Buying Bitcoins and other cryptocurrencies have become this incredible experimental new investment platform for this generation! Considering the hype and craze that surrounds cryptocurrencies, how do you actually buy and invest in Bitcoin? I’m here to show you how!
So in this article, we’ll walk through how you can buy your first Bitcoin and the best place to do that for free!
What is a Bitcoin?
A Bitcoin is a virtual currency that is completely digital. You can look at it as the online version of cash. Bitcoin can be used to store value, sending and receiving Bitcoin from others, and using Bitcoin to make purchases.
Bitcoin is just one of many cryptocurrencies out there, but Bitcoin was the first and the most popular one. Many of the cryptocurrencies followed suit, but none are as popular as Bitcoin.
Bitcoin is not to run by a single company or entity. It is defined as a decentralized network of computers around the world simply verify any and every transaction that is done on all Bitcoins in existence. Pretty cool stuff!
How do I invest in Bitcoin?
The easiest way to invest in Bitcoin right now is through an online platform called Robinhood. It is set to be one of the most popular cryptocurrency trading platforms out there right now.
Since Bitcoin is relatively new, it’s not too late to start investing in Bitcoin! Analysts predict that Bitcoin value can only go up from here since there is a finite amount of Bitcoins out there
How to buy Bitcoin in 4 easy steps
- Create a Robinhood Account: If you don’t already have a Robinhood account, click this link and create your account! It’s super easy and free to create one
- Link your bank account: Since you need money to buy Bitcoins, you simply link your bank account to Robinhood so you can transfer cash to the in-app wallet
- Make your purchase: Figure out how much you want to spend on Bitcoins and buy!
- Figure out your investment strategy: Whether it’s long term or short term, manage your investments, and determine a plan for your shiny new Bitcoins.
Some important things to remember about Bitcoin
Bitcoin is all the rage these days. It difficult to go online and not see one or more Publications writing about it. As much as they is Euphoria in the air about investing in Bitcoin, it’s important to I understand it as much as you can before investing in it.
That’s it, I have taken the Liberty of listing out a few of the most important things to remember and to consider before investing in Bitcoin.
1. Bitcoin is not a guaranteed way to get rich
I’ve seen them, and I know you have too. Those stories of people that invested in Bitcoin and are now millionaires and billionaires, it’s easy to think and believe that by simply buying Bitcoin we will become rich too. That’s simply not the case.
They are lots of self-proclaimed Bitcoin gurus on YouTube and all over the Internet that claim to have the secret on how to become a millionaire by investing in Bitcoin. Nobody knows for sure where Bitcoin is headed, and it’s impossible to know what it might do tomorrow.
So, that said, if you do decide to invest in Bitcoin, do it because you have done your research and are confident in the asset. It Is by no means it get rich quick scheme.
2. Only buy bitcoins from reputable sources
By just doing a quick Google, it’s easy to find tons of brokerages out there that offer the ability to purchase Bitcoins. But not all are created equal.
Before making your first purchase, make sure you do your research on the company you choose to work with when buying your Bitcoins. Don’t just go for the first one you find on the internet.
I would personally recommend using Robinhood or Coinbase as they are reputable and well known in the Bitcoin world.
3. Bitcoins are not FDIC insured
One very important thing to remember is that Bitcoins and other cryptocurrencies are not insured by the FDIC. It simply means that, unlike traditional Investments like stocks, your Bitcoin Investments are not insured.
If your brokerage is robbed virtually, or goes bankrupt, your investment might disappear along with them. There is no federal guarantee that you will get your money back. So always keep that in mind, and invest wisely.
Only invest a small percentage of your portfolio in Cryptocurrencies
With the overall hype that’s surrounding cryptocurrencies, it’s sound advice to try and allocate a small percentage of your portfolio towards them. Here’s why.
There is an overall combination of hype, euphoria, greed, and excitement surrounding bitcoins that starts to cloud rational decision making. If you allocate 50% of your net worth and bitcoin crashes 50% or more, you have lost a substantial amount of your wealth in an instant.
Bitcoin, like gold and silver, does not pay interest or dividends, and as such, it is more like a store of wealth. It’s then important to remain diligent and cautious around bitcoins.
At the end of the day, the amount you put towards this is completely up to you. Just make sure all your decisions are informed and calculated ones
Final thoughts
So, what do I think about cryptocurrencies and bitcoins? I have definitely invested in it, and will probably continue to invest in it. However, I am putting in money I am okay with losing, since we don’t know exactly where it’s heading.
Be ready for instability and a wild ride ahead! Make sure you have a helmet on 🙂
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