Five Things to Remember Before Investing in Bitcoin

In the world of cryptocurrencies, there is naturally going to be a lot that needs to be remembered. From making sure that one is investing in the right type of coin to making sure that one knows exactly how to retrieve the money that he or she has invested and make use of it, cryptocurrency can seem like an intimidating field to jump into. However, as long as a person is willing to take the time to research and learn about cryptocurrency, that person will be able to come to understand Bitcoin and how to make use of it. In fact, working with Bitcoin is a surprisingly simple task once a person understands all of the nuances that come along with it. As long as someone takes the time to understand the coins and the currency, he or she will be able to confidently buy Bitcoin without a second thought, allowing him or her to make purchases more securely and to focus on investments.

  1. Research Means Everything

The most important thing to remember when delving into Bitcoin is the fact that research means the difference between succeeding and losing money. It is imperative that a person chooses to research cryptocurrencies, how they work, and the best places to rely on before that person even invests a single dollar into crypto coins. By doing research on everything from the different companies that handle cryptocurrencies to understanding how cryptocurrency transfers between banks and exchanges, one will have the knowledge needed to make the smartest choices when investing money into Bitcoin and other cryptocurrencies. Research should be the first step of getting into cryptocurrency, and the research should not stop just because one believes they have sufficiently understood everything. Cryptocurrency is a field that is ever-evolving.

  1. Consider a Digital Wallet First

Before one can get started investing and purchasing cryptocurrencies, a person needs to have a place for those coins to go. While cryptocurrency is entirely digital and there is no physical form that one needs to worry about, one is still going to need a place for the coins to go once they are purchased, and this is the role that a digital wallet serves. There are several different platforms that offer digital wallets, each with their own benefits and drawbacks compared to others. This is also where the research can come in handy, as it will give a person a sense of which wallet will serve his or her needs best. Some wallets are designed to be easy to understand and access for people who are not familiar with crypto. Other wallets are designed with security and encryption in mind, while there are a handful that are designed to partner with an exchange platform for ease of use. It is important to research which wallet will be the most helpful for one’s own needs. Additionally, one should consider getting a cold storage wallet, or an offline wallet, for security reasons as this can be helpful for protection.

  1. Connect the Bank to the Wallet

The next step that one needs to work with is connecting the digital wallet to the bank account that the person plans to use to buy Bitcoin with. This step is generally as straightforward as it gets, but it is worth taking the time to see which places offer the easiest connections between wallet and bank. Again, different companies will prioritize different areas over others. An example would be a company prioritizing a fast transfer time of funds so someone can purchase their cryptocurrency as soon as the trends change, while others may focus on layers upon layers of security so one can rest comfortably knowing that his or her funds are safe and sound.

  1. Consider the Exchange Platform

This is where the bulk of the research will come in handy, as a person chooses to look for an exchange platform that aligns with their interests in cryptocurrency. As with many other areas within this field, different platforms will offer different benefits for a person and their desires. Some platforms connect directly to wallets, which can make transfers safe and simple, while others might focus on the more volatile market areas for those who are most interested in investments and long-term profits. There’s something out there for everyone, as long as one is willing to pause and look for the best-fitting platform.

  1. Prioritize the Best

Finally, one can begin truly getting into cryptocurrency. From here, one will need to decide if they want to invest in crypto coins while they are inexpensive so that they can build a stock of them over time, or if someone simply wants to purchase and sell with the market trends, hoping to make a quick profit. This is where the real interest in cryptocurrency lies for enthusiasts and is one of the best areas to spend time researching so that one can make the best profit possible, no matter if it is in the short-term or the long-term.


Elina is New York based writer and media consultant. Currently she is involved as an advisor in several ICOs. In addition to her professional interests, she loves jazz, modern art, coffee, and yoga.

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