As a prospective Bitcoin (BTC) investor, you will need several things: a cryptocurrency exchange account, personal identification documents, if you are using a Know Your Customer (KYC) platform, a secure internet connection, and a payment method. It is recommended that you have your wallet outside of the exchange account. Valid payment methods using this path include bank accounts and debit and credit cards. It is also possible to buy BTC at specific ATMs and via P2P (peer-to-peer) exchanges.
For Bitcoin investors, privacy and security are issues of utmost importance. Anyone who gains the private key to a public address on the Bitcoin blockchain can authorise transactions. Private keys need to be a secret as criminals may attempt to steal them if they learn that you have large holdings. The balance of the common address you use can be seen by anyone. The downside to this public information is that an individual may create more than one public address for themselves. Thus they can distribute their shares of Bitcoin over many addresses that are indirectly connected to the ones that are used for transactions.
The history of transactions made on the blockchain can be viewed by anyone, even you. While transactions are recorded publicly on the blockchain, identifying information about users is not. A bitcoin transaction appears on the blockchain only with a public key of the user, so it is not anonymous, but it is confidential. All bitcoin transactions are public and can be traced, unlike private cash transactions. But Bitcoin transactions also have an element of anonymity builts into their design. It is tough to trace both the transacting parties, the sender and the recipient, on the blockchain.
The right time to buy Bitcoin
In theory, it would make sense to buy when prices are low and sell once the price reaches its peak on the crypto charts. Although, it does not work like that. Timing the market is incredibly challenging. And it is even more strenuous with cryptocurrency because these investments are far more unstable than the average stock.
Crypto prices have been on a rollercoaster ride, so trying to find the right time to buy is nearly impossible. If you buy now because it seems like prices have reached their lowest, then there’s a chance they could fall even further, and you’ll have invested too soon. Nonetheless, if you wait too long, prices may skyrocket, and you will have missed the opportunity.
It does not necessarily matter when you buy crypto, as long as you are strategic about it. Investing in successful or promising businesses and holding them over the long term is the key to making money in the stock market. If they are desirable investments, they should grow over time, and their prices should increase along with them.
If you are interested in investing in Bitcoin or any other cryptocurrency, it should be because you believe in its potential. As well as because you are willing to hold on to your investments for years or even decades.