How to Invest in Bitcoin – Bitcoin (abbreviated BTC) is a digital currency and a peer-to-peer payment system (P2P) created by the software developer named Satoshi Nakamoto. Although Bitcoin has not been known to the general public, it has attracted much attention in the financial world over the past few years. With this widespread concern, Bitcoin’s investment process is easier than ever. However, it is important to know that Bitcoin is not an ordinary investment (eg stock) because Bitcoin is a much more unstable commodity, so do not buy it before you know the exact risk.
Buy and Sell Bitcoin (BTC)
1. Create a Bitcoin wallet.
Right now, buying and selling BTC is much easier than ever. As a first step, create your Bitcoin wallet. As the name implies, this wallet is a digital account that makes it easy for you to buy, store, and sell BTC. Think of it like your universal checking account. However, unlike a checking account, making a Bitcoin wallet is usually less than a minute, can be made over the internet, and quite easy to do. In Indonesia, you can visit Bitcoin.co.id website to create a reputable, reliable and user-friendly Bitcoin wallet.
2. Link your bank account to your Bitcoin wallet.
If the wallet has been made, it’s time to fill it with BTC. Typically, this is done by providing financial details for the original bank account, such as creating a PayPal account or signing up for other online payment services. Generally, you must provide at least bank account number, route number (routing) to the account, and full name according to your bank account. Everything can be seen in your bankbook savings or online bank account. Note that you also need to provide contact information, such as a phone number. Linking a bank account to a Bitcoin purse risks nothing more than shopping online. The leading Bitcoin services have high security and encryption standards. Although Bitcoin’s services have previously been attacked by hackers, so are the large online stores on the internet.
3. Buy BTC with money from your bank account.
If you have provided bank information and have been verified by Bitcoin services, buying BTC for inclusion in the wallet will be easy to do. Usually, on the wallet page, there is an option labeled “Buy Bitcoin” (Buy Bitcoin) or something like that. Click this option to enter BTC purchase transaction process from money in your bank account. It should be noted that Bitcoin prices change from day to day, sometimes the changes are significant. Because Bitcoin is a new type of currency, the market is not yet stable. Bitcoin exchange rates can be found on Bitcoin’s website. As of February 11, 2017, 1 BTC is equal to $1300
4. Use BTC to shop at retail that receives Bitcoin.
In recent years, the number of businesses that started receiving BTC payments is getting more and more. Although all of these businesses are still in the minority, there are big names that have done it. Below is a list of online suppliers receiving BTC: Amazon WordPress Using Alternative Options Overstock.com Bitcoin.travel Victoria’s Secret Subway Zappos
5. Sell BTC to other users.
Unfortunately, selling BTC is not as easy as buying it. There is no easy way to “cash” your Bitcoin and keep it in a bank account. Instead, you have to find other users want to buy your BTC using money or goods/services. In general, one of the easiest ways is to enroll in the Bitcoin market. If you find a buyer, you can complete the transaction through the website, or meet directly with the buyer. To use this method, you usually have to create a seller account and verify your identity in a separate process from creating your Bitcoin wallet. In America, CoinBase and LocalBitcoins are the websites that offer this sales method. In the United Kingdom, BitBargain and Bittylicious are two prominent options. In addition, some sites such as Purse.io, allow sellers to provide BTCs to buyers who then use their own money to purchase goods on the internet and ship them to sellers. In essence, this is a way of rotating using BTC to buy from suppliers that do not accept Bitcoin. Whole Foods If you are literate or lucky, you can make a profit by buying Bitcoin when the price is low, then buy things when the BTC value is high so you save money to get the goods. The item you can sell to take advantage or saved.
6. Alternatively, sell your BTC on the exchange.
Another option for sellers is to use Bitcoin exchanges. These sites work by pairing the seller with a potential buyer. If the buyer has been found, the site serves as an intermediary or wills service, which holds the funds until both parties are verified and the transaction is valid. Typically, these services charge a fee. This sales method is usually not instant. In some cases, users even complain that sales with stock services take longer than other options. Bitcoin Stock is also available at Bitcoin.co.id. In addition, some exchanges such as Bitcoinshop allow you to exchange BTCs with other digital currencies such as (Dogecoin and Litecoin)
If you are serious about investing in Bitcoin, you should set aside some of your salaries to buy a digital currency. Here’s how to accumulate a lot of BTC over time without one big spend. Many Bitcoin wallet sites (eg Coinbase) offer the option to set regular withdrawals to buy BTC. The trick, you specify a certain amount of money, and this amount is withdrawn from your account at regular intervals and used to buy BTC automatically.
