Bitcoin has become widely popular and has played a pivotal role in bringing the cryptocurrency revolution to the mainstream. Despite this widespread popularity, most potential investors and traders don’t know how to start and make a profit from it. This guide introduces you to the simplest steps involved in the process and what you need to know before taking the leap.
How to Start – The Basics
The first step to bitcoin investing is to sign-up with a cryptocurrency exchange that supports Bitcoin. Next, you should get yourself a wallet for storing the coins. It is important to choose a safe and reliable exchange and wallet.
Investing in Bitcoins
There are different ways in which you can invest in this cryptocurrency.
Investing or Hodling
This is an excellent option for you if you want to generate big profits from the Bitcoin revolution. In this case, you should consider buying and storing large amounts of the coins for the long-term. Such investors are also referred to as ‘hodlers’. It offers lower risks and is considered as a great investment opportunity.
If you want to choose the most popular method to bitcoin investing, you should consider trading in the cryptocurrency. The rules are simple:
- Buy the coins whenever the value is low or when you expect it to increase
- Sell whenever the value has increased or you think it will fall from there
This doesn’t mean that it is a short-term investment. This form of investment can also be made with long-term goals.
Mining is another way how to start with generating profits from the Bitcoin revolution. Today, the concept has evolved and operates at a large scale. You can invest in mining groups or communities to benefit from the process. There are many cloud mining services that allow you to purchase contracts and get a share of the earnings.
Besides these investing options, you should also increase your relevant knowledge. Some of the terms and processes you should know about before starting bitcoin investing include hard fork, token, HODL, and STO to name a few.