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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.
[wd_hustle id="4" type="embedded"/]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
Is Bitcoin Safe And Legal In India?
In 2020, the Supreme Court of India lifted the RBI’s restrictions on cryptocurrencies. According to the Supreme Court, the existence of Bitcoin or another cryptocurrency is unregulated but not unlawful. The verdict has greatly aided the world of digital money in the country. To put it another way, investing in Bitcoin is perfectly legal, and you may do so through various apps and traders.
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.
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.
Which Cryptocurrency Is Best To Invest Now?
Litecoin has an 84 million coin limit and a 12.5 LTC block reward, which is more than other cryptos. Miners will find that mining Litecoin is faster than mining any other cryptocurrency because the average time to mine a Litecoin is under two minutes. Because of its increasing popularity, Litecoin is the best of all the altcoins. At WazirX, the current price of Litecoin is ₹12,410.22.
Are Cryptocurrencies A Good Investment?
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
How To Convert Bitcoin To Cash?
There are many ways of converting Bitcoin to cash, such as crypto exchanges, Bitcoin ATMs, Bitcoin Debit Cards, Peer to Peer Transactions. You can use cryptocurrency exchanges such as WazirX for this. Unlike typical ATMs, which allow you to withdraw money from your bank account, a Bitcoin ATM is a physical location where you may buy and sell Bitcoins using fiat currency. Several websites provide the option of selling Bitcoin in return for a prepaid debit card that may be used just like a standard debit card. You can sell Bitcoin for cash through a peer-to-peer platform in a faster and more anonymous manner.
How To Make Bitcoin?
Bitcoin mining is not just the process of putting new Bitcoins into circulation, but it is also an essential part of the blockchain ledger's upkeep and development. It is carried out with the assistance of highly advanced computers that answer challenging computational math problems. Miners are rewarded for their efforts as auditors. They are in charge of ensuring that Bitcoin transactions are legitimate. Satoshi Nakamoto, who is the founder of Bitcoin, innovated this standard for keeping Bitcoin users ethical. Miners help to prevent the "double-spending problem" by confirming transactions.
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.
How To Create Bitcoin Account?
Firstly, Go to the WazirX website and sign up. Then, a verification mail will be sent to you. The link sent via verification mail would be available only for a few seconds so make sure you click on the link sent to you as soon as possible, and it will verify your email address successfully. The next step is to set up security, so select the most suitable option for you. After you have set up the security, you will get a choice to either proceed further with or without completing the KYC procedure. After that, you will be directed to the Funds and Transfer page, where you could start depositing Bitcoins to your wallet. You can also deposit INR and then use it to buy Bitcoin for your WazirX Bitcoin wallet.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
