BITCOIN AND CRYPTOCURRENCY: HOW TO BECOME A FINANCE EXPERT? Cryptocurrency is a relatively new phenomenon. Introduced in 2009, bitcoin has created a wealth of investment opportunities. And every day more and more people want to become experts in this field in order to earn a lot of money. However, not everyone succeeds. In this article, you will learn how to invest in bitcoin and how to become an expert in crypto finance.
What are cryptocurrency and bitcoin?
Let’s start by understanding what these two terms mean. Cryptocurrency is a broader concept and refers to both a cryptocurrency and a peer-to-peer payment system. These digital currencies are virtual currencies that are characterized by the absence of physical support. That is to say, no coins, no notes, no payments by check or credit card. Their value is not tied to the price of gold or conventional currencies. They are not regulated by a central authority or financial institutions. And all this is possible thanks to new technologies. Moreover, now around 1% of online bets are made in cryptocurrencies. Of which more than 80% is occupied by the rate share in Bitcoin, Ethereum and Litecoin.
Bitcoin is one of the first cryptocurrencies created in 2008 by Satoshi Nakamoto. The bitcoin price is only partially correlated to the global economic situation and is more subject to the momentum effect. Another benchmark cryptocurrency is Ethereum. More advanced than Bitcoin, Ethereum relies on all blockchain applications because it can process complex contracts and programs. Blockchain is a technology in the form of sets of numbers in which cryptocurrencies are stored. Something like a database made up of “blocks” that are transferred between members of a monetary transaction.
Ways to invest in bitcoin
Usually, cryptocurrencies are purchased directly from various platforms. However, the trading platform should be chosen responsibly, taking into account authority, fame and stability. You must also decide in advance in order to buy digital coins. If your goal is to trade cryptocurrency and use it often for various transactions, it is best to store purchased tokens on the exchange. This will greatly facilitate their access. Among the advantages of this investment method is the possibility of using purchased bitcoins for trading, investor protection, since most of the largest crypto exchanges have long since entered the legal domain. As well as the possibility of transferring to stablecoins at any time if prices start to fall. If bitcoins are purchased for long-term investment purposes and will not be used in the near future, it is best to withdraw the digital coins to a cold wallet.
But there are also several other methods to make money from digital assets. The second way to get it is to mine it by providing your own computing power to maintain the network. Buying an ASIC miner and connecting it at home will not bring a normal income, yet you can do so in order to familiarize yourself with the mining industry and gain relevant experience. To count on a serious profit, you need at least 10,000 cars.
If you do not want to contact crypto exchanges, you have the option of investing in digital instruments related to coins. The advantages of this method include less risk of asset depreciation and lower volatility. But, it also reduces potential revenue.
Where to learn to mine and invest
You can start on your own tomorrow. After all, the cryptocurrency market is open to everyone. But, if you want to be more confident in your actions and become a professional, then qualifying in this field can be a serious act. You can start with a simple online cryptocurrency course. This will give you a basic understanding of investment theories and a solid technical analysis of various virtual currencies. Then you can continue on special foreign platforms (for example, American).