Bitcoin is the pioneering cryptocurrency, and can be traded using online platforms. Like any other investment, you need to learn about it before adding it to your portfolio. We have seen just how volatile Bitcoin can be over the last 10 years. But it’s definitely worth considering, as it has been predicted to hit USD$200,000 a coin by this year.
Check out the following things you need to know as a rookie Bitcoin investor:
The Market Can Fluctuate And Be Volatile
Unlike some other investments like large-cap stocks, the Bitcoin market can quickly fluctuate. This means that its price is constantly changing. We’re talking tens of percent of fluctuation in a matter of days in some cases.
That’s why it’s important to have a sound crypto strategy that takes into account this volatility when making trade decisions, with ways to help mitigate the downside risk. Try to check this out and other websites teaching how to invest in Bitcoin as they also provide updates regarding the Bitcoin market.
It’s also best to start with small investments while you’re still learning the market. Doing this can help lessen possible losses when the market suddenly fluctuates.
Unregulated And Decentralized
This attribute means that a distributed network makes every decision-making and transfer of control instead of a centralized entity. No group, organization, or individual owns the computers that mine Bitcoin. The blockchain of Bitcoin uses supercomputers, and different people own such computers.
As a result, there are several network nodes at different locations where the data from the database is spread out. The benefit of having a decentralized blockchain is that all transactions are irreversible. This means that no individual can alter any record already stored in the database.
Crypto Trading theme with person using a smartphone
Because no government or company is in charge of running the technology of Bitcoin, it means it’s unregulated. Thus, anyone can join the trade, especially in countries that haven’t banned cryptos.
However, various governments have now started to centralize Bitcoin and other cryptocurrencies. If this movement becomes successful, expect regulations and laws that may control the technological innovation, investment, and trade of Bitcoin to a certain extent.
Privacy
Because it’s a digital currency, you can’t have Bitcoin in physical form. Blockchain technology allows you to trace your Bitcoin transactions, but trading or investing is done online. Therefore, you don’t have to give your details when investing in fiat currencies.
You’ll need to make a Bitcoin transaction with your Bitcoin wallet ID. Wherever you are, you can then buy or sell Bitcoin even without the need to divulge your contact number or name. Of course, it’s important you keep the details of your Bitcoin wallet safe.
Buy It From Anywhere
As mentioned, you can invest in Bitcoin wherever you are. While its technology is a decentralized blockchain, you may use centralized exchanges. These are third-party apps or software that you need to use to buy and sell Bitcoin. The role of these exchanges is to provide confidence to clients that they’re getting the best from what they’re paying for. They do so by overseeing the transactions of their customers.
Another advantage of these exchanges is that you don’t hire online brokers. All you need is to create an account and use it to buy and sell Bitcoin at its market rates. In exchange, you’ll be paying fees for their services.
In addition, most of these exchanges have a wide selection of cryptos, and not merely Bitcoin. This is beneficial if you wish to diversify your crypto portfolio.
Safe Storage
While exchanges allow you to buy and sell Bitcoin, it won’t be an excellent place to store your digital currencies safely. What you’ll need is a crypto or Bitcoin wallet. With this, you can control your digital assets and avoid the potential risk of losing them when the exchange gets hacked.
If you have a large amount of Bitcoin in your crypto exchange, you should prioritize using a crypto wallet to hold it. That’s because they have more features, such as a more secure network than exchanges. Some crypto wallets even allow you to swap Bitcoin for another crypto and vice versa.
Conclusion
Bitcoin investment has gone a long way since a couple of years ago when its price was still low. Imagine if you bought it at its starting price ranging from USD$1 to USD$30 in 2011. Now, it’s worth around USD$40,000.
This article has provided you with a guide to know more about Bitcoin investment. Start gathering information now so you can grow your Bitcoin investment portfolio.
Bitcoin is holding above $67,000 after yesterday’s correction after breaching the $69,000 level and rising to its highest level since late July.
Yesterday’s correction comes after an upward trend that investors are pushing to continue in light of a set of supporting factors, whether from the massive inflows into cryptoinvestment products or from more bets on Donald Trump winning the White House again.
Cryptocurrency investment products recorded massive inflows last week, reaching $2.2 billion, which represents the highest level since last July, with Bitcoin accounting for most of these flows that went to US spot ETFs, according to CoinShares. Net flows to these funds amounted to more than $294 million yesterday alone, according to SoSo Value.
