You might have heard of the recent digital currencies price boom, particularly Bitcoin. Earlier in 2017 one Bitcoin was valued at approximately $ 4,000. I remember writing an article thinking, this is it! Today, the value of a single Bitcoin is just over $ 18,000. Shocking, right? If you too would like to get a ride on Bitcoin’s success, look no further, this article might be just what you need. Here, you will get to learn strategies on how to invest in bitcoin as a pro. A few bitcoin investment basics will set you on the right path to comfortably retire at probably age 37.
What Is Bitcoin and What Is It Used for?
Before we get to know what Bitcoin is, let’s start by defining a cryptocurrency. A cryptocurrency is a name used for any digital currency. It is only available in electronic form and not as ordinary bills or coins. Now, Bitcoin was the first cryptocurrency. It was created in 2009 by an individual or group that goes by the pseudonym Satoshi Nakamoto.
Cryptocurrencies are decentralized, meaning that they do not originate from any institution. Digital currencies were initially popular among the tech-savvy community. The popularity was attributed to the fact that transacting with cryptocurrencies was easy and fast. Also, the fact that these currencies are not regulated by any banks or governments significantly reduced the transaction fees. With a high number of people trading using cryptocurrencies, they soon became a legitimate medium of exchange.
The first cryptocurrency to attract attention of investors was Bitcoin. Other individual users also hoped in a bid to store wealth in digital currency. Today, Bitcoin is the most valuable cryptocurrency. It has been embraced by individuals, investors, and online merchants across the world. Bitcoin has many uses including paying for goods and services online, speculation, store for wealth, and investments.
Bitcoin Investments Basics
When I decided to invest in Bitcoin, I had no idea where to start. Luckily, you do not have to go through the same dilemma. The most basic way to begin your bitcoin investing journey is by buying a few Bitcoin. You might be thinking, but one Bitcoin is $18,000? It is sold in smaller portions equal your dollar amount.
Cryptocurrencies are bought on unique platforms called exchanges. The exchange works pretty much like the stock markets. I recommend Coinbase. It is easy to use and has an engaging user interface. Additionally, the exchange is fully regulated by the US government. Your money has 100 percent insurance. Other unregulated exchanges are quite risky. You need to do a thorough research before committing your funds if you are to make money out of bitcoin trading and retire at 37.
The buying process is straightforward. But first, you need to create a digital wallet where you will deposit your Bitcoin. Download official wallets on Windows, MacOS, or Linux operating systems. In the Coinbase platform, sign up and send your identification documents. After verification, you need to link your bank account, and that’s it. You are all set to buy Bitcoin.
To maximize my investment, I trade Bitcoin on traditional exchanges. Unlike Coin base, a traditional exchange such as Bitstamp allows users to trade Bitcoin directly. The cryptocurrency market is very volatile. Selling Bitcoin when the price is high, and buying when the price is low is also a great way to benefit from Bitcoin volatility.
You may also choose to look for people locally to buy your Bitcoin. Practically this is much harder than it sounds. However, you will be shocked by the number of people around you willing to buy. I recommend using Local Bitcoins as a start. It is a website that connects Bitcoins buyers and sellers around the same location. Make sure you take necessary precautions when meeting a potential buyer. You may never know who they are.
Remember, rumours and media news profoundly affect Bitcoin price. If you are to make money out of trading bitcoin and retire at 37, you must remain up to date with news regarding Bitcoin at all times.
Pay For Goods Using Bitcoin
Most merchants today have embraced Bitcoin as a payment option. Traders such as Amazon, WordPress, Subway, Zappos and Whole Foods also accept payment in Bitcoin. If you have Bitcoin, do not hesitate to pay using it especially when its price is high. That means you will get to pay for goods or services way less than their actual value. However, always check their exchange rate and use logic, if you are not getting a good deal, keep your Bitcoin.
Checking out different markets exchange rates will keep you ahead. With Bitcoin, you are probably going to be paying less and invest more to retire at 37. However, you need to keep tabs on any news or rumor regarding Bitcoin
Set Up Your 401K
If you want to make real money trading Bitcoin and retire at age 37, you need to make a bitcoin investment actively. For a start with, I suggest you devote a portion of your paycheck every two months to buying Bitcoin. Buying regularly has its benefits. First, you will not have a significant expense that hurts your bank account. Second, you will get to accrue a considerable amount of Bitcoin over time. I call this my 401K.
Most exchanges will allow automatic transfers of money regularly from your bank account. All you have to do is agree on a particular amount and the how regular you want it transferred. To achieve this kind of pension scheme, you need a trusted exchange. I recommend Coinbase. Your money will be more secure in an exchange regulated by the government.
It is also possible to make a bitcoin investment, even if, you do not have the time to stare at charts and news podcasts all day. Today, some Bitcoin investment vehicles allow you to buy and sell their company’s stock. Committing your funds in these vehicles enables you to profit without having to bear all the trading risks.
One such company I would recommend is the Bitcoin Investment Trust. The company allows customers to trade their stock just like any other company. In that sense, they can benefit from Bitcoin trading activities indirectly. The company management is made up of Bitcoin trading experts who are presumably able to make profits effortlessly.
The method is recommendable, but it is not as profitable as being in the actual game. An indirect bitcoin investment means someone else is in control. You cannot maximize your earnings, unlike other traders. However, it’s an excellent start for anyone intending to make money off bitcoin trading and retire at the age 37 or earlier.
Bitcoin is a new concept that came just at the right time. The information posted should completely erase the question on how to invest in bitcoin. Begin asking yourself, when can I invest in bitcoin? Quit the procrastination and hop on the bus. It is the only way to guarantee real money freedom trading bitcoin and probably retire at age 37. Should you have any questions, comments and compliments, do not hesitate to contact us.
Recommended read: How to Make Money Trading Bitcoin