Created in 2009, Bitcoin traded at $0.0008 to $0.08 per coin in July 2010, soaring to over $49,000 per coin in February 2021. Today, it is publicly traded on the world stock exchanges.
Crypto’s market price is subject to current demand trends. High demand means higher value and it is widely considered to be the new gold.
Investing in digital assets is fast becoming an integral part of a portfolio’s growth. You’re now probably wondering how do I invest in Bitcoin?
HOW TO GET STARTED :
Other cryptocurrencies such as Ethereum and Litecoin are also alternative ways to trade with merchants and vendors. Businesses all over the world and locally accept crypto as payment for goods and services. Your favorite restaurant, cafe, or shopping center is almost likely to be a merchant.
Even billionaires have jumped on the metals and digital crypto bandwagon. Well of course. They would know a great financial opportunity when they see one. That’s why they’re Billionaires, like the owner of the New York Stock Exchange.
Investing in digital currency has been soaring to add to retirement portfolios. As more investors realize the benefits the demand increases. As the demand goes up so does the price. Its rarity also pushes up the value.
The problem with FIAT money is the nonstop continual printing of it over and above pushes down its value. FIAT money is not backed by anything. It’s pretty much numbers on a piece of paper. Crypto, however, is backed by the blockchain of verified transactions. It cannot be manipulated nor counterfeited and no third parties are involved in a transaction. It is strictly a person to person trade identified only by secret keys, not names or any other personally identifiable information.
TO BUY:
Assets are purchased using an exchange. To get it you’ll need a wallet like Coinbase, considered to be the best in the industry. They also offer ways to earn crypto for yourself as well as educational videos for viewing.
WHAT IS A DIGITAL WALLET?:
Think of an e-wallet as a type of bank to store online currency. Through it, transactions take place just like a regular bank by downloading the app on to your computer or smartphone.
While most people are a little antsy about using them, e-wallets are safe, secure, and heavily encrypted. Your personal information is highly protected. Other important documents can be stored in them as well.
HOW IS IT MADE?:
A secure network of miners employs a bank of specialized computers that perform complex computations. The more miners there are in a network makes it more secure. Transactions are verified by a miner and added to a blockchain.
As of this writing 18,155,775 are in circulation. New coins are generated at the rate of 12.5 every ten minutes, produced via a process called mining. Only 21 million will ever be mined.
The limit of 21 million was set up by its creator Satoshi Nakamoto. For sure, it makes for an excellent hedge against inflation. However, the real reason for the supply limitation is a closely guarded secret between only bitcoin’s creator and the software developer.
Another good thing is that it is not affected by world turmoil. The value has to do with demand as much as anything else. Being in demand increases its worth.
INVEST: DISADVANTAGES:
Inarguably, when not happy with a purchased product we should be able to get our money back. Not so with cryptocurrency. When used to pay for goods and services all sales are final. There are no chargebacks or refunds for buyers remorse or if an account is hacked and raided of funds.
It is important to choose a reputable coin exchange for transactions. Be sure to select one that keeps private keys and digital currency separate from each other. Some providers store them together which is a dangerous recipe for disaster. It gives thieves the ability to steal both and you have no recourse.
We’ve all heard about the dark web and the seedy practices that go on there. Beware of interacting with what is called the grey markets such as betting on sports. It is unwise to spend crypto here due to legalities. It may be alright where you are but not in others and funds could be unrecoverable if something goes wrong.
Private keys allow for transactions to take place and must be kept secure in Bitcoin wallets. Perform your due diligence in researching a service provider’s track record. Check to see if they’ve been hacked in the past and what was done to prevent it in the future. Look online for providers and pick one that fits your needs.
INVEST: ADVANTAGES
· Earn interest on your investment
· Fees are minimal
· 24/7 Trading
· 401K and IRA investing
Another very cool advantage is there is no way a transaction can be called back. A completed sale is final. It’s not like using a credit card where a customer can reappear 6 months later and do a chargeback after receiving goods or services. It happens more than you know.
Using credit cards is convenient for the customer but is too often risky for the seller. The seller is not protected at all because by US law the seller must return the money charged. The customer does not have to return anything but you sure better return their money!
For this reason, receiving payments via cryptocurrency is a better option for sellers. It removes the risk of fraudulent chargebacks and keeps things honest.
FUTURES:
After months of postponement, the Intercontinental Exchange (ICE) is now in the business of Bitcoin Futures, monitored by the Commodity Futures Trading Commission (CFTC).
A legal contract signifies that any particular commodity is bought or sold at a determined price on a predestined future date. Approximately $200 million of the commodity’s futures are traded on a daily basis.
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