If you have ever been curious about what Bitcoin is or ever wondered how it could be of benefit to you, this piece of information will clarify grey areas as we breakdown all there is to know in a very simple manner.
It was created in 2009 by an unknown software developer under the alias Satoshi Nakamoto, Bitcoin also known as BTC is a digital currency and a peer to peer payment system usually used on platforms called “Bitcoin Exchanges”.
Bitcoin is bought in any currency and often preferred by small and medium businesses because it does not attract additional fees when used to make transactions.
It is often lauded by apps and financial institutions via social media to be a legit means to cash out big time. While some people buy Bitcoins as a stock hoping to increase in value, you must understand the risks before investing.
We will break that down to you soon as we take a look at how to buy, sell and investbitcoin conveniently.
Also read :How to Buy cryptocurrency in Australia
PURCHASING AND SELLING BITCOIN
- First thing you need to do is create a digital purse known as a Bitcoin wallet where you get to store, purchase and sell your Bitcoin. Legit Sites like Blockchain.info, Hivewallet.com, Coinmkt.com andCoinbase.comare examples of reliable, trustworthy and easy to navigate sites for novices to create their first purse.
2 Since you have a digital purse now, you need to link it with your bank account. You can do this by uploading financial details like you would if you were to sign up on an online payment site. Commonly, you’ll need at least your bank account number, the routing number, and your full name as it is on the account.
Although these sites promise to have your information secured, it carries risk as with any other online shop such as Jumia. Still, you can use your credit card details instead that would require receiving one time passwords before you get debited when making transactions.
- Once your bank information and completely verified by the Bitcoin service, it should be equally easy to start buying and storing BTCs to your wallet. On your wallet page, there should be an iconlabelled”PurchaseBitcoin” or something alike.
When you click on it, it should direct you to where the transaction will be made using money from your bank account. Note that the price of Bitcoin can (and actually) change from time to time.
The present dollar-to-BTC exchange rate should be indicated when you buy it and as of July 2020, 1 BTC = USD 9297.
- You can make a profit off your Bitcoins when you buy from popular sites like Amazon which means making value for yourself by purchasingBitcoin when its price is low, then buying goods when the value of Bitcoin is great to get a favourable deal on the goods.
You can then sell these goods to make hugerevenue or simply retain them.
- You could also sell Bitcoins to other users,and one of the easiest ways to do this is to register with an online Bitcoin marketplace. Generally, once you find someone to buy from you, you will complete the transaction through the site or you could deal directly with him or her.
To use the one on one method of trading your Bitcoins, you’ll have to sign up a seller account and have your identity verified in a process separate from the one used to create your wallet.
Selling Bitcoin isn’t as simple as buying it. There is no simple way to “cash-out” your Bitcoins and receive money in your bank account;hence, you’ll have to find someone willing to pay for them with money, goods and services.
- Trading your Bitcoin on an exchange platform is an alternative for sellers to tradetheir Bitcoins. These websites work by joining sellers with potential buyers. Once a seller is spotted, the website acts as a sort of intermediary, holding the money until both parties are confirmed to be legal, and the transaction is complete.
Usually, there is a slight fee attached to this service. Selling with this method is not usually an immediate process. In some cases, people have complained that exchange services can take a lot of time for transactions to be complete in comparison to other options, as mentioned above. Reliable, well-known exchange platformsin Nigeria include Quidax, NairaEx, Luno and many others.
Also read: How to invest in bitcoin
4 SUPER EASY WAYS TO INVEST BITCOIN STOCKS INTO PROFITS
- Purchase low, trade high.
The tactic for purchasing and tradingBitcoins isn’t that different from stocks or commodities in real life. Purchasing Bitcoinwhen the dollar exchange rate is low and trading it when the exchange rate is high is a money-making offer. Unfortunately, since the Bitcoin market is so unpredictable, it can be very difficult to forecast when the Bitcoin price will increase or decrease, so any Bitcoin investment is risky.
- Stay current on Bitcoin market trends.
As stated above, it’s difficult to predict which way the Bitcoin market will go with conviction. Nevertheless, your best bet for making money off of a Bitcoin investment is to observe trends in the marketplace regularly. The Bitcoin marketplace fluctuates rapidly, so keep a close watch on the exchange rate for your best bet at success.
Joining a Bitcoin discussion forums (like Bitcointalk.org) will surround you with other stockholders, where you get to communicate and ask about market predictions. Do know that no investor, no matter their proficiency, can predict the Bitcoin market with conviction.
- Use your Bitcoin wealth to purchase stable investments.
Another way to get some stability out of your Bitcoin wallet is to use it to buy stable investments just like stocks or commodities; somewebsites such as Coinabul.com allows you to buy gold with BTC. You may want to sell your Bitcoin and use the cash to invest in the stock market.
- Never investmoney into Bitcoin than you cannot afford to lose.
It’s best to think of the money you put into Bitcoin as a risky venture. If you make a profit, that’s awesome, but if you have a loss, you won’t be financially down. Don’t put lots of money into Bitcoin than you can’t sensibly do without.Bitcoin can disappear in the blink of an eye, so the consequences for putting too much money on Bitcoin can be terrible.