Cryptos: Simply Explained, Grab a quick beer

People have tried to simplify things by over-complicating them, here is a simple intro to making money through Bitcoin.

Who decides the price?

You do, bitcoin’s price is determined by market forces. The number of people willing and able to buy bitcoin set it’s price by demanding it. There are many real-time indexes that help in tracking the per second price down.

The price shown will be of a single bitcoin, however, you buy less or more than one. The prices rise at a sharp speed, but fall at a slower. This is to stabilize prices or to adjust to market price levels. Bitcoin has witnessed sharp highs and lows too. This happens when something drastic happens. Such shocks make this a high-risk business.

When to buy it?

Bitcoin Wisdom and Cryptowatch are among tools that help to analyze charts and understand Bitcoin’s price history. It is apolitical currency, this means that unstable governments can not do anything to hard bitcoin. However, they can make buying it slightly difficult or expensive, if in the mood. But, there is no season-to-purchase bitcoin. When the prices are rising, or about to rise that is a good indication of profit making times, you can start their. However, people also buy when prices are very low and sluggish. Such people forget about the number of coins they bought until the currency is on a great high again, that is when they sell it. Making huge gains, a reward for their patience.

How to invest?

Bitcoin is more liquid in some countries and more expensive in some. Although this is changing. But, it is global exchanged that specialize in cryptocurrency that help you purchase it. Coinbase is the largest broker yet. Any exchange can help you get started.

What do i need next?

A wallet to store your coins. A good wallet allows a good layer of security between you, your money, hackers, thieves and scammers. Serious investors may resort to wallets that use security as their USP’s. For example, the Ledger Nano S and TREZOR. There is greater depth and variance in the types of wallet, what they do and why that is important. But, for a basic crux of the whole thing this should suffice that the types include hot and cold storage wallets, hardware and software ones.

Bitcoin is very serious about the ownership of the currency, thence, it should be in a wallet that you control. If in anyone else’s wallets, it does not count as your bitcoin.

Bitcoin is easy to steal, hard to make a person return them to you and difficult to apply laws to it. This means, your money, you guard it. Take the best possible decisions and don;t let your private key in here and there and you will be safe.

How about mining instead?

Mining means putting in hours of computing powers and crunching numbers for people on the bitcoin network through algorithms.  It is now only done profitably in specialized data centers. This is an optimizing strategy. These gigantic data centers are actually warehouses, filled with computers built for the sole purpose of mining the currency. The technical reason is because transactions and the size of each block have increased. But, you can still lend you computing power to mine for bigger miners. Smaller miners or individuals may mine, but it may be rarely profitable on its own.

Key to success?

Research! Doing your research will give you the answers that you will never regret not knowing. Having a sword is great. Knowing how to use it is more important though. So get equipped! Learn it all and then jump into the battlefield to take what’s yours and waiting!

Khunsha Javed

A Filmmaker, PR enthusiast & Editor of BlockPublisher-Unfiltered. I like things that make my brain tingle. Email: khunsha@blockpublisher.com or editor.unfiltered@blockpublisher.com

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