Home 2018-12-10T20:46:43+00:00

4 Things You Should Know Before You Decide to Buy Your First Bitcoins

There are a few things you need to know about before you decide to make a move and buy your first Bitcoins! Read this article and find out more!

We think that we can all agree that Bitcoin has been a really important part of the Internet and the way we do business today. The Bitcoin experts and the enthusiasts have been raving about Bitcoin, its popularity, and amazingness since its launch in 2009. These people have talked about the convenience and freedom of this cryptocurrency and the fact that it is not controlled by the government or the national bank. They have described the ease and simplicity of trading online by using money that doesn’t need transfer fees. According to the experts, Bitcoin is not going anywhere anytime soon and is definitely here to stay.

For some people, Bitcoin is a mystery and if you are one of these people you have nothing to shame or worry about. After all, Bitcoin just showed up and no one can’t really know everything. If you are interested in finding more about Bitcoins or you are interested in making an investment, you have come to the right place.

We are going to present you 4 crucial things you need to know about before you decide to purchase your first Bitcoins:

1. Bitcoin as a cryptocurrency is volatile, however, it is not as much as you think – If you are interested in investing in Bitcoin, you probably are familiar with Bitcoin price or value. You probably know that its price constantly goes up and down. You need to know something and that is that Bitcoin as a cryptocurrency is volatile. Forks, hacks, exchange collapses, and news can all send the value plummeting or rocketing and no one can really predict this. However, according to experts, it is true that Bitcoin does make its own big moves and when compared to other assets it is really volatile, but over a long term, we can say that the graph just moves steadily.

2.  Bitcoin trading is not free – If you thought that you can just buy, sell, and trade Bitcoins without a fee, just because no one controls Bitcoin (no government, bank or other institution) you are wrong as sooner or later you will run into some fees. Each transaction has a small tip for the Bitcoin miners that motivates them to put the transactions in the block or be added to the blockchain. The tip usually varies, depending on the size of the file. You need to keep in mind that the bigger the tip, the faster the transaction will be.

3. Bitcoin is traceable – If you thought that Bitcoin cannot be traced just because it is not linked to the local governments or bank accounts you are wrong. The blockchain is a public ledger and keeps every transaction ever made. As a matter of fact, anyone can see the transactions, however, we can’t check exactly where each Bitcoin is at the moment and who really owns that Bitcoin, this is an anonymous information. If we want we can only see that the Bitcoin is associated with a number but don’t really know who owns the number.

4. If you want, you can invest in Bitcoin features – The currency traders have all types of tools that help them make big investments and ensure big returns. They can purchase features, trade derivatives, use leverage, and etc. Yes, it is risky, but they know what they are doing to make more money. There are websites such as Deribit and Bitmex which aren’t recommendable for beginners, however, they show how far Bitcoins has developed and they provide a goal for all experienced investors.