There are many cryptocurrencies available in the financial market.
Out of these cryptocurrencies, bitcoin is the star of the cryptocurrency craze.
Bitcoin is generating buzz on the Internet.
Many people want to invest in bitcoin because of its profitability.
Bitcoin investment is the best business in the world right now.
You can make a whole lot of money by trading in Bitcoin/cryptocurrencies.
Before investing in Bitcoin, understand the various types of cryptocurrencies available and the most profitable ones.
Realise Bitcoin is a volatile market, the market keeps fluctuating (adding and losing) in minutes.
Bitcoin investors either self trade or do it with the help of a professional broker.
Investing in bitcoin is easy once you understand how Bitcoin works, but most people are nervous to start.
Trading in bitcoin requires skill and expertise.
What is Bitcoin?
Bitcoin is a virtual currency controlled by a decentralized user base and is not controlled by the whims of Central Bank authority or the National government.
Bitcoin was introduced by one Satoshi Nakamoto.
It is normally abbreviated as BTC.
There are many cryptocurrencies available. There is bitcoin and the other one is often known as altcoins.
Bitcoin is the most popular type of cryptocurrency for investment.
When we say bitcoin is virtual, it means that it has no physical backing and can be sent electronically from one user to the next, anywhere in the world.
The value of bitcoin is known to fluctuate because of a finite number of coins available as a result of bitcoin mining.
Mining means digging up minerals from the surface of the earth.
Bitcoin mining also involves “digging up” bitcoins and bringing them to light, a little at a time.
There are bitcoin protocols that contain bitcoins that have not yet been brought out.
The bitcoin protocol stipulates that a maximum of 21,000,000 million bitcoins will exist at one point, in the future.
What bitcoin miners do is that they bring this bitcoin up a few at a time. Once the maximum number of bitcoins to be mined is reached, no more coins are mined.
When the bitcoin protocol allows for a larger supply, bitcoin mining continues.
Mining ensures fairness, stability and security of bitcoins.
This is a result of scarcity and the blockchain technology that bitcoin embraces.
Bitcoin miners get paid in transaction fees for creating blocks of validated transactions and including them in the blockchain.
How Does Bitcoin Work?
With a coin, you can buy products or services.
A coin is a currency.
This is something that we have agreed to have value, through scarcity of coins.
Bitcoin has no physical presence, but it operates almost in the same way as normal currency.
Bitcoin has a decentralized structure, which means there is no interference from the government or the Central Bank and users are in complete control of their transactions.
A bitcoin miner gets money after creating blocks and incorporating them into the blockchain through transaction fees.
Once a bitcoin miner obtains bitcoins, he or she keeps them in a wallet before deciding to sell them to another investor at a price.
You can buy either low quality or high-quality bitcoins.
Bitcoin can also be used as a payment method for the purchase of goods and services and is accepted by some merchants.
How to Invest in Bitcoins
In today’s market, it is very rare to see someone who has not heard of bitcoins.
Many people believe that bitcoin has the ability to bring about a shift from a cash to a cashless society.
Bitcoin has facilitated faster payment and transactions at significantly low fees in place of traditional banks.
To invest in bitcoin, you have to first buy them on a bitcoin exchange.
When you are buying bitcoins, it is important to buy high-quality bitcoin, but you can opt for either according to how much you are willing to invest.
When buying bitcoins, you have to consider the payment method, the bitcoin platform and where you want your bitcoins to go (wallet).
You must have a bank account, personal identification information and a good Internet connection to be able to start trading in bitcoins.
To start investing in bitcoins, consider these steps.
Join a bitcoin exchange
Bitcoin exchanges allow you to make purchases of bitcoins.
Although there is no bitcoin company, there are many cryptocurrency exchanges that can help you get started in your bitcoin investment.
Some of the most popular exchanges include Coinbase, Binance and Kraken.
Get a bitcoin wallet
Once you have purchased your bitcoins, they have to be stored in a wallet.
There are two types of bitcoin wallets: a hot wallet and a cold wallet.
Your cryptocurrency exchange provider is responsible for operating your hot wallet, whereas you can operate your own cold wallet.
Some of the best bitcoin wallets include Electrum and Mycelium.
Have a bank account
A bank account is a necessary part of bitcoin investment because it allows you to connect your wallet.
This makes the sale and purchase of bitcoins easier.
Place your bitcoin order
Once you have completed all the above steps, it is now time to make your bitcoin purchase.
You can either buy a whole bitcoin, which is quite costly, or a fraction of a single bitcoin.
Check on your bitcoin investment
Once you have bought your bitcoins, you have an option of holding them in your wallet until they appreciate in value, make online transactions or trade your coins with other bitcoin investors.
What are the Risks Associated With Bitcoin Investment?
If you are wondering whether a bitcoin investment is a worthy venture, then there are two sides to the story.
Bitcoin is at a high-risk end of the investment spectrum.
