Bitcoin Investment: A Tutorial For Beginners

Have you ever wondered what is exactly the Bitcoin investment and what things you should know before deciding to invest any money? We’ll tell you now.

In only one year, we have seen many digital currency prices get higher by multiples, and Bitcoin is not the exception by being named as the most crowded trade until now. So how to invest some pounds in bitcoin? Have a closer look at our tutorial on bitcoin investment or the blockchain technology before making your decision.

What value does your bitcoin have?

Bitcoin is widely known as a digital currency, so whenever buying a camera at £250, which means a good way to transfer that amount of money to the seller. Theoretically, it won’t be a big problem if you intend to pay cash, cheque, or email your money via PayPal.
Bitcoin Investment: A Tutorial For Beginners
Bitcoin Ethereum Investment: A Tutorial For Beginners

You’ve got to balance different elements such as security, the cost of transactions and convenience. So when you’d like to use a credit card, please consider it because bitcoin payments won’t be reversible and provide no user protection.

However, if it’s about the bitcoin investment, then we all wonder whether it has an intrinsic value or not. As for us, they’re quite like the tulip bulbs.  The bitcoin’s average price could rise up because it’s truly appealing to the enthusiasts. However, there is a finite supply yet no intrinsic value - well, even your banknotes do not own any intrinsic value as well.

What does Bitcoin investment really mean here?

To correctly answer this inquiry, one of the initial things you must know is what do you truly mean when deciding to invest in bitcoin. Is it true that you love to purchase the digital currency with the hope that it can appreciate the value?

Bear in mind that bitcoin is both handy and scarce. Let’s take the gold as a common example for this! There’s a restricted amount of gold in this world and once every new gold gets mined, you’ve got even fewer ones left so the gold will become more expensive to find and mine at last. And this could make bitcoins valuable in this aspect.

The most popular form of Bitcoin investment is to purchase the currency with the hope that it will appreciate in value (also called as holding). And please do not take any serious advice about what’s going to happen with the currency. The best solution is to do homework and learn more of the Bitcoin before coming to a conclusion.

Here are the best tips on purchasing and holding the Bitcoins:

  1. Never make Bitcoin investment more than you’re willing to lose - And Bitcoin is such a risky investment that you should bear in mind the whole time.
  2. After purchasing Bitcoins, ensure to transfer them into your own personal wallet or blockchain (the most popular bitcoin wallet). Never leave them in the exchange, but we recommend you to avail a hardware wallet for bitcoin storage. If that’s impossible, try a paper wallet, instead.
  3. You need to purchase bitcoins just from any exchange that has proven its own reputation.
  4. Try to buy bitcoins via DCA (Dollar-Cost-Averaging) - it means that you don’t have to buy all of these bitcoins in a trade but only purchase a fixed amount each month, week or day for the whole year. Doing this way will help you to average the price during a year. 

Most potential problems with Bitcoin Investment

In reality, there are some of the most basic concerns about bitcoins that even the most potential investors need to be aware of. First of all, it can’t be backed by the government’s great faith or that of any entity. And this is why the bitcoin is in total contrast to our dollar, yuan, pound as well as other forms of currency used commonly in the world.

For this reason, there are several people seeing bitcoin as something so much alike to the Monopoly money since it’s not a fiat currency or not depending on anything of tangible value like the gold. In other words, its value is exactly what most folks tend to understand how it’s worth to be.

Meanwhile, in one sense, bitcoin can be authentic of any currency, the true value of this digital currency is just fickler than other forms due to its unregulated characteristic. Secondly, most bitcoins won’t be able to get traded on Wall Street. It’s because they can’t be purchased or sold via a brokerage.

And what you should do here is to set up a bitcoin wallet, which is seen as a bank account exclusively for all bitcoins. When the account is established, the holder can freely connect to a conventional banking account and then avail such funds in their local currency to purchase and sell bitcoins.

Final thoughts

It’s essential to consider which digital currency is a better investment, among Bitcoin, Ethereum, or Litecoin. And once choosing bitcoins, you need to learn how it works before deciding to invest in it.

Be careful about your investment because bitcoin is still a new concept and even taking months for beginners to completely perceive its true impact on the globe.