Finance The Complete Guide to Creating Bitcoin Investment Plans for...

The Complete Guide to Creating Bitcoin Investment Plans for Beginners

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There’s a reason why one Bitcoin is currently worth over $61,000. Ever since its release over a decade this early type of cryptocurrency has set the pace for the future of currency.

These days, investing in Bitcoin isn’t quite as lucrative as it was during its heyday. However, savvy investors can still make a lot of money off of the cryptocurrency, even if they’re new. How can they do this?

Simple: by following the Bitcoin investment plans in this article. We’ve organized some great cryptocurrency investment strategies that are simple enough for beginners to start dipping their toes in the water.

Then, when you gain more confidence you can graduate to more advanced investment strategies. Let’s get started!

Bitcoin Investing Basics

If you’re a beginner, then you’re probably wondering how you even go about investing in Bitcoin. To give you a better idea of what’s involved in a simple investment transaction we’ll walk you through the basics.

In this section, we’ll show you how to invest $100 into Bitcoin.

Get a Bitcoin Wallet

Before anything else, you need to get a good Bitcoin wallet. This isn’t a physical wallet, but rather a virtual one. It both stores your Bitcoin for and keeps a record of all your transactions. There are two types of Bitcoin wallets: software and hardware options.

A software Bitcoin wallet is a mobile app that gets linked to your bank account. Hardware Bitcoin wallets function more as traditional wallets. They can be accessed even when they’re offline.

And, they’re a bit more safe and secure than software wallets. Once you have a Bitcoin wallet, then you will need to connect your debit card or credit card to the account. Alternatively, you can also link your bank account to the wallet.

From here, you can easily add $100 to your account. In some cases, you can also invest in Bitcoin using cash. However, you will need to access a Bitcoin ATM, like Byte Federal, to do this.

Find a Bitcoin Exchange or Bitcoin ATM

The more traditional place to purchase and trade Bitcoin is a Bitcoin exchange. As the name suggests, these are online sites that allow you to exchange traditional currency for Bitcoin and other types of cryptocurrency.

Just be careful when accessing these sites. Many of them charge high processing fees or unfair exchange rates. As such, you should make sure that you trust the website before proceeding. If you can’t find any good Bitcoin exchanges, then you can meet up with Bitcoin sellers in person.

This is a bit riskier since you never know who you’re meeting. However, it’s a good way to beat the high processing fees. As we mentioned earlier you can also take advantage of the new Bitcoin ