How to Invest in Bitcoin: Everything You Need to Know! - ThinkMaverick (2024)

Unless you’ve been living under a rock for the past couple of years (clearly you don’t if you’re reading this article), you probably have heard of Bitcoin.

Bitcoin is one of the greatest innovation since the invention of the Internet.

Whether you love it or hate it, Bitcoin is here to stay.

In fact, Bitcoin is the best performing asset over the past 10 years, significantly outperforming stock markets, bonds, real estate, gold and other traditional investments.

If you invested $1 in Bitcoin in 2010, it’d now be worth more than $90,000!

It’s crazy, right?

• But what’s actually is it?
• How does it work?
• Is Bitcoin a good investment and if so, how canIcash in on this goldmine?

In this article, we’ll examine all there is to know about investing in Bitcoin, from how it works to what you can doright nowto get started, or decide if it’s for you at all.

If you’re ready to purchase some bitcoins and know what to expect, you can skip reading, right here and simply click on the link below to find out your options on how to buy Bitcoin.

• Buying Bitcoin with cash
• Buying Bitcoin with debit/credit card
• Buying Bitcoin with Paypal
• Buying Bitcoin with Bank Account
• Buying Bitcoin from ATM
• Buying Bitcoin with gift cards
• Buying Bitcoin Automatically Every Day, Week or Month

The Investment Rule of Thumb
First and foremost, the best way to understand Bitcoin is to have skin in the game. That’s to buy some coins to try out for yourself.

But Bitcoinis still in its nascency. The price could swing wildly minute-by-minute.

As such, only invest what you can afford to lose completely.

Yes, Bitcoin’sprice is notoriouslyvolatile. It’s more volatile than any market the world has ever seen.

Those of us who have been around for a while (I’m one for sure), are used to watching half our investment disappear overnight in the span of days, hours and even minutes.

Not everyone can handle that stress and most will be making stupid decisions, panic selling all the coins way too early.

You too will experience this if you’re going to invest in Bitcoin or other cryptocurrencies.

But we all know that, the more volatile the price, the higher the risk, the higher the potential return.

With that said, if you’re looking for quick,short–term profits, crypto may not be a good fit for you.

Why You Should Care about Bitcoin?

Until I get to the main part, I think I need to start a bit further in the past.

Bear with me, because once you understand this, you’ll be able to see the potential of Bitcoin like never before.

Over the last two decades, the Internet has completely changedtheway we think, we live and do business.

It’s hard to imagine a life before Google, Amazon, Apple, Instagram or Facebook.

With new technology comes new opportunities, many people have garnered immense wealth out of it simply based one thing- the Network Effect.

What is Network Effect?

In 1973, Robert Metcalfe, an engineer has helped pioneer the Internet by inventing what we now call the Ethernet. To monetize his invention, he began selling Ethernet network cards. But at that time customer don’t really understand why they need to connect their computers to the network.

To convince the world to adopt his network card, Robert introduced the “Metcalfe’s Law” which can apply toalmostany computer networks, including Bitcoin.

According to Metcalfe’s Law, the value of a network is proportional to the square of the number of users of the system (n²).

For example, 10 computers without a network card, its inherent value is 10. However, if a network has 10 computers connected to each other, it’s value will increase to 45. That’s 4.5x more profitable. Since then, more and more people were convinced and began to use his network cards.

Metcalfe’s law was proven to be correct. Hundreds ofmillions of Ethernet network cards has continued to grow and evolve into what we now know as the Internet.

Over time Metcalfe’s Law was linked with the Internet’s substantial growth.

Founded in 2004, Facebook quickly grew to become one of the world’s first major social networks. Facebook may or may not have had the best social media platform, but they clearly had the most users. Because this is so difficult to replicate, the power of the network drove out other competition.

Similarly, “Metcalfe’s Law” applies to eBay, Amazon, Twitter, Google and also Bitcoin.

