5 Essential Investing Tips for Bitcoin

Bitcoin is one of the most talked-about cryptocurrencies in the world right now. Not only has it surpassed a price of $30,000 in January 2021, but it has also definitely performed better than anyone could have hoped for. The incredible bullish cycle that started after the halving in May has continued well into the new year, and some experts expect the price to break $500,000 in 2030.

Therefore, it’s safe to say that everyone from complete beginners to experienced investors and looking to add BTC in their portfolios. In case you’re also completely new to investing in cryptocurrencies, we have compiled a list of five essential tips that will hopefully help you make great decisions regarding your finances.

Learn About Blockchain

The blockchain technology was created to aid the use of Bitcoin and the processing of BTC transactions between the users, without any financial institutions or central authority. This is a fully peer-to-peer based system that relies on the miners that approve transactions and discover new BTC that enters into circulation.

Another advantage is that it guarantees the anonymity of the users of the platform even though the content of the transactions is fully transparent to other users of the network. As this is a distributed ledger that holds records of the transactions on a vast number of computers worldwide, it is almost impossible for anyone to take control of the blockchain system or change the data. That being said, it is highly advisable to get to know the blockchain network before you start investing.

Sign Up on an Exchange Platform

This is one of the most important decisions that you have to make. A trustworthy trading platform means that your data is safe, and you get to invest in BTC. Since it has achieved substantial success over the years, you can choose from many different platforms. A trading platform that is easy to use and great for beginners is Bitcoin Rejoin.

It applies AI technology, specifically its subset Natural Language Processing, to auto-trading. Hence, the technical aspects of trading are done for you, so it’s a good option to consider for beginners. Just keep in mind that you need to deposit at least $250. What’s more, they offer a great trading guide and connect you with robot brokers. Furthermore, they report that some of the users have made $1 million from trading here. If you want to find out more and open your account, you should visit the official website.

Take Part in the Crypto Community

If you’re new to the crypto world, it’s a good idea to find reputable sites and forums where you can learn more about Bitcoin. Always make sure to follow reliable platforms that offer timely and reliable information on the latest developments in this field. Overall, you need to stay up to date with the recent news because, at the end of the day, you need to make the right decisions regarding your finances.

Understand the Factors That Affect the Price

Bitcoin is still a volatile investing asset. Even though it is the first of its kind since it was invented in 2009, it still hasn’t reached reach the mainstream, but it is increasingly used among businesses and individuals offline and online. So, the market is still small, and different events have a great impact on the price. That being said, the price is generally affected by the ratio of the demand and the supply. Bitcoin halving most notably is an event that alerts the supply of BTC. It halves the block reward of the miners, which in turn reduces the supply of BTC. This also means that mining isn’t as rewarding as it was before the halving, and it isn’t profitable to become a miner (at least on your own). Therefore, more and more people turn to trading sites when they want to get BTC.

As we mentioned earlier, the price was severely affected by the last halving, and it increased to $9,500. This resulted in a bullish cycle that still lasts in 2021. It’s also worth mentioning that speculations of the media also can influence the price and government regulations that make it easier or more difficult for individuals to invest in BTC.

Get a Bitcoin Wallet

The last tip is to get a safe Bitcoin wallet to store your BTC. The wallets are also used to make transactions and to receive payments. If you want to start trading, you need to have one. Mainly, you have the following options –web, desktop, hardware, and mobile. The safest option is the hardware wallet, while the others are certainly more convenient, but they can be vulnerable to malware. Do your own research, based on your preferences and financial goals, pick your wallet.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes