Guide Bitcoin and CryptoCurrencies: Entering The Market Guide

Sep 26, 2012
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You may have heard that over the past few months, millions are going "gaga" over Bitcoin, due to its huge increase of value just within this year. Over the past few days as well, our community is taking note, with some getting more and more interested about it.

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But first, what is Bitcoin?
It is I think an outdated question, but for those who really do not have an idea, bitcoin is a currency that is decentralised / not regulated by banks. This gives the freedom for people to transact and trade with almost complete anonymity. This type of decentralisation is what entices people to buy in. With all the scare of a lot of people wanting to know any information about you, a sign of anonymity often comes as a blessing.

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However, before you jump in, here are a few notes:

1. Bitcoin, or any other cryptocurrency in general, is heavily observed by government agencies. Due to the anonymity of the owners of bitcoins, this initially became the go to currency of black markets, including hackers, traders in the deep web, or just generally bad guys. It is rumoured though that the wallet that has the highest amount of bitcoins belong to the US gov, but we'll never know.

2. Bitcoin is not entirely anonymous. People can still track your public wallet, in which it shows your amount, people can also see to which address you sent your coins, or whether new coins came in, and most especially, it is possible, for governments at least, to know if you have withdrawn your coins to a bank. It's not entirely fool proof, but as long as it's still a crypto, no one will know who the owner is.

3. Volatility is the problem with cryptocurrencies. Think of it as the usual stock market, value rises and falls all the time. However, the biggest catch is, while Stock Markets declare final values at the end of each trading day, cryptocurrency values get updated in real time, being all handled online. One minute, bitcoin could cost as much as £1,000, the next minute it could go as low as £100. There is no way for you to freeze the value, and you just have to swallow it if the value goes down. To get an idea, do a google search and type in "btc to gbp". Google will show the current trade value, but refresh it after a couple minutes, you'll see that the value has already changed. Yes, it's that fast.


Jumping in to the bitcoin bandwagon immediately is not as easy as it looks, but it could make or break an investment (buy low, sell high). Of course, this is similar to business, and you should only play around to what you could lose. Just take note that the current value of BTC is around £13,000+, and at the moment, movement have become slower than the past few weeks / months. Should you want to still invest though, here's a simple guide for you.

Important: Only invest what you could lose. Bitcoin or any other cryptocurrency is pretty volatile, and values change all the time. If you know how to gamble with the Stock Market, then playing with cryptos will be easy for you.

First thing you should know is that you should get a wallet. This wallet will be... by the word itself, your wallet to store your cryptocurrencies. Exchanges also offer wallets, but you give them the go to signal of handling your cryptos. Being safe about your money is important here, so go have a separate wallet of your own.

I cannot comment on which platform to use for your wallet, it will entirely be dependent on your personal preference. Whichever platform or method you use, it is important to keep your wallet secure. Say if you chose to use a paper wallet, keep the paper wallet in a dry, safe place. Or, keep your private keys and passphrases safe, away from the web.

It is also important that this time, you should practice using passphrases instead of the usual password format. Think of 12 random words and type them all together as one long passphrase. This is because cryptos are targets for hacking, and keeping your wallets secure is of the utmost importance. For a list of wallets you could use bitcoin.org as a guide:
https://bitcoin.org/en/choose-your-wallet

Now, how to buy them? Generally, this one gets a bit tricky. Bitcoin is widely available, but this step is where most get scammed. There are a lot of exchanges out there that trade real money for bitcoin, but as always, perform due diligence before using that platform. As a tip, the most popular one is Coinbase, which accepts credit cards (in some countries). You can get your bitcoin there, then later on send it to your wallet for safekeeping.

** Unlike regular currencies, Bitcoin can be divided up to 8 decimal places. This means that 0.00000001 still has value. It is not necessary to buy 1 BTC, you can buy them even as low as £10.

At this point, all you have to do is trade, or hold those coins for dear life. It is up to you of course on how to use them, just do not forget where you stored your BTC. In fact, a few of the top overall BTC owner accounts have been untouched for years, meaning they have these insane amounts but can no longer access them due to forgotten or missing keys. Keep your keys safe always.

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Just imagine these top accounts and their current values, if only we have been in the bitcoin business sooner!
https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html


That being said, bitcoin is not the only cryptocurrency out there. There are also other ones, or Tokens, which are pushing for easier crypto transactions which you could use like real world money. Have a look around, and see what else is out there!

Bitcoin is at an all time high now, but always be sure you are ready to invest rather than just immediately jumping on the hype!
 
Feb 25, 2020
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I'm also interested in investing with cryptocurrency but I'm still not sure how safe my money will be and how profitable it will be. Thanks for sharing this information.
 
May 26, 2021
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Although bitcoin is more convenient and safer than the money we are used to, we should still be wary of them. First, it is very easy to burn out. At the start, as a rule, most people lose money. Buy strictly on the decline and do not sell until it rises again. This is very important if you want to get rich on it. You also need to find your strategy for which you will make a purchase. By the way, I always transfer btc to inr, so it is more convenient for me to evaluate the cost and draw conclusions. In any case, always follow the strict rules described by the commentator above. These are the basics, but these are the basics. without which it is very difficult to move on. Good luck!