How do Beginners Invest in Bitcoins and make Money? |Golden News

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Bitcoins operate without a central authority like a government or bank overseeing them. No one entity controls or manages Bitcoin. If you’re interested in cryptography, distributed peer-to-peer systems, or economics, Bitcoin might catch your attention. While many Bitcoin enthusiasts are libertarians, people with various political views are welcome to participate in the Bitcoin community. It’s a decentralized system that attracts a diverse range of individuals interested in the technology and economic aspects of Bitcoin.

How do Beginners Invest in Bitcoins and make Money?

Many people in the United States, around 36.5 million, have invested in cryptocurrency, showing an increase from 7.95% to 14.4% based on previous stats. While the goal for most in crypto trading is to make money, it’s crucial to be cautious. In 2018 alone, Americans lost close to $1.7 billion, often due to giving up or falling for crypto scams.

Based on my experience investing in Bitcoin (BTC) and other electronic coins for a few years, here are some important points to consider before you start trading your Bitcoin:

1. Research and Learn:

Understand the basics of Bitcoin, how it works, its price changes, and the potential risks and rewards. Learn about wallets, exchanges, and how to keep your cryptocurrency secure.

2. Choose a Good Exchange:

Pick a trustworthy and user-friendly exchange that supports fiat currency deposits. Bitget is a popular choice due to its reasonable fees, security measures, available trading pairs, and user experience.

3. Set Up Your Account:

Sign up for an account on the chosen exchange, complete any necessary verifications, and set up two-factor authentication (2FA) for added security.

4. Secure Your Wallet:

Set up a secure cryptocurrency wallet to store your Bitcoin. Consider using a hardware wallet like Ledger or Trezor for better security.

5. Deposit Funds:

Deposit your $1,000 into your exchange account using a supported payment method. Understand the deposit process, associated fees, and the time it takes for your funds to be credited.

6. Place a Buy Order:

Once your funds are available, go to the trading section, and place a buy order for Bitcoin. Decide on the amount you want to invest and execute the order, choosing between market orders or limit orders.

7. Monitor Your Investment:

Keep an eye on the market and track how your investment is performing. Use tools like price alerts or features provided by the exchange to stay informed.

8. Keep Learning:

Continuously educate yourself about Bitcoin and the crypto market. Stay updated on news, market trends, and any regulatory changes. This knowledge will help you make informed decisions and manage your investment wisely.

Remember, investing in Bitcoin has risks, and it’s advisable to start with an amount you can afford to lose. Diversifying your investment beyond cryptocurrencies and seeking advice from financial professionals can be beneficial based on your individual circumstances.

Ah, Bitcoin. Imagine buying one for $0.08 in 2010; today, it’d be worth $14,000 per coin. If you invested $100 in 2010, it would now be a staggering $17.5 million. But, are bitcoins the future, or are they headed for a crash?

Rather than giving you direct investment advice, let’s explore some facts about bitcoin as an investment and look at historical bubbles. Then, you can make your own decision.

==> The Dot com Bubble, 2000

Remember the “.com” bubble? It happened when companies with “.com” in their name became the rage. The NASDAQ, a stock market, soared from 1000 to 5000 in just 5 years, a whopping 500% increase. But it was all based on speculation, not solid facts.

People were so eager to buy any internet-based company that they ignored the fact these companies weren’t making money. Money was flowing, funding was easy, and a bubble formed. Then, in 2001, it burst. Companies worth millions were suddenly worth nothing. The stock market crashed, and trillions of dollars were lost by investors.

==> The Housing Bubble, 2006/2007

Remember the recession caused by the “.com” bubble? After that mess, interest rates dropped, and investors ditched the stock market for real estate. Lending requirements practically disappeared, and housing prices shot up. Speculators joined the party, making quick cash. Another bubble was born.

But, as expected, it burst in 2007/2008 with Lehman Brothers collapsing. This led to the biggest recession since World War II. Millions lost money, homes were wrecked, and it took years for the economy to bounce back.

summary

Making money with Bitcoin as a beginner involves various approaches. One common method is trading crypto on platforms like Binance, but it requires a good understanding of the market and is not a quick wealth solution. Another option is providing services or setting up an online store for e-commerce, enabling customers to make purchases with Bitcoin. It’s important for beginners to research and learn about Bitcoin basics, choose a reputable exchange, secure a wallet, deposit funds, place buy orders, monitor investments, and continuously educate themselves about the market.