pretty high. Nevertheless, it is very volatile, like almost all of the cryptocurrencies that are listed on the market, although due to the very high value, it is among the least volatile on the market.
This cryptocurrency avails trade in goods and services, among others, in its style. Although one of the main distinctions of this is the fact that it makes purchase and sale without financial intermediaries instantly possible across the globe.
There are several ways to invest in BTC, the most popular one being an exchange of this cryptocurrency or trading with bitcoin. Due to its low correlation with other assets and its high volatility, one of the most popular instruments to invest in this cryptocurrency is a CFD investment. But before you do, consider the following steps to invest in Bitcoin:
Various types of instruments must be used for controlling the risk of investing in Bitcoin. Among others, it is highly recommended to implement a Stop-Loss. Never stop being informed about news relevant to not just Bitcoin but the world of cryptocurrencies, too. Since Bitcoin acts as the base currency for this market, any change will always affect it directly.
One needs to be observant to the graph of Bitcoin at all times in order to know the movements that it does throughout the days. In that way, you can compare it with the news and predict behavior patterns for better profits.
It is always advisable to have a short-term approach when investing in Bitcoins. This is so because cryptocurrency trends are known to change within a snap, and their peak values are only realized after the cryptocurrency begins to go down.