How to Invest in Bitcoin 10 Tips from an Expert Trader

We, like you, have asked ourselves the question “Is it worth investing in Bitcoin? and above all How to invest in Bitcoin? “. In particular today, in this period of economic crisis caused by the COVID-19 pandemic , we are looking for a safe and profitable investment. In the first days of 2021 the value of Bitcoin or BTC reached an all-time high, it seems that it is the right time to start investing in Bitcoin, but we advise you to pay attention to the volatility of the cryptocurrency and above all to choose the right channel to invest. in total safety avoiding running into online scams .

 

Thanks to our research and interviews, we have obtained some important and useful tips from an expert trader to invest in BTC in total safety.

Bitcoins have always been the object of attention from many people who have glimpsed a good source of income. But few or hardly anyone really knows how to invest in Bitcoin . Nowadays on the web anyone can write about a system and promise the impossible, but creating confusion for those who are serious about making a good investment, putting their life savings at risk.

There are 2 possibilities to invest in Bitcoin without facing scams or unpleasant losses:

Investing in Bitcoin through CFD trading (indirect investment) , this means registering with a regulated online trading broker such as eToro and operating on the Bitcoin currency without the need to buy and therefore own the Cryptocurrency. (See the guide on the best Bitcoin Trading Platforms );
Invest in Bitcoin by purchasing the cryptocurrency (direct investment) , that is, we will go to buy Bitcoin through one of the best Binance.com cryptocurrency sales, purchase and exchange Exchanges . (See the guide on how to buy Bitcoin ).
To date, Bitcoin, like the rest of cryptocurrencies, are very well known, and there are still those who suspect that Bitcoin is a scam, or there are those who think it is a good business. One of the aspects that has made this cryptocurrency attractive is that it gives the possibility to carry out economic transactions without going through intermediaries. It is used for payments for goods and services. There are already many merchants who accept Bitcoin payments and therefore many choose to invest in Bitcoin .

Investing in online trading with Bitcoins is certainly an excellent investment, which however involves risks. Since you decide to invest with cryptocurrencies, you have to rely on certified brokers, because otherwise you could run into fraud, risking losing all your savings and then ending up thinking that even Bitcoins are a scam . In this way, investors are protected by financial control bodies, and when they have the certification issued by CONSOB there is less risk of running into scams.

It is good now to know where to buy and sell Bitcoins.

It is actually a very simple process. First of all we need to find a regulated broker that meets our type of needs. Then you will have to register, and then you will need to open a digital wallet, where you can then safely deposit your digital currency. Then to carry out Bitcoin purchase and sale operations with cryptocurrency trading it will also be necessary to choose the withdrawal and deposit method, for example, through a bank account.

It must be taken into account that there is a limit to the number of transactions that can be entered in Bitcoin blocks. It is therefore advisable to carefully check the purchase limits offered by the Broker on which you will then decide to register. It will also be important to take into account the high volatility of Bitcoin.

As for the exchange rate, to date there is no legal one for cryptocurrencies, therefore, the prices are based on the average price of the reference exchange. It is therefore good to check the exchange rate that is offered for the cryptocurrency that you will then want to sell before making the purchase.

A very important aspect to take into consideration, before relying on a Broker , is to check the costs of commissions regarding the deposit and withdrawal to withdraw your Bitcoins. In addition, it is also necessary to calculate the transaction fees, such as those of deposit and withdrawal that are attributed to debt after the transaction is carried out and, therefore, it is advisable to evaluate whether or not it will be the case to implement it. It is therefore advisable to see well in advance the commissions that will be charged by the Broker , whether they will be advantageous or not.

Having said that, let’s try to explain in simple and understandable words to everyone how to invest in Bitcoin (Find out Who are the biggest Bitcoin investors ). But first we will briefly tell you about Bitcoin.

 

Do we know everything about Bitcoin?
For those who still do not know it, Bitcoin is nothing more than a source code, ” Bitcoin core “, created by the mysterious Satoshi Nakamoto who never wanted to reveal his true identity. The digital currency or also called cryptocurrency made its first appearance in 2009, the year in which the first 50 Bitcoins were generated. Block number zero of the blockchain , the so-called genesis block, was mined .

Today we can say that it is the most famous cryptocurrency in the world. To introduce you to Bitcoin in more depth, we will quickly talk about mining and the blockchain .

