How To Invest In Bitcoin In Four Simple Steps?
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Indeed, investing in cryptocurrencies is not a game of kids, and you would have to work really hard in order to make money from it. While it's your work and dedication that is going to show results, we can only guide you with its path. If you are also new to crypto and wondering how to invest in Bitcoins, then you've come to the right place. In this article, we are going to provide you with a guide about the best ways to invest in Bitcoin. Before you follow these steps to make an investment in Bitcoins, you are recommended to do thorough research on the topic and learn everything possible about it. There's no way you are going to succeed with the investment if you don't have enough knowledge for the same. So, your first step, whether you are planning on trading or investing in Bitcoin, should be to do thorough research. And then once you reach the point where you think you know enough about crypto and ready to step into it, you can start making investments.
Four Steps Of How To Invest In Bitcoin
Open An Account in a Crypto Exchange
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If you want to invest in Bitcoin, the first step of it would be to purchase bitcoin. And to do that you would need to open an account in a cryptocurrency exchange which is no less struggle in itself. When you are selecting an exchange to buy, sell or trade cryptocurrency, you have to give attention to various factors. Let's know more about Crypto Exchanges:
In simple words, Bitcoin Exchanges are nothing else but the marketplace from where you can purchase cryptocurrency. Although there are other ways of buying cryptocurrencies, it is the easiest and the best one. Just like banks, crypto exchanges also differ in terms of services offered, feature, security, reliability, charges, and the overall reputation. So, if you are planning on investing in Bitcoins, you need to find a crypto exchange that best suits your needs. Give attention to every little detail such as the processing fees, exchange rates, security measure, services offered, features, functionality etc. You can take help of our crypto guides to find the top altcoin and bitcoin exchanges available in your area. Some of the top crypto exchanges are Binance, Coinbase, Bitterex, Bitfinex, Kucoin, Kraken etc. Do your research and open an account immediately to get started with Bitcoin investment.
Decide where to store your coins
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Now that you've decided, from where you would buy the Bitcoin, you need to find a wallet to store them. If you aren't aware already, Crypto wallets are a medium ability to store and manage the private keys that can also be used to track, send and receive your Bitcoins securely. Now the problem comes when you have to find an ideal wallet that best fits your needs. Although, when you'll search on the internet for the top or most-popular or reliable wallets, you'll get plenty of options, you need to give attention to all the factors to find the best among them. Choosing a wallet without proper research can make you lose all your Bitcoins. With the rise in Bitcoin prices, the number of scams is also increasing, which is why you need to be extra aware.
You might think that if the wallet is listed on Google Play store or on the first page of the search engine, then it is legitimate, but is a wrong way of looking at it. Instead of just looking at the reviews and ranks of the wallets, give attention to its functionality and features.
We are listing down some of the top crypto wallets in terms of integrated features, backup and security features, platform compatibility, cryptocurrencies available below. Once you decide to go on with a particular wallet, don't forget to research thoroughly about it.
If you have Bitcoin holding in large amounts, it is recommended that you use Hardware wallets to secure them. Hardware wallets are more secure as well as have loads of features in comparison of software wallets. Ledger Nano X and Ledger Nano S are two best hardware wallets in the market presently. However, the only drawback of these types of wallets are that they are pretty expensive. So, if you don't want to invest too much in wallets or if you are just a beginner with a small number of bitcoin holdings, you can use software wallets.
Software wallets are of two types, one that is designed for desktop and another that is designed for mobile devices. There are some of the wallets that are available for both desktop and mobile devices, for example, atomic wallet. Atomic wallet is a multi-platform Bitcoin wallet that supports over 300 cryptocurrencies. It is a custody free wallet with build-in exchange services available for specific cryptos including XRP, BTC, LTC and ETH. Exodus wallet is one of the top crypto wallets designed for desktop. It is the world's first Bitcoin wallet that not only supports multiple cryptocurrencies but is free to use. Find the best crypto wallet by reading our Reviews On Top 5 Cryptocurrency Wallets With Pros And Cons on our website.
How much do you want to Invest?
Now that you have an account in crypto exchange as well as a wallet to store your Bitcoins, it's time you decide how much you exactly want to invest. If you are a beginner and at the learning phase, it is recommended that you start with investing a small amount. Starting making a small amount of investment would make you learn the basics of cryptocurrency. However, as you learn more about the same and feel comfortable with investing more, you can keep increasing your investment with time.
There's no minimum amount limit to investing; you can start with investing as low as $2 although we don't recommend you to spend this low because of the exchange charges which will eventually kill any chances of profit.
It depends on you how much you can invest or want to spend. Starters can invest anywhere between 5% to 20% of their investment capital, and those who are already in the field can go above 20% till 50%. Do not invest more than 50% of your investment capital as there are high risks of losing it all. One of the important things that you need to keep in your mind is not to invest more than you could afford to lose.
Build a strategy to manage your investment
The final step is to build a proper plan for how you want to make profits with Bitcoin. You can make money from Bitcoin by day trading or can store it as a long term investment. Whatever method you choose, make sure you know enough about it and stay safe from frauds and losses. Don't forget to check out the Key Factors To Consider Before Investing In Cryptocurrencies.