CategoryBitcoin

How to successfully and easily invest in Bitcoin and cryptocurrencies: 5 steps for beginners

We are in a historical moment when paper money that has ruled the world for hundreds of years gives way to new forms of payment – cryptocurrencies. Given the recent developments around the steep rise in the price of BitCoin (BTC), it is time to point out more advanced ways of investing in cryptocurrencies that are not so covered by the daily media, namely the Initial Coin Offer (ICO).

What is an ICO?

ICO or “initial coin offer” is the initial offer of cryptocurrency. The term is defined as investing in startups based on a very similar technology to Bitcoin. New cryptocurrencies are extremely unstable and therefore (with successful ones) it is not uncommon to see an increase of 500% per day.

The following are examples of some ICOs that have had extremely high growth:

  • NXT – return on investment 1477x
  • IOTA – 332x
  • Ethereum – 152x
  • NEO – 114x
  • Stratis – 84x

If you had invested $ 1,000 in one of these ICOs, for example, you would now have $ 84,000 to $ 1,477,000.

Here’s how to invest in one of the ICOs:

Step 1. Open an account on Coinbase

Coinbase is an American exchange office that allows us to exchange money for one of 4 cryptocurrencies – Bitcoin (BTC), Litecoin (LTC), Ether (ETH) or Bitcoin Cash (BCH).

Step 2. Open an account on MyEtherWallet

MyEtherWallet or MEW is your “wallet” for Ether currency (ETH) and for all tokens (coins) you will receive when investing in ICO.

Step 3. Choose the right ICO

This is the most important step and if this step is done well you can get your money back many times over. If you don’t do it well, you can lose it.

Some of the things to look for when choosing an ICO are: the team behind the ICO, what stage the project you are investing in is, what the media is saying about the project, what technology is behind the project, and many others.

Step 4. Replace tokens for cryptocurrencies at the right time

After buying tokens (investing in ICOs) you can buy and sell them after the ICO is over. You choose how much return you want and determine at what return you will sell your tokens that you received through the ICO.

The mistake that many people make is to: a) invest in an ICO too late b) sell their tokens too early and not make the profit they could have made.

Step 5. Sell for ordinary money

The last step is to sell the cryptocurrency for ordinary money and return the money to the current account.

These are (simplified) necessary steps to invest in your first ICO.

If interested in learning more, check out the resources we use to learn and grow our crypto knowledge:

  • Blockchain News(one of the leaders in blockchain and crypto news)
  • BitcoinTalk(the oldest and most widely used BTC forum)
  • Investopedia(great articles on investing in crypto and general)
  • Entropy(real time Blockchain explorer)
  • CoinMarketCap(live crypto prices for more than 6.5k coins and tokens)

Who Is The Creator Of Bitcoin?

In May 2010, Laszlo Hanyecz bought two pizzas worth $30 with Bitcoin. What started as a fun test ended up being one of the biggest crypto-trends of 2020.

Nobody knew about Bitcoin a decade ago. Today it’s everywhere, and very few haven’t heard of it. The creators inspired in a technology they researched since the nineties: blockchain.

It’s been a long time since 2011, and we still don’t understand how Bitcoin works. We have an idea of what it does but have no idea of what its potential is. How has it become what it is today?

Bitcoin bases on Blockchain, like many altcoins. Yet, Bitcoin came first, and the others haven’t expanded nearly as much as BTC. Something makes it different from the pack.

If you research Ethereum, Litecoin, or Ripple, you’ll know everything about their origins and their founders. Bitcoin, however, has a mysterious creator.

Who Is The Creator Of Bitcoin?

If we knew about the creator and contact him, we would know much more about Bitcoin today. All we know is a name, Satoshi Nakamoto, registered on the Bitcoin.com domain.

The name stands for a person that may or may not exist. Although there are potential characters, nobody has enough evidence to be Nakamoto. The name is likely a pseudonym of the real person. Perhaps a group of talented coders.

It seems the creator of Bitcoin has no interest in revealing his identity. Who is Satoshi Nakamoto?

That doesn’t mean others haven’t tried. If you read Craig Wright‘s case, there’s evidence of people you might have involved in the project.

What Would The Creator Look Like?

What researchers found wasn’t enough to prove the identity. Hopefully, they will find information if they asked the closest people to that circle.

We know Laszlo Hanyecz as one of the first people who used Bitcoin. Researching further, they got to a bunch of potential profiles, being Craig among them.

Imagine someone claimed to be the creator. Even if they can prove it, it’s hard for investigators to verify it. First, it should match the description we currently have:

Skillset

Whether it’s a tech team or a single genius, it takes innovation to create Bitcoin. You won’t invent it in your garage. At least, the creator would be an expert in computer science and peer-to-peer online networks.

Identity

We don’t deny that a single person could have created Bitcoin. It’s simply not probably. If the founder created this crypto-system to make money, you’d have heard about it.

Wouldn’t the creator be the first person to profit from Bitcoin? Some Bitcoin millionaires are Barry Silvert, Michael Novogratz, and Dan Morehead.

John McAffee is another Bitcoin enthusiast who owns a good chunk. He claims to know one thing or two about the creator, but there’s no evidence because he never spoke.

Due to the many people involved, Satoshi could likely be the Bitcoin founder, not who created the whole system. Many tech geniuses may have come after him to complete the project. Probably the ones who promoted Bitcoin in its early stage.

The Bottom Line

The Bitcoin creator will continue to be anonymous. The identity may not matter after all. Because what would you get representing a decentralized, anonymous trading system. It wouldn’t make sense.

