Bitcoin is the first and most valuable of all cryptocurrencies, according to Nerdwallet. What started out as an experiment turned into a digital asset. Due to the extremely risky nature of cryptocurrency, people are skeptical to invest in bitcoin.
Even though it can be scary, it can pay off if you purchase bitcoin. Keep reading to learn everything you need to know about bitcoin for beginners.
What is Bitcoin?
Bitcoin is a type of digital currency that is not controlled by a government or financial institution. Owners can be anonymous because the system uses encryption keys instead of account numbers or names.
Crypto Wallet
Before you can start to buy bitcoin you need to set up a cryptocurrency wallet or a place you can store your currency. You can choose between an app wallet that connects to the internet or a “cold wallet” that requires multiple layers of security and has no internet connection.
You will need important documents to be able to set this account up. You will also have to link a payment method like ApplePay for purchases.
Choose An Exchange
The next step is finding an exchange to make your first bitcoin purchase. Do your research to find out what exchange fits your needs and what each has to offer. Here are a few cryptocurrencies exchanges that are reputable and offer Bitcoin:
- Kraken
- Coinbase
- Gemini
- Crypto.com
Buying Bitcoin For Beginners
There are three general ways that you can purchase cryptocurrency and submit an order. The quickest way is to make a “market order” which is buying a set amount of Bitcoin at the current market price. A “stop order” sets the price of Bitcoin at which you want it, but this can take more time to finish.
A “limit order” can take the longest of all types of orders. This is because there is an instruction to buy or sell Bitcoin at a specific price or better. Some exchanges are set up differently and can offer more variety in the scope of orders.
Monitor Your Investments
It can be tempting to watch every single day, but experts recommend not paying much attention to the fluctuations in price. Instead, focus on building your investment at steady paces and waiting for long-term results.
Make sure to make small investments starting. If you have a good deal of money waiting for you, you should learn how to securely access your money.
Start Your Cryptocurrency Journey
This guide to Bitcoin for beginners is just the start of your cryptocurrency journey. There are so many scams and different cryptocurrencies out there it can be scary to get into something new. If you do your due diligence and find a reputable company that offers robust security features, you will be more likely to see a returning profit.
Check out some of our other articles if you are interested in more tips on finance and technology.