If you are planning to invest in cryptocurrencies, bitcoin is your most obvious first stop. It is by far the most popular currency on the market. However, the currency has become scarcer, and harder to keep track of. This has resulted in its value skyrocketing. You may then wonder, is bitcoin still a worthwhile investment after all this time?
Bitcoin’s incredibly high demand has resulted in a market cap of over to $162 billion as of the year 2020. Bitcoin gives investors the advantage of remaining anonymous, something investors could not do with the traditional stock market. The stock market requires investors to have licenses and to divulge a considerable amount of information about themselves. Bitcoin, however, allows anyone to trade at any time as long as you have a crypto wallet.
Trading in Bitcoin
The first step to trade is acquiring a crypto wallet. They will give you the ability to make transactions using a private and public key. Following this, you will need an account on your platform of choice. This account will automatically place your wallet in an online ledger, which will essentially give you an online wallet. When making transactions, you can choose whether to disclose them publicly or keep them private with the other party. The most popular platform for trading bitcoins is online, however. As useful as this is, we do recommend using a hardware wallet eventually for extra safety.
There are three actions you can take when dealing with bitcoins. These are buying, selling, and mining. You should also be able to sell and buy products and services with the aid of this currency. After a transaction is made, outside parties confirm the transaction for validity, this is mining. Before committing to any transactions, you should keep in mind that bitcoins are non-refundable, so choose wisely. We consider six confirmations on your transactions to be sufficient for committing.
Every time a transaction is made you will have to share your Bitcoin address, a code of 27-34 characters. A private code will be a similar, but shorter, code. You could also scan QR codes on your phones, for easier and quicker transactions. As soon as an exchange is carried out, you will need to secure your liquidity. This could mean using your account, a private key, or private password as your wallet.
We recommend looking at more guides before starting your crypto journey. However, we do hope this article has given you the right direction at the very least.