Bitcoin investment – It does not go without saying that one has to be so afraid of what he invests his money in, a sense of caution and possible loss will always accompany this trend.
By and large, bicoin investment in its real sense cannot be disassociated from risk, not minding how little it is, that said, the investor’s risk appetite is what determines the financial outlay.
To put it in a bold statement “Investment is not for everyone,” rather for those who understand the secret beneath creation and multiplication of wealth.
Investment is not for those who love to work their ass out while earning from direct labor alone, it’s for those who understand the importance of financial diversification.
Investment is for those who understand the need to make provision for the later years, especially when they may not be able to work actively anymore.
Investment likewise is not for those who have a strong grip on their money, not giving in to chance to have it multiply in their hands, instead leave such money dead in a profitless savings account.
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” – Robert G Allen.
Not minding, you may never be financially independent until you have viable investments in place, working 24/7 on your behalf.
The importance of investment cannot be over stretched in any way, except that you’ve gone so addicted to tie down your money for fear of nothing.
However, if by this insight you wish to tow the path of success and financial advancement by playing in investment industry of the 21st century, this guide is strictly for you.
This guide will show you how to approach bitcoin investment as a newbie, acquaint you with requisite knowledge then send you on a mission to defining your financial advancement.
Robert Kiyosaki once said “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”
Hope you get that? Reminisce on the above quote, take a deep breath, then have a sober reflection on what you wish to make of your financial status in the 21st century, it’s either you become a player or a spectator, to make an impact, you’d better go for the former.
Having termed it “The beginners guide,” I will explain every term that’ll ensure your success within, in the meantime let’s do it.
What is Bitcoin?
According to blockgeeks, bitcoin is a cryptocurrency, electronic money as well a decentralized digital currency that’s not controlled by the banks, meanwhile can be sent from peer to peer blockchain network without a need for intermediary.
By using the word “Decentralize,” it means to say that no central bank of this world interferes controls its activities, like they have done with the fiat currencies.
Probably this made bitcoin and other cryptos the 21st century wonders.
Brief History and the birth of Bitcoin
Knowing how bitcoin comes into being will provide an elaborate insight for a perfect understanding of this guide.
The birth of bitcoin took effect when a fellow named Satoshi Nakamoto released a whitepaper called bitcoin, describing its functionality as a peer to peer electronic cash system.
In 2009, Satoshi mined the first block of bitcoin network, which kicks off the blockchain technology in earnest.
How bitcoin works
Bitcoin as a cryptocurrency works like any other fiat currency, it can be used for payment, settlement for goods and services.
Interestingly, a good number of businesses and outlets now accept bitcoin as a means of payment in Nigeria, this indicates a significant progress in bitcoin’s acceptance in Nigeria, this trend has taken over other African countries as well.
Just recently, Nigeria installed a bitcoin ATM in Lagos, it has been harnessed to potentials, while more are still coming up to enhance and facilitate bitcoin transactions, which predominantly is getting even far popular than ever.
It’s either you buy, sell or store bitcoin as value, to match the bitcoin investment mantra.
It’s necessary to understand that before one could use bitcoin, you will fore mostly create or be assigned a bitcoin wallet.
What is bitcoin wallet?
Now according to Investopedia, a bitcoin wallet is a software program that store Bitcoins. This wallet ensures that bitcoins are sent and received, as well stored for ownership.
By this explanation, bitcoin wallet is like a bank account which gives the owner identity to carry out operations with such account as a signatory.
As funds are sent and received from your conventional account, so bitcoins are sent, received or stored in a wallet. Now you understand right?
How to invest in Bitcoin
As a general rule of thumb, never buy more than you can afford to lose. Investment in cryptocurrency itself is a big risk, you are advised to trade with caution.
To be frank and candid, investment in bitcoin could be very volatile, but you’re bound to succeed with requisite information and the right knowledge.
This first step you will need to take is, decide on an exchanger.
#1. Bitcoin exchanger
Bitcoin exchangers enable an environment to purchase, sell or store your bitcoin. To do this you will need to create a bitcoin wallet typical of a software program that stores the bitcoin in question.
This is a point where you are expected to buy your bitcoin in the first place.
As a Nigerian, you have ample opportunity to buy from the best hands in town like,
- Binance etc
I will advise you stick with Koinwa because they offer this service for little or no fee at all. You can easily convert your bitcoin to naira straight to your bank accounait in Nigeria.
Also be informed that you could buy from Bitcon ATM, this service is possible for now if you stay in Lagos.
Just recently Nigeria launched its first BATM, aimed at ensuring that users carry out their transactions with minimal stress.
Endeavour to link your bitcoin wallet to the exchanger you wish to transact with.
The next thing you will consider is storing your bitcoin as a holding
#2. Store your bitcoin
The best way to store bitcoin is on a hardware, as safe as bitcoin seems it can still be tampered with by hackers.
Storing on an external hardware ensures maximum security, while doing this it means you intend to hold your bitcoin for a given time.
Going by this practice, you stand a chance to make money if the price appreciates, this is where the bitcoin investment sense comes into play.
This external hardware can as well be referred to as cold wallet.
#3. Trade and manage your portfolio (bitcoin investment)
If you have the requisite knowledge, it will sure be a great idea to trade bitcoin. This is typical of any other business where you buy and sell goods at a better price.
You buy bitcoin at a lower price and sell when the price appreciates, this could rewrite your financial history. Here we are talking bitcoin investment in practice.
One BTC goes for as much as $12,000 , that said you may not be able to buy a single bitcoin, rather go for the smallest unit called Satoshi.
With $25 at least you could commence your journey, but that’s not a worthy investment anyways, however better than doing nothing.
The more the merrier and the better your chances of making it big should the price scales up.
Bitcoin investment does not involve a herculean task, the simple steps above will ensure you have something to be counted for, while that sounds interesting, it’s advisable you invest not more than 10% of the total amount in your wallet at a time.