When the idea of a new digital crypto financial system was presented to the public, only a small number of people trusted it. Most were skeptical when it came to putting this idea into practice. It seems that today the situation has changed drastically compared to the launch of the first cryptocurrency in 2009 – Bitcoin. Since then, the number of people who have become rich thanks to trade or mining in cryptocurrency has increased significantly, which has led to an increase in trust among people around the world. Today, many potential users in the world want to be better informed about the crypto world before embarking on the purchase of their first coins. Although you can find a lot of advantages on the Internet, like anything else in the world, this is not perfect, so you will surely find the disadvantages of buying bitcoin. In any case, before you decide to buy, it would be wise to consider both sides.
The first-launched bitcoin stands out as the most reliable cryptocurrency on the market. Thanks to its long history compared to some other currencies, and high value, potential users prefer to buy bitcoin. Here are some things you should know about before you start buying.
1. You have to keep volatility in mind
Every new investment you make carries with it a certain risk. So in this case, too, you have to be prepared for it. When it comes to buying BTC, you must be aware of the fact that this cryptocurrency is characterized by high volatility. Volatility brings the riskiest moments.
Volatility involves varying the value of a cryptocurrency, which can be frequent and unpredictable. This is a basic feature of BTC and it is important to keep this in mind so as not to be disappointed when you notice that the value of your coin has fallen sharply. So, it is a very unstable currency.
Among other things that you are warned about on savingadvice.com, volatility is also one of the main ones. Therefore, you need to know to be careful with the amount of money you invest. The basic rule of crypto investment is that you should never invest more than you can afford to lose. So keep that in mind.
2. You are not completely invisible
The very fact that the blockchain platform is decentralized, more precisely, made in such a way as to eliminate the presence of the government and the possibility of control by the government leads users to think that they are absolutely anonymous. Although protection measures have been taken to ensure decentralization, this does not mean that the presence of third parties on the platform is impossible.
You can become the target of an experienced hacker at any time. Peer-to-peer networks, although at first glance it seems completely protected, can be compromised by hackers. Based on the data collected from the nodes, the origin of the transactions can be concluded.
Sometimes even your identity can be compromised. So try to avoid combining it with the addresses you use to manage money. This was just a warning to take precautions. Because there is a way to protect yourself, which we will inform more about in the next paragraph.
3. Consider wallets at the beginning
As we mentioned earlier, you have to keep in mind that you can be the target of hackers and therefore precautions are crucial. On the other hand, clearly, you have to store your bitcoins somewhere, like the ordinary fiat currency you keep in your wallet. And in this case, there are digital wallets that can be a storage space for your tokens at the same time, but also a great way to protect your property.
There are different types of wallets that you should learn more about before you start buying BTC. If you are planning a smaller investment and do not expect a big profit soon, you can opt for a software wallet that you can easily install on your mobile phone. The efficiency of protection, in this case, is at a lower level compared to hardware wallets, and therefore software is recommended in case of lower profits.
If you are aiming for higher investment and significantly higher profit, you should probably consider the hardware type of wallet. It is the most secure type of wallet, which stores all your assets on the hard disk memory and communicates with the server.
Access to wallets is provided with specially designed keys.
4. How do you get it?
Perhaps the most important question when it comes to buying BTC is how to get it and where? Considering the popularity of this topic around the world, many crypto channels offer you the opportunity to buy some cryptocurrency. So, this is probably the simplest step.
All you need is a little research. There are many platforms on the Internet dedicated to buying bitcoin. Many websites provide such services, and it is not difficult to find some given the breadth of choices. All you need is a platform that allows the payment method you have chosen and the first tokens will be owned by you.
On the other hand, be careful, because as on all other platforms, in this case, there may be a risk of becoming a victim of fraud. We encourage you to inquire about trusted websites. Consult with experienced users, or simply read the available forums. States today are making some effort to prevent such outcomes but you cannot fully rely on it.
5. How can you spend bitcoins?
Many potential customers will wonder how they can spend their coins. Because, why invest in them and strive for profit if they can’t use them in any way? Unlike the initial stages of the bitcoin launch, when the choice regarding the spending of cryptocurrency was narrowed, today the situation is much different.
Today, many big brand owners and other manufacturers have accepted this as a regular payment method. Also, many service providers will allow you to pay them in bitcoins. Transactions are enabled both locally and internationally.
Remember to keep all of these things in mind when deciding to buy BTC. This way you will be sure that you are on the right track and you will be able to enjoy investing, trading, and spending your earned profit.