Bitcoin is growing faster than you can imagine. Started out as a small ripple at the beginning, it continues spreading and growing exponentially as more users are joining the Bitcoin network.

Bitcoin’s value will only increase as the number of users grow.

While there’s no sure way of knowing the total number of Bitcoin users, this number of Bitcoin wallets gives us a good indication of how many users there are in the network.

With the rising speed of technological advancement, more players and fewer barriers to entry, Bitcoin will continue to grow at an exponential rate until achieving mainstream adoption. It’s similar to the “S curve” growth in adoption of Internet, TV, electricity, cellphone and other technologies.

But what is Bitcoin? Is Bitcoin A Good Investment?

Created by Satoshi Nakamoto in 2009, Bitcoin is the first and only decentralized peer-to-peer cryptocurrency that aims to solve problems with today’s monetary system.

Bitcoin removes the need for banks.

With Bitcoin, you have 100% control over your money.

You can buy, sell and send it anywhere in the world directly to the recipient without depending on a central authority.

This is called a Bitcoin transaction. All transactions are stored on the Bitcoin blockchain, which is a general ledger that operates completely in the public view and keeps your coins safe from hackers.

Bitcoin is a hedge against your government.

The central bank can increase the money supply, swoops in and snaps the finger, print (of course digitally) $2,800,000,000 in a single week – which is pretty much what happened during the 2008 financial crisis.

But Bitcoin is different. No central bank, government, miners, coders or users can control the currency supply.

Citizens in countries such as India, Venezuela, Argentina and Zimbabwe have lost faith in their local currencies and have sought refuge in Bitcoin.

If the Internet has its own currency, Bitcoin will be the currency native to the Internet- theInternet currency.

• It’s available for free to anyone, everyone in the world to create an account. Download a wallet, backup your seed phrase and you’re ready to buy, send, receive bitcoins.
• No hidden fees.
• No monthly account maintenance fees.
• Lower transaction fees.
• Almost instant money transfer to anywhere in the world without delay and paying exorbitant charges.
• You’re your own bank.
• Don’t have to ask for permission to spend your money.
• No spending/transfer limits.
• No one can close/freeze your account
• No tax

And most importantly,it’s programmed with a hard limit of 21 million.

No more new bitcoin can be created after reaching the 21million cap.

1 Bitcoin (BTC) will always be 1 BTC out of 21 Million BTC; now to eternity.

Think about this…

There are 47 million(and counting)millionaires in the world. That means if every millionaire wanted to own an entire bitcoin, they wouldn’t be able to.

There literally is not enough to go around.

Bitcoin is not just a hedge for inflation and an ever-expanding monetary supply, it’s also a hedge against surveillance and authoritarianism.

Before You Invest

While you don’t have to understand the technical stuff going on behind-the-scenes, it’s of utmost importance that you follow one simple rule:

Always keep your private keys safe, secret and don’t reveal to any 3^rdparties.

With greater freedom comes greater responsibilities.

Bitcoin private key is like the passwords to your safe. Anyone who has access to your private keys can unlock your box and steal your coins.

Be sure to check out my guides on how to keep your Bitcoin and other cryptocurrencies securely, here ,here and also here.

How to Buy Your First Bitcoin (Any country)

Now that we’ve covered one of the most powerful investment concepts, we can dive straight into the meat and potatoes of this article.

To start investing in cryptocurrency, there are two important things that you need:

• An exchange or online platform- to buy Bitcoin
• A wallet – to keep your Bitcoin

For example, you want to convert your USD into EUR. You visit a foreign exchange counter, give them your USD. And they’ll take a percentage cut and give you the rest in EUR. You’ll then keep your EURO in your wallet.

The buying process of Bitcoin is pretty much the same, except that the transaction is done online.

Step 1: Get a Wallet

Just like traditional money, you’ll need a wallet to keep your bitcoins and altcoins secure.

There are many different types of wallets out there you can choose from -mobile wallet, desktop wallet, paper wallet, and hardware wallet. Here’s a quick wallet guide that may help you decide.

