Whenever a commodity becomes a hot a cake it is predictable that people who are looking to invest as well as speculators trying to make a quick buck will troop into it.
Bitcoin has had a massive 2017 and there are strong indications it might end up multiplying over 9 times its value from the beginning of this year. If you are one of us that want to take this plunge and make your first Bitcoin purchase, it is very important to know that this is not ordinary money that it has its own specific kinds of behavior. Before you take a step in investing in anything it is very important to have certain background knowledge about it, so that your decision to buy will be an educated choice.
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Here are 3 key things to note when buying Bitcoin:
Bitcoin is owned by No One, Bitcoin is owned by Everyone
One of the first things to note to make your decision to buy Bitcoin one fully knowing of the variables is that Bitcoin has no single owner, or entity. It is not owned by any government or company, rather it is the sum total of the users on its network that owned it, each according to their own “share” Bitcoin is a completely decentralized virtual currency and is not backed by any legal framework as of yet. And as such any loss you incur will b at your own risk most likely, as there is no backing authority to hold responsible for such loses. Like every commodity with the possibility of high profits, there are also possibilities of making losses as well.
Bank at Owner’s Risk
Another very important thing to understand is that once you buy Bitcoin and store in your own wallet, its safety is completely your responsibility as no commercial bank will accept it to keep for you. And also that once a Bitcoin transaction is initiated, it cannot be reversed, and as such keeping your Bitcoin wallet absolutely secure cannot be overemphasized. Keeping your Bitcoin safe is completely at your risk therefore it is critical that you take every safety measure to make sure that your wallet is not compromised, or it might be exposed to be stolen by a growing number sophisticated Bitcoin thieves.
Volatility
The last key factor to note is that you must know that Bitcoin is not like your typical stocks, precious metals or oil with a considerable level of predictability to their prices. Bitcoin can be highly volatile, as it can swing dozens of percents up or down within the space of a few hours. A host of issues can make the price of Bitcoin Jitter. Chief among them is when news of a crackdown or restriction filters through from one of its major markets. The last such incident was when China closed all its biggest cryptocurrency exchanges which shook the price of the whole cryptocurrency industry. However, historically Bitcoin has always managed to rise back even stronger whenever it goes through such trying periods.
⚡️Hopefully bitcoin will have another good year!⚡️
some good tips here thanks!
great post! :^D
i like this content, a lot of people around the world are still skeptical and uneducated about the cryptos and blockchain, it's a great thing for us who knows already that we need to share and spread the word that cryptocurrency is not bad and a great news for all of us in the near future, I sincerely wanna say thank you for your efforts and passion for this crypto knowledge sharing for the people, I do hope you become a big whale someday!
Nice post it will help a lot of people
I've been comtemplating about getting into the bitcoin market because I feel i'm not knowledgable enough about the market.
Thanks for this post
My rule: dont invest what you can not afford to lose
Yes @hatoto
That has always been my golden rule for crypto investments.
Never put in what can give you a deadly heart attack if it doesnt yield.
Well said.
agree with you totally
Yea, thank you very much for this post @cryptoletter
Bitcoin has grown globally and it is essential that every individual who has an intention of venturing into any bitcoin transaction should have major information of how the bitcoin system works.
The markets are a bit down at the moment but I think we are in for a week of green though! I think the market cap will be back to mid/high 400 billion by this time next week. Loving the posts, keep them up. I've given you a like maybe go like something of mine ;)
A great post always bring many usefull for other stemian. This post is important to us to know more about bitcoin progress.
thank for sharing a good news.
Very sound advice and quite universal as well since this not only applies to Bitcoin. Though I do not plan to invest in Bitcoin at the moment, I can still use your advice for my altcoins. Thanks for the informative article @cryptoletter
Bitcoin has always managed to rise back!
Does anyone actually uses bitcoin as a currency? It feels like most people just use it for speculation and it feels like a gigantic pyramid scam to me. You only make money with bitcoins through people who invest into it at a later point, because they raise the demand and therefore the prices. At the same time the people who invested in bitcoin in the past, make their money with you.
I'm not against crypto-currencies in general, but I'm pretty sure that the bitcoin-price will crash really hard. As soon as the price falls, everybody will try to sell their coins as quickly as possible.
Volatility is one of the best way to get profit with crypto though others are afraid of that. I really don't get these people. Just see the graph and calculate how much is the average bottom and buy at that price. Why be afraid of volatility when you can calculate it?
Very good ideas brother i tech many new ides from yours and can you tell Me what about bitcoin now days can he awake soon or later
Good post, the key point is volatility, a lot of investors are not used to the type of volatility in bitcoin, thus ending up sell at the first downwards move only to regret their actions months later.
Beginner’s Guide to Cryptocurrency Trading:
https://www.tokens24.com/cryptopedia/basics/beginners-guide-cryptocurrency-trading/
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If you're afraid, and think Bitcoin lis crashing. look at the big picture
It will bump in the next month on the major trend line in GREEN line @ around 7k
If this doesn't happen the next big support line is at 5k in July before starting ascension again.
I'm not a pro but I base my analysis on lines. My assumptions for this next period are:
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