There are many inherent risks associated with bitcoin investment and bitcoin price is volatile.
Before you decide to invest in bitcoin, it is necessary to be wary of these risks.
Do your due diligence and work with an expert trader to avoid making huge losses.
Bitcoin investment operates on a digital platform.
If you do not have a wallet and you forget or misplace your key there is rarely a way to retrieve your coins.
Hacking is also a serious risk since there is no way to retrieve lost or stolen bitcoins.
Hackers gain personal information and use that for transaction fraud, where they make purchases in your name and never refund the bitcoins.
This is one of the biggest risks of bitcoin investments.
The price of bitcoin is volatile.
Because of this fluctuation, a bitcoin investor faces the risk of losing a lot of money once the bitcoin value goes down.
Bitcoin is not insured by the government, hence there will be no compensation in case of loss arising from risk.
Since bitcoins threaten to replace the normal currency used, the government regulates or bans the use and sale of bitcoins.
For this reason, there is a risk of how acceptable bitcoin is in different parts of the world.
How Can I Get Free Bitcoins?
Do Jobs Online to Earn Bitcoins
FAQs on How to Become a Bitcoin Millionaire Investing in Bitcoins
- How do beginners invest in Bitcoins?
Join a Bitcoin Exchange
Get a Bitcoin Wallet
Connect your wallet to a bank account
Place your Bitcoin order
Manage your Bitcoin investment
2. Can I invest in Bitcoin with $1?
3. What is the minimum to invest in Bitcoins?
4. How much should I invest in Bitcoin as a beginner?
At least 5 per cent of your money. Don’t invest too much.
5. How much does a Bitcoin cost today?
$60,391/6 Million shillings per Bitcoin
6. Can Bitcoin make you rich?
YES, Bitcoin can make you rich.
7. Can you lose money from Bitcoin?
YES, crypto is volatile and you can lose money from Bitcoin.
8. Is Bitcoin a good investment in 2021/2022?
9. Is it too late to buy Bitcoin in 2021?
No, it’s never too late to invest.
In fact, it’s the best time to invest in Bitcoin because more information is available on how to invest in Bitcoin.
10. Where do I buy Bitcoins?
There are many platforms for buying platforms and one of the most trusted is Coinbase
11. What will Bitcoins be worth in 2025?
Over 20 Million shillings or $200k per Bitcoin according to Forbes.
12. Why is Bitcoin expensive?
Bitcoin is limited because of its limited supply.
13. Is Bitcoin a pyramid scheme?
Yes, if you are told to make money you have to bring others on board then it becomes a pyramid scheme.
14. Is Bitcoin a safe way to pay?
YES, you can make/receive payments without revealing sensitive information linked to your Bitcoin accounts/wallets.
15. Why is Bitcoin a bad investment?
Bitcoin is a bad investment because Bitcoin is volatile.
Bitcoin is a young market where prices fluctuate in minutes/seconds.
16. What is Ethereum vs Bitcoin?
Bitcoin = digital currency while Ethereum is a blockchain-based network.
17. Are Bitcoins legal?
Yes, Bitcoin is legal in Kenya but the CBK calls for its regulation.
18. What country uses Bitcoin as currency?
EL Salvador encouraged the use of Bitcoin since September 2021.
19. When should I sell my Bitcoin?
Sell your Bitcoin when the Bitcoin price rises to the highest point since purchase.
20. Can you lose all your money in Bitcoin?
Yes, you can lose all your money if a hacker has your Bitcoin Wallet.
21. How much will I get if I invest $1000 in Bitcoin?
Expect about $3500/350k according to CNBC calculations.
22. Is Bitcoin refundable?
Yes, Bitcoin is refundable if you bought or used it for paying something from a company.
They can refund/return your Bitcoin if requested.
Always read the Terms and Conditions for a business to know how their refund policy works.
23. What is Bitcoins Wallet?
A Bitcoin Wallet is a type of digital wallet used to receive and send Bitcoins.
24. How do Bitcoins work?
Bitcoin is a computer file stores in a digital wallet app on your smartphone or a computer.
Resources Related on How to Become a Bitcoin Millionaire Investing in Bitcoins
Advantages of Bitcoin in Kenya
Disadvantages of Bitcoin in Kenya
What is Bitcoin?
Bitcoin is a viable investment yet a risky business venture.
As Bill Gates said, you can only invest millions or billions in Bitcoin if you have the money/money to burn.
Before you invest in bitcoin, it is important that you understand the fundamentals of this financial market.
Do not invest in Bitcoin because you see others make billions of dollars.
Smart investors follow Warren Buffet words for investment invest in what you know/understand.
Employ an expert and trustworthy bitcoin investor to help you through your investment process.
As with any other investment, be very alert and decisive once you start to invest in bitcoin.
Don’t rush or get rushed into investing in Bitcoins.
Are you buying or interested in investing in Bitcoin?
Are you wondering if Bitcoin is a good investment?