If you wanted to invest in bitcoin then first of all you should know what actually bitcoin is. It is not known who invented the bitcoin but it is a type of cryptocurrency or we can say digital currency GBP British Pound Sterling to USD US Dollar Currency Rates Today 40 gbp to usd . This currency is based on tokens or coins and can be used to make international transactions.
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Now we will talk about the investment opportunities in bitcoin. Bitcoin is a legal currency in almost all parts of the world with a few exceptions. There might be a chance of frauds with the newbies so it would be better to first learn about the currency then make any investment at your own risk.
Well, here is a simple 5 step procedure to invest in bitcoin. But first, let me tell you what you need to invest in bitcoin. You need the information of your bank account, your personal identification number, and a secure internet connection.
1. Join Bitcoin Exchange
To purchase Bitcoin, you need to join a Bitcoin exchange. Most of the investors use these cryptocurrency exchanges that act like a stock brokerage. Remember that there is no official Bitcoin company because it is an open-source technology system. So, you have to join a Bitcoin exchange and the two most popular bitcoin exchanges are:
- Coinbase: It is the most popular and trustworthy bitcoin exchange. They also provide protection in any fraud transaction due to a security breach.
- Bitfinex: It is another popular and trustworthy exchange that is suitable for advanced lenders and traders. But the problem with this bitcoin exchange is that they don’t accept customers from the USA.
2. Get a Bitcoin Wallet
When you purchase coins, they get stored in wallets. These wallets store all of your cryptocurrencies whether it is Bitcoin or any other currency. There are two types of wallets. One is a hot wallet and the other is a cold wallet.
Hot wallets are operated by the cryptocurrency exchange or by the currency provider and they are less secure. If the provider of hot wallet is hacked then you are also at risk as the information of your coins might be leaked to hackers. The two most famous hot wallets are Electrum and Mycelium
A cold wallet is like a portable storage device that stores your coins and you can buy them separately from $60 to $100. These wallets are secure and two famous cold wallets are Trezor and Ledger Nano.
3. Connect Bank Account and Wallet
Now, it is time to connect your Bitcoin wallet to your bank account. When you connect your bank account with your bitcoin wallet, you will be able to purchase the coins or sell the coins. That means you are ready to make the transactions.
4. Place your Bitcoin Order
Now, when you have connected your wallet to your bank account, now you can place your bitcoin orders. Bitcoin is very costly and its current price is around 50,000 USD but you can buy a portion of the coin as well. Some bitcoin exchanges allow you to buy as low as 25$.
Make sure that you are well aware of the risk involved in the bitcoin. Most of the time its price goes higher but sometimes it could come down and you might lose your investment. So always calculate how much you want to invest and how much risk of loss you can afford.
5. Manage your Bitcoin Investment
Now you need to have a close eye on the market and you need to manage your bitcoins. You can use it to make online purchases. You can sell your bitcoins as well to other buyers to make some profit. Or you can hold your bitcoins for a long period of time in a hope of their value increase.