Today, bitcoin (BTC) is a hot and trending topic. Many people are wondering what bitcoin is and if it’s worth investing in. So, before we do anything else, let’s talk about that first. BTC is a digital currency where individuals can purchase them through an online exchange or mining. The currency isn’t printed like dollars; it is produced by computers worldwide, using free, open-source software. As a teenager who wants to invest in BTC, there are a few things that you must bear in mind. Let’s delve deeper into the greatest tips to follow as you buy cryptocurrencies.
Be Wise and Buy Bitcoin
BTC is a great investment vehicle. It’s a decentralized, peer-to-peer currency that isn’t controlled by any government or bank. This means you can hold it, spend it, or trade it at any time with anyone in the world without an intermediary. As long as you have an internet connection, you can send and receive BTCs whether you’re in a remote village in the Himalayas or on Wall Street. You can buy cryptocurrencies and dispense them as you desire.
Don’t Believe the Hype
Marketing experts know well how to use fear and greed to manipulate people into buying products, especially teenagers. The BTC market is still relatively small compared with other financial markets. It’s only $27 billion compared with the total global currency exchange markets of over $5 trillion. But that doesn’t mean anything. Stay updated and keep learning about BTC.
Be Realistic About the Value of Your Money
While the value of BTC is volatile, it has gone up by over 1,400% in two years. In that period, almost 20 other currencies outperformed BTC, but they’re so small that their price fluctuation is irrelevant to everyday life. Every developed country has its currency, managed by central banks that set interest rates and control inflation. BTC, on the other hand, is managed by code. No one can use a computer to create BTCs out of thin air or hack into your wallet and steal them from you.
Take Advantage of BTC’s Price Fluctuations
Although BTC’s price fluctuates a lot, it is possible to make money with it. A person can buy bitcoin with debit card for low rates and sell it at very high rates depending on the fluctuations. The only way the people who own BTCs will make money is to sell them for more than they bought them for. This means that if you buy BTC and never sell them, your investment will be uncertainly worth in the future. It is a highly volatile market.
Don’t Store All Your Money on BTC Exchanges
You must keep some of it in a place where you can easily access it when you need to spend it. The problem with using BTC for transactions is that the transaction fees are much higher than credit/debit cards. Many people who are new to the market may not know this and find out too late.
Use Your BTC in Everyday Life
Teens can use BTC for various purchases, including air tickets, hospitality services, food delivery, mobile top-ups, and much more. You can also buy gift cards with cryptocurrencies and send them to the required locations. Some shops will even offer exciting discounts for clients buying gift cards using BTC. It’s up to you to start using cryptocurrencies in your everyday life to see the benefits.
Take Advantage of BTC’s Anonymity
Many people use BTC to protect their identity. Unlike credit cards, paying with BTCs doesn’t require you to share any personal or billing information in public. This means that even if a business owner makes a mistake and gives away your identity, you can still remain anonymous.
You Don’t Need to Buy a Whole BTC
This is good news for people who are new to the cryptocurrencies market. Instead of having to afford $10,000 worth of BTCs (barring any discounts), you can get started with just one BTC and then trade it up from there as you become more experienced. This way, you can get a feel for the market and find out for yourself if it’s worth your time or not.
Also Read: How to accept cryptocurrency as payment
Stay Safe with BTC Insurance
BTC is still in its early days, so there are no laws to protect you against theft – just like any other business. You must take precautions to protect your BTCs and always secure your digital wallets. There are also many scam artists out there, so make sure you do due diligence to ensure that the party you’re dealing with will not take advantage of you before engaging in business.
BTC is a volatile market. It has experienced high growth during the past few years, but this doesn’t mean that it will always be like this. Instead of being carried away with what’s happening in the present, you should first familiarize yourself with BTC and how it works before deciding whether to invest in it or not. Don’t stop learning.