Cryptocurrency Investments & Bitcoin Exchange Guide

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Every active Internet user has clearly heard that over the past 4-5 years, bitcoin has risen in price by a record 1600%+. At the moment, this currency is considered one of the most profitable assets, and a lot of people want to receive additional income from crypto savings.

Let’s take a look at why you should consider these tokens as an excellent investment, how to do it with the greatest efficiency, and how to use a bitcoin exchange service.

Why To Buy BTC?

So, bitcoin is the very first cryptocurrency, which remains the clear leader in the field of digital funds. Even many years after the launch, tokens occupy more than half of the market since the current share of BTC is 58%. Here are a few key benefits of investing in bitcoin:

  • protection against inflation is higher than for conventional currencies;
  • security and anonymity of transactions;
  • maximum decentralization.

In addition, it`s worth remembering that all digital assets have a much higher economic efficiency than conventional currency. If necessary, it can always be quickly transferred within your country or abroad with a minimum commission.

Tips For Future Investors

So, how to invest in BTC? According to specialists from Raison Asset Management, the basic rule is: “One digital asset should occupy no more than 10% of the total investment volume.” And in order to reduce risks to a minimum while working with BTCs, it`s better to invest approximately 5-7%.

There are also two essential strategies for beginners:

  1. The simplest investment strategy is “buy & forget”. In this case, invested money will not be needed shortly and will not affect the quality of life in any way.
  2. It`s impossible to find the perfect moment to buy bitcoin, which is why some investors use the “averaging” strategy. The user divides the capital into several parts and buys tokens over time. Thus, if the price of an asset drops, you can use this as an opportunity and buy more coins.

By the way, if experts talk about specific amounts of investments, the best option is at least $200, so that commission costs don`t cut profitability. However, the opinions differ. For example, Chatex director Michael Ross-Johnson called $1,000 the best option. In any case, it`s better to focus on individual capabilities, but also take into account trend strategies & remember about the 10% rule.

Using a Bitcoin Exchange

There are many ways to buy Bitcoin, but there is a universal step-by-step guide that will suit a user with any crypto experience. To become the owner of a token or part of it, customers should:

1. Register on the bitcoin exchange platform.

2. Pass identity verification.

3. Add a payment method (credit or debit cards, e-wallets, etc.).

4. Go to the trading section, and select BTC from the list of assets.

5. Enter the amount to buy.

6. Confirm the purchase details and complete the transaction.

And finally, remember that to safely store the purchased bitcoins, it`s worth downloading separated crypto storages (hybrid or traditional) or using an in-built crypto exchange storage.

About the author

Saman Iqbal

Saman is a law student. She enjoys writing about tech, politics and the world in general. She's an avid reader and writes fictional prose in her free time.

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