Getting Started With Your First Investment Into Bitcoin
Trading bitcoin on the market is extremely volatile and there is an increasing amount of people investing in them with the hope to make a lot of money once the price starts to rise. For as many people who manage to make money, there will be more who lose money. After all that is how the market works.
The ones who accept this risk are the ones who can make money, but only if they are wise to a few things. One thing is certain, you need to buy as low as you can and have a lot of patience. Buying low and holding for a few years is probably the best strategy anyone can offer. Because trading in and out of the price often will end up costing you more in fees than what you eventually make.
Buying bitcoin is not a complex thing, but many are daunted by the thought of sending cash for something that only appears in an online wallet. It is not something you can actually touch and hold like real money, but it is a transaction on the blockchain which is allocated to your wallet account.
The most popular way of buying bitcoins is to obtain them from an exchange. You normally deposit some cash via cards or wire transfers then buy the bitcoin directly from the exchange. They will charge a fee for doing this so please look into the costs of this before you buy. It can be uneconomical to buy small amounts with high fees. Also make sure you are buying actual bitcoin and not bitcoin cash or bitcoin diamond. These are forks on the original blockchain, and while BCH live price is something worth trading (we need another article on this topic!) what you really want to invest in is BTC.
If you are happy with your exchange account and are able to stomach the risk that comes with cryptocurrency then go ahead and begin, but always begin small and buy low. I cannot stress this enough.
How to buy low? Well you need to follow live prices and charts for Bitcoin. Watch when price approaches previous lows on the chart, these are levels at where buyers might be lurking and waiting. Most of the rises in bitcoin price come after a strong reaction back from a long term low.
But even if you buy low, you can never be sure that you bought the exact bottom. You can only hope. However, buying as low as you can and waiting is the name of the game. Your investment might go negative at times for a while but eventually you will end up in profit as the price begins to recover.