Top 5 Things To Keep In Mind When Buying Bitcoin
By Maria Macaraig on ALTCOIN MAGAZINE
The hype over bitcoin is going strong. Regardless of the ups and downs, it goes through and the hit the cryptocurrency takes, some experts agree that it has a substantial potential.
While buying bitcoin is easy, making money with it is hardly simple. If you are planning to invest in bitcoin, you have to keep numerous nuances in mind.
We’ve come up with the top 5 things you need to consider before spending money on bitcoin. They could help you stay on top of your game and make the desired profit.
1. The Price Of Bitcoin
Before buying bitcoin, you have to understand that there is no such thing as an official bitcoin price. It’s estimated by the amount of money people are willing to pay for the currency. That’s why the price varies tremendously. What may have been the latest news yesterday can become useless tomorrow.
So before making a decision to purchase bitcoin, check the latest price. Don’t forget, each exchange has fees and trading nuances. You may be paying much more than the cost you see on the screen.
Some exchanges limit the number of bitcoins you can buy. But the majority of them can sell you less than one bitcoin.
The price fluctuations could lead to considerable gains or losses. That’s why it makes sense to read the predictions made by the experts before investing in any cryptocurrencies.
2. Bitcoin Storage
Even though there is no physical equivalent of bitcoin, you still have to find a wallet to store it. According to experts at Wunderbit, securing your cryptocurrency is the first step to successful trading.
The ability to store the cryptocurrency in a highly secure wallet can help use the bitcoin to its full potential.
Two ways exist to store bitcoin for a long period of time. You can use either a hardware wallet or a paper wallet. No matter how strange it may sound, if you set up the paper wallet correctly, it can be more secure than the hardware wallet.
If you aren’t ready to spend your time creating paper wallets, which come with a steep learning curve, you can settle for a high-quality hardware wallet.
You should avoid storing your bitcoins in an online wallet since it compromises the security. If you don’t have access to your private keys, you may lose access to your cryptocurrency.
3. The Right Time To Buy
If you are thinking about buying bitcoins, you must be wondering when the best time to buy them is. Unfortunately, it’s impossible to predict bitcoin price fluctuations accurately even if you are an expert. For someone who doesn’t have experience with cryptocurrency trading, numerous expert opinions are available.
You can spend time analyzing the bitcoin price charts and learn the price history to make your own decisions. You have to understand that the bitcoin price is tough to predict since it doesn’t depend on any country’s economic stability.
Generally, experts agree that global problems are beneficial to the cost of bitcoin since it sits outside of any government’s control. When trying to predict bitcoin behavior, you need to consider global economics.
You can take advantage of the following resources to form your opinion about the best time to buy bitcoin:
· Bircoin
4. How To Buy
When you know how to store bitcoin and when to buy it, you have to understand how to buy the cryptocurrency. The process may be harder than you think.
The toughest part about buying bitcoin is choosing the right trader. The number of such traders seems to be growing exponentially.
The best place for bitcoin purchase is an exchange. It may be somewhat complicated to find your ideal exchange. You have to base your opinion on reviews, liquidity, proximity, and fees.
Yes, don’t forget that buying and selling bitcoin comes with fees. The fees may vary depending on the popularity and security of the exchange.
If you are buying a small number of bitcoins, fees may be a big deciding factor. Choose an exchange, which offers payment options that are suitable for your needs.
5. Cancellations
Bitcoin transactions can’t be canceled. Remember that before making the final confirmation click.
Once you initiate the transaction and the cryptocurrency leaves your wallet, there is no turning back. Which means you have to make sure you’ve done everything correctly two or three times before finalizing the transaction.
If you send bitcoin to the wrong person or choose the wrong amount, the only way to get your money back is to contact the receiver and ask for a return. Obviously, this doesn’t always work. So be extra careful.
Bitcoin can be an excellent way to make profits if you know how to take advantage of it. Before purchasing bitcoin, it makes sense to do in-depth research.
