What do you need to invest in Bitcoin?
In cryptocurrencies there are some basic and necessary things that you must know and do in order to invest in them. If you want to invest in any business, regardless of the type of business it is, it is perfectly normal that one of the first steps you take is to document yourself as much as possible in order to be able to make the correct financial decisions. Similarly, in the crypto world it is no different at all. There are details and steps that you must know how to take so that your entrepreneurship initiative ends up being a monumental failure.
To invest in cryptocurrencies you simply need to do three things well:
1. The first one is to buy. This implies from when to buy, how to buy, among other things. Because it all depends on which country you are living in and your payment method.
2. The second thing to look at is where you are going to store your cryptocurrencies. Are you planning to keep them in an exchange office, in a wallet, or are you going to generate passive income with them?
3. The third thing you need to invest is to sell. After you made a profit, now you have to sell and for that you have to see in which places and who is going to buy your bitcoin.
Remember that the goal is for you to avoid being scammed, to maximize your profits and to minimize your losses. Because being realistic, you always have to expect that there will be losses, but try to keep them as low as possible.
When should you buy bitcoin?
The best indicator to know when to buy is that the market is in an uptrend. The second thing is that you must invest the money that you DO NOT NEED. If you are one of those who thinks that you are going to get rich tomorrow by investing the money with which you pay your rent, better forget it. Do not do it, because this is something in the long term, since the cryptocurrency market is a very volatile market, which today can be 20% positive and tomorrow 30% negative in some cryptocurrencies.
So if you invest with that money, you are probably going to sell at a loss, so if you need to, you better not invest. As a good investor, the right thing to do is to invest money that you will not need soon, so that in this way you give the market a space so that if it falls, it can also recover.
If you are in the crypto market for the long term, then it is recommended that you invest. Because the growth potential of BTC is colossal. Everything indicates that in the near future a bitcoin will cost 100,000 dollars and some expert bitcoiners visualize it located at the figure of one million dollars.
What cryptocurrencies are you going to buy?
If you are a beginner, it is best to buy bitcoin. If you already have an intermediate experience in crypto, you can think of Altcoins (alternative cryptocurrencies to bitcoin) such as Ethereum, Tether, among others.
But if you already have a lot of experience in the market and consider yourself at an expert level, then if you can think about investing in Shitcoins (Junk Cryptocurrencies) such as Shiba Uni, Dogecoin, etc. Which are cryptocurrencies that usually make a lot of noise because people start talking a lot about them, but they don't really have no purpose.
"When you hear that many people are talking a lot about a cryptocurrency and that it has grown a high percentage in the last day or that in the last week it has grown 100-200%, do not invest because that cryptocurrency is surely going to go down."
Where are you going to buy cryptocurrencies?
This depends a lot on the country you live in and what your payment method is. The most frequent method of payment is by bank transfer. A platform with which you can buy with bank transfer both in Mexico, Argentina and Brazil is BITSO.
Trading on this platform is as simple as creating an account, verifying it and then depositing. If you live in the US, Spain or anywhere else in Europe you can buy at COINBASE.
Advantages and disadvantages of buying with bank transfer.
1. One advantage is that it is quite easy to buy cryptos with this method.
2. The second advantage is that you do not pay commissions or they are very low. In fact, it is the cheapest thing you will find, because when you transfer it will not charge you.
3. As a disadvantage, which for some is not very pleasant, is the fact that you have to verify your account. In 90% of the places where you have to buy cryptos, you are going to need to verify your account. If you don't want to go through this verification process, it is advisable to buy BTC at a bitcoin ATM. If you live in Latin America you can use the P2P option (PEER TO PEER), which means that you are going to buy from another person directly as is the case with the BINANCE platform. This is a universal platform that you can buy from anyone, anywhere in the world. Especially it is very good for all of Latin America and some parts of Europe.
Advantages and Disadvantages of the P2P payment method
The main advantage is that you can use several payment methods, you can even transfer from anywhere in Latin America. Which means that if you buy bitcoin, the commissions will be very low.
The downside is that you don't have to verify your account, it's a more complex process. Another would be the distrust factor, because you are buying directly from another person and that can generate distrust.
Purchase with a plastic card (Debit / Credit).
For this you can use Cripto.com, which like BINANCE, this app is available in almost every country in the world. Cripto.com has something good, and that is that if you are new to the app, it does not charge you commissions in the first 30 days.
BINANCE also gives you the option to buy with a debit / credit card, only it charges a 2.99% commission. You can buy with COINBASE, which still charges a 2.99% commission depending on the country where you live. Another platform that you can use is COINMAMA, it charges 5.99% commissions.
It is obvious that buying BTC with a card is more expensive, but the advantage is that it is a payment method that is universal and that works for everyone.
An advantage of buying with a credit card is accessibility, since the vast majority have a plastic card that you can use to buy your crypto.
The disadvantage of this payment method is that it is of medium complexity, especially if you are just starting out. The other disadvantage is that you have to pay high commissions (3-6%).
When should you sell your Cryptocurrencies?
We are going to recommend two circumstances for which you could decide to sell, although in reality anyone can sell whenever they want.
The first is when you have already achieved your goal. When one starts with cryptocurrencies, one always seeks to double or triple your money, or in the long term.
Another reason to sell would be if the BTC were to have a tremendous rise and then began a downtrend.