You are new person to learn about Bitcoin? You hear a lot of people say that investing in bitcoin is very profitable.
Let fptwaze.com learn what Bitcoin investment is and How to invest bitcoin?
- 1 What is Bitcoin investment?
- 2 Is Bitcoin investment safe?
- 3 Should 2021 still invest in bitcoin?
- 4 How much money do investing in Bitcoin play?
- 5 Instructions on how to invest in Bitcoin for new investors
- 6 Tips for investing in Bitcoin
- 7 Conclusion
What is Bitcoin investment?
It’s like investing in gold, or real estate. You buy gold or land hoping the price will rise over the next few years to make a profitable sale.
So is Bitcoin!
Investing Bitcoin is using your money to put your money in Bitcoin with the expectation that the price of Bitcoin will rise in the future to sell at a price higher than the purchased price. It is also easy to understand, right!
Is Bitcoin investment safe?
When mentioning the word “Investment”, you are also a bit afraid because being afraid of “losing money”, right?
I also make it clear that Investing in bitcoin is a risky investment, not safe.
Because the technology that creates Bitcoin is also very new. And Bitcoin itself is also developing day by day to become more complete. No one knows in advance that tomorrow what Bitcoin will be like. Or will there be any currencies to replace Bitcoin?
So when you invest, you should only use money that when losing will not affect your life.
Risks when Investing in Bitcoin
Maybe you have heard that “No risk, no rewards” before, right?
If anyone has not heard it, you can roughly understand that there is no risk, there is no reward. The greater the reward, the higher the risk. Investing or playing bitcoin can bring you huge profits. However, if the profit is high, the risk is also extremely high.
Here fptwaze.com will show you with some risks that you need to know before investing:
- Price fluctuations: Bitcoin has a large amplitude of price fluctuations. In a day it can fluctuate by a few percent, but at times it can reach 20-30%.
- Security: Although Bitcoin has never been hacked and it is also difficult to hack but in the future we do not know.
- User: This error is caused by user carelessness. It could be forgetting or leaving the secret keys to access the wallet, transferring the wrong address, …
- Exchanges: Many people buy Bitcoin through exchanges and put it on the exchange. Some exchanges may crash and you will lose all your money.
Should 2021 still invest in bitcoin?
We have just passed the first few months of 2021. Bitcoin price has consistently broken high and currently stops at almost 45,000 USD.
The reason is that the Bitcoin Halving event in 2020, the Bitcoin mining reward reduced a half. According to historical data, after this event, the price of Bitcoin increased dramatically.
Not only that, Bitcoin is increasingly accepted. Just a few months ago, there were many big companies joining the market such as MicroStrategy, Square, Paypal, …
MicroStrategy was also known for buying more than 70,000 BTC worth more than $ 1.8 billion in December 2020.
This trend is likely to continue into 2021.
With the the macroeconomic situation such as: governments constantly launching stimulus packages, too much money printing, low interest rates close to zero, Bitcoin is seen as a safe haven with investors.
Since Bitcoin is not issued by a central bank, it is not regulated by any government organization. So even with strong fluctuations in the economy, Bitcoin’s value is not affected much.
Many investors also predict the price of Bitcoin can be up to 50,000 USD, 100,000 USD or even 200,000 USD. However, Bitcoin is a venture capital channel, many people get rich thanks to Bitcoin, some also lose a lot. So if you intend to invest in Bitcoin, you should learn carefully and make a decision!
How much money do investing in Bitcoin play?
I think that when I first heard about 1 Bitcoin, it was about 45,000 USD at the time of writing. Surely you also invest in Bitcoin will need at least a few tens of millions to a few hundred million.
However, you only need $100 to be able to buy 0.01 BTC. So with $100 , you can also play bitcoin already.
Although this amount is not much, but new to join, I recommend trying only $100 to get used to it first.
Instructions on how to invest in Bitcoin for new investors
Learn about Bitcoin
If you don’t know, billionaire Warren Buffett won’t invest in something he doesn’t understand. So you should also understand exactly what Bitcoin is before investing, right?
If you already understand, skip this step. Here is a detailed article for you to find out in detail.
Create a Bitcoin wallet
A Bitcoin wallet is where you can store it as well as you can use it to transfer and receive. So understanding and choosing a wallet is essential.
What is a Bitcoin Wallet? Top 9 most prestigious, safe and best wallets
Buy bitcoin and how to buy it
If you want to invest in Bitcoin, you must buy bitcoin, right. If you are still running, see where to buy bitcoin right now!
When investing in Bitcoin, to optimize the portfolio diversification or increase the number of Bitcoin, you must transact on large exchanges to buy and sell Bitcoin, Altcoin.
Some famous exchanges such as:
fptwaze.com encourages you to choose Binance exchange . Because it is the largest exchange in the world right now and the ecosystem is rich with many services to choose from.
Tips for investing in Bitcoin
New investors should trade in small quantities
Bitcoin transactions are unlike any other form of online payment transaction. For example, when you transfer money online via internet banking.
If you send the wrong account number to someone else, you only need to ask the bank to cancel the transaction. But with Bitcoin, it is not so, you mistakenly send it to someone else’s Bitcoin wallet address, it is considered lost can not be recovered. So when you first start investing in Bitcoin you should trade a small amount as getting acquainted first. When mastering and grasping the process of all transactions, we can trade in large quantities. Moreover, investment always comes with risks. So you should not use in large quantities to avoid affecting daily life
Always keep your account & wallet safe
Some of my experiences for you to be safe:
- Avoid websites that fake the exchange you trade. Before trading, please check the website address.
- Do not give account information, private keys to strangers
- Do not access links that you do not know what it is
- Don’t believe the winnings, giveaway asks you to send them Bitcoin and then they send it back.
- Store keys or recovery characters offline to avoid hacking.
Do not store Bitcoin for too long on the exchange
In addition to how to store Bitcoin via Bitcoin wallets, quite a few people choose to store it directly on a online exchange.
Normally, each exchange will allow us to create a separate Bitcoin wallet address to store directly on the exchange, each coin they will provide 1 wallet for that coin. This method is only suitable during the time you trade coin or surf on that exchange only and for long-term investment, you should use the wallet that I mentioned above.
Because virtual currency exchanges, whether big or small, are almost always “stalking” by hackers to steal customers’ coins or when the exchange crashes, you will lose all the Bitcoin you store on it. The most recent example of a hacker is Japan’s MtGox exchange, where hackers stole more than 750,000 BTC, or about $ 1.5 billion at Bitcoin’s current exchange rate in 2014. Or just last month, Bitcoin exchange Btc-e.com, a large, reputable and long-lived exchange, was caught up in a money laundering case that resulted in the exchange’s owner being arrested by the FBI, leading to a shutdown.
So far, many Bitcoin investors still do not know where their Bitcoin will go.
Regularly updated Bitcoin news
News is an extremely important factor in the cryptocurrency market. It directly affects the price of any virtual currency and Bitcoin is no exception. Therefore, you should regularly follow and update Bitcoin related news to understand the market situation and make a decision to take profit at the right time.
Investing in Bitcoin in particular and the cryptocurrency market in general is opening up opportunities to make money for anyone who knows how to catch the opportunity. Bitcoin or Altcoin are both profitable investment trends in the future instead of Gold or USD.
Currently, this market in Vietnam, although it has been through many waves and waves as well as a lot of knowledgeable people. However, the Virtual Money Blog still has to note once again, invest in Bitcoin wisely and strategically, do not apply “gambling blood” to this market or you will have to regret it.
Of course, as I said, Investing or playing Bitcoin is always risky. You should consider carefully before entering the virtual money market and invest with an amount “within your reach” that can not affect your family’s finances.
Or any questions about investing Bitcoin, Altcoin, leave a comment below, I will try to answer you as soon as possible.