Step 1: Find a good Bitcoin wallet
In my last article I answered some of the questions I often hear from family or friends who want to buy Bitcoin for the first time. I also recommended what I think is the easiest way to get started, Coinbase. While Bitcoin is by far the most well-known and desired cryptocurrency, there are many other coins, known as Altcoins, out there these days. Just look at CoinMarketCap and you will see there are different cryptocurrencies currently being traded — likely even more by the time you read this.
Some of these promise to be big players in the emerging blockchain industry, and it may make sense to purchase some Ethereum or NEO, Steem or Stellar, Litecoin or Loopring.
Some of them, in my opinion, are just as exciting as Bitcoin itself. So how can you buy some? What will happen to Bitcoin and the crypto-market in New Crypto Game on the Block! The quick answer? Some of the gateways might give you the option to buy 3 or 4 different coins, but some exchanges offer dozens or even hundreds. The number of cryptocurrency exchanges is increasing by the month.
Each one offers different coins for trade. My personal favorite by far is Binance. Its interface is simple and easy to use. It offers an incredibly wide variety of coins. An upcoming article will have more details on this process. After your Bitcoin purchase, the website you purchased them from will show you a balance.
You can keep them there, on the website, or transfer them at will. Or closes your account? Or loses track of its records? Bitcoin wallets are the electronic equivalent of keeping cash in your pocket or under your mattress. The money is yours, and no one can touch it without your permission.
Most people who are interested in cryptocurrencies see enormous value here. It takes the power to control your money away from centralized authorities like banks, and gives it directly to you. Your Bitcoins themselves are never on your hard drive. Most wallets let you use a password to login, and keep a copy of your key encrypted. But you should also be able to access the key through the wallet in order to keep a backup copy save for yourself.
One of the challenges of getting involved in the world of cryptocurrency is how many new concepts you need to learn about. In my opinion, this is also what makes it so interesting. Every day you can read more about new developments, technology, ideas and possibilities in the crypto universe.
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But first, there are two things you should know about me: I tend to be almost as afraid of losing money investing as I am of flying. On some level, I figured one fear might bittcoin out the. So last Thursday, while waiting for a flight to Nashville, I pulled up a popular application called Coinbase that can be used to buy and sell bitcoin. News of bitcoin's rapid bittcoin was everywhere, including on CNN. Related: What is bitcoin? For 15 minutes at the airport, I refreshed the price of bitcoin over and over, watching as it gained and lost hundreds of dollars in a matter of minutes.
Choose your wallet
The first bitcoin transaction ever was by man who bought two pizzas. Regret was baked into Bitcoin from the beginning. This boom has turned a small number of people into millionaires, modestly enriched a somewhat less small number of early adopters, and sent millions of others into a paroxysm of envy and regret. Of course, for those investors who tried to jump in on the wave when it hit an all time high in December, regret means losing half of your money because you were too late. How mad at yourself should you be for missing out on that perfectly timed investment? Is your lack of foresight here worth regretting? The same could be said of Bitcoin.
Why Bitcoin is Gaining Traction
If you have not started investing in Bitcoin, then you should really consider doing it. Like any other systematic investment, you can invest a small amount every month. The best thing to do is number 1 — buy in and hold onto your bitcoins for a. To ensure your security, there are a few things you need to watch out. Note: This post is useful for both beginners and experienced users.
I got bitcoins! The biggest mistake that most newbie Bitcoin investors make is telling everyone about their investment. But shouting about how many bitcoins you own is a big risk. Many of them might want to take extreme steps to get ahold of that money. In short, since Bitcoin is not controlled by the government or any 3rd party, your security is ultimately in your own hands.
Believe it or not, such incidents have actually happened. Most of these exchanges offer free wallets inside the exchange where you can hold your Bitcoin. However, you should never keep your coins in these free wallets for more than a day or two. In the past, a few exchanges were hacked, and many what should i do after buying bitcoin lost their coins.
If you want to read about one such scandal, here is an interesting Wiki page about the infamous Mt. Gox scandal. Gox was not the first time, and it will not be the last time. You should ultimately be the owner of your private key. Instead, immediately transfer your holdings to a mobile wallet or a desktop wallet.
Alternatively, you can create a paper wallet. Paper wallets are free and highly secure. But they take a lot of time and require a little technical know-how. Treat your Bitcoin investment like any other investment; monitor the price, but not so frequently that it becomes an obsession. Many users get into Bitcoin thinking they will get rich quick, which can be true due to its high volatility.
However, this volatility also means the price could go down significantly in the span of a day or two. This may make you panic and sell all of your Bitcoin. However, if you have a full-time job or some other responsibility, treat your investment into Bitcoin as you would any other investment — focus on the long-term gains instead of the short-term fluctuations.
If you want to monitor the price, you can use apps like CoinCap and set up price alerts. So you are dating the most beautiful girl in the world, and you plan to marry. Would you tell her about your Bitcoin investment?
In many countries, divorce is very common, and what comes with divorce, often, is a loss of a considerable amount of your assets. The laws about Bitcoin assets are identical to the laws governing all other types of assets regarding what should i do after buying bitcoin.
My suggestion is to not hide the information that you hold a considerable amount of Bitcoin, but just let a few years pass by before you willingly divulge that information.
This is to ensure your safety if you live in a country where asset division is standard after a divorce. If you are worried about what will happen to your Bitcoin investment if something terrible happens to you, in that case, you can create a step-by-step guide about how to access your Bitcoin in a locker that your partner can get to in case of any drastic event.
However, based on your country and situation, make a wise decision. Recovery phrases are the word long seed words which you use when setting up your wallet. The rule of thumb is to keep this recovery phrase as secure as possible. If you must, you can give half of the seed key to one person and the other half to someone. You can even use a brain wallet and memorize your seed or recovery phrase, but this is risky.
Because human beings are generally very predictable, anybody with a bit of social engineering skills can usually find out your recovery phrase, and you will end up with. Some of these tips are pretty obvious, but they need to be said over and over.
Do you have any more tips for Bitcoin investors? Let me hear your thoughts in the comments below! And if you liked this post, do it share it with your Bitcoin network! An international speaker and author who loves blockchain and crypto world. After discovering about decentralized finance and with his background of Information technology, he made his mission to help others learn and get started with it via CoinSutra.
Vishal It usually goes down for a shorter span of time like any other commodity. However, in a longer time span, it usually keeps going up. In above the most of mistakes that i have done, after reading only got to now. What if I have a very small amount of Bitcoins say 0.
Should I keep it in exchange or transfer it to a wallet, as transfer fees would itself be around 0. Is it safe to move exchange holdings to that wallet instead of spending on an expensive Hardware wallet? You may use a web wallet like Blockchain.
Also, Ledger is the best and safest option to have your any cryptos. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Notify me of follow-up comments by email. Notify me of new posts by email. This site uses Akismet to reduce spam. Learn how your comment data is processed. Bitcoin Last Updated : September 8, Sharing is caring Shares.
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Should I buy Bitcoin?
You can keep them there, on the website, or transfer them at. Exchanges can vary in reputation, reliability, security, processing fees, exchange ratesand cryptocurrencies available for trading. Bitcoin Advantages and Disadvantages. Users cannot sell bitcoin or deposit money into their bank account when their wallet is connected to buyin debit card. These ATMs are available in a limited number of citiesbut do provide an alternative to u money using an exchange. Share via. Many users get into Bitcoin thinking they will get rich quick, which can be true due to its high volatility. Another tool many people like to buy is a Bitcoin debit card which enables people to load a debit card with funds via bitcoins. Copy Copied.