So you’ve decided that now’s the time to start buying Bitcoin!
As the price of Bitcoin surpasses $60K and the global economy remains in crisis, many investors are looking to invest in Bitcoin.
But how does one get started with buying Bitcoin? How do you get a Bitcoin wallet? How do you ensure that you make the right decisions when buying Bitcoin?
This short guide will help you understand the rules of Bitcoin for beginners. You’ll learn about buying Bitcoin and how it can help you.
Let’s start with your Bitcoin wallet:
Choosing Your Bitcoin Wallet
The first step is to choose a web or hardware Bitcoin wallet. A web wallet is the easiest way to get started with buying Bitcoin.
You don’t require any technical knowledge of blockchain technology. You won’t have to worry about memorizing your Bitcoin wallet address.
The web wallet manages the security of your Bitcoin. The major downside of web wallets is that they don’t have anonymity safeguards.
Anonymity safeguards are available with hardware wallets. Your hardware wallet can get hacked, but it’s much harder in comparison to web wallets. However, you’ll have to take time to install your hardware wallet.
You’ll have to keep your wallet address saved with you. If you lose this information, you lose access to your Bitcoin forever.
Regardless of which Bitcoin wallet type you choose, make sure they work in synergy with Bitcoin ATMs such as those from bytefederal.com
How Much Bitcoin Should I Own?
The next step is to consider how much Bitcoin you should own. The simple answer is that you should own as much as you can afford.
However, you should consider how often you wish to buy Bitcoin and how fast you should try to accumulate a large amount. The two main uses of Bitcoin are as an investment asset and as an alternate form of currency.
As an investment asset, you can sell your Bitcoin for a large sum of fiat currency. Today, if you sold 10 Bitcoins you would receive around $600K!
However, we also saw a few Bitcoin crashes in the past few years. One can also lose their fortune on Bitcoin. The market remains unpredictable so if you buy Bitcoin as an investment asset, you want a set date on when you’ll sell your Bitcoins for fiat currency.
If you want to use Bitcoin as an alternative form of currency, you can take your time with your purchases. In this scenario, you don’t have to worry about the fiat cost of Bitcoin.
You might want to wait for Bitcoin to crash before accumulating the crypto. This way, you’ll have a new currency without having to break the bank!
Those Are the Rules on Bitcoin for Beginners
Now you’ve read this quick guide on Bitcoin for beginners, you’re ready to start buying Bitcoin.
You want to first consider what’s the best option for your Bitcoin wallet. If you value convenience, you’ll want to choose a web wallet. If security and anonymity matter most, stick to a hardware wallet.
If you want to use Bitcoin as an investment asset, make sure you have a set date of when you want to cash out on Bitcoin. If you want to use Bitcoin as a form of currency, take your time to accumulate it.
You can find more great crypto tips on our website!