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Bitcoin (BTC) captured the imagination of investors globally after it first started trading in the early 2010s.
Mainstream Wall Street financial investment firms and hedge fund managers are looking to include bitcoin in the portfolios of their clients. Some even consider BTC to be a safe-haven investment. The tribe is growing by leaps and bounds with every passing day.
Eager to join this rapidly growing community of bitcoin investors, yourself? Then, there are a few things that you need to consider. Before making the move.
Study About Bitcoin
Bitcoin is a very different asset as compared to its traditional counterparts. Make it a point to go through the details of how it works, the underlying mechanism, etc.
Start by reading the white paper. You can also check out our bitcoin 101 article. https://wazirx.com/blog/what-is-bitcoin/
Go Through BTC Development Activity
A cryptocurrency’s success can be gauged from the development activity surrounding it. Bitcoin has a thriving community of developers and contributors on Github. All of them work to keep Bitcoin Core, bitcoin’s open-source software alive and running.
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As a part of your study, you can check out all the entries there. The video below also gives an insight into bitcoin’s development progress from 2009-2018.
Analyze the Market
Market analysis is crucial and mandatory. The bitcoin market has showcased incredible efficiency with 99.98% uptime since its inception in 2009. But, it still makes sense to do some research on how it has grown since the very beginning.
Bitcoin has the largest market capitalization amongst all cryptocurrencies. The latest figures point at a $175 Billion valuation. It represents the size of the entire bitcoin market and is calculated by multiplying BTC’s price with the available supply.
Since we mentioned supply, it is imperative to mention that bitcoin has limited supply and issuance. At the current rate, approximately 900 bitcoins are created every day which will keep diminishing until the cap of 21 million coins has been reached. As of writing, around 18.4 million BTC are in circulation.
Be a Part of Bitcoin Communities
Your own study and research can seem insufficient sometimes. The bitcoin market is evolving and so are the communities talking about BTC. When it gets daunting to figure out ways to invest, relevant groups can save your day. Become a part of Telegram forums like IndiaBits, Bitcoin India, WazirX to learn more and stay updated.
Keep an Eye Out for Scammers
You must know that like every other investment market, the bitcoin space too has its share of scammers. Cybercriminals try different methods to convince you to give up your BTC.
Sometimes they pose as someone you trust. Other times they just pick up your email, cell phone numbers, etc. right from your ‘accounts on the internet’. You must be aware of the tricks employed by these online robbers and plan adequate security for your BTC investment.
Learn Technical Analysis
Stock market traders heavily use technical analysis to place their trading/investment bets. The tools are highly reliable and can be used extensively to make prudent investment decisions.
In your study and research, you will come across a variety of crypto technical analysis (also called TA) articles on the internet. These articles quantify trades and help investors make informed decisions. Consider learning TA to benefit from your crypto-asset investments.
In India, the National Stock Exchange provides several live courses for beginner traders and investors. The material may be designed for traditional financial markets but can be used for cryptocurrency trading and investment as well. You can check them out here: https://www1.nseindia.com/education/content/online_courses.htm
Be Prudent in Investing
Bitcoin is an asset with a high risk/reward ratio. This means that the returns potential and the possibility of losses both are extremely high.
Right from the start, you should be careful in allocating funds. Invest in bitcoin using only the money that you can afford to lose.
And like all other assets, it just doesn’t end with the investment. You must make it a point to track the value of your funds. You can check the latest bitcoin price movements in the ‘Markets’ section on the WazirX app. For more information on how to use the app, check out this video below:
Bitcoin investment can open up new opportunities for wealth creation. There is a learning curve involved that needs to be traversed diligently first. The aforementioned tips will provide you with the necessary impetus in building a strong knowledge base regarding Bitcoin‘s mechanism and market structure. We just want to ensure that your journey in becoming a successful and sustainable bitcoin investor begins with a solid head start.
Further Reading:
4 Things to Consider Before Investing in Cryptocurrencies
8 Benefits Of Investing In Ripple (XRP)
Why Start-ups Should Consider Using Bitcoins
5 Things to Keep in Mind While Buying or Selling Ethereum
Frequently Asked Questions
What Are The Best Cryptocurrencies To Invest In?
The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.
How Does Bitcoin Technology Work?
The blockchain is the foundation of Bitcoin. It is a decentralized, distributed ledger that tracks the provenance of digital assets. The data on a blockchain can't be changed by design, making it a real disruptor in industries like payments, cybersecurity, and healthcare.
Which Cryptocurrency Is Best To Invest In 2021?
Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.
Can I Invest In Cryptocurrency?
Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.
What Is Bitcoin?
Bitcoin is a decentralized digital currency that may be purchased, traded, and traded without intermediary like a bank. Bitcoin is built on the blockchain, which is a distributed digital ledger. Wei Dai suggested a new kind of money that relies on cryptography rather than a central authority to oversee its production and transactions on the cypherpunks mailing list in 1998. Bitcoin was the first application of that notion. In 2009, Satoshi Nakamoto sent out the first Bitcoin specification and proof of concept to a cryptography mailing group.
Is Bitcoin Mining Free?
Bitcoin mining isn't free, but it can be tried on a budget. Bitcoin mining is an essential part of the blockchain ledger's upkeep and development and the act of issuing new Bitcoins. It is accomplished by the use of cutting-edge computers that tackle complicated computational arithmetic problems. The effort of auditor miners is rewarded. They're in charge of ensuring that Bitcoin transactions go off without a fuss and that they're legal.
How Many Bitcoins Will Ever Be Created?
The source code of Bitcoin stipulates that it must have a restricted and finite quantity. As a result, only 21 million Bitcoins will ever be generated. These Bitcoins are added to the Bitcoin supply at a predetermined rate of one block every ten minutes on average. The supply of Bitcoins will be depleted once miners have unlocked this number of Bitcoins. It's possible, however, that the protocol for Bitcoin will be altered to allow for a higher supply.
How Much Is 1 Bitcoin Worth Today?
Check out the current price of Bitcoin on the WazirX exchange. Bitcoin's value is primarily determined by its supply and demand in the market. Other elements have an impact on its worth. Its intrinsic value can also be calculated by calculating the average marginal cost of producing a Bitcoin at any given time, based on the block reward, electricity price, mining hardware energy efficiency, and mining difficulty.
How Does Bitcoin Work?
The blockchain, a distributed digital ledger, is what Bitcoin is based on. As the name suggests, blockchain is a linked database made up of blocks that store information about each transaction, such as the date and time, total amount, buyer and seller, and a unique identifier for each exchange. Entries are linked in chronological order to form a digital blockchain. Entries are linked in chronological order to form a digital blockchain. Blockchain is decentralized, which means any central authority does not control it.
What Is Meant By Bitcoin?
Bitcoin is a digital currency that was initially released in January 2009. It is based on ideas offered by Satoshi Nakamoto, a mysterious and pseudonymous figure, in a whitepaper. The name of the person or individuals who invented technology has not been revealed. Bitcoin promises lower transaction fees than other online payment systems, and unlike government-issued currencies, it is decentralized.
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