If you’re thinking about investing in Bitcoin in 2019, you’re at the right place. The decision doesn’t have to be complicated. You just need to make sure you’re getting the right education before you start investing in the coin. This can be challenging given the fact that there are tons of educational material.
You will need to look for materials that have an in-depth review and analysis of Bitcoin. If you’re just starting out, here are some tips that will come in handy if you want to trade bitcoin.
Getting Started
Before you can begin trading in Bitcoin, you will first need to sign up with an exchange. It is through the exchange that you get to buy the Bitcoin with cash. An exchange can be described as a platform that facilitates the buying and selling of Bitcoin. There are so many exchanges to choose from, and it is important to do due diligence to make sure you’re dealing with a legitimate company. For larger withdrawals, you might be required to verify your account which is a normal process.
Wallet
You will need somewhere to store your Bitcoin. Bitcoin and other cryptocurrencies are stored in a wallet. Every wallet will have both a private and a public key. The public key is used to receive funds, while the private is used to send.
This all you need in order to get started but there is a lot more information that is required before you can start trading.
Researching Bitcoin
Once you’ve known where to get your Bitcoin, you will want to research the trading strategies and options. A good place to start is Bitcointalk. It is a place where investors discuss their strategies and the prevailing market conditions. You can always get fresh insights and perspectives on how to be successful at trading Bitcoin. You can also find information on other cryptocurrencies as well.
It is also recommended that you go through the whitepaper on Bitcoin to get an understanding of the underlying philosophy. You get to know about the total number of coins, those that are circulated, the mining process, and future speculations. You’re likely to make informed decisions once you understand the history of Bitcoin.
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Supply and Demand
Just like any other currency, the price is set by supply and demand. It is estimated that there are 21 million bitcoins in total, and 17 million of these coins are already in circulation. There was an increase in demand for Bitcoin in 2017 which saw the prices almost hitting the $20k mark. Experts estimate that there will be a shortage of bitcoin in the future which will lead to an increase in the demand. Snapchat’s founder predicts that the value of Bitcoin will be at $500,000 by the year 2030. Having such information is crucial if you’re to trade successfully.
Difficult to Get
Bitcoin is like gold. This means that you will require special technology and a lot of resources if you’re to mine whatever that is remaining. The easiest alternative would be to buy and start trading. You don’t necessarily have to buy one coin in order to start trading. Since Bitcoin has increasingly become difficult to get, its value will only go higher.
Getting Paid By Bitcoin
If you’re looking to start trading in Bitcoin, one of the easiest ways is to accept payments by coin. This will be a lot easier if you run an online business. You can use the coin to start trading, provided you’re using a reliable exchange. You should only think about mining when you have enough experience with the coin.
The mining process will involve one or several computers running concurrently with software installed that is meant to solve complex mathematical equations.
Trading Process
Trading cryptocurrency is a risky endeavor, and cryptocurrency is no exception. It is a volatile market, and you stand to lose everything. That is why experts will advise that you only invest what you’re willing to lose. Make sure you’re holding onto the coins until when you feel the conditions are right. The prices are known to fluctuate a lot.
To sum it up, you will need to do a lot more research before you can begin trading. Cryptocurrency should not be seen as a get-rich-quick scheme, as you could lose everything if you’re not careful. Working with the right exchange will minimize the risks of fraud and hacking. Start small and only invest big amounts once you’ve gained experience.
