Wealth Opportunities

How to get Started with Bitcoin and Cryptocurrency

Bitcoin investing has suddenly become a lot more popular.

Bitcoin is in the news, and for all good reasons. In the last nine months the value has run up 400%. And Bitcoin has a history of large runups. Past runups go as far as 1000%, known as a 10 bagger in the investment world. It is in the news. Large investment firms like BlackRock now invest in Bitcoin. Soon you can buy it with Paypal.

Like most people you may wonder “how do I get into Bitcoin” or “what is Bitcoin” or “how to invest in cryptocurriencies”. Some people have anxiety about it, or feel it might be somehow illegal to own.

How to Buy Bitcoin

To start investing in Bitcoin and other cryptocurrencies you first need to sign up to an resource that will allow you to buy cryptocurrency. Recently, this is as simple as using Robinhood or PayPal. You can even buy Bitcoin with credit card. The traditional method is to use a Bitcoin exchange. An exchange is just an online platform that enables anyone to buy and sell Bitcoin as well as any other cryptocurrency that they have listed. Phemex will be a great sample of cryptocurrency margin and spot trading platform: here’s a phemex invitation code for you

Once you have bought your Bitcoin your exchange will keep it for you, or you can transfer it to a personal wallet.

Wallets

Bitcoin and other cryptocurrencies are stored using wallets, a wallet signifies that you own the cryptocurrency that was sent to the wallet. You select your preferred wallet between hot wallet vs cold wallet to your advantage. Every wallet has a public address and a private key. A wallet can be online, or it can be a device that you buy from a store like Amazon, or you can use a software wallet on your own PC. You need to be cautious with wallets because if you lose your wallet, you will lose your bitcoin investment.

How to research Bitcoin and other cryptocurrencies

One good place to start is Bitcointalk, this is a forum where cryptocurrency developers and investors can get together and discuss a particular cryptocurrency. If you want to find a specific thread about a cryptocurrency, just type the cryptocurrencies name and the abbreviation “ANN” (short for announcement) into the search bar.

How do I Choose Bitcoin or Etherium or Dogecoin?

There are quite a number of cryptocurrencies available. Each has its own investment profile and risks. A general rule is that all cryptocurrencies move together. For larger trends, Bitcoin and Etherium go up on the same days, and down on the same days. But when examined in detail there are significant differences that can make your investment worth a lot more or less over time.

Use ETFs and Trusts to Invest Safely

You can invest in Bitcoin without owning actual bitcoin. Some people choose this method for tax purposes, or for buying Bitcoin for an IRA. To do this, use a traditional investment broker. You can purchase an ETF that invests in Bitcoin like the Grayscale Bitcoin Trust (GBTC) or Grayscale Etherium Trust ETH. Or you can purchase companies that operate as miners like RIOT. Finally, there are hybrid bitcoin plays like Overstock (OSTK) whicn use to sell goods but became a big player in Bitcoin, PayPal (PYPL), and even NVDIA (NVDA) which makes chips that optimize bitcoin mining.

Final thoughts

Bitcoin is a rambunctious investment. Don’t invest more than your play money to start. Be ready for it to go up and down by as much as 40% mostly on weekends and holidays. But the steady flow is up, and you will find that a small investment will grow larger over time. Some people pay to ride roller coasters. This is one roller coaster that will pay to ride you.

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