So, you’ve finally decided to come here. Actually, that is a big step because if you look at most people, they never even think about getting into the crypto and Bitcoin business. Many don’t even know it exists! So let me congratulate you on taking the most crucial step; The Beginning.
Today I’m going to tell you everything you need to know about cryptocurrencies and specifically bitcoin. After reading and learning this article, you should be able to answer the following questions:
- What is Bitcoin?
- What are the advantages of investing in Bitcoin?
- How to Invest in Bitcoin?
- Investing strategies
- How does Bitcoin work?
Why Bitcoin?
It’s been a couple of years since this magical imaginary money started being traded and mined. This field has been considered a real powerful way of investing and gaining profit from the early days. If I want to be extremely simple and precise, Bitcoin is digital money to trade and buy stuff with like regular money.
But the sophisticated side of cryptocurrencies is the online side. Most people get nervous and start doubting the profitmaking aspect of cryptos because they don’t exist in the real world and can’t touch them and put them in their side pockets.
But guess what? This is what 80% of business and financial assets are going to be in like 5,6 years. So unless you start getting along with this kind of system, you won’t be considered an influential businessman in the long run.
For example, ten years ago you needed to carry paper money everywhere with you, but nowadays you carry a firm plastic called a credit card around. Or in trade markets nowadays you don’t have to go to the trading center for every new transaction you have in mind, you just do it online.
What is Bitcoin?
There are numerous descriptions for Bitcoin and most of them are really hard to follow. I’m going to describe it as simple as possible. Bitcoin is the first digital money in the world. A type of money that doesn’t exist in the form of material but as a series of codes and algorithm.
So how can a cryptocurrency be valuable without even existing physically?
When we talk about any kind of money we are actually talking about a form of convention. An agreement that is recorded and all the world respect. Because after all money is nothing but a piece of paper. And in exactly the same way we call cryptocurrencies money.
What is the backbone of cryptos? No one really care to be honest. We just want the profit we can make from buying and selling them.
But if you are really eager to find out I have to tell you it’s nothing but the agreement on credibility and the tradings people make.
What I mean is you and me and all the people in the world have come to an agreement that this thing called a cryptocurrency has this much value and if you want to buy one from me you have to pay me this much money.
The Skill
Being skilled in every aspect of our life makes things overall easier and more profitable. So why not become skillful in cryptos? Think about it, this is what the future of money making looks like. Don’t you think being among the first ones to gain the skill needed for it is somehow urgent?
In order to gain the skill you need to study and practice. And you’re going to be making loads of money in no time.
Something you have to keep in mind about cryptos is the unstablinty of them. You can’t always fully predict how the rates are going to change but the amount of losses are mostly negligible compared to the amount of profits you can gain from them.
Do not, I repeat, DO NOT get into crypto market without adequate preparation as you can lose if not all most of your money in a matter of couple of trades.
Advantages of Investing in Bitcoin
The Bitcoin and crypto markets have been one of the most profitable markets from the early days they came to sight. But one might ask why would a finance asset that doesn;t exist in the physical world be so profitable?
It’s based on the internet
The fact that all cryptos are structured fully online makes them so easy to use and more reachable than any other financial asset ever existed. The first crypto ( Bitcoin ) was made around 2008 by some unknown person called Satushi Nakamato and It was fully coded and online.
The upside of being totally online is every side of thistype of money is transparent and nothing is executed on them in behind some closed door. This means everyone can see the process of a Bitcoin being traded but can’t alter it in anyway because of the blockchain system which is fully described in this article.
It’s usable almost everywhere
If you choose to migrate from your home country today you have to exchange all your money to destinations currency which is kind of a hard process. This means your home country’s currency is only valuable in your country and you can’t buy or sell things with it anywhere else.
But when you invest in Bitcoin, you’re investing on an international asset that can be used anywhere in the whole world. This means you can exchange Bitcoin to currency of the country you are currently in and also you can access you Bitcoins from anywhere you like.
So if you really think about it, having your cash as Bitcoin or any other cryptocurrency has the huge advantage of being usable from anywhere with internet accessibility.
The security side of bitcoin and any cryptocurrency is handled by a system called Blockchain.
To put it briefly,
Blockchain is a complex coding system that is used to store owners data in a way that is fully real time and is theoretically impenetrable. So all these points make Bitcoin and the crypto market a really wise place to invest your money.
It’s not controlled by anyone
One of the points that make Bitcoin desirable for every investor is the fact that no person or bank or government is behind the crypto system. This makes the crypto market a totally independent place that is fully run by algorithms and codings.
The only factor in crypto prices are the amount of supply and demand of the whole world at the moment. This means that you and all the other investors in the world are the ones that have an effect on the price and it’s in no way controlled by any specific organization.
There’s no inflation
When a currency is independent and is not controlled by anyone there naturally exists no inflation.
Inflation is the situation where the price of a given currency is affected by political and economical events.
Now the question might arise that in the bad days of national economy is the crypto market up going or vice versa?
Look, I never meant the crypto market doesn’t go up or down. Expectedly when supply exceeds the amount of demand the price will fall. Inflation is in no way connected to the rise or fall of the price. It’s the ability to get affected by the news to be more detailed.
For example, in the early days of corona virus, most people withdrew their money from the crypto market in order to avoid losing any money so the price fell, but after a while people started buying more bitcoins and eventually the price skyrocketed. So as you see the corona virus didn’t affect the price in any way but the amount of supply and demand did.
How to invest on Bitcoin
I suppose you’ve decided Bitcoin is a really efficient place to invest by now. Now you might ask about ways of investing on it. If you want the full tutorial and examples of crypto investment we have created a crashcourse on it just for you. Click here to learn more.
But if I want to put it briefly you can start investing right now by creating your cryptocurrency wallet ( Click here fo more ) and use one of the online crypto exchange centers to buy and cell bitcoin and other currencies.
Investing strategies
There’s a misbelief about Bitcoin that if you invest any amount of your money on it you will definitely get rich someday. This is dangerously wrong! Buying Bitcoin is a form of investment, and any form of investment has it’s wins and losses.
If you are naturally determined to win in this market before anything you need to construct your own strategy. Having a wise and standard strategy in the crypto market is the insurance that you need.
There are two kinds of strategies in the crypto market. Short term and long term.
The short term type is for people that have lots of time to put on investing and are willing to trade daily or weekly.
The short term strategy demands having the skill of technical analysis and you’re going to have to analyse the chart every day and do trades based on in.
But the long term strategy is for people that are going to keep their Bitcoins for a long time. In this strategy you don’t need to check the charts every day. You don’t need to do trades all the time. You just need a goal and anytime your money reaches that goal you withdraw your money.
Overview
If you are interested in Crypto market and you’re a risk taker and love to do online tradings, Bitcoin is a great way to start growing the quality of your life and make huge amounts of money. But keep in mind, without proper practice and knowledge, you’re probably going to lose lots of money. So start learning RIGHT NOW.