Bitcoin is arguably one asset that has made many millionaires in recent times. The reason is that the digital currency was designed to appreciate in value over time due to its deflationary feature which made the total number of bitcoins that could come into circulation pegged at just 21 million.
With 18 million of these bitcoins mined, the asset is one of the most valuable financial instruments on earth. Anyone with access to computer and internet should hold some bitcoins at least as a way to diversify their investments.
It is obvious that there many people who are thinking of how to own some bitcoins but have no idea what to do. In this post, we shall see how to start with Bitcoin.
Start With A Wallet
The first thing you need is a wallet with which to store your cryptocurrency. There are many wallets to choose from which can be classified into hot, software, hardware, cold and paper wallets. The hot wallets are those that are connected to the internet while the cold wallets are used for cold storage.
Software wallets can be downloaded on your mobile or desktop while paper wallet, cold and hardware wallets are best suited for high volume of bitcoins.
As a beginner, depending on the volume of coins you’d like to start it, it is appropriate that you start with an online (hot) wallet. With time, when you have a large volume of bitcoins, it would make safety sense to move the bulk of your wallet to a cold wallet.
You can get a simple wallet from blockchain.com. Make sure that you open the wallet yourself with a personally controlled email address. Also be sure that you write down the 12 words that are your recovery phrases in a safe place.
Opening your online wallet yourself is very important to avoid wallet scams. There are fraudsters that go around trying to help people set up wallets. They take control af the mnemonic phrase and could steal the funds in such wallets in future.
Get Some Bitcoins
You are now ready to get your first bitcoins. So how do you go about it? If you have some funds to buy, you should use Localbitcoins, Remitano or any other peer to peer exchange. You can also buy using a centralized exchange such as Binance.
First make up your mind how much Bitcoin you want to purchase. Remember that 1 bitcoin is around $9000 at the moment. You can buy any fraction that you can afford such as 0.5, 0.1, 0.001 BTC and so on.
Faucets Are A Waste of Time
Some people use faucets with the hope that they would get some bitcoins. Apart from gaming purposes, faucets are a complete waste of time. It makes more sense if you would use your skills to earn bitcoins.
There are many sites where you could earn some Bitcoins by doing things or working for others. You can work as a freelancer on some of these sites and earn bitcoins.
What You Can Do
If you have any skills or anything you want to sell, you can make some bitcoins. For example, if you are good at programming, web development, content writing, SEO, content marketing and so on, you can use these skills to work for people and have them pay you with bitcoins.
You can advertise your skills in the service section of forums like this. The advantage of this is that someone who is already using Bitcoin can hire you. Also, being a member of such forums would enable you earn small amounts of Bitcoin as you post your skills and services there.
Just be sure that you read and learn about Bitcoin from what other members post. Be active in the community and you’ll naturally figure out how to earn with your skills and what you have learnt about Bitcoin.
You Can Hodle or Trade
As you must have known, Bitcoin which was an unknown digital asset ten years ago rose from obscurity to nearly $20,000 in 2017. This is the reason why many user hold (hodle) it. The expectation is that the value will rise over time.
How can you take advantage of this? You should regularly buy and hodle bitcoins or trade. Trading Bitcoin is not for a beginner because there are skills needed to be successful. In fact, trading of any financial instrument such as stocks, forex and futures is fraught with risks.
More than 80 percent of traders make losses but this need not be your experience. You should keep most of your bitcoins in a secure wallet such as a hardware wallet. Invest one-third in trading in an investment website such as this where they have a copy-trading system.
This is a system in which new investors copy the trades of experienced and professional traders, enabling the new trader to get the same result that the professionals get. Use this system and increase your bitcoins.
The best way of doing this is by following the recommendation of the editors and owners of the trading site. With time, you should make some profit while you learn everything you can about the cryptocurrency ecosystem
I came across Bitcoin for the first time in 2011 just in name. I saw someone selling it but didn’t understand what the fellow was talking about. If I had taken time to find out what it was and invested in it, I would have been one of the whales influencing the market today but I didn’t.
It was in 2017, six years later after the value of Bitcoin had soared to $2000 from the less than $100 of 2011 that I encountered it again. This time, it was a ponzi site promoting it.
I started earning BTC as a freelancer. My clients paid in bitcoin and ethereum, another cryptocurrency.
Earning bitcoin takes knowledge. Spend time in reading to learn everything you can about Bitcoin. Understand that it is money and money doesn’t fall from the sky.
Avoid every scam out there since there are many fraudsters out to steal your bitcoin through ponzi, HYIP, nitcoin doublers and generators. In fact, any site that promises to help you make bitcoin easily is a scam. If you understand this rule, you will make progress in your crypto journey.