Why Now is the right time to buy Bitcoin and other Cryptocurrencies.
Bitcoin and the other cryptocurrencies have seen unprecedented growth in 2017 with Bitcoin, for example, going from just under 1, 000 USD at the start of 2017 and peaking at almost 20, 000 USD on 16th of December 2017.
Since then the price of BTC and other alternative coins has dipped, and this has many interested investors panicking and wondering if purchasing Bitcoin and other altcoins is the right thing to do.
But if we have learnt anything this year, a crash has been followed by unprecedented gain and given the changes that are going to take place in 2018 (which I will mention later in this article) within the crypto market, I believe whoever has the guts to invest in BTC and other altcoins today will stand a chance to make a fortune in 2018. (But before doing any purchases of any cryptocurrency always do your due diligence.)
First, let’s have a look at what cryptocurrency is;
What is cryptocurrency?
Cryptocurrency can simply be defined as a digital asset that is designed to work as a medium of exchange. It uses cryptography to secure transactions, control creation of new units and verifying transfer of assets.
A good example of this is Bitcoin, a worldwide payment system that is decentralized and operates on a peer-to-peer network that runs on a blockchain. Other examples of cryptocurrencies include Ethereum, Wager, Litecoin, Monero, Dash and many more.
Why has the price of Bitcoin and the other Cryptocurrency has dipped?
It’s not clear why the price of Bitcoin and other cryptocurrencies dips at any given time but after prices skyrocketed in the month of December, many coins have lost a considerable percentage of their value. One possible theory that analysts have put forward is the now-refuted rumor that the government of South Korea was planning to ban Bitcoin exchanges.
Because of this rumor, the market is said to have overreacted since the South Korean cryptocurrency market only accounts for less than 5% of global Bitcoin trades. So even if the government of South Korea was to ban Bitcoin, this would have minimal effect on the global Bitcoin market.
However, Last week the South Korean government came up with strategies on how it intends to regulate Bitcoin. They believe that strict regulation on the local cryptocurrency market will stop money being allocated to Ponzi schemes and unregulated scams.
Another possible theory for the dip is the effect Bitcoin has on other alternative coins. BTC is the popular coin to trade with on many exchanges and once BTC starts moving everyone starts to trade into or out of altcoins via BTC.
How to buy Bitcoin and other Cryptocurrencies around the world.
The process of buying Bitcoin and Ethereum is almost similar in many exchanges. Also, many exchanges allow you to exchange BTC for alternative coins like Ethereum, Litecoin, Ripple etc.
Different ways of buying Bitcoins.
Exchange platforms: these are ideal if you want to trade with Bitcoins or buy large amounts of Bitcoins.
ATMs: They represent the easiest and most private way to acquire Bitcoins.
Direct Exchanges/Brokers: They usually engage in buying Bitcoins on an exchange and selling to customers. Some popular exchanges include etoro, Kraken, Bitstamp, Coinbase etc.
P2P-Markets: marketplaces like LocalBitcoins, Bitsquare, and Bitcoin.de allow buyers and sellers to meet and trade Bitcoins.
Gift cards: They are popular in some countries like South Korea, Austria, and Mexico.
Precaution when dealing with wallets, exchanges, and banks.
Even though you must prove your identity before going through with purchases on some of these platforms, you should know that these wallets and exchanges don’t provide the same protection as banks do. As of today, there is limited or no insurance for your account if it was hacked or if the platform goes out of business. You should know that since Bitcoin lacks legal recognition in many jurisdictions of the world, authorities usually lack a formula on how to approach thefts. There have been a few notable cases where platforms have had to replace thefts with larger exchanges, but, these platforms are not obliged to.
How to buy Ethereum.
Ethereum is a blockchain and Ether is the currency that trades on this blockchain.
· Register at an exchange. Some of the most popular exchanges that are beginner friendly include Coinbase, Plus500, Bitpanda, and Bitstamp, other exchanges include Kraken, Gemini, GDAX, and localethereum
· Complete KYC/identity checks.
· Choose a deposit method.
· Make a deposit in euros, US dollars or any other accepted mode of payment.
· Buy Ether with your deposited funds.
How to Buy Bitcoins in Kenya
In Kenya, there are two platforms that allow you to buy and sell Bitcoins.
It’s a trading platform that does Bitcoin exchanges only as of this writing.
· Go to Belfrics website and click Register. Create a free Bitcoin wallet by following up the simple instructions they offer. After creating your username and password, your account will be live within seconds.
· Once you are done creating your account you can add funds to your wallet through cash deposit, bank transfer, Mpesa or any other mode of payment.
· Go ahead and add your preferred bank account where you can receive payments.
· Once you are done adding your preferred bank account and you are equipped with funds in your Bitcoin wallet, you can start trading with Bitcoins.
It’s a peer to peer crypto currency trading platform that is decentralized. The registration process is easy and straightforward.
How to buy Bitcoin and Ethereum on Remitano.
· Find a seller from the list of sellers and click buy.
· Fill in your Bitcoin address and the amount you want to buy and click on (Buy BTC) or (Buy Ether) to open the trade.
· Pay the seller as instructed.
· Press the (I have paid the seller) and remember you will lose money if you don’t do this.
· Wait for the seller to confirm. The seller usually confirms within 5–10 minutes.
As of this writing, they only trade Bitcoin and Ethereum.
Why Now is the Right time to buy Bitcoin and other cryptocurrencies.
2018 has been tipped to be the year that Bitcoin and other digital currencies go mainstream. For instance, the two major short-term driving forces of the price of Bitcoin will be the effective scaling of the Bitcoin network and adoption by traditional finance sector as a solid store of value.
Starting this year Cboe, Nasdaq, NYSE and many others are expected to introduce different investment vehicles e.g. exchange-traded funds (ETFs) and futures. With such moves, the price of Bitcoin is only likely to go in one direction, up, and when this happens, expect BTC to drag the rest of the altcoins with it.