How to invest in Bitcoin- A DETAILED GUIDEsteemCreated with Sketch.

in bitcoininvestment •  7 years ago 

How to invest in Bitcoin
The bitcoin (abbreviated as BTC) is a digital currency and a peer-to-peer payment system created by a software developer known under the pseudonym of Satoshi Nakamoto. If they have been for a long time unknown to the general public, bitcoins have attracted much attention in the financial world in recent years [1] . With this influx of attention, the process of investing in bitcoin has become easier than ever before. Nevertheless, it is important to note that bitcoins are not an ordinary investment (for example, an investment in the stock market). It is more of a very unstable commodity. For this, do not buy before understanding the risks.
1
Create a Bitcoin wallet. Today buying and selling BTC is easier than ever for beginners. To begin, you will need to create a Bitcoin wallet . As the name suggests, your wallet is a digital account, through which you will be easy to buy, keep and sell your BTC. Think of it like a classic bank account, but in bitcoins. Nevertheless, unlike a conventional bank account, creating a Bitcoin wallet usually takes less than a minute, can be done on the internet and is very simple.
Sites like Coinbase.com, Coinmkt.com, Blockchain.info and Hivewallet.com are some examples of reputable, reliable and easy-to-use sites for beginners who would like to create their first wallet.
2
Link your bank account to your wallet. Once you have created your wallet, it's time to fill it with bitcoins. Generally, you will need to fill in the bank details of a regular bank account, just as you would to use PayPal or another payment service. You will need your account number, your bank code and your full name, under which you opened your account. You will find this information on your account online or on your bank checks [2] .
Note that you may need to fill in your contact information, such as a phone number.
To be clear, understand that linking your bank account to your Bitcoin wallet does not pose more risk to your personal safety than making online purchases. All reputable Bitcoin services rely on their high standards of security and encryption. While Bitcoin services have been targeted by hackers in the past, the same is true for the main online sales sites
3
Buy BTC with the money from your bank account. Once you have entered your bank details and have been verified by the Bitcoin service, it will be very easy to buy bitcoins and add them to your wallet. Generally, on the home page of your wallet, you will see a link "buy bitcoins" or something like that. By clicking on it, you will be redirected to a simple transaction process, whereby you will use the money you have on your bank account to buy BTC.
Know that the price of bitcoins can change (and in practice it changes) from one day to another, sometimes significantly. Bitcoin being a relatively recent monetary form, its market is not yet stable. The euro-bitcoin exchange rate should be clearly indicated when you make your purchase. In March 2017, 1 BTC was equivalent to approximately 1,150 euros
4
Use your BTC to make your purchases. You will be able to use your BTC with the sellers who accept this currency. In recent years, a growing number of companies have begun to accept BTC as a valid form of payment. If these companies still represent a minority, some major brands have already made the transition. Here are some online sellers who accept BTC [6] .
Amazon
Wordpress
Overstock.com
Bitcoin.travel
Victoria's Secret
Subway
Zappos
Whole Foods
If you are gifted (or lucky), it is possible to generate value in this way, buying BTC when its price is low, then buying goods when the BTC value is high, in order to get the good At an affordable price. You can sell these goods to make profit or keep them for you.
5
Sell your BTC to another user. Unfortunately, selling BTC is not as simple as buying them. There is no easy way to change your bitcoins into another currency and receive the money on your bank account. You will actually have to find a buyer willing to buy them with money (or goods / services). In general, one of the easiest ways to do it is to register on a Bitcoin online exchange. Once you have found a buyer, you will do the transaction on the website, but directly with the buyer. To use this method, you will generally need to create a sales account and have your identity verified by a separate process from the one used to create your wallet.
The US sites CoinBase and LocalBitcoins both offer this kind of services. The English sites BitBargain and Bittylicious are also two well-known options.
In addition, some sites like Purse.io allow sellers to sell their BTCs to buyers, who then use their own money to buy goods online and send them to sellers. In essence, it is a roundabout way of using BTCs to buy from sellers who do not accept this currency
6
Alternatively, sell your BTC in a currency exchange office. Sellers can also use a Bitcoin exchange office. These sites allow to connect potential sellers and buyers. Once a vendor is found, the site acts as an intermediary or fiduciary repository and withholds the money until both parties are verified and the transaction is completed. Generally, you will have to pay a small amount to benefit from this service. Selling with this method is usually not an instant process. In some cases, users have even complained that the exchange service may take an excessive length of time to perform the transaction, compared to other options [8] .
Here are some reputable and reliable exchange offices: Circle, Kraken and Virtex.
In addition, some exchange sites, such as Bitcoinshop, allow you to exchange your BTC for other digital currencies (such as Dogecoin and Litecoin).
Use other options
1
Consider setting up a regular shopping pattern. If you want to seriously invest in Bitcoin, you could decide to spend a small part of your pay each month on the purchase of this virtual currency. This will be a very good way to amass a lot of BTC over time, without spending a lot of money in one go. Many Bitcoin wallet sites (eg Coinbase) offer the option of setting up a direct debit to buy BTCs. This works as a standard levy: you specify an amount, and this amount is taken from your account at regular intervals and is then used to automatically acquire BTC.
2
