Are you thinking of investing in Bitcoins? With cryptocurrencies becoming more popular than ever in view of the ongoing pandemic situation, investors are showing an active interest in investing in Bitcoins. Bitcoins do not exist physically; they are created and stored electronically. Unlike traditional fiat currency that is issued and regulated by banks and governments, Bitcoins are unregulated and produced by miners through the mining process. Bitcoins first made their appearance a decade back as a digital, decentralized currency and is experiencing a surge due to invention automated trading bots. Visit https://coincierge.de/bitcoin-code/ for more information. Here are some easy preliminary steps to follow when you want a strategy for Bitcoin investments:
- Research on cryptocurrencies: To start with, if you are new to the world of Bitcoin investments it is absolutely essential to study in-depth about how the Bitcoin works and what the blockchain technology is all about. Since Bitcoin prices are largely impacted by market sentiments, you need to keep yourself updated with everything that is happening in the crypto world. Check the new Bitcoin Superstar app that has been recently launched in the market to trade bitcoin autonomously.
- Download a wallet: Your next job is to find a Bitcoin wallet; this digital wallet will store your Bitcoin virtually and help you monitor your transactions. You will find many different types of wallets out there, like hardware or cold storage wallets and software or hot storage wallets. Hardware wallets are more like traditional wallets, and therefore safer since they are offline; the more popular ones are Trezor and Ledger. No matter which wallet you choose, you will be assigned a private key comprising of a string of words that will offer you access to your wallet. This must be stored securely because in the event of this getting lost or misplaced; you cannot retrieve your funds.
- Connect wallet to bank account: When you have downloaded a Bitcoin wallet you will need to connect it to your bank account. This will allow you to buy Bitcoins easily; transactions are conducted using your bank accounts that typically take a few days for the first-time investor. You can even use your debit or credit cards to purchase Bitcoins instantly.
- Exchange: When your wallet has been successfully linked to a bank account, you can look for a reliable crypto exchange to start trading Bitcoins. Exchanges are online trading platforms where one can exchange Bitcoins for other crypto coins and fiat currencies. Exchanges will vary depending on their services, volume, liquidity, prices, reputation, security, etc. So, as a beginner, you need to undertake a proper research before you deciding on an exchange. The more popular exchanges where you can buy Bitcoins include Kraken, Coinbase, Poloniex, etc.
- Order: Finally, you can place your order of Bitcoins whether you wish to buy or sell the asset. While Bitcoin values can run into thousands of dollars, it is possible to buy fractions of the coin. The smallest Bitcoin unit is a “satoshi” and you can buy a small fraction or satoshi when prices are sky-high. However, as a newcomer it is important to understand that you must never buy more than you can afford to lose. While investing you should exercise a lot of caution and preferably take advice from a financial professional.