Amid an unprecedented rise in the bitcoin rate, the crypto field is capturing the minds of more people. Many of them did not even think about such concepts as cryptocurrency trading, cryptocurrency exchanges, or blockchain technology and did not track the bitcoin rate daily before.
One may find it challenging to enter the cryptocurrency market despite it looks appealing. Indeed, there is no centralized government that could support and protect an ordinary investor at the moment. Rumors and stories about digital currencies and tokens cause a lot of concerns. However, getting your first bitcoin might not be that difficult with a help few simple tips.
Aspiring bitcoin investors will be able to increase their chances of achieving their goals in the digital money world, as well as make investing and trading cryptocurrencies less stressful by following the experts’ recommendations below.
As each of us knows very well, any investment is a risk. In the case of Bitcoin, this risk is even higher due to its volatility. Many novice investors, having heard many success stories, invest all their funds in cryptocurrencies at once. Many of them think their investments will double or triple in a few days. Unfortunately, this happens very rarely. Besides, cryptocurrencies can lose 20-50% in value in just one day. When this happens, the vast majority of beginners rush to exit the market, fixing their losses as soon as possible.
So, you should keep in mind that Bitcoin will not turn you into a millionaire overnight. Investing huge sums at the very beginning, you are risking to get even more problems than benefits.
Several investment strategies work with Bitcoin quite well, and the most successful are often the most cautious ones.
How to buy cryptocurrency?
Nowadays, buying cryptocurrency is fairly simple. You can do this in the following ways:
- Offline (with cash)
- Directly online
- On centralized exchanges
- On decentralized exchanges
Each of these methods is more or less suitable, given certain circumstances. For example, having a good friend to trust, one can buy a cryptocurrency for cash. And it is the most profitable and simple option. But one should be 100% certain of the counterparty.
One can also buy cryptocurrency online directly from a seller. There are special services helping to find sellers. It is important to pay attention to their rating and the number of transactions carried out. If this is a brand new or suspicious account, you better refrain from the transaction.
Perhaps the most popular method of buying cryptocurrency is centralized exchanges like Binance, EXMO, etc. To perform full-fledged work with such services, one needs to register and confirm identity. This means to send photos of documents, as well as selfies with an open passport, to the technical support. In addition to losing anonymity, the verification procedure may take several days.
And, finally, decentralized exchanges. Such sites are quickly gaining popularity among market participants. They don’t require registration, and cryptocurrency exchange performs in just a couple of clicks. The home page usually contains a litecoin to bitcoin calculator for users to select these or any other coins. Conversion takes place in a matter of minutes and it is completely anonymous.
Prepare for ups and downs as Bitcoin is known for its volatility. Even a strong drop in the exchange rate does not mean an irreparable catastrophe. Although it is difficult to continue to think straight being rapidly brought into the red zone.
Diversification is a great strategy to offset some of the volatility, but it takes some effort. Of course, the most famous (and the most successful so far) strategy for bitcoin is “buy and hold”, regardless of market volatility. You can use it as well. If you force yourself not to follow the market trends, it will help you stay calm while ups and downs are happening.