Since we’re going to holding the coins for the long term, I’d highly recommend you get the most secure and safest storage option – a Bitcoin hardware wallet.

A Bitcoin hardware wallet is basically a physical “thumb drive-like” electronic device that you can use it to store, send and receive cryptocurrencies.

Trezor and Ledger are TWO of the best hardware wallets and I highly recommend them.

A hardware wallet is also known as a non-custodial wallet, which means that you own, manage and store your private keys and coins.

For example, when setting up a new Ledger Nano, you’ll need to record a24-word recovery phrase. As long as you have the 24-word recovery seed, you can retrieve all your cryptocurrency investment in a new wallet.

Don’t store your recovery seed on your computer.

Don’t snap a picture of your secret keys with your phone.

Write it down on the paper, keep it safe and off-site.

In case your hardware got stolen, damaged or lost, you can always retrieve your crypto coins in a new wallet with a secret recovery phrase (private key).

The only danger is if you lose yourprivate keys, you may lose your Bitcoin forever.

So make sure you back up your keys properly now and follow these 10 Bitcoin security practices.

Step 2: Get an Exchange

There are many different ways of acquiring Bitcoins, and you can surely find one that suit your needs.

With a plethora of platforms, choosing the right exchange can be overwhelming for beginners.

Thus, I’ve handpicked few that’s reliable and offer competitive prices for you:

• Buying Bitcoin with cash:LocalCoinSwapor Paxful
• Buying Bitcoin with debit/credit card: YouHodler
• Buying Bitcoin with Paypal: LocalCoinSwapor Paxful
• Buying Bitcoin from ATM: Find the nearest Bitcoin ATM here
• Buying Bitcoin with Gift Cards : Paxful
• Buying Bitcoin with Bank Account: Binance or Coinbase,Luno, Coinmama, YouHodler
• Or set up Bitcoin auto-buy with Swan Bitcoin or Relai (use invite code TMAVERICK to save 0.5% on fees)

While most exchanges let you connect your bank account, you’ll need to go through the KYC (Know-Your-Customer) process by providing your ID, photo, or passport to verify your identity.

It shouldn’t be complicated, but during Bitcoin’s peak pricing (for example in December 2017), it can take weeks, if not months just to get your account approved on major exchanges like Binance and Coinbase

Find an exchange that’s available in your country. Sign up an account first, even if you’re not going to buy Bitcoin now, afterall it’s free!

Make sure you use Two Factor Authentication and a Strong Password.

The following are a few main options where you can buy Bitcoin based on your country:

• USA:Coinbase, Swan Bitcoin, Kraken,Bitstamp
• Canada: CoinSmart
• Malaysia:Luno
• Singapore:Luno,Coinhako, Coinbase, Crypto.com
• Australia:Independent Reserve
• China:Huobi,OKCoin, BTC China
• Taiwan:Maicoin
• India:Bitbns
• South Africa:Luno
• UK:Coinbase,CEX
• Europe: Relai,CEX
• Russia:Coinmama
• Japan: Coinmama,Kraken
• South Korea:Bithumb,Korbit,Coinplug

Step 3: Transfer money to the exchange

Once your account is approved, you can now start buying your first (tiny fraction of ) Bitcoin. Do note that each website has its own features, fees and maximum/minimum limit order.

Now, let’s transfer money from your bank account to your exchange account

Do it as you’d normally do for transferring funds to your friends or families.

Log in to your preferred bank, enter the bank details provided by the exchange (some exchanges will give you a unique remark to include in the transfer receipt) and the total amount of money you’d like to transfer.

Regardless of which exchange you’re using, for your first trade, it’s good to start small. Once you’re confident and familiar with the interface, you can increase your funds and transfer a larger amount to your exchange account.

Wait for your funds to arrive at your exchange account. Again, it depends on the bank, it can take minutes, hours or even days to have your money deposited in your exchange account.