You may have heard of or read the word undermine but you have no idea what it means, don’t worry, we are here. The English term ” mining ” in Italian means ” extraction ” and this means that it is an extraction process that leads to the automatic generation of Bitcoins within the P2P (Peer-to-Peer) network where they are managed and distributed online.

When we talk about mining we cannot help but talk about the blockchain which is closely related to the Bitcoin production mechanism. The term ” blockchain ” is also of English origin and in Italian it is literally translated as ” chain of blocks “. In summary, it uses the computer network of nodes, P2P, within which transactions take place. The blockchain is defined as a register that contains data and information regarding transactions, which are stored in the Blockchain. Even though it can be shared and distributed by anyone, the data is still safe.

It deals with a decentralized system and therefore is not subject to any type of control by a central entity such as a bank. The blockchain in addition to being used for cryptocurrencies is used by financial and insurance institutions and also by the world of digital advertising and more generally of the Media.

To invest in Bitcoin, you need to register with the Trading platforms that give you the possibility to open a virtual wallet , in order to convert the money into Bitcoin. Another possibility is to be able to buy them from another user.
The Blockchain is the protocol that makes it possible and safe to use, and can be used by everyone for any application. All the transitions that are made in Bitcoin are recorded within the Blockchain.

Bitcoins are based on the Peer To Peer (P2P) network , where information exchanges take place. The maximum number of Bitcoins that can be produced has already been previously established, that is, up to 21 million and it is thought that it can be reached by 2140. After that, goods and services will be exchanged within the network only with those 21 million. Bitcoin, the price of which it is assumed that it will tend to rise more and more.

Bitcoins are produced by so-called Miners . The Mining activity consists in the transfer of coins that are stored in blocks of data, where each single block corresponds to a code that is processed by a computer owned by a volunteer who takes the name of Miner, to whom around 50 Bitcoins are donated in exchange for his work for each block of data processed.

The advantage of using Bitcoins is security regarding payments, that is, during transactions it is guaranteed that it takes place without errors because they are analyzed through nodes and miners and, moreover, anonymity and data protection is ensured. The strong security system ensures that the Bitcoins are not counterfeited, that is, only one transaction can be carried out with the same code that defines the Bitcoins.

How to invest in Bitcoin
Before starting with the actual investments, we advise everyone to consult the CONSOB (National Commission for Companies and the Stock Exchange) which is the body that has the function of approving brokers , who comply with certain rules, to operate in Italy. This is very important because in this way you avoid the risk of relying on companies that promise big profits with the sole purpose of stealing the money of the members .

It is essential that the companies offering the services and tools to deal with Bitcoins have all the certifications and authorizations.

Consequently, it is good to avoid those who ensure that in a short time with online trading you can become a millionaire. This type of investment requires patience and perseverance on the part of the trader , generally the profits are obtained in the long term.

Since the financial market is unpredictable, it is advisable to train for example through the free demo account offered by brokers such as eToro and 101investing . We can say that there is no right time to invest because what is important is to start trading in a serious and responsible way.

How to buy Bitcoin through the Exchanges
The second tip from an experienced trader is to buy Bitcoins. With the cryptocurrency exchanges it is possible to buy and sell Bitcoins. Among the most popular and used we find:

Binance ;
Coinbase .
The exchanges are merely platforms where you do the buying and selling of Bitcoin and other criptovalute. To operate with security, you need to own the wallet , i.e. the electronic wallet and of course you need to open your own account. Once the transaction is completed, the digital currencies purchased will be paid into the wallet . You also have the option of keeping them at the exchange but it is absolutely not always recommended for a security issue.

According to your needs, the Bitcoins in your wallet can be converted into euros ( EUR ), for example, or they can be used to make other types of purchases.

Now we will briefly illustrate the main features of the exchange. Beware of commissions as not everyone applies the same rates. Also check the purchase limit which usually varies according to the type of account. There are also platforms that allow you to make purchases of bitcoins in a very short time. The exchange rate and the payment methods for which different commissions are provided also change. For more information, read our guide on how to buy Bitcoin safely .

Below is a list of the Best Exchages on the market where it is possible to buy, sell or exchange Bitcoins, the exchanges on the list have been carefully tested by our staff, this to offer only safe and regulated platforms.

The Binance Exchange

Binance is one of the Exchange that there are currently on the Web, is a Binance sevizio to exchange criptovalute . we see that the Binance company is based in China and is highly regarded and used in Asian countries.

To access Binance there is no need to pay any amount, unless you are an investor with a very significant turnover. To withdraw up to two Bitcoins on Binance there is no need for authentication, however if you want to withdraw a greater number of cryptocurrencies, then in that case you will have to enter your document.

In this Exchange you will find many of the most important cryptocurrencies, such as Ethereum, Litecoin, Ripple and many others, the Exchange gives you the opportunity to check all the prices of all cryptocurrencies in real time.

The Binance Exchange has developed the application for mobile devices, both for Android and Apple Smartphones. Another point in favor of Binance is the assistance center which is active 24 hours a day, in the information section, you will also find the beginners guide, 9 questions are asked in the guide:

Binance 2FA Guide;
How to deposit on Binance;
How to withdraw on Binance;
What is a market order;
What is a limit order;
What is a Stop-Limit order;
Anti-Phishing Code Guide;
White list of pickup addresses;
Dust conversion on Binance.
In the Academy section you will find clear answers, there is also the possibility to follow some videos. For an Exchange platform it is very important to present a good section dedicated to the training of its users.

Binance’s foresight towards its investors makes it a professional Exchange.

The Binance site is really simple and intuitive, you can find all the information you need to start buying or selling Bitcoin and other cryptocurrencies.

 

The CoinBase Exchange

The Coinbase Exchange was founded in 2012 , over the years the company has grown exponentially and in 2017 Coinbase obtained the BitLicense , or the license to exchange Ethereum and Litecoin, the license was given by the financial services department of the state of New York . Coinbase is a platform for trading cryptocurrencies and is aimed at both experienced and inexperienced brokers.

To access Coinbase just register on the main site, via email and create a password, there is also the possibility of implementing two-factor authentication, for greater security.

Once the first two steps have been carried out, the platform will ask you to enter your data, name, surname and email.

The Coinbase site is simple and intuitive, the platform developers have really thought of everything, in fact you can find the answers to the most unthinkable questions on the site. Thanks to the myriad of information that is present on the site, you can quickly begin to understand what cryptography is, there is also the Bitcoin glossary , information on how to manage your account, etc.

Using the Coinbase Exchange you can buy or sell cryptocurrencies, both the most important and the least known.

Among the most important:

Bitcoin;
Ethereum;
Litecoin.
Regarding the security factor, Coinbase adopts very strict measures, in fact we see that 98% of customer funds are stored offline . Sensitive user data is also disconnected from the internet and is divided into two redundant ways.

This security system has been developed to ensure maximum security, even electronic wallets and keys are stored with AES-256 encryption. In the beginning, this strong encryption was used only by the federal government, but over time AES encryption has become commonplace for the security of personal data. This encryption is also available in 128-bit, 192-bit, but to date the most secure is AES 256 ,

We wanted to focus on the security factor to make you notice how Coinbase is an Exchange attentive to its users. This Exchange has developed Coinbase Commerce , one of the safest ways for merchants who want to accept direct payments via cryptocurrencies.

Coinbase Review: What Coinbase Is, How It Works, Reviews and Opinions .

The “The Rock Trading” Exchange

The Rock Trading is an Exchange Broker designed by Italians, considered one of the best for buying, selling or exchanging cryptocurrencies such as, for example, Bitcoin, Litecoin, and many others, against current currencies such as the euro.

With this Broker, in addition to trading with cryptocurrencies, it allows users to be able to exchange them among themselves. To operate with The Rock Trading it will be necessary to open an account , after which it will be necessary to make a deposit in order to start buying and selling Bitcoins. With this Broker it is possible to invest in both Euros and Dollars, and since they will have to carry out the verification procedure, you will be asked to send an identity document and a document certifying your residence, therefore it is a very important check. careful.

Deposits can be made, therefore, both in Euros and in Dollars, by credit card through the OKPay platform , where commissions are foreseen; or by bank transfer, where there are no commissions here.
Furthermore, The Rock Trading , for every user who may find himself in difficulty, provides a support chat in Italian on Telegram.

 

 

Investing in Bitcoin via CFD Trading
The fifth advice of an expert trader is to invest in Bitcoin through CFD trading , unlike buying on exchanges , it does not involve the actual purchase. Thanks to CFD trading (Contract for Difference) , a derivative instrument, it is possible to invest in the underlying asset which precisely defines the price of derivative products.

