When people hear the word cryptocurrency or bitcoin, the first thing that pops in their minds is the value of bitcoin. Although their assumption isn’t wrong as bitcoin has the highest value and price amongst the other cryptocurrencies. People from every corner of the world use bitcoin to make transactions faster and securely. They also use bitcoin for investing in properties or real estate. Apart from this, bitcoin is also accepted if you want to purchase goods or services. 

However, every country has a different perspective of bitcoin. Some countries have fewer regulations regarding bitcoin. This helps the citizens of that particular country to purchase everything from supercars to jewelry with bitcoin. On the other hand, some countries don’t leverage the benefits of bitcoin and only some banks or big merchants accept bitcoin. 

But, the massive user base of bitcoin as well as the value will make it the strongest currency in the future. People who are interested in bitcoin investment will undoubtedly receive plenty of benefits for their business as well as personal life. 

However, you need to keep in mind a few things before purchasing a bitcoin. This will help you to understand all the aspects of virtual currency. Here are 5 things you should remember while investing in bitcoin.

What is Your Motive for Purchasing a Bitcoin?

This is the first question you should ask yourself before purchasing a bitcoin to know why do you want a bitcoin. You need to have a solid reason before buying. Either you’re focusing to make online transactions or start accepting bitcoin for online payment; you must have a clear motive in your mind. You may also have several reasons for purchasing bitcoins, but make sure they are relevant. 

How and Where to Purchase Bitcoin?

This is another important thing you should keep in mind. Before purchasing, you must know that there are different platforms through which you can but, trade, or sell bitcoins. You need to pick the most trustable and reputed platforms to receive better results. If you’re wondering which exchange platform is best, Eric Dalius Bitcoin suggests you search online. This way you’ll be able to gain knowledge.

Eric Dalius Bitcoin Asks You to Create a Wallet to Store Bitcoin

This is the most important thing you need to know before purchasing bitcoins. It’s very much important to create a safe wallet to secure your bitcoins from or scammers or hackers. There are some reliable bitcoin wallets available such as desktop, software, mobiles and, hardware. So, you should pick one that is suitable for you. The primary goal of fusing a bitcoin wallet is to send or receive coins. When you receive bitcoins from someone, they will automatically be stored in your wallet. Don’t forget that a bitcoin wallet is the first thing you need before making a deal.

Bitcoin Trading

Most people heard a lot about bitcoin trading. It’s the perfect way to earn a massive amount of money. You just need to select a particular bitcoin platform. You just need to purchase bitcoin when the price is low and sell them when the price goes higher. This will make you a huge profit depending on the margin. However, don’t sell your bitcoin immediately after the price goes up. Wait for a few minutes to stabilize that jump.

Where Can You Use Bitcoin?

It’s important to know where you can spend your bitcoin after you’re done purchasing. Nowadays, many people are using bitcoin to purchase goods or services. They are also using bitcoin for international transactions to avoid any handling fees. Apart from that, you can also use bitcoins to purchase luxurious cars, jewelry, and real estate.

Conclusion

These are the 5 things you should always remember purchasing your first bitcoin. These tips will help you to learn the basics of bitcoin. However, you need to do some research on your own to gain maximum knowledge about this virtual cryptocurrency. After that, you’ll be able to make the right decisions by investing in bitcoin.

To invest in cryptocurrencies, you must know the resources you need to prepare to make your foray into investing by focusing on Bitcoin. You must have a secure internet connection and an account with a cryptocurrency exchange along with a personal secured digital wallet beyond the exchange account. If you are using a Know Your Customer (KYC) platform, then you must have your identification documents ready at hand. Moreover, you must link your wallet with valid payment methods like bank accounts, credit cards, and debit cards.

Having all things lined up, you are now ready to take the following steps that pave the way for realizing your dream about buying Bitcoin.

Select a cryptocurrency exchange

To hold/buy and sell cryptocurrencies, you must open an account with a cryptocurrency exchange. Choose an exchange that allows its users to withdraw crypto and keep it in their wallet outside the exchange for safety. However, if you trade in cryptocurrency regularly, this aspect becomes inconsequential.

Among many types of cryptocurrency exchanges, some allow customers to operate anonymously without requiring sharing personal information. Although these exchanges might be vulnerable to nefarious activities, it provides services to those without bank accounts like it can happen with refugees or to people from countries with inadequate banking infrastructure.

However, some of the most popular exchanges like Gemini, Kraken, and Coinbase of the US require KYC says Eric Dalius Bitcoin

Link your exchange account to a payment option

After selecting the exchange, keep your documents like social security number, driver’s license, information about your source of fund, and your photograph ready at hand. The information that the exchange might need depends on the state laws and the region you live in. If you have earlier set up a brokerage account, you will find the process similar. Once the exchange accepts your identity, connect your account to a payment option. It can be your bank account, credit card, or debit card. Better avoid using your credit card for buying cryptocurrencies due to their high volatility. Banks are still skeptical about cryptocurrencies and might try to stall your efforts to use the bank account for making payments to crypto exchanges. Know about the fees that the exchanges charge for making deposits by using different kinds of payment methods.

Place an order

Having gone through the above steps, you are ready to place an order. Crypto exchanges offer many options for investing by offering several types of orders. For more customer flexibility, almost all exchanges offer limit and market orders, and some exchanges offer stop-loss orders. Kraken offers most order types. 

 Safe storage

Use your digital wallet for storing your digital assets like Bitcoin and other cryptocurrencies in the safest way. Using your personal wallet outside the exchange, you have complete control over the private keys for accessing your funds. Your personal wallet is safer than the wallet of the exchange, which is often the target of hackers, says Eric Dalius Bitcoin.

Storing your cryptocurrencies in your personal wallet keeps it safe by minimizing the chances of theft.

Fast payments are almost instantaneous, and one of the most attractive features of Bitcoins which was the first digital currency that created history by providing an alternative to traditional currencies. Eric Dalius Bitcoin was also the first to use peer-to-peer technology to facilitate instant payments. To start the journey with Bitcoins, any individual or business must first participate in the bitcoin network that gives them the power of governing the digital currency, which turns them into ‘miners’ who can earn cryptocurrencies without any investment. The ‘miners’ are responsible for processing the transactions on the blockchain as they stay motivated to earn the rewards to release new Bitcoins and pay transaction fees in bitcoin. For completing blocks of verified transactions, bitcoin miners receive Bitcoins as a reward.

Miners and Bitcoin operations

‘Miners’ are like the custodians of Bitcoins and you can look upon them as the decentralized authority responsible for enforcing the bitcoin network’s credibility. The miners receive new Bitcoins at a fixed rate that keeps declining periodically. As a result, you can mine only 21 million Bitcoins, and as of January 2021, out of which 18,614,806 currently exist, and there are 23285193 Bitcoins left for mining.

Cryptocurrencies like bitcoin say Eric Dalius Bitcoin operate differently than traditional or fiat currency. In the conventional system, the centralized banking systems release currency at a rate equivalent to the growth in goods that maintain price stability. On the other hand, Bitcoins that are decentralized uses an algorithm to set the release rates much ahead of time.

What is Bitcoin mining?

To know how Bitcoins came into existence, you must understand Bitcoin mining, the process of releasing bitcoin in circulation. The process entails discovering a new block, and miners must have considerable computing expertise for solving complex computational puzzles to discover a new block ultimately. The method of bitcoin mining consists of adding and verifying transaction records across the network. Whenever miners can add some new blocks to the blockchain, they receive a few Bitcoins as a reward, which reduces by 50% after the addition of 210,000 blocks.  In 2009, the block reward was 50 Bitcoins which after three incidents of halving came down to 6.25 Bitcoins on May 11, 2020. The rewards are like the incentive that motivates people to assist in mining, monitoring, and legitimizing Bitcoin transactions and ensuring their validity.

