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Bitcoins For Dummies – 4 simple steps to get you started

Bitcoin is the largest social-economic experiment conducted in the world and is a digital currency which has no value with a fixed maximum supply of coins released changing the value from nothing to something.

The difference between bitcoin and the bank system is that banks can be manipulated by governments/bankers while with cryptocurrencies it is not controlled by any government/bankers and allows people freedom of privacy in their transactions

Now that the formal bit is out of the way, let me get to the personal interest of this topic.

It’s January, and with most of us, our budgets are extremely tight. Actually, I have a feeling that the budget situation has been extremely tight since November last year. Is the sudden interest in bitcoin driven by the need to change our financial situation soonest and thus we are willing to take the highest risk?

Call it what you like – the phenomenal growth of bitcoin in 2017 got everyone interested. See the price index graph that was extracted from Statista here below.

<img src="eNitiate-Statista-Bitcoin-price-index-January-2016-to-December-2017.png" alt="Bitcoin price index from January 2016 to December 2017”>

Bitcoin was valued at $967.67 in January of 2017 and  $13,889.99 in December. Without a doubt, this price movement has created instant millionaires!

Now for some of us that are clueless about bitcoin and have jumped into the new money making craze and are gearing up to also invest in it, here are the basic things you should know on how it works.

 

Step 1

Make sure you research and know the risks before taking the digital leap. Gain knowledge how much a bitcoin is worth at the time you want to buy in.

 

Step 2

Set up a cryptocurrency wallet which a digital wallet used to store, send and receive digital currency like Bitcoin, you will then link this digital wallet to your bank account in order for you to be able to make transactions. Also note that there are different cryptocurrency wallet platforms which will need you to upload a photo of your ID and confirm your email address to get started, no cryptocurrency wallet platform will accept your application without these details.

 

RELATED POST: Can digital technology provide a safe alternative to traditional currency exchange?

 

Step 3

You will then decide how many bitcoins you will purchase via your bank account. Once you’ve purchased the bitcoins they will then stay in your digital wallet until such a time you decide to use and/or sell them.

 

Step 4

Watch the bitcoin market online to see how your investment is doing and then make a sound decision if you will keep, buy more bitcoins or sell your bitcoins.

Now, these 4 steps are just the basics but I would advise one does in-depth research to able to make sound investment decisions.

 

Good Luck!

 

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