New to Bitcoin? Beginners Guide to Buying Bitcoin Now
Following a brutal bear market in March, bitcoin has rebounded and continues to hold strong, despite the volatility of traditional markets. Meaning a buy-in now could save you later.
Those who are new to trading look at the price of bitcoin- currently hovering strongly around $8,000 per BTC, and don’t see a place to buy-in. Which is one thing that puts many new users off from purchasing traditional stocks. High buy-in prices mean longer, and often smaller gains.
While this may well be true, it doesn’t make an investment any less sensible, just because you couldn’t get in on the ground floor. Particularly when trading crypto. Cryptocurrency markets are notoriously volatile- with bear markets resulting in sharp bull runs within a day. This fact alone can make a day trader decent money if they know how to read market trends and make decent predictions.
It’s also useful to use a trustworthy exchange. New traders best focus on novice centric platforms like Bitvavo, helping them to learn the market and easing them into the world of crypto. Because unlike traditional stocks and assets, purchasing Bitcoin comes with the entire can of worms.
Think Security First
By that, we mean that there are many unique circumstances that go hand in hand with trading bitcoin that don’t necessarily exist within traditional stock exchange metrics. Bitcoin is first and foremost decentralized, so trends are harder to predict, and the normal rules of investment rarely apply. The other important point to consider is that bitcoin is a technology first, and an asset second.
Which tells you that there is a myriad of underlying principles, concepts, and technological paradigms that you should understand, ideally before you invest. This is largely because spending, receiving, trading, or holding bitcoin relies on a system that is entirely different from traditional banking structures.
Choose a Good Exchange
The exchange or trading platform that you choose to use will depend heavily on how familiar you are with bitcoin itself, and what you plan to do with your coins once you have them.
For example, if you plan on using bitcoin as an adjunctive currency, you’ll probably not want to affiliate with a trading platform at all, and you most definitely will want a wallet that exists outside of the exchange you use. Should you choose to want to someday trade your coins on the market, peer-to-peer exchange platforms won’t be an ideal place for you to secure bitcoin- as many trading platforms must comply with federal regulations that peer-to-peer platforms don’t.
Find a Solid Wallet
Bitcoin wallets are just as important as a personal banking account. You’ll need to find out which wallets offer you the best types of security for the future of your coins. Which will work best with how you plan on using them, and which will offer you secure storage should you choose to sit on your investment.
There are a number of types of different wallets- mobile, hardware, full-client, paper… and many, many more. It’s important that you familiarize yourself with all the different types of wallets before choosing which you plan on using.
Learn the Underlying Technology
While it’s not required that you understand the technology that you’re investing it, there’s a good chance it can help you to better understand the market trends and project with a better sense of accuracy where values may go in the future. This is largely because the technology that underlies bitcoin and other cryptocurrencies has genuine value outside of assets and currency.
The technology addresses many aspects of our daily life. Things like smart contracts, decentralized applications, the internet of things, and supply chain management are just a precious few of the real-world applications that bitcoin’s technology can offer.
Best Moves to Make in the Current Market
Currently, the bitcoin market seems more stable than it has been in a very long time, with some experts suggesting that this is unlikely to change. So if you missed out on the massive dip in March, don’t kick yourself, because if bitcoin’s history teaches us anything, it’s that there will be another opportunity to buy in at reasonable prices.
Do Your Research
Read up as much as you can on the market history, whales, and other indicators that are fairly exclusive to bitcoin. Try to reason out trends for yourself, then weigh your own findings against the literature that is more than plentiful on the internet.
Social media outlets, like Twitter and Reddit, are incredibly useful when it comes to deciphering where bitcoin trends could be heading, as well as provide untold volumes of information on altcoins and other crypto finance queries.
Consider Starting Small
Perhaps one of the best ways to get into bitcoin without risking a load of cash is by looking at alternative cryptocurrencies. There are literally thousands of altcoins to choose from, each with their own technological advancements and currency solutions. Some of which can be purchased in bulk for pennies.
Getting your feet wet by investing in lesser-known cryptocurrencies can help get you used to the way that the markets behave. They can also give you a leg up when trying to separate out which pieces of information are valuable, and which are just there to entice the new investor.
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