2020 was an incredible year for anyone who was doing Bitcoin trading or just “holding” the currency. And it wasn’t just Bitcoin that showed an impressive upward movement: Ethereum, Litecoin and Doge reached levels we never dreamed of! On the other hand, the dump in the Ripple’s price almost give us a heart attack! This all caused many people to become more interested in cryptocurrencies. Thus, the doubt settled: okay, but how do I start investing in Bitcoin? Is investing in altcoins the same thing?
First step: learn what is Bitcoin
You need to know what Bitcoin is before you invest in cryptocurrencies! You can read this text: “What is Bitcoin? 2021 Complete Guide!“. Or you can see a more relaxed explanation on our Youtube channel (in portuguese only): “What is Bitcoin? Complete guide 2021“. Or you can watch it right here:
Both in the text above and in the YouTube video, I talk a lot about the term “Blockchain”. If you want to understand more about this technology, I suggest this article: “What is Blockchain? Explaining this technology!“.
Second step: create an account on an exchange!
To start making money with Bitcoin, you need to have these Bitcoins first, right? Then you need to create an account on an exchange, which is where you buy and sell your cryptocurrencies. But beware: it is not anywhere that you can do this reliably! That’s why so many people are afraid to invest in Bitcoin: there are bad guys out there scamming everywhere on the Internet.
Register with Binance to invest in Bitcoin
Binance has some differentials for more advanced traders, which are the tools of trading, leverage, liquidity and the possibility of trading an infinite number of different cryptocurrency pairs. I usually use Binance for my own trades! If you choose Binance, use my referral link as well, as it helps me a lot!
Third step: create a cryptocurrency wallet
While you wait for your account to be approved on the exchange (they check personal documents, proof of residence, etc.), you can go on creating a wallet of Bitcoins and altcoins. If you are going to buy virtual coins, you have to have a virtual wallet to store them, right?
To know exactly what a wallet is, what it is for and how a cryptocurrency wallet works, I recommend reading this article.
Why should I have a Bitcoin wallet?
If you are going to do daily trades (day trade), or even faster, in minutes or hours (scalp trade), it doesn’t worth it to keep putting your money in your wallet. After all, for every cryptocurrency transfer to your wallet, a fee is deducted. So it is good to trade at least 2 exchanges, so that you don’t bet all your eggs on the same chicken!
Now … if you are going to make long-term investment in Bitcoin, cryptocurrencies or other altcoins, you will be doing what we call “HOLD”, which is keeping your crypto assets. In this case, if you are buying to sell in a while, you need to transfer these coins to your wallet!
We do this because exchanges have “owners”. And these exchanges can break, go offline or disappear. Just like the owners! Consequently, their virtual currencies that were in the custody of these platforms are also lost. That’s why you should use trusted exchanges and store your Bitcoins in a wallet that is yours alone!
Coinomi Wallet: recommended multi-currency wallet
For crypto assets that I keep in hodl, I use the Coinomi wallet. I already have a tutorial and complete step by step about this wallet here: “Coinomi Wallet: Tutorial and complete step by step 2021!“. Coinomi has served me very well and I have not had any problems with its use or safety.
Step four: investing in Bitcoin!
OK, now that you know what Bitcoin and its technology is, you already have an account on an exchange and a wallet, let’s go to the trades!
If you want to make a long-term investment:
- Just buy the cryptocurrency of interest;
- Transfer to your wallet (take from the exchange and send to your private wallet);
- When you think that digital currency has already appreciated enough or needs to be used, just take it out of your wallet, send it to the exchange and sell it.
Start investing in Bitcoin with trading
Now, if in your case you want to trade cryptocurrencies to make gains in the short term, perhaps your business is Bitcoin trading. Not only with Bitcoin, but you can trade with several different asset pairs. Whether with fiat money or crypto / crypto pairs.
In this modality, you are analyzing those candle charts, you know? Red and green, analyzing trends, identifying patterns and so you learn to trade. Which is basically buying when the price goes down and selling when it goes up!
I will post more content about trading soon, both here on the website and on the YouTube channel (only portuguese yet) which we just opened! ♥
You can trade and accumulate your profits. You can withdraw your money later and send it to your bank account. Or you can use that profit to reinvest. Trading is very complex, but it’s not a seven-headed bug. There in the Telegram group we are always talking about possible opportunities. And if you want to see how I, who am not a trader, am doing my trades, follow me on the social networks below!
Fifth step: never stop studying how to invest in Bitcoin
Knowledge is one of the only things that no one can take away from us! And knowledge is also an investment! Making money through asset trading is not an easy task (if it were, everyone would be there, very rich). But you can live on trading! Since:
- You control your emotions;
- Study a little every day;
- Know that it is a very high risk market;
- Active crypto are extremely volatile;
- Just as you can get rich, you can lose everything;
- You know your investor profile and analyze how much you accept to lose in trading.
Being a trader is not a gift, right? It is a skill and every skill we can train and develop. Therefore, I believe and bet that if you strive to always study and learn more about Bitcoin, cryptocurrencies and other technologies, you will be a great trader! Always study, spread the knowledge and learn from more experienced people!
Tell us here in the comments or on social media if you want to receive more information about cryptocurrency trading, that I will post more explanatory content here!
Any questions about how to start investing in Bitcoin, from scratch, even if you are a beginner, leave it here in the comments! Your question may be the same of more people!
This post was written with a lot of love and in the simplest possible way! ♥ A great start to the year, that you already start this 2021 making a lot of profits (and very healthy!).