What You Should Know Before Getting Started with Bitcoin

There has been a lot of noise lately about bitcoin and cryptocurrency generally, which has caused a spike in the number of bitcoin users more than ever before. Perhaps you are considering joining the train this year, it is important to know that beyond the noise on the bitcoin trend, there are certain things you must know before getting started.

Bitcoin is a Volatile Asset

This is one of the first things every bitcoin trader should know. The fact that bitcoin has looked promising in the past few months does not mean it isn't still a highly volatile asset that may not always be in your favor. This means the price can change rapidly and unpredictably within a short or a long period. While this is influenced by several factors such as supply and demand, you can't always precisely predict when the price will move. As a result, it is often advised to invest and trade carefully while considering that it is a high-risk asset and might not be the best place to keep your savings.

Bitcoin Payments are Irreversible

Bitcoin is a decentralized currency, which means it is not owned by any third-party authority such as the bank, and as a result, you hold full responsibility for your account. Payments made with bitcoin cannot be reversed, since no middleman is managing your transactions. Hence, it's best to only do business with trusted people and organizations, and if you must complete a transaction with a random address, ensure you confirm that the address is correct before making payment.

Choose the Right Platform

Your choice of bitcoin exchange or wallet goes a long way in shaping your trading experience in the long run. While you may have a personal preference for your choice of platform, there are key things you must consider while choosing. This includes Security, Geographical Location and Restrictions, Payment Methods, Transaction Fees, Level of Anonymity, and more.

Always Consider Security

The security of the platform you opt for goes a long way as long as the safety of your funds is concerned. In 2020, $1.4 billion was reported to have been stolen by crypto criminals and the number of online fraudsters seems to be on the rise lately.

Choose a platform with tight security and look out for security measures such as enabling two-factor authentication to have access to your account and complete a transaction. You can open a Bitcoin Storm account or look out for other reputable bitcoin sites that can guarantee the safety of your funds while still providing other important features to your benefit.

Bottom Line

As you take your first step to getting started with bitcoin, learn to drown the noise and get familiar with what bitcoin is all about and how it works. This will help you to be more strategic in your trading, as you now know why you are trading and what to expect in the long run. More importantly, always diversify your portfolio to reduce your risks. Consider other cryptocurrencies and use this diversification to your advantage.