Step 4: Trade fiat money for Bitcoin

A Bitcoin exchange is basically a platform in which you can meet with people who want to buy and sell bitcoins and other cryptocurrencies. If you’re new to the crypto world, Bitcoin will be the first crypto that you’ll want to buy. Because most exchanges only offer trades for popular cryptocurrencies like Bitcoin (BTC) and sometimes Ethereum (ETH).

If like me, you have no experience or knowledge of trading, trading your money for Bitcoin can be scary, stressful, and overwhelming to begin.

But trust me, it’s easier than you think. When you’re at your exchange marketplace, you’ll see the order book with price per Bitcoin (BTC) denominated in your local currency, with Sell Orders (in red) and Buy Orders (in green).

You can see the lowest sell price and highest buying price from the order book.

Now you have two choices:

1. Buy instantly at the current price OR
2. Place an order by setting a particular price that you’re willing to pay.

Here’s an example of the Bitcoin order book (in Malaysian Ringgit, MYR). I can buy bitcoin instantly at current price which is MYR 30,275 per Bitcoin OR set my own price (lower than the current price) in the “Place Order” box, enter the amount of BTC I want to buy and wait for seller who’re willing to do the trade with me.

If you’re looking to buy altcoins and new coins which are not listed on the exchange, you’ll need to sign up for a different website like Binance.

Binance is a popular crypto exchange that offers a wide range of cryptocurrencies with highly competitive fees. Here you can easily trade your Bitcoin with ETH, XRP and 140+more coins.

If you’re looking for quick and easy way to get hold of Bitcoin, buy Bitcoin with credit card on ChangeNOW. With ChangNOW, you can purchase Bitcoin instantly, without the need of going through lengthy sign up process and dealing with complicated trading charts. Read more here…

Remember, Never leave your money on exchanges any longer than you need to.

Step 5: Transfer Bitcoin to your own wallet

After you complete a trade, immediately move your coins to your own wallet.

Although most exchanges will give you a free built-in wallet, it’s not advisable to use it keep your Bitcoin for long-term.

Simply because…

Leaving bitcoins on exchanges are extremely risky!

• Mt Gox where users lost $450 million or more in 2014
• Bitfinex hack where users lost $72 million in 2016
• NiceHash was hacked for $60million in 2017
• Coincheck lost a staggering $530million in early 2018,
• Binance was hacked for $40 million in 2019

With more than$9millionlost every day due to cryptocurrency hacks, scams, theft, phishing and frauds, keeping your precious Bitcoin in your own Bitcoin wallet like theLedgeror theTrezoris your main priority.

1. Go to your exchange account, select the withdraw option.
2. Open your Bitcoin wallet, search for the “Receive” option, you should be able to see a long string of numbers, lowercase letters and uppercase letters. This is your Bitcoin receiving address (also known as Bitcoin Public Key).
3. Now paste the address to withdraw box in your exchange.
4. Double and triple check the Bitcoin address is correct, before you click “Send”.

….Because Bitcoin transaction is irreversible. If you mistype or enter even one letter wrong, it’s impossible to retrieve your coins once you hit the send button.

To make sure you’re entering the right address, you can perform a test transaction by sending $1 from your exchange to your wallet.

Once you receive the $1 in your wallet, you can proceed to send the rest to your Bitcoin wallet.

What’s more, you can also check the transaction on Block Explorer. All you need to do is enter the Bitcoin address in Blockchain info and it’ll immediately give you real–timeupdates and currentstatus of your transaction.

This means Every single transaction happened in the network will be recorded permanently online and available for everyone to view. You won’t see such transparency and openness with banks and governments.

That’s it. Now you have successfully convert your traditional currency to Bitcoin.

So what next?

Investment Strategy

There are few options of what you can do with your Bitcoin depending on your preferences, goals and risk appetite.

• Buy and HODL for long-term gains: Leave your bitcoins in your own hardware wallet untouched and HODL to the moon.
• Make quick short-term profits: Buy, sell and trade on cryptocurrency spot or derivative markets.
• Lend out Bitcoins for profits at Flynt Finance

Sometimes, the best thing you can do is doing nothing.

