Nowadays, all the cryptocurrencies have become one of the most profitable investments. The last couple of years, many people started going after bitcoins, selling and buying, usually in dollars.
What is a cryptocurrency?
Before we learn how to buy cryptocurrency and make profit, it is highly important to know exactly what we are talking about. Undoubtedly, people who understand cryptocoins have more success investing in it than the ones who do not know what they are doing on their investments.
Hence, we are here to help you understand cryptocurrency and clear all your doubts on the subject. First of all, you must be aware of all the possibilities within this digital coin along with the investment opportunities.
Cryptocoins have the power to unify two very familiar worlds into one: money and internet. Even though both worlds are very popular for most people, when combined it gets a bit more complex.
As a rising and upcoming technology, cryptocurrency arises as a form of money, just like dollars and euros. However, it doesn’t belong to any country, its value is established freely by individuals in the market. It is easy to trade bitcoins on the online world, fulfilling all the human form of payment needs : fast, cheap and secure.
E-mails made communication easier and cheaper, and cryptocoin is making the same with money. You can transfer money directly to its destiny, no need to have any intermediary controlling your movements.
This type of currency is its own payment system, the money owner is its own bank, able to make transactions regardless of geographic location. We can declare it an intangible currency.
In order to instigate your curiosity, cryptocurrency has an unknown place of birth, we only have suspicions and the only information we got is that the father of bitcoin goes by the alias of Satoshi Nakamoto.
How to buy cryptocurrencies?
Having in mind what it is, we are able to learn more about it, especially how to buy this famous cryptocurrency and profit from this very innovative, complex and yet very practical investment.
First of all, we must notice that this digital coin doesn’t have interests or any kind of guaranteed remuneration and profit. Bitcoin for example, is like any other currency, for example: dollars, euros and yuans.
People who make large amounts of money with Bitcoins take high risks, because it is a cryptocurrency which relies on supply and demand, as all of them. Therefore, all the profit that comes from it, in reality comes from its speculation.
In order to stop beating around the bush, we will let you know how to get started. In this matter, you have two viable options:
Peer-to-peer (p2p): buying cryptocoin directly from other people;
Brokers: buying cryptocoin from specialized brokers known as Exchanges.
Either way, it is important to be prepared to develop an investment strategy.
In order to know how to buy bitcoin, first of all, you must:
Choose your wallet: it is highly recommended that you have a secure wallet to keep your bitcoins. With a digital wallet, you are able to store, send and receive cryptocurrency.
Choose Exchange & Buy Bitcoin: the second step is decide how to buy your bitcoins. How about finding the best exchange platform to meet your needs and favored payment method, ensuring security.
Send bitcoin to your wallet: now, you need to transfer funds to your private wallet, online or offline.
Types of Wallet
In addition, you must know that there are 3 available types of wallet to store your cryptocurrency. It is important to choose the best one for you, or keep your bitcoin in many different wallets.
This type of wallet is mainly known as an online wallet. As long as you have internet connection, you are able to access a Hot Wallet from your phone or computer. We can define this as the most convenient wallet.
We can assure you that this is the most safe wallet to store your cryptocurrency. This is an offline wallet and it is not as risky as the Hot Wallet. In order to have a Cold Wallet, you only need to store an address (like a Bank Data) and private key on anything that is not connected to the internet. Usually, people use USB drives to do it.
Least but not last, the Cryptocurrency Exchange Wallet is one of your options to store your bitcoin. This type is a kind of Hot Wallet, but fit to have an institutional use. However, in this wallet, you do not have full control of your cryptocurrencies stored.
Other Relevant Information
At the same time that bitcoins become more and more famous, other technologies always find a way to go with the flow. What does it mean? It means nowadays Android Apps for Cryptocurrency are available.
If you are interested in buying and selling bitcoins, you must be aware and up to date about the price cryptocurrency fluctuations. However, there are many factors which can change bitcoin’s scenarios.
Even though bitcoin is an autonomous currency and free from government or banking institutions’ impositions, still there are several factors that might influence the appreciation of this digital currency. Such as:
Supply and demand
Market acceptance: when more popular, more accepted and expensive;
Increasing number of digital wallets: increasing demand.
Although bitcoin is a non-governmental currency, its value also differs depending on the performance and situation of the financial scenario.
In times of crisis, for example, with the appreciation and sharp devaluation of foreign currencies, bitcoins may also suffer some interference in their quotation, but safer than traditional currencies.
In conclusion, we believe it is important to be aware and fully understand what it is before you buy it and invest in it. Once you have the rightful knowledge, you will be able to choose the best investments opportunities and increase your profit possibilities.
Do not forget that everything is constantly changing and innovating. Nevertheless, knowledge still is the key to understanding the financial world. Therefore, do not hesitate to study and learn about your investments. This is the best way to never be left behind.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes