Bitcoin is the first-ever cryptocurrency that started in 2009. At its inception, the value of Bitcoin was not even one US dollar. However, in the last 11 years, it touched an all-time high of almost $65,000. Though the price did not shoot up continuously, Bitcoin, just like most securities had its fair share of ups and downs. Regardless, Bitcoin tends to be a great investment for those who have a risk appetite.
A lot of young investors are now aware of the existence of cryptocurrencies. However, some people might not be aware of the ways through which they can invest in them. If you think you are one of them, we are here to help you out. In this post, we would take a look at the different ways through which you can invest in Bitcoin. We will also be guiding you with the steps that you have to take for investing in Bitcoin.
Things you need before investing in Bitcoin
Before you make any investment in any security like stocks, crypto, gold, etc. you need a set of documents that are the prerequisites of investing.
● Your personal details:
While opening an account with a broker, you need to submit some documents that can act as proof of identity. This is done to ensure that the details you put while opening an account are legitimate. You can use many documents like Aadhar, Passport, Driving License, etc.
● Bank account details: Funds are one of the most basic requirements for investing. Therefore, you need to submit your bank account details to your broker. Through this, your bank account gets linked with the broker and you can transfer as well as withdraw funds easily. This is a one-time process that saves you from the hassle of managing funds with brokers.
● An active and secured internet connection: This is important to ensure the safety of your funds and securities. Open networks that are accessible to everyone can sometimes be risky. Therefore, you must avoid using them.
Steps to invest in Bitcoin
● Open an account with a Bitcoin exchange: Since Bitcoin is a decentralized currency, there is no particular person or company from whom you can purchase it. Therefore, you create an account with a Bitcoin exchange. These exchanges are basically the intermediaries that help buyers connect with sellers.
There are multiple cryptocurrency exchanges from where you can invest in Bitcoin. It is important to note that each one of them is different and offers different services. In fact, you might get to see a slight change in the rates of the cryptocurrency as well. Therefore, it becomes important that you choose a cryptocurrency exchange after doing some research. That said, some of the most common cryptocurrency exchanges in India are Binance, WazirX, Coinbase, etc.
● Look for a Bitcoin wallet: Once you have purchased Bitcoin, you need to have a wallet to store them. Most cryptocurrency exchanges provide you with the option of storing your Bitcoin in the wallet provided by them. This is commonly what we commonly term as Hot wallets.
Hot wallets are known to be the most convenient ones because they are managed by the exchange itself. Some of the most commonly used hot wallets are Electrum and Mycelium for computers and mobile phones respectively.
However, if you are looking for security, cold wallet need to be your chosen option. This is because of that fact that its easier to hack hot wallet, and this might lead to loss of crypto for investors. You can store your coins in these as they are extremely safe.
● Link your wallet and bank account: Once you own a wallet, you have to connect it with your bank account. This is important because it allows you to buy or sell cryptocurrencies. On the other hand, you can link your bank account with the crypto exchange as well. It works equally well.
After doing all of this, you can begin investing in Bitcoin. If you are a beginner, you must invest after considering different factors, especially the risk involved. For doing this research, a person must have basic knowledge about Bitcoin.
If you feel like you are not knowledgeable enough to invest in Bitcoin, you must check out our upcoming online cryptocurrency course. We have designed this course keeping in mind the need of those who want to learn cryptocurrency online. It covers all the crucial topics such as the cryptocurrency market, types of cryptocurrencies, bitcoin price history, etc.
Not only will you get to learn about the theoretical aspect of cryptocurrencies but you will learn their practical implementation as well. Therefore, you will learn about cryptocurrency converter, bitcoin news, bitcoin price prediction, and other relevant things.