Buy Bitcoin – What do I need to know
Buy Bitcoin for the long term
If you are thinking to get involved and buy Bitcoin, you are on the right track. But there are things that you need to do before jumping on the ship. Many people start to invest without ever thinking about what they are buying. They go all in without any research, just based on the price.
This is bound to have devastating results in the end or even in the beginning. You need to have the right attitude when it comes to investing. Therefore this article will take you over the needed steps after which you will have guidelines on what to research and understand. For you to become a successful investor you need to have a certain approach. We will share what we have learned from investing in this industry and how to manage the steps correctly.
Education – you will need it
The easiest thing everybody can do is go and buy Bitcoin, based only on enthusiasm because of the price movement. There are people who will go and buy it only because they don’t want to miss out. They will feel FOMO (fear of missing out) and will buy most likely at the wrong time and experiencing big losses. All of this can happen because some people refuse first to educate themselves.
Do you want to do the same mistake?
If the answer is NO then you should continue to read this article. We will not only tell you where you can buy Bitcoin and how, but we will show you what to read so you get educated. You need to have a certain mindset in place and be ready to read a lot. Even after you buy Bitcoin there will be a lot left for reading, I assure you.
What do I need to know before I buy Bitcoin
Know the characteristics
First and foremost you should read and understand the characteristics of Bitcoin. That it is decentralized, limited, immutable, censorship-resistant and independent from central banks and governments, etc… Understanding those characteristics will help you understand why Bitcoin by itself is valuable. The world needs sound money like Bitcoin and for them to be global it needs to have certain characteristics.
Know how to store Bitcoin
Before going to exchanges to buy Bitcoin you should learn how to properly store it. There are hot and cold wallets. A hot wallet is the one that will is installed on your computer or phone, to a device that is always online. The cold wallet is usually a device that holds your private keys offline, it has no direct connection to the internet. With reading about wallets you will need to learn about private and public keys.
Not your keys, not your Bitcoins!Andreas M. Antonopoulos
You must never show your private key to anyone, consider this the key to the big vault. If you have the private key you have the Bitcoins that are associated with him.
If you want to learn more about cryptocurrency overall through video clips here is a link to one of the best people that you will ever find – Andreas M. Antonopoulos.
Learn about cycles
Everything in this world moves in cycles, especially assets like Bitcoin. As it is based on the gold model overall – being scarce and produced over time with halvings on every four years. Bitcoin follows a 4-year cycle which means that we usually have 3 years of a bull market and around 1 year of a bear market. After every cycle, the asset gets more recognition and adoption and of course, the price is the moving factor in the beginning.
Usually, people turn to see what is going on when the prices are going overboard. This happened in 2017 where we saw Bitcoin hitting an ATH of almost 20 000$. And in 2018 we experienced a very cold winter that drove off the weak hands.
To learn more about the 4-year cycles that Bitcoin is following I recommend you to watch the video of Bob Loukas.
Where to Buy Bitcoin?
Buy Bitcoin through exchanges
After you educate on all the matters comes the most exciting action of all – to purchase Bitcoin. There are a few ways to buy Bitcoin. With the first way to go to exchanges like KuCoin, Binance or Bitpanda, etc… You deposit fresh FIAT on those exchanges and buy directly Bitcoin. From there you can always buy other altcoins and high potential projects which are higher risk. For risk management and good risk/reward ratio portfolio we have an article which you can read here.
Buy Bitcoin over the counter (OTC)
The second way is that you can buy Bitcoin over the counter (OTC) through Localbitcoins where you can find a seller from whom you can buy. Or if you know a person you can always ask him to sell you directly. Of course, in such transactions be careful from whom you are buying and selling so you don’t get scammed.
After you do your research on the things mentioned above you will know the basics. You will know everything needed to safely get involved in the space. Invest wisely and for the long term as this is a marathon, not a sprint!
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