To trade with the most popular digital currency in the world, it is good to register only with reliable brokers who truly work like eToro with its Social Trading platform . We are talking about brokers who have the CySEC license and the authorization to operate in the various territories issued by supervisory bodies such as CONSOB for Italy.

Today Bitcoin trading is very well known and practiced all over the world. This is possible thanks to the presence of companies that have allowed anyone from the most to the least experienced and from the most to the least rich to invest in various financial markets including cryptocurrency.

The trader, through trading, has the possibility to choose to make long-term investments (go long ) and then buy or can choose to make short-term investments (go short ) and then sell . Furthermore, thanks to financial leverage it is possible to invest only a part of the entire amount, but be careful it is true that in the event of a positive outcome the profit will be very high but this is also valid in the event of a loss. To avoid running into risk of loss you can make use of different trading tools such as Stop Loss .

Furthermore, it is possible to trade Forex with cryptocurrencies, including Bitcoin by speculating on the movement of the prices of currency pairs. Exchanges take place between cryptocurrency pairs or cryptocurrencies against fiat currencies ( Forex-Crypto pair ) such as the euro (EUR), the US dollar (USD) and the British pound (GBP). The most traded cryptocurrency pair is BTC / USD.

 

 

Bitcoin trading with eToro Social Trading
Here we are at the seventh advice of an expert trader. The eToro Social Trading could not be missing . Extraordinary and revolutionary platform operational since 2007.

Why are we talking about eToro? It is true that on the web there are many platforms that allow you to invest in Bitcoin in total safety but eToro offers something more, we are talking about CopyTrading or the possibility of copying the operations of expert investors in a completely automatic way.

Today it is appreciated all over the world both by novice traders, who can start earning right away, and by professional traders, who have the opportunity to join the Popular Investor program that allows them to obtain an additional profit that changes depending on the number of followers. What are you waiting for? Sign up for free on eToro , try the demo account and start investing in Bitcoin without risk. If you want to know more about the demo account read our article: ” Free Demo Online Trading with the eToro Broker “.

On the Social Trading platform each trader has the opportunity to see the public profiles of all the other investors and also have the opportunity to share their strategies and exchange messages.

 

Is the mining system still valid ?
Tenth and final advice from an experienced trader. How not to mention mining which, as we saw at the beginning of the article, is a system that is used to produce new Bitcoins. To deal with this are the so-called miners who through important computing centers validate transactions by generating new Bitcoins. The process is known by the name Proof of Work which has the purpose of generating a new block where all the transactions are contained.

Today, however, this procedure is no longer within everyone’s reach but many devices are needed to generate strong computing power that risks negatively affecting the environmental balance in the long run. Furthermore, there is a large consumption of energy and in fact mining can no longer be considered a good source of income since the costs to be faced are even higher.

To obtain excellent profits, you must surely have the right and sophisticated tools. In addition to this, you have to deal with the different companies that have specialized in cryptocurrency mining . An alternative could be cloud mining which “ is the cryptocurrency mining process that uses a remote datacenter with shared processing power. This type of cloud mining allows users to mine alternative bitcoins or cryptocurrencies without managing the hardware “, taken from wikipedia .

Conclusions
In this guide we talked about Bitcoin and the different ways to earn by following the 10 tips of an expert trader . It is not up to us to tell you which is the best, you will have to understand which one is the most suitable according to your needs and economic dispositions. One thing is sure and that is the fact that there really is something for everyone, as we have seen anyone can invest in Bitcoin .

This cryptocurrency has revolutionized the world of traditional finance and has no intention of backing down, on the contrary, over the years it has acquired more and more value while at the same time attracting the attention of many investors.

 

FAQ Frequently Asked Questions

Is investing in Bitcoin worthwhile?
Absolutely yes! But you have to be careful about the volatility of Bitcoin and the choice of the platform to invest in.

How can I invest in Bitcoin?
It is possible to invest in Bitcon, by buying Bitcoins (direct investment) on Binance.com, one of the best exchanges in the world, or by trading CFDs on the value of Bitcoin (indirect investment) through the famous broker eToro .

Where do you invest in Bitcoin?
You invest in Bitcoin, through cryptocurrency exchanges or through brokers or online trading platforms , the important thing is that they are regulated and safe.

Can anyone invest in Bitcoin?
Yes, but it is recommended before investing to study the trend of Bitcoin and especially for those who want to invest through Bitcoin trading to study technical analysis and charts.

 

 

 

 

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