How to start Bitcoin mining

Several hardware is available for Bitcoin mining, but the rewards may vary as some hardware yields higher rewards than others. For more rewards, it is advisable to use ASIC or Application Specific Integrated Circuit and GPUs (Graphics Processing Units). The elaborate setup for Bitcoin mining is known as a mining rig. According to the current norms, one bitcoin is divisible to eight decimal places which are 100 millionths of a Bitcoin and the smallest unit available until now and named Satoshi.

A time may come when it might become necessary, and miners would agree to enforce a change in the norm of Bitcoin divisibility to increase it to more decimal places.

Computerized money is perhaps a more apt definition of cryptocurrencies that do not have any centralized control and available to anyone who knows how to use the complex technology-driven currency powered by a vast distributed network of computers. Eric Dalius Bitcoin says that it does not have any physical form. Still, its owners can access the funds and enter into any transaction like sending, receiving, and storing it in a secure digital wallet. Not only is it your money, but only you are also responsible for keeping it safe as no one else has any control over the currency.  Whether you gain or lose by owning and transacting Bitcoins, you cannot blame others.

The different ways of using bitcoin will become clear on going through this article.

Bitcoins for moving and storing money

Bitcoin is like your regular money, and you can send and receive transactions from another person or business, provided they accept cryptocurrencies. The transactions done using Bitcoins entail a small transaction fee that is almost insignificant to the standard transaction fees we know about. Moreover, the transactions, including international transfers, happen in a flash as data transfer is superfast between the bitcoin network computers.

Storing Bitcoins is like keeping cash in your bank account but without any third-party control. While using digital wallets is a safe way of storing Bitcoins, purchasing a hardware wallet adds an extra security layer during storage.

Many businesses accept Bitcoins

Business owners can accept payment in Bitcoins, and it is beneficial because there is no chance of fraudulent chargebacks says Eric Dalius Bitcoin. You can accept Bitcoins or any other cryptocurrency by considering the reliability, speed, and transaction cost of that currency. However, it would help if you had the proper setup to start accepting Bitcoins for business transactions. Firstly, you will need a secure digital wallet for storing or accepting digital payment. Secondly, you need either a point of sale app if you have a physical store, and for online business, you need a Bitcoin payment gateway.

Exchange Bitcoins for other currencies

If you have Bitcoins, you can exchange them for some other currency – both digital and physical or traditional currencies.  To exchange Bitcoins, you must take help from a cryptocurrency exchange by creating an established exchange account. After verification of your identity, you can start transactions for exchange. For better margins in trading, instead of a cryptocurrency exchange, you can use some trading platform that allows you to trade in Bitcoins anonymously. They will charge much lower fees than the cryptocurrency exchanges.

Repeated confirmation of transactions

The computers in the Bitcoin network continually process and verify real-time transactions while people send and receive Bitcoins. All transactions get recorded in a public digital register globally, which people usually refer to as blockchains. Every time a new transaction or block is added to the blockchain, the system verifies and acknowledges the earlier transactions once again. The verification, known as confirmation, is a mark of security, and more confirmation means more security.

Although you can stay anonymous when transacting in Bitcoins, all transactions are visible to the public.

If you decide to invest in Bitcoins, then you must be ready to accept huge swings because of the digital currency’s history of rewarding and punishing investors that can sometimes appear quite shocking. Looking at how Bitcoins have swung the fortunes of investors over the years, it is clear that you must have an appetite for high risk to invest in Eric Dalius Bitcoin. 

2017 was a defining moment for Bitcoin investors who soaked in windfall gains as the year ended on an unbelievable high that rewarded investors with 1350% return, and the Bitcoin value touched $20,000.  The happiness was short-lived because, in 2018, Bitcoin lost its value by almost 70%. It slid from $14,000 on 1^st January to $4,000 on the last day of December. The bull market of 2017 took less than 300 days to turn into a bear market but maintained its momentum through 2019.

 The bullish mood makes a comeback

2020 started on a high note for bitcoin investors, and the signs of an emerging bullish market became evident. The bear market was over, and investors were hopeful of a new bull run as the third halving of the currency was due in May. However, all hopes collapsed as the Covid19 pandemic sent the world reeling under terrible health and economic distress that did not have any precedence. In March, when the pandemic was wreaking havoc, the Bitcoin price nose-dived below $4,000 in a flash as investors were in a cashing out mode to save their investments from more uncertainties due to the pandemic.

