A cryptocurrency is a virtual currency that is secured by cryptography to work as a medium of exchange. This digital asset is stored on computerised databases, allowing value to be transferred globally at a low cost. Virtual currency can be used the same way as we use traditional currencies. The peer-to-peer system does not rely on banks to verify the transactions nor is it controlled by any authority. Bitcoin (BTC) is the most distinguished cryptocurrency and the first to be used widely.
Bitcoin, the one for which blockchain technology was invented, was launched in 2009. With its popularity, market capitalization, and dedicated investors, Bitcoin continues to lead the pack of cryptocurrencies. Bitcoin has the same name for both the blockchain network and the cryptocurrency. It has proved its worth with its secure network and technical innovation. The list of merchants accepting Bitcoin continues to expand as payment via Bitcoin is simple.
The Bitcoin price index has increased significantly since its launch. Bitcoin is an obligatory holding for any novice investor in the cryptocurrency market. Limited availability of bitcoins in the market caused by the halving of Bitcoins every 4 years has made the demand increase and thereby increasing Bitcoin value too. In 2020, the price of Bitcoin has grown over four times. The value of 1 INR to Bitcoin is 36,66,915 as of 10 December 2021. So, to help you invest better in the popular Bitcoin, we have listed down a few pointers to guide you for successful investing.
Stay abreast of the crypto market – All the time in the world will not help you if you don’t study the cryptocurrency market well ahead of the investment. Try to figure out your goals as an investor and set your priorities right. Investors consider digital currency like Bitcoin as the future of money so they are rushing in to get a hold on it before its price goes beyond skyrocketing.
To buy, sell and hold cryptocurrency, you need to get hold of a cryptocurrency exchange. So, to get in on the action, choose a cryptocurrency exchange that makes your trading easy and reliable. CoinSwitch is regarded as a well-accepted crypto exchange in India for beginners, traders, and users overall. Create an account on the crypto trading platform to exchange Indian Rupees for digital assets. You can keep learning about what is happening with your investments, why, and it helps you to make smart well-informed decisions.
Plan your strategy – The most significant part of the investment is to stick to a philosophy that helps you to reap benefits in the end. Though new trends and fads come and go in the investment arena, make sure that you don’t deviate from your planned strategy. But the difficult part is to arrive at a strategy that will work for you. You can either do it yourself or with the help of a financial professional. Though you don’t get a guarantee about profit with the right strategy and calculated risk, you can stride with confidence in the investment space. No matter how you invest, it’s important to make informed decisions without getting lost in the hype.
As you are the only person who is well aware of your financial situation, it’s important that you also calculate your risk tolerance. Manage your assets in an organized and disciplined way. The best way is to start with small investments and continue to study the market and make decisions based on your situations and not blindly follow someone else’s investment advice.
Be vigilant – As you store the cryptocurrency tokens in your own wallet until you’re ready to sell, make sure that it is kept secure. The wallet can be software that is a cloud-based service or hardware, stored in your smartphone or laptop. The cryptocurrency exchange employs a great number of security experts and external consultants to identify loopholes and risk factors in the system.
Bitcoin uses three different cryptographic methods for generating public and private keys and one for the important task of mining. Note that your coins are stored on the blockchain. The public key is your wallet address and your private key stored inside the wallet is required to authorize any payment that you make.
Focus on the long-term benefit – As the crypto market is unpredictable, keep moving ahead with the future in your mind. The cryptocurrency markets are favourable for long-term investors as opposed to short-term investors. Continue to learn from your mistakes, improve your skills and remember that it’s going to be a slow journey but a fruitful one. Investors in Bitcoin believe the cryptocurrency will gain value over the long term because the supply is fixed.
Bitcoin has become a buzzword and is widely adopted as a mainstream asset around the world. Many traders have plunged into bitcoins with some having made millions. Before you participate in bitcoin investment, it’s important to think ahead, prepare, and engage in a thoughtful manner.