When defining the crypto industry using a single token, it’s none other than Bitcoin. So naturally, therefore, investing in Bitcoin is often considered the first step for any individual entering the industry.
Besides, considering how BTC enjoys its position as the #1 token in the industry by market cap, it’s evident that everyone wants to invest in it.
But, What Is Bitcoin?
In simple terms, Bitcoin is a currency native to the internet. As a token that is credited with starting the crypto industry, Bitcoin was an idea of introducing alternative digital currency. One that won’t be controlled by any centralized body and remain for the use of the public. The token was introduced in 2009 by a person or group using the alias ‘Satoshi Nakamoto’ (remains anonymous to date).
Bitcoin is secured by cryptography and operates over a decentralized network, meaning any single entity does not regulate it. Besides, thanks to its PoW (Proof Of Work) consensus, this token can also be mined. Here, a network of computers solves a complex mathematical problem and are rewarded with a small number of Bitcoins in return.
Additionally, the crypto community often refers to BTC as the ‘gold standard’ of the industry. This is primarily because it is the only token to have continued with consistent performance and could scale up to the $61,000 mark in 2021.
So if you’re looking for a way to invest in Bitcoin as a beginner, this could be your ultimate guide. Continue reading as we explore the different aspects of investing in Bitcoin in the following section.
How To Invest In Bitcoin – A Quick Tutorial
People unfamiliar with cryptocurrency may hesitate to invest in Bitcoin due to the complexity of the process. But you don’t need access to any crypto company to invest in BTC.
To kick start your investment journey in Bitcoin, you can buy and hold the cryptocurrency in a digital wallet or trade it on a cryptocurrency exchange. Here’s a quick tutorial on how to invest in Bitcoin:
- Open An Account With A Crypto Exchange: The first to invest in Bitcoin is choosing the ideal crypto exchange. However, while you’re at it, remember the market is filled with options. It’s essential to do your research and choose a reputable one.
- Get A Bitcoin Wallet: To begin investing in Bitcoin, you must obtain a wallet. This digital storage device allows you to store securely, receive, and send your Bitcoins.
- Fund Your Crypto Wallet: Once you have access to your crypto wallet, the next step is to fund your account. Depending on the chosen exchange, you can add money to your wallet using net banking, wallets, credit, or debit card.
- Buy Bitcoin: Once you have a wallet, you can start buying Bitcoin. There are several ways to buy Bitcoin, including through online exchanges, peer-to-peer platforms, and even ATMs. It is important to research and choose a reputable exchange or platform to buy.
- Store Your Bitcoin Safely: After you have purchased it, it is essential to store it safely. This means keeping it secure, either a hardware or a paper wallet, and keeping it offline. This will help protect your Bitcoin from hacking attempts and other security threats.
Overall, investing in Bitcoin can be a rewarding and exciting experience. With careful planning and some knowledge, anyone can get started with Bitcoin investing. Just be sure to research, understand the risks, and diversify your portfolio to maximize your chances of success.
Ways To Invest In Bitcoin
Investing in Bitcoin can be challenging for beginners, especially if they need to learn the market movement. However, investing in BTC doesn’t need to be limited to tokens. Thanks to its popularity, you can also invest in the project via mutual funds or a futures contract.
So to help you better, we’ve listed some distinctive ways of investing in BTC. They are:
- Buy Bitcoin directly: This is the most straightforward way to invest in Bitcoin. All you need is a Bitcoin wallet (which you can set up online or on your phone) and a way to purchase Bitcoin through a Bitcoin exchange or a peer-to-peer platform like LocalBitcoins.
- Invest in a Bitcoin mining operation: While this option is not for the faint of heart, it can be a lucrative way to invest in Bitcoin. Bitcoin mining involves solving complex mathematical problems to verify transactions on the Bitcoin network. As a reward, you receive a small amount of Bitcoin for each transaction you verify. However, this option requires a significant upfront investment in specialized hardware and electricity costs.
- Invest in a Bitcoin-related company: If you want to invest in Bitcoin without owning any, you can consider investing in companies that are involved in the Bitcoin industry. This could include companies that provide Bitcoin mining services, develop Bitcoin-related software, or operate Bitcoin exchanges.
- Invest in Bitcoin through a cryptocurrency index fund: A cryptocurrency index fund might be the way to go if you want to invest in various cryptocurrencies, including Bitcoin. These funds allow you to invest in a basket of different cryptocurrencies, reducing the risk of investing in just one.
Is Bitcoin A Good Investment?
Bitcoin has been the benchmark token for the industry. Since its initial run in 2009, the token has come a long way in terms of its performance. After all, it has been the only token to scale up to the $61,000 mark in a few years. However, before you invest in the token, we suggest looking at it as a long-term investment, as the token can be very volatile over the short term.