He may still surprise us and reveal himself someday in the future. If he’s still involved, the project may still be running. What we’ve seen until today may only be the beginning of something bigger.

How Much Is Bitcoin?

February 8th in the morning. Bitcoin is $9,800. Since the middle of December 2019, Bitcoin has gone from $7,000 to this point.

After it recovered in July, the crypto coin has increased its value with minor drops. It all started in 2019.

However, BTC stayed inactive for a long time in 2018. What’s causing this surge?

How Much Is Bitcoin In February?

What we’ve seen is consistent growth since the beginning of 2020. Two factors explain this positive trend.

Reliability

Bitcoin is popular for being the less volatile crypto-currency. As transactions become more secure, more and more people will accept it for trading. It will bring more buyers, and the existing ones will rely more on Bitcoin.

Productivity

Mining technologies are also improving. By the second half of 2020, most companies will start using a new method to make mining twice more efficient. It will make the coin more valuable and accessible.

Bitcoin In February: What To Expect?

We use to predict the market based on what we’ve seen recently. If the trend continues, people may mistakenly believe that it will stay like that forever.

In February, a surge has a higher chance than a crash. As long as there are more buyers than sellers, prices go up.

This market demand defines in three forms.

  • . How many people interact in the crypto markets?
  • . How often does an investor make a movement?
  • . How much Bitcoin do they buy or sell?

Quantity will always increase. Frequency depends on the investor impulsiveness. For example, most crypto news is designed to increase activity, so others either buy or sell.

Volume depends on the investor approach. A long-term thinker will probably invest heavily, ignoring the short-term events. Higher volume saves more costs.

Again, volume depends on confidence. You won’t likely see a daytrader throw millions. If you trade frequently, you have more costs and risks, which forces you to reduce the volume.

Bitcoin Based On Market Psychology

For many months, BTC has stayed under $7,000. It started surging two-three months ago. Most investors will have had enough time to participate.

But what could go wrong? Could the prices plummet? Only if buyers decide to sell, all at the same time.

Early investors will want to sell their Bitcoins once the price is high enough, causing it to go down. Inexperienced investors will sell to “protect themselves,” thinking it won’t recover. This behavior also makes the price decrease.

The question is, when will they sell? It depends on how people estimate the market ceiling. Bitcoin history shows it as $10,000. Recent researchers expect it to change to $100K.

All in all, people are optimistic about the future. Experts expect it to reach $15K in the first half and cross $20K before 2021. Some like McAffee think it’s an exponential curve, which is why it could even reach $1 million.

The daily prices may change a lot. Despite the ups and downs, Bitcoin goes up due to reasons beyond speculation. Technology improves. More people join the market every day.

The best way to profit in February is to be prepared. You can always sell, but buying Bitcoin may be too late. In 2020, investors will lose money because of not being in the game, not because of bad timing.

Is Bitcoin safe?

Many people are convinced that digital coins will “change” the world and they are freaked out about the prospect of investing in Bitcoin, the cyber currency. Before you “lose your head”, however, you must first ask: is it safe?

Bitcoin is decentralized

What makes Bitcoin more secure than any other transaction system? Bitcoin is a decentralized payment protocol. So, the transaction system is not managed by a central location, but by millions of users in the network. Their computers are also known as nodes in the Bitcoin world.

In addition to the nodes, the Bitcoin network also consists of miners. These are users who use high-speed computers and video cards to solve cryptographic puzzles and add transactions to the blockchain. At the same time, that’s the great thing about Bitcoin: it is managed by everyone.

Do you want to influence Bitcoin’s transaction system? Then you need access to more than half of all computers in the Bitcoin network. This is also known as a 51% attack. The Bitcoin network is currently so extensive that this is almost impossible.

No one can change blockchain transactions

The design of the blockchain is another characteristic of Bitcoin that has to do with the security of Bitcoin. All Bitcoin transactions are recorded on the blockchain. A new transaction block is added every ten minutes.

This new block is connected to the preceding block which is connected to the previous block. Each block also contains some information from the prior block.

But what makes this chain so secure? The further you go back in the chain, the more difficult it will be to manipulate the blockchain. That would mean that you would still have to manipulate all blocks afterwards. And all this while the Bitcoin network is already working on the current chain. Alone, it is impossible to compete with the thousands of nodes in the network. If you want to do that, you’re always behind the times.

Security is also your task

Bitcoin is based on security. But you can also take measures to use the Bitcoin network securely. Below we give you some tips so that you can use Bitcoin as safely as possible.

Preferably use a wallet

This is the safest way to store your Bitcoin. A hardware wallet ensures that access to your bitcoins remains offline and encrypted. This way, only you have access to your own bitcoins.

Many people keep their bitcoins on a cryptocurrency exchange or on an online wallet. It’s just a lot less certain. An exchange is a central party. What if the stock exchange will be hacked? Then there is a good chance that your bitcoins will be lost. The private keys of your bitcoins are stored online on an online wallet. This also increases the risk of losing your bitcoins. A hardware wallet is therefore a wiser choice!

Keep your backup sentence offline

Whether you’re using an online wallet or a hardware wallet, it’s always a good idea to keep it offline. A backup sentence is a random concatenation of 12 to 24 words. Sometimes this is also called a seed phrase.

With this backup set you can always reach your bitcoins. Even if you lose access to hardware wallet. Or, for example, if you lose your login or password for your online wallet.

We also strongly recommend that you write this backup set on a piece of paper. In other ways, you can make it easy for hackers to reach your wallet. For example, you took a photo of your 24 words? Then a malicious person can still get to your bitcoins as soon as they have access to your phone.

Source: https://www.avg.com/en/signal/is-bitcoin-safe

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