Since the ledger’s mysterious inception in 2009 by the enigmatic ‘Satoshi Nakamoto,’ Bitcoin has taken the world by storm. Millions of people have invested in the crypto coin through dozens of the most popular exchanges worldwide, hoping to make a pretty penny through the hype.
Despite this widespread fame, Bitcoin is still a relatively novel market. Due to this, many complete beginners often struggle to know where to get started with bitcoin, especially when looking from the outside in and reading news about unregulated markets and volatility.
Where do I start?
From the various exchanges and their benefits to the bitcoins bots which automate the process and make it much easier to turn a profit, crypto can get rather complex. Complexity, however, breeds the profits that make the market so lucrative. This is exactly why
Step 1: The Exchange
Bitcoin and cryptocurrency are, after all, financial investments. To give these investments value, they must exist in some sort of market where people can buy and sell them. Hence, the exchange.
The first step to trading bitcoin is to choose a crypto exchange. These are usually set up in one of two ways: fiat to crypto or crypto to crypto. This changes whether or not you’ll be able to buy your bitcoin with other cryptocurrencies or with bank-issued fiat currency like the dollar or euro.
If you are a complete beginner to trading crypto, it is often a better bet to go for the fiat-to-crypto exchange. Although there are some ubiquitous options like Binance or Coinbase, always do your due diligence to weed out any unfavourable transaction fees or cybersecurity concerns.
Step 2: Bitcoin Wallet
After doing your research on your exchange of choice, it’s time for one last decision: the wallet. Your bitcoin needs a public address to be properly stored along with a private key to be sent to others. This information is stored in a bitcoin wallet, varying in form from physical to digital.
Mobile, web and desktop versions of storing bitcoin are highly convenient but often thought of as the less safe choice. These are often connected to the internet and either stored on a hard drive or a server database. On a physical level, bitcoin wallets can be hardware USB sticks or actual pieces of paper with the data printed on; the highest security for the most inconvenience.
Step 3: Purchase and monitor
Now that you have your exchange chosen and your wallet method decided on, you can go ahead and purchase as much bitcoin as you’d like. At this point, just don’t forget to watch it.
Crypto can either be monitored traditionally by watching the market or, especially in times of high volatility, left to a bitcoin bot. Crypto bots essentially take the role of hyper-intelligent and statistically perfect trader to make the right decisions for when to buy and sell your bitcoin. This is essentially like having a trading partner that functions off of machine learning.
Bitcoin bots are often the only way to make a true profit during truly uneasy market conditions. Some new users even make profits of $3000 by using the service. Despite this, the bot industry is unregulated and you can really be swindled if you don’t visit reputable sites which vet the competition to ensure you get the best possible bot before they become too mainstream.
The market and YOU
Expect losses and profits. Investment is always a calculated risk to try and increase the capital you already have, so there’s no point in investing more than you can afford to lose. As bitcoin regulation amps up, the uncertainty allows smarter investors to really make worthwhile choices.