But the token’s performance isn’t the only determining factor on whether or not you should invest in the project. So, instead of going after its scalability in the next few months, look for the project’s future approach, upcoming developments, and other latest developments.
Sadly, the information mentioned above isn’t enough to determine BTCs compatibility as a reliable investment. So continue reading as we further explore the token’s fundamentals in our case study.
Performance Since Launch
Bitcoin came out as a unique concept in 2009. Initially, the token was just another random project on the internet until it gained mainstream attention around 2016. Here’s a timeline of the events in BTCs history.
- Bitcoin was initially distributed for free in 2009.
- BTC crossed $1 in 2011 and took no time to increase by 8x in a few months.
- Fast forward to 2017, BTC propelled to success with prices soaring to $5,000, its all-time high rate.
- With active attention from big organizations like Tesla and major celebrities, BTC was able to touch its all-time high of $61,000 on 1st November 2021.
- In just 12 years, BTC managed to grow by 10,00,000% in gains.
Overall, Bitcoin has been a steady performer in the long run.
One of the main things that make Bitcoin unique is that it is decentralized, meaning that any government or financial institution does not control it. Blockchain technology creates a decentralized, distributed ledger that records and verifies transactions on a network of computers worldwide rather than relying on a central authority for verification.
This allows for the possibility of conducting transactions without needing a central governing body. In addition, this decentralization makes it difficult for governments or financial institutions to manipulate the value of Bitcoin, which could make it a more stable investment.
Another thing that makes Bitcoin unique is its limited supply. There will only ever be 21 million Bitcoins, and as of January 2023, over 19.25 million tokens are in circulation. This limited supply could make Bitcoin more valuable over time as demand increases, and the supply remains fixed.
Blockchain, the technology powering Bitcoin, is also being used as a payment mechanism. This further increases its utility, making BTC one of the most efficient use cases for concluding transactions at little to no costs.
This wraps up our section on the case study for Bitcoin. Therefore, BTC is a good option for the long term. However, since there’s no such new development on the token, it could only be wise not to invest in it as a trader.
How To Sell Bitcoin And Cash Out
To sell Bitcoin and withdraw the proceeds to your bank account, you will need to find a Bitcoin exchange that will allow you to sell your Bitcoin and transfer the funds to your bank account.
The general actions you can take to sell Bitcoin and get paid are listed below :
- Deposit your Bitcoin to the exchange. This can be done by sending it to the exchange’s wallet.
- Place a sell order for your Bitcoin. This will typically involve specifying the amount of Bitcoin you want to sell and the price you want to sell it for.
- Wait for your sell order to be filled. This may take a few minutes or longer, depending on the demand for Bitcoin on the exchange.
Once the steps are followed, the last bit is to withdraw the proceeds of your sale to your bank account. Again, the exchange will typically charge a fee for this service, and the time it takes to transfer the funds to your bank account will depend on the exchange and your bank’s policies.
Note: It is essential to research and compare different exchanges to find the one that best meets your needs. You should also be aware of the risks of trading Bitcoin, as the price can be volatile, and the market is largely unregulated.
Is It Too Late To Invest In Bitcoin? – BG’s Case Study
To understand whether or not Bitcoin is worth the investment, we first need to look into two significant aspects of the token, its future possibilities, and its past price movements. Talking of its future, there’s not much under wraps for the token.
However, we can see a notable trend once BTC follows the path of ETH and switches to a PoS (Proof Of Stake) consensus. Until then, BTC can only expand in terms of its network strength and promote faster transactions.
Now coming to the price movement, BTC is the industry’s giant! The token has made significant shifts over the past, making it normal for the project to multiply by 1,000x at any given time.
One example of this is the 2017 bull run, where the price of Bitcoin increased from around $1,000 in January to a peak of nearly $20,000 in December. This rapid increase in value led to a significant increase in interest and investment in Bitcoin.
Similarly, it is essential to note that Bitcoin’s value can also significantly decrease, as was seen in the 2018 bear market, where the price dropped from around $20,000 to approximately $3,000.
Fast forward to 2023, BTC seems to have finally moved into a rangebound motion, following nearly a year of bearish trends.
As per our research and analysis on the token, it could be the perfect entry for early investors before BTC is on its bullish run.
Note: It’s impossible to predict the future outcome for any token. Beware the market movements and predict your research before investing in the token.
Invest In BTC Wisely
Ultimately, whether or not to invest in Bitcoin is a personal decision that should be based on an individual’s risk tolerance and investment goals. Remember, it’s essential to carefully research and consider all factors before making investment decisions. All the best!