How To Invest In Bitcoin & Other Crypto Currencies
If you don't already know bitcoin is set to be the future for currencies and is set to become a worldwide used currency within the next 5 - 10 years. (SCROLL TO BOTTOM TO START TRADING)
What is Bitcoin
Bitcoin is a form of digital currency, created and held electronically. However, no one controls Bitcoin. Bitcoins aren’t like printed dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems to mine the coin. Unlike money bitcoin is limited in quantity and only 21million coins can ever be created/mined.
Before I show you how to start investing you need to be made aware of the risks. Bitcoin has helped me to generate an income from money that otherwise would sit in the bank. However, I can afford to lose what I have invested as this is a live trading environment.
Bitcoin is one of the most volatile environments ever rising nearly 2000% in a year. The profits in Bitcoin can be unlike any other currency or asset, but due to its extreme volatility it can drop hundreds of dollars in just minutes.
As you can see below here is an great example of just how extreme Bitcoin is as it increase from £9678 to £12110 in the same day, that's a 22% increase!
Ethereum enables developers to build and deploy decentralized applications. A decentralized application serve some particular purpose to its users. Bitcoin, for example, provides its users with a peer to peer electronic cash system that enables online Bitcoin payments. Because decentralized applications are made up of code that runs on a blockchain network, they are not controlled by any individual or central entity.
Immutability – A third party cannot make any changes to the data.
Corruption & tamper proof – Apps are based on a network formed around the principle of consensus, making censorship impossible.
Secure – With no central point of failure and secured using cryptography, applications are well protected against fraudulent activities.
Zero downtime – Apps never go down and can never be switched off.
Take a look at the increase of Ethereum from £356 - November 28th 2017 to roughly £506 - December 14th. Although this may seem like a relatively slow climb holding multiple positions in Ethereum will quickly build up a profit. As mentioned in previous posts crypto currencies are not get rich systems and do not guarantee any safety of your money. However if you are smart, do your research and invest money that otherwise would be left in your bank account, you can soon create a good profit.
So now you have learnt about the benefits and risks of investing in crypto currencies, here is what you need to start investing.
Firstly research before you invest in any currency my personal investments include both Bitcoin and Ethereum, but there is a huge range of different coins that are set to do well over the next few years. Make yourself aware of the risks, history and future before you buy.
Secondly you will need to have ID, which will be verified when setting up an account with Coinbase. Download the app on your phone, its free and is very easy to use! TIP - download the Microsoft 2-factor authentication app and connect with your Coinbase account to make it a lot more secure. Alternatively you can turn on password for your Coinbase app in the apps settings to prevent unwanted users accessing your account.
Finally you will need an investment. Now its easy to through money in when prices may same low or when you have made some profit but always ensure you have watched the market and know this is a live environment so you can lose money just as easily as you put it in. Now you can invest any amount you wish, although for maximum profit gains I would recommend going with £100 as a minimum. If you are starting with less do not fear you can still make some gains, just at a steadier pace.