2. Consider buying BTC locally.
If you want to save money in a local community, consider using a service that allows you to sell Bitcoin to people near you. Instead of being paired with anonymous buyers from all over the world, some sites provide options to find sellers in your area. If you decide to meet this seller directly, take normal precautions when meeting someone known via the internet. Meet in public places during the day, and if possible, do not come alone. Localbitcoins.com is one of the leading local Bitcoin markets on the internet. This site lets you find buyers in over 6,000 cities and 200 countries
3. Consider using the services of a Bitcoin investment company.
One option that is considered more “safe” than buying and selling Bitcoin directly, is by entrusting your money to the investment company. Bitcoin Investment Trust, for example, allows users to buy and sell shares of companies like other public companies. Since the company deals only with BTC purchases and sales, the company’s stock price is directly related to the Bitcoin price. However, some users like this option because the professional investor in this agency (supposedly) is an expert and the search process of the seller and the management of the Bitcoin account should not be done alone.
4. Consider “mining” BTC.
Have you ever asked where does Bitcoin come from? In fact, Bitcoin is created through a computing process called “mine”. Simply put, when mining BTC, your computer competes with other computer users to solve complicated problems. When your computer solves the problem first, you are rewarded BTC. The advantages of mining BTC among them is the fact that in essence, you “make” BTC without using any money. However, in practice, maintaining the status of a Bitcoin miner requires special hardware. The entire mining process is very complicated and goes beyond the scope of this article. For more information, see this article In addition, you should understand that BTCs are given “blocks” of multiple BTCs at once so it is advisable to join the established “group” of miners. Thus, you can work together to solve the problem (block) and divide the rewards. Lone miners are usually not competitive and can spend a year without producing a Bitcoin.
Profit from Investment
1. Buy cheap, sell expensive.
In essence, BTC buying and selling strategy is not much different from stock or commodity in the real world. Buying BTC when the rupiah exchange rate is low and selling it when a high exchange rate is a profit-making proposition. Unfortunately, as the Bitcoin market is often volatile, its rise and fall in prices are hard to predict. Therefore, the risk is quite high. For example Bitcoin market volatility, as of October 2013, BTC prices range from $150 to $160 per BTC. Within a month and a half, the price rose tenfold to nearly $1300 per BTC. A year later, the price reached around $450. No one knows when the price spike will happen again.
2. Frequently monitor BTC market trends.
As mentioned earlier, it is almost impossible to predict the certainty of the Bitcoin market. However, your best hope for making a profit from Bitcoin investments is to constantly monitor Bitcoin market trends. Since the Bitcoin market is highly fluctuating, the chances of generating profits such as the surge in exchange rates can emerge and disappear within days. Therefore, always pay attention to the Bitcoin exchange rate for a successful opportunity. You should also register as a member of the Bitcoin discussion forum (eg forums on Bitcointalk.org) so you can connect with other investors about market predictions. Keep in mind, no investor, no matter what he is, who can know the certainty of the Bitcoin market.
3. Use BTC to buy a more stable investment.
One way to gain a bit of stability from your Bitcoin wealth is by buying more stable investments, such as stocks or commodities. Some sites facilitate this. For example, Coinabul.com lets you buy gold with BTC. You can even sell BTC and use the money to invest in stock or bond markets. While conservative stock portfolios typically offer the best potential for stable and moderate growth, most financial experts agree that even riskier stocks are still lower than the Bitcoin market.
4. Never invest more in BTC than you can afford.
Like any kind of investment, you should treat the investment money as “gambling” money. If you are lucky, you make a profit, but if you lose, your financial condition should not be destroyed. Do not invest in Bitcoin more than you can afford. BTC can disappear overnight (and has happened before), so the consequences of investing in Bitcoin is very risky. Do not stay in sunk cost fallacy (sinking cost blunders). That is, your investment falls “too deep” so it can not go up. Skipping the price and loss spikes is slightly better than the big wait and loss
If you want to keep your privacy, buy Bitcoin by mail using services like BitBrothers LLC. For a fee, this service will buy BTC for you without ever entering the internet.
You may live near BTM, a special machine that works like an ATM and lets you buy Bitcoin directly. See Bitcoinatmmap.com to find BTM near you.
It should be noted that Bitcoin prices vary greatly from one country to another. If you want to take risks, you can make a profit by buying a cheap BTC in a country and selling it in another country. However, there is certainly the possibility of losing money if the market changes.