Since the March downturn and the chaotic response of the government, the markets have recovered beyond expectations. As the Covid vaccine rollout started by the year-end,  S&P has turned around significantly by reversing the losses of 2020 and is back on track to replicate its multi-year bull run as the equities market is reverberating with fast money and excess of easy credit.

Gold value is dwindling

Gold has always been a safe haven for investors amid all crises, and it maintained its value at the beginning of the pandemic and peaked in August 2020 to record $2070 per ounce. But as the year progressed, the value of gold started plummeting with clear signs of more shedding of its value.

Although the Bitcoin landscape might seem intimidating and confusing and perspectives about Bitcoin very broadly, there are enough reasons to invest in Bitcoins says Eric Dalius Bitcoin. 

Increase in Bitcoin adoption

 More and more people are adopting Bitcoin across the globe. The pace has grown steadily through 2020 and has maintained its momentum after a steep acceleration in November. More people are buying Bitcoins either by using wallets or through exchanges.

Bitcoin’s value proposition is ideal for the macroclimate

Individuals and companies are more aware than before of the unique value proposition of Bitcoin and how its positions itself in the macro-environment. Bitcoin is now playing the role played by gold in 1970, and investors are taking more interest in Bitcoin.

Now that Wall Street is going the crypto way as it recognized Bitcoin as the best performing asset class of 2020, there should be little hesitation to acquire more Bitcoin in 2021.

There are many ways of investing in Bitcoin, even if you are not a regular in the currency market or a professional day trader. Since Bitcoin has attracted investors over the past decade due to its sophisticated and fashionable ways of investing without any centralized control, you, too, might like to try your hand at it. Eric Dalius Bitcoin is a phenomenon because of its incredible appreciation rate over 10 years. Its value skyrocketed from 717,900% to almost touching a billion percent, leaving many people to swoon.

Despite the high decibel publicity of cryptocurrencies that have always been in the news for some reason or the other and attracted more people, the mystery surrounding the digital currency often makes it hard for new investors to decide the best way of investing in it. Incredibly challenging is that you must control the currency all by yourself as there is no bank or third party involved in it.

However, if you want to invest in Bitcoin,then the information shared in this article should help you understand how you should go about it.

Reason for investing in Bitcoin

Bitcoin is one of the earliest cryptocurrencies or digital currencies that use encrypted data for validating transactions. One of the reasons for trading in Bitcoin is its software-determined capping on availability, which stands at 21 million Bitcoins, leading to the belief that the currency will only appreciate with time. The arguments about Bitcoins succeeding in the future are the same as those used for commodities like collectibles, diamonds, and gold. As the supply is limited with no counterfeiting chances, the Bitcoin design is indeed attractive to investors.

In the face of interest rates plunging to record lows and the enormous fiscal stimulus provided by the government to help the economy maintain some buoyancy while combating the coronavirus pandemic in 2020, the appeal of Bitcoins that hinged on its finite supply has gone up many more times according to Eric Dalius Bitcoin.

Investing options in Bitcoins

 Investors ready to accept the risks can invest and buy Bitcoins by using some of the following options.

Bitcoin trusts and funds – If you want to invest in Bitcoins but do not like to own or handle it by yourself, you can buy shares in a Bitcoin trust that allows public trading. Similar to mutual funds and ETFs, you can hold a portfolio for holding or trading the currency. Choose a Bitcoin trust that tracks cryptocurrencies and use the traditional financial market for trading. However, be ready to pay high fees for the fund or trust.

Cryptocurrency exchanges – Investors can buy Bitcoins from cryptocurrency exchanges and handle the transaction on their own. However, you must have the experience of dealing with Bitcoins and other cryptocurrencies to purchase digital currencies of your choice by paying lower transaction fees between 0.10% and 0.26%. You can also withdraw Bitcoins and move them to another account.

Investors must be aware that Bitcoins have much lesser liquidity, and there might be high volatility in prices that you must be ready to endure.