Trading Cryptocurrecny: Is it Wise to Buy Bitcoin?

Trading Cryptocurrecny: Is it Wise to Buy Bitcoin?

Bitcoins have emerged as the world’s latest front-runner in the market of cryptocurrency, making some obvious headlines in last few years. Many people have heard of them and have their personal opinion. Some cannot understand the idea of how a currency with a value can be generated from nothing while other love the concept knowing that something without any governmental control can be used for trading as a valuable entity.

The best way to learn about this digital currency so far is to jump in and buy bitcoin so you get a feel for how it works. There has been a great variation of price value of this currency. For instance, in 2013, bitcoin’s value went from $20 per coin to $130 merely in six months which later settled to $100 per coin. Accordingly, guessing what happens next when you buy bitcoin is not an easy job though experts are hoping something really positive in its overall market.

Making Money from Bitcoin

You probably have a question that how you can make money from cryptocurrency like bitcoin. As expressed above, the market of bitcoins has seen many variations in its value in a very short time. Its future ultimately sits on two main variables i.e. the adoption of bitcoin as a genuine currency by a large number of audiences and the nonappearance of prohibitive government interference.

Interestingly, the community of bitcoin has been growing really rapidly while the interest in trading cryptocurrecny has dramatically spread through the internet. This goes even far as many new online services have started accepting bitcoin payment. These include blogging giants like WordPress, online shopping stores like Amazon, Microsoft, and several airlines services.

Even though bitcoins are designed to work independently or without any governmental control, chances are that this currency will inevitably be influenced by governmental invention in some way. There are many people who have made millions with digital currency. We can also see an increasing number of people who buy bitcoin to experiment with living for months and record their experience for making it public in the end.

Buying Bitcoins

There are many speculations about getting bitcoins. Some say it can be difficult while other believe buying bitcoins can be dangerous. The fact is that it is much simpler and safer to buy bitcoin than you might think. In many ways, getting bitcoins can turn out to be much easier than opening an account at a local bank. And seeing that what has been the banking system gone through, this is probably safer as well.

However, when you are planning to buy bitcoin, there are few important things to understand, such as obtaining and using an electronic wallet, sending and receiving money, and buying or exchanging bitcoins. Let’s check out here the things you will need to do to have some bitcoins in your ‘pocket’.

Get a Wallet

To get started, you will need to have a wallet which can be done by using one of the exchanges that host wallets for bitcoins. A wallet is a way to store your cryptocurrency while technically it refers to a software program to store such type of money. It can be run on different devices, such as laptop, mobile phones, or desktop computer. These wallets can be made to store digital currency on small devices such as thumb drives which is particularly useful to prevent hacking. If you think you will need more wallets, you may want to start with one using your own computer. In my opinion, it is wise to move your money and bitcoins off the exchanges or diversify across exchanges so you can keep your currency safe and protected.

Get Your First Bitcoins

After you get yourself a wallet to store bitcoins, it’s wise to test this money out. You can do this by visiting some online sites, such as faucet.bitcoin.st wherein you get the opportunity to get small amounts of coins in order to be used to its usage. Luckily, there are a plethora of websites and online services that allow you to pay in bitcoins to obtain a few bitcoins by doing several things, such as watching sponsored videos or filling out online surveys. By nature, these activities are harmless and let you make some extra bitcoins though it is important to remember that you get paid when people clicks these link on their websites.

Buy Bitcoin from Different Places

There are many types of place to buy bitcoin and each differs from others. Likewise, you can come across many online sellers offering you digital currencies against cash or credit card. There are several exchanges that allow you to purchase or sell bitcoins just like you trade in a stock market. Also, many local exchanges let you link up with different sellers looking to sell bitcoins. There are some ATMs where you can go to buy with cash and get your bitcoins delivered into your wallets within no minute.

Buying bitcoins hand-to-hand can be the real test of the currency which will be handy to understand if you can easily trade bitcoins back and forth. Fortunately, many smartphone apps (mobile based wallets) are capable of reading QR codes and allow you to send money to anyone you want. It is also possible to show others a QR code of your address to let people send you digital money.

No matter where you choose to buy bitcoin, make sure to do your homework and decide on a trusted seller who possesses good reputation and great customer service. As a first time buyer, you may have many questions in mind and the seller should be able to offer you additional support with your first transaction.

The Bottom Line

Whether you should buy bitcoin or not largely depends on how risk averse you think you can be. Its prices are always fluctuating and so you should wait for a good price to buy bitcoin. Take your time to research about different places to buy from before choosing the one depending on important factors such as prices, additional fees, customer service, and payment method. Buying bitcoins may not turn out to be a smooth investment option though there is a huge potential of this cryptocurrency which cannot be denied.

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