Many people think that Bitcoin has something magical and special about it. That is why there is only a small group of people who buy a Bitcoin and trade it. That is why you can read more about the basics of investing in Bitcoin in this article. After reading this blog, most of the riddles have been solved for you. Perhaps you will then buy a Bitcoin and it is no longer so exciting. It is of course important that you know what you are doing.
What is Bitcoin?
A Bitcoin is a crypto coin. Many people confuse these two terms because it can sometimes cause confusion. The Bitcoin is the first digital currency to hit the market. So many people have started to use the brand name more as a generic name. However, Bitcoin is one of the types of crypto coins. In addition, other cryptocurrencies such as Ethereum, Litecoin or Ripple exist.
Where do you buy Bitcoin?
You buy Bitcoin directly on the digital currency market – or a platform on which you can trade. Find out in advance which platform works best for you by means of YouTube tutorials, for example. Once you have made the choice, you can get started right away. The platforms show in figures and graphs what the price of the Bitcoin does. This is all tracked in real time. You can also buy bitcoins through a broker. The advice is to start with this if you really have never traded with Bitcoins before. A broker can advise you on how to invest your investment. You do pay transaction costs to a broker, but you get them out quickly through a good bet and / or spread.
Why do you want to buy Bitcoin?
A Bitcoin is a solid value tool. Like precious metals, stocks, bonds and currencies, crypto coins are a good investment. Some people have become really rich. In fact, the brothers Tyler and Cameron Winklevoss are the first crypto billionaires by investing from the beginning. Moreover, you get more money from the profit of a crypto coin than from the interest on your savings account. As you probably already know, the interest rate is 0% at the moment. Bitcoin is more profitable in the longer term.
The rate of the Bitcoin
Now is still a great time to invest in Bitcoin. Although it has risen sharply since 2013, in 2020 it is still a good time. The Bitcoin price is expected to go towards $ 20,000. That could yield a nice profit!
How do you deal with a declining price?
The same principle applies to crypto as investments. It is a long term investment. Do you want to get rich quick? Then crypto is not the way for you. As on any stock exchange, prices rise or fall. So after a trough comes another peak. Wait patiently and do not let yourself be discouraged. You might regret that later.