This comes with two weeks left until the US presidential election. While the Polymarket betting market indicates that Republican candidate Trump is likely to win with a 63% probability, the betting site has sparked controversy over who is behind the significant increase in Trump bets. In contrast to Polymarket’s results, the poll average indicates that Democratic candidate Kamala Harris is ahead by 48.2% compared to 46.4% for Trump, according to FiveThirtyEight.
While this disparity and fluctuation in polls and predictions is likely to keep cryptocurrencies vulnerable to sharp volatility in the coming days, as the identity of the winner of the White House presidency might shape the future of the industry.
However, the futures market is presenting a mixed story and is questioning the sustainability of Bitcoin’s bullish trend. Bitcoin futures open interest regained its record level of more than $40 billion yesterday, according to CoinGlass, despite the price correction. This correction only resulted in a very small liquidation of the long positions of about $28 million yesterday.
Of that $40 billion, $12.5 billion was on the Chicago Mercantile Exchange (CME), which also represents a new record high for Bitcoin futures on the US’s largest futures exchange. This reflects the increasing involvement of institutional investors in driving price action.
What is concerning is the decline in the long/short ratio from 1.04 on Sunday to 0.94 today, which may reflect increasing bearish bets in futures market, which in turn may indicate a possible reversal of the bullish trend and a renewal of yesterday’s losses soon.
Written by Samer Hasn, Senior Market Analyst at XS
Binance, the world’s leading blockchain and cryptocurrency infrastructure provider continues to drive innovation and expand access to cryptocurrency in Africa, now allowing users in Benin, Cameroon, Ivory Coast, Democratic Republic of Congo (DRC), Togo and Senegal to purchase crypto directly through mobile money payments enabled through local partnerships.
This new functionality further strengthens Binance’s commitment to providing simple and secure access to cryptocurrency for users across the continent, reinforcing the platform’s vision of financial inclusion.
Samantha Fuller, Spokeswoman for Binance says “We remain focused on advancing financial inclusion and delivering user-friendly solutions for crypto adoption across Africa. This expansion into West and Central Africa is a significant step in our mission to increase crypto adoption, providing millions of people with more direct access to the global digital economy”.
This new service currently supports only BUY transactions, further simplifying the entry point for new crypto users in these regions, while providing them with a reliable and secure platform to acquire digital assets.
How to buy crypto:
Log in to your Binance app and select [Add Funds] from the homepage.
Choose your local fiat currency you wish to use by selecting the currency in the top-right column.
Follow the instructions to complete your crypto purchase.
Bitcoin remains below $63,000 after failing to hold above it over the past two days while Ethereum is also struggling to reclaim $2,440.
The crypto market has been trading sideways since the beginning of this week.
The cautious moves in the crypto market come amid uncertainty over a range of economic and political factors in the US and geopolitics in the Middle East.
Add to that the potential selling pressure that the US government may exert with its permission to sell around 70,000 Bitcoin.
The Supreme Court has allowed the US Marshals Service to proceed with the sale of 69,370 Bitcoins seized from the Silk Road online store, which would be the largest sale of its kind in history. While the nature and pace of this selling is not yet known, it will not necessarily put downward pressure on prices if it is done in over-the-counter (OTC)
transactions, according to Beincrypto.
As for the economic side, in light of the surprise labor market numbers that were much better than expected and Jerome Powell’s hawkish speech, hopes for a rapid continuation of interest rate cuts this year have diminished. While the relatively high rates remain for a longer period and the continued rise in Treasury bond yields will weaken appetite for risky assets in general, including cryptocurrencies.
Whereas, after the hypothesis of a half-percentage point cut at the next November meeting was the most likely, it has now become excluded in the Fed Fund futures market, and the probability of a quarter-percentage point cut has become 87%, according to the CME FedWatch Tool. The remaining 13% is for the possibility of keeping current rates unchanged.
The state of caution may also prevail in the markets in the coming weeks, as we anticipate the presidential elections in the United States, which will begin next month. While the outcome of these elections could cause a structural shift in the crypto industry.
Far away, in the Middle East, markets are still anticipating the nature of the expected escalation in the region, especially regarding the nature of the Israeli response to the unprecedented attack from Iran and the nature of the counter-response. While one of the most prominent scenarios is targeting energy facilities, which would bring inflation back to the forefront, which in turn may require central banks to keep interest rates high.