1. buy BTC
2. withdraw BTC to your own wallet
3. do nothing

In general, Bitcoin has increased in value ata very face pace, followed by a steady, slow decline till it stabilizes.

What does it mean to you? If you hold on to your Bitcoin, your $30 worth of BTC today will double, triple or even increase x1000 times in the long run.

Best investments over the past decade:

Bitcoin: +8,990,000%
Netflix: +4,177%
Amazon: +1,787%
Mastercard: +1,126%
Apple: +966%
Visa: +824%
Starbucks: +800%
Salesforce: +792%
Adobe: +790%
Nike: +587%
Microsoft: +556%
Costco: +542%
Disney: +423%
Google: +335%
McDonald’s: +325%

— Lolli 🍭 (@trylolli) December 23, 2019

Remember? Your $1 would have worth $90,000 today if you invested it in Bitcoin in 2010.

Remove all the emotions, volatility and uncertainties from cryptocurrency investing, it’s no doubt keeping the Bitcoin (BTC) passively for longer-term (decades) without attempting to time the market would be the best choice.

How to Earn Free Bitcoin

Can you get hold of some bitcoins without actually buying it?

Yes, you can.

Even if you’re not ready to buy BTC with your hard-earned money, you can earn tiny fractions of bitcoins during your spare time. Here’s a complete list of legitimate ways to help you start earning Free Bitcoin right away.

1. Taking surveys for Bitcoin at Timebucks
2. Earn through Bitcoin faucets
3. Earn Bitcoin by freelancing
4. Exchange crypto atExolix
5. Earn free BTC when you shop online at Lolli
6. Earn free BTC while browsing the Internet
7. Get BTC tips
8. Lending BTC to earn BTC interest at Flynt Finance
9. Day trading
10. Earn BTC for inviting people
11. Earn BTC by mining

Conclusion

Welcometo the future of money,bitcoin.

You’ve just taken the first step- joining some of the greatest minds in the crypto revolution that’s transforming the financial sector, disrupting societal system and bringing economic freedom to the world.

In the meantime, educate yourself and stay safe.

Don’t get too caught up in day-to-day moves.

Let time do the heavy lifting. And when you see these crazy headlines, just laugh at them.

After the market starts running and gunning again, there’ll be a whole new slate of them.

But instead of showing skulls, they’ll show happy faces.

Let the Game Come to You!

I’ve handpicked a few guides for you to read next:

• 7 Best Bitcoin Lending Sites to Earn Bitcoin Interest
• 10+ Legit Ways to Earn Free Bitcoin (#3 is My Favorite)
• 6 Platforms That Will Get You The Best USDC Interest In 2022
• 4 Best Ways to Convert Bitcoin to Cash
• 10 Best Cryptocurrency Exchanges to buy and trade Bitcoin Cryptocurrency
• How to Secure your Cryptocurrency? Cold Wallet vs Hot Wallet
• 10 Best Bitcoin Wallets You Should Use to Protect Your Crypto Investment
• Trading vs HODLing for Bitcoin Investors
• 30 Popular Cryptocurrency and Bitcoin Terms
• Top 7 Bitcoin Myths That Need To Be Busted Right Now!
• 10 Interesting Bitcoin Facts You Should Know
• 10+ Easy Ways to Make Money with Bitcoin and Cryptocurrency
• 7 Best Ways to Earn Passive Income with Cryptocurrency

I live and breathe making an income online.

I’ll be sharing more ideas and guides soon. Stay tuned.

If you haven’t already,sign up here to receive my emails.

P.S:This Bitcoin resourceis One of – if not the most – comprehensive resources for learning about Bitcoin with over 20 categories ranging from history to buying BTC, setting up a wallet, technical information, mining, security, and trading. Enjoy!

I’m not a financial advisor, my recommendations shouldn’t be used as professional investment advice.