Consider buying BTC locally. If you like the idea of contributing to the economy of your area, consider using a service that allows you to sell to people near you. Instead of putting you in virtual contact with anonymous buyers anywhere in the world, some sites will offer you the option to search for buyers in your area. If you choose to meet these buyers in person, give them an appointment in a public place, in broad daylight, and if possible do not go to the appointment alone. Always ensure your safety.
Localbitcoins.com is one of the most known local online markets. The site allows you to search for buyers in 6,000 cities and 200 countries, including France
3
Consider investing in an investment company in bitcoins. This option is often presented as less risky than buying and selling BTCs directly. It is about placing your money in an investment agency. The Bitcoin Investment Trust , for example, allows users to buy and resell shares. The company then uses this money to buy and sell BTC, in order to generate profits for investors. Since the company only buys and sells BTC, the price of the shares is directly related to the price of bitcoins. Nevertheless, some users prefer this option because the fund's professional investors are experts and this avoids having to find buyers and manage its own Bitcoin wallet.
4
Think of "mining" BTCs. Have you ever wondered where the bitcoins came from? In fact, the new bitcoins are generated through a complicated computing process called "mining". In very simplified terms, when you mint BTC, your computer competes with computers of other users to solve complex problems. When your computer solves a problem first, you win BTC. The assumed benefit of this process is that you will create BTC by yourself, without having to spend money. Nevertheless, in practice, maintaining a competitive status as a minor of Bitcoin involves significant investments in specialized software.
The process as a whole is very complicated and could not be explained in this article. For more information, read our bitcoins mining article .
In addition, it is important to understand that because BTCs are handed in blocks of several BTC, it is usually best to join a recognized mining team, which will allow you to work together and share the profits. By working alone, you would be hard pressed to compete and a year or more could pass before you earn the slightest bitcoin.
Making money through investments
1
Buy cheap, sell at high price. Basically, the strategy used to buy and sell BTC is no different from that used to buy and sell stocks or goods in the real world. Buying BTC when the exchange rate is low and selling them when high allows to make profits. Unfortunately, as the bitcoins market is very volatile, it can be extremely difficult to predict when BTC prices will rise or fall. For this, investing in BTC is inherently risky.
Here is an example of the volatility of the bitcoins market. In October 2013, the price of BTC stagnated around 110-120 euros by BTC. In a month and a half, the price has climbed almost 10 times, reaching almost 950 euros per BTC. A year later, the price dropped to one third of its highest value, at around 330 euros per BTC. No one knows when the next peak will occur (if it happens one day).
2
Keep up to date with BTC market trends. As indicated above, it is impossible to predict with certainty the evolution of the bitcoins market. Nevertheless, your best hope for making money through your investment in bitcoins will be to keep up with market trends. Since the Bitcoin market can fluctuate very quickly, opportunities to earn money, such as when the rate suddenly increases, can appear and disappear within a few days. To succeed, you will therefore have to keep track of exchange rates very closely.
You could also participate in Bitcoin discussion forums (such as the Bitcointalk.org forums) in order to communicate with other investors about market predictions. Keep in mind that no investor, whatever his expertise, will be able to predict with certainty the Bitcoin market.
3
Use your BTC to make more stable investments. To make your fortune in Bitcoin more stable, you could use it to make more stable investments, such as buying stocks or commodities. Some sites will allow you to make this type of investment. For example, Coinabul.com allows you to buy gold in BTC. You could even sell your BTC and use the money earned to buy stocks or bonds. If a prudent equity portfolio offers the best chance of stable and moderate growth, most financial experts agree that equities, even relatively risky, will generally fluctuate less than the Bitcoin market
4
Be a reasonable investor. Never invest more in bitcoins than you can afford to lose. As with any risky investment, it is best to consider the money you invest in bitcoins, such as money you "play". If it brings you money, so much the better, but if you lose it, you will not automatically be ruined. Do not invest more money in bitcoins than you can not reasonably do without. BTC can disappear in the blink of an eye (and this has happened in the past) and putting too much money into play can have disastrous consequences. [13]
Do not believe in the theory of irrecoverable costs, the idea that you would be too deeply involved in an investment to withdraw you [14] . Missing a price spike and selling a little cheaper than you bought will always be better than waiting and selling much cheaper than you bought.
Advice
If you want to remain anonymous, consider buying bitcoins by mail, thanks to a service like BitBrothers LLC. These paid services will buy the BTC for you without you ever having to connect to the Internet.
If you're lucky, there might be a BTM near you. This is a machine that works like an automated teller machine and allows you to buy bitcoins in person. To locate a BTM near you, visit Bitcoinatmmap.com.
Be aware that the price of bitcoins may vary from one country to another. If you're willing to take the risk, you could make money by buying cheap BTCs in one country and then selling them more expensive in another country. Of course, you could also lose money if the market changes.

inn.png

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Great post. Thanks for sharing. Bitcoin can be earned through Trade coin club. Check this out : https://steemit.com/bitcoin/@shaki/earn-bitcoin-wih-tcc

Congratulations @rai39! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of posts published

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

By upvoting this notification, you can help all Steemit users. Learn how here!