The matter is not as easy as some imagine, but the complexity is what it reaches, and in order to make it easier for yourself to perform the investment process, you must divide it into a number of steps in order to facilitate the investment task. How do you start investing in bitcoin?
What about bitcoin?
When a number of people tell someone that cryptocurrencies amount to a number of thousands of dollars, which is what the markets estimate for Bitcoin as well. Bitcoin is not widely available and is complicated in the process of acquiring it, as the percentage of Bitcoin production decreases by half every period of years.
The number of Bitcoin in general has reached 22 million 12 years ago, and the price is closely related and directly proportional to the volume of demand around it.
It happens that the transactions of Bitcoin are saved by being used to store records digitally, and this is called the Blockchain, and the time when the consumer begins to buy with the dollar, the banks also begin to verify and credit companies, and the cost of this function or transaction is lower because of its use of the retail system.
And if you want to add another transaction, the computer must solve a very difficult equation called hash, and if the computer becomes the first to solve the hash equation, the transactions are certainly stored in the blockchain continuously. This is called bitcoin mining.
Tips Before Investing in Bitcoin
There are many things that every investor who aspires to profit from Bitcoin should know well, as there must be a number of proofs of identity, a wallet, a good internet connection, a form of payment, and an account on a cryptocurrency trading platform.
Certainly, valid payment methods using this path must include debit and credit cards and bank accounts. It is possible to obtain bitcoins through electronic exchange machines and through platforms. It is also necessary to know that these devices constantly need identifiers issued by the government.
Every investor must be aware that one of the very important things is the idea of privacy and security, although there are no bitcoins in the first place, but the idea of owning itself is what the other covets what you own, as most thieves try to find out the private keys of a public address on the blockchain, no matter how secret it is.
Bitcoin trading
Every trader with whom you make a transaction can know the balance through the public address that you use, and this requires you to keep the huge investments in a public address that is not directly related to the user in the transactions. The public key is next to the transaction only, which makes the transactions retain some confidentiality, but not completely known.
Steps to invest in Bitcoin
The first step is to choose a wallet to store bitcoins.
There are a number of good wallets in which you can store bitcoins. Hardware and software wallets are the most popular, and software wallets are portable applications that are directly connected to the regular bank account, as they are characterized by instant and easy access to bitcoin, but the biggest negative is placing what belongs to you in the wallet with another company.
- The second step is to link the wallet to the bank account
- The third step is to be on a cryptocurrency exchange
- The fourth step is to start investing in Bitcoin.
Types of bitcoin wallets
In the following lines, we will mention the types of Bitcoin wallets:
Binance Wallet
It is the most powerful and most widespread wallet in America, as it includes a website and a phone application, where all currencies are stored with customers, as it is the most important place where you can start trading bitcoin in terms of security.
Blockchain wallet
It is one of the highest and most powerful wallets in terms of security and is good for desktop users, as wallets for devices are not modern, but are used as more security because they are not connected to the Internet.
Factors Affecting Bitcoin
Certainly, there are a number of basic factors and reasons that lead to the rise and fall of cryptocurrency prices, so let's get acquainted with these reasons:
Supply and demand
The economic market in general is based on the culture of supply and demand. If there is a highly efficient digital currency in all respects, and on the contrary, there is a reduction in demand rates by traders and users, then the value and price of this currency will certainly decrease and vice versa as well.
And always in economics, scarcity with an increase in demand leads to a rise in price and value, which is one of the most important reasons that affect the price and value of Bitcoin in particular.
Legal cover
The curtain or the legal cover is the basis for the establishment of any currency from a religious or practical point of view. The more the legal cover disappears and the more it attracts thieves and criminals to complete their forbidden transactions.
Which makes it tend and sway faster for any decision on it and makes it fluctuate and fluctuate from time to time. For example, when Japan declared the legality of Bitcoin, its price rose strangely and unexpectedly in a few hours.
On the other hand, when China imposed strong restrictions on the digital currency, it caused a huge crisis, but it came back to reduce these decisions, which led to a rise in its price again.
Media hype
One of the important elements that market prices for cryptocurrencies according to their noise and focus on a matter, as media coverage of an event results in the interest of Bitcoin, this leads to an increase in demand and certainly results in an increase in the price and vice versa.