How to Go About Buying Bitcoin
If you are seriously thinking about getting into Bitcoin with a view to investment, you certainly wouldn’t be alone, as more and more investors are looking to diversify their portfolio, and with that in mind, here are a few tips to help you get started with purchasing Bitcoin.
- Carry Out Some Online Research – The very first step is to do some online research into Bitcoin, after all, you wouldn’t want to invest in something you know nothing about. There are many websites where you can learn about this digital currency, and your research should include a basic understanding of blockchain technology, which is the foundation of Bitcoin.
- Download the Free Bitcoin Virtual Wallet Software – In order to buy Bitcoin in Sydney, or anywhere else, you will need to install the Bitcoin virtual wallet onto your digital device. When you have done that, you should copy your digital private key onto several other devices, such as memory sticks, as without your private key, you cannot access your Bitcoin. If, for example, you lost your smartphone that has the software installed, if you don’t have a copy of your private key, you can still reinstall the software onto another device, but without the private key, you cannot access your Bitcoin.
- Source a Reputable Bitcoin Dealer – The Internet can help you to locate a reputable Bitcoin dealer, and rather than buying online, you should visit their offices, where you can pay in cash and receive your bitcoin immediately. Once you have done that, you can carry out further transactions online, as you already know the dealer is legitimate, and by registering with the dealer, they will allow you to carry out transactions on their website.
- Monitoring Bitcoin Prices – The price of a Bitcoin can fluctuate at any time, so you should bookmark the dealer’s website and visit daily, to see how prices are on a day to day basis. If, for example, prices suddenly rose and you were not aware, you would lose an opportunity to make a profit, so you should check the Bitcoin prices on a daily basis.
- Adding to your Investment – Obviously, your initial purchase would be moderate, but over time, if the price is stable, you can gradually increase the amount of Bitcoin you own, and just like any other investment, you should not over-extend yourself. Most investors who buy Bitcoin are looking to hold them for at least 5 years, and Bitcoin should not be viewed as a short-term investment, even though it is possible to make a short-term profit if you time your purchase right.
You are advised to spend a couple of days researching Bitcoin, which should give you a basic understanding of how the cryptocurrency works, and when you are satisfied that you know enough about Bitcoin, you can approach a reputable Bitcoin dealer and make your initial purchase. Bitcoin is also a payment platform and you might find that some retailers you use will accept Bitcoin as a method of payment for their goods or services.