In today’s world, almost all people have heard about bitcoins. It is one of the most famous digital currencies, which is also known as cryptocurrency. The thing is that bitcoin is not issued and regulated by the government or any other person. It is a completely decentralized cryptocurrency that can be transferred from one person to another from any part of the world and at any time.
Do you know that when bitcoin become so much popular? Well, bitcoin gained huge attention from the people when the price of this cryptocurrency increased from 1 dollar in the year 2009 to approximately 20000 dollars by the end of the year 2017. So, this kind of movement in the price is the thing that generated the interest of the investors toward this digital currency. If you are also interested in bitcoin trading, then you can do it on bitcoinscycle
What exactly an individual need for starting to invest in bitcoin?
One of the most important things that you need to know about bitcoin is that you cannot invest in this digital currency through the help of traditional investment brokers or financial institutions. There are various bitcoin exchanges and investment apps which you can find on the internet for investing in bitcoin. The only thing which you have to do is choose a bitcoin exchange that is suitable for buying bitcoins.
After buying bitcoin, you will also need to select a bitcoin wallet to hold and store them safely. Once you are done with selecting the bitcoin wallet and exchange, then you have to give the bitcoin exchange your information of bank account. After that, you are free for trading bitcoin. You should keep in mind that the bitcoin exchanges charge some fees for the trading of bitcoins.
What is the process of linking your bank account with the bitcoin exchange?
You will be amazed to know that this is a really, very easy process that you have to follow for investing in bitcoin. During the setup process of your account on the bitcoin exchange, you will find an option of linking your bank account with the bitcoin exchange. After you are done with linking, you have to move money from the bank to the bitcoin exchange form, which you can buy the bitcoins.
When you buy the bitcoin, then you can transfer your bitcoin to your own bitcoin wallet whenever you want. You need to be very careful while selecting the bitcoin wallet. If you are using a web wallet, then it is advised to you that you should keep only a limited amount of bitcoin in your wallet. This is because this kind of bitcoin wallet is prone to hacking risks.
How can you safely invest in bitcoin?
- You should always keep your bitcoin in the hot wallet to a minimum amount, especially if you are using the software wallet. The less amount of bitcoin you have, then there will be less amount to lose. It is advised to you that you should keep the rest amount in a cold wallet safely.
- It is essential for you to know that you should keep your digital private keys completely secret. If any person gets to know about your private leys, then they can easily have access to your bitcoin and make transactions. You can lose your entire bitcoin funds if this happens. So, keeping your private key secure and secret is a good option.
- If you are using the hardware wallet, then it is suggested to you that you should keep it carefully like you keep your cash wallet. You should keep them in a safe place, like in a locker, so that no one steals them.
- You should make sure that the VPN you are using is safe and secure or not. With the help of a VPN, your connection can become entirely encrypted, which totally signifies that no one can see that what are bitcoin transactions you are making. It basically adds an extra layer of protection to your bitcoin in order to keep them safe and secure.
- The last but not the least thing that you need to know is that you should not disclose your bitcoin funds to anyone. The hackers are always in search of people who have a large amount of bitcoin in their account. By not discussing your bitcoin amount, you can minimize the risk of theft and hacks.