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The Top Four Tips to Invest in Bitcoin 

Cryptocurrencies are primed for a major market push from now until the end of the year. While some prominent figures in the investing world believe that Bitcoin has reached its peak, others predict that the value of Bitcoin could reach six figures before the end of the year.

If you are new to the world of cryptocurrencies, the good news is that you do not have to understand the intricacies of how Bitcoin actually works. While talk of miners, ledgers, ICOs, and blockchain technologies can certainly sound confusing to the novice, investing in Bitcoin is actually quite easy if you know what to look for. Below, we offer four simple tips to help you invest in Bitcoin this year in order to potentially benefit from the enormous potential of the most popular and widely used cryptocurrency on the market.

 

Find a Good Crypto Wallet

First and foremost, if you are going to invest in Bitcoin (or any other cryptocurrency for that matter) you need to know how to store it. Unlike traditional investments where you store your capital in bank accounts and other financial instruments, cryptocurrencies need to be stored in a special wallet that is designed specifically for virtual currencies.

Simply put, cryptocurrency wallets are software programs that allow you to store your coins. The unique security measures of most wallets use a combination of private and public keys that allow you to access your cryptocurrency in order to purchase, sell, or invest while keeping your money safe from hackers and others. If you are still confused, the private keys in your wallet are sort of like the PIN number on your checking account while public keys are like your actual bank account number that you have to share in order to receive payments from someone.

There are hundreds of different cryptocurrency wallets available on the internet. However, you need to find one that is specifically designed for Bitcoin, and that fits with how you plan to use your Bitcoin. For example, if you plan to invest in Bitcoin and let it sit for long periods of time, an offline wallet (or cold wallet) is generally considered to be safer than online wallets. Finding the best cryptocurrency wallet is thus the first and most important part of successfully investing in Bitcoin or other cryptocurrencies.

Don’t Be Fooled by the Actual Price of the Coin

When it comes to investing cryptocurrencies, many people feel threatened by the high price of Bitcoin (currently around $10,000 USD for one Bitcoin). While there are several new cryptocurrencies that are much cheaper (some less than $1), the cheaper price does not necessarily mean that you are getting a better deal.

The actual price of different types of coins is relevant only when you take into consideration the total circulating supply. While some coins have no limit, Bitcoin does have a limited as only 21 million Bitcoins will ever be produced or mined.

Rather than focusing on the price of the coin, a more important number to focus on is the market cap. The market cap of a certain cryptocurrency is calculated by the total number of coins multiplied by the price of those coins. Thus, when looking to invest in cryptocurrency, you should focus on the percentage of the total market cap of the currency you are purchasing. Bitcoin is usually considered to be one of the top cryptocurrencies to invest in because it has maintained the largest market cap of all currencies for several years running.

Buy Now

Lastly, you should invest in Bitcoin right now. While some investors will recommend waiting until certain dips in the market occur, those dips can be close to impossible to discern. The overall trajectory of Bitcoin has been steadily climbing since its founding in 2008, and the best time to get in on this unique investment opportunity was yesterday, so don´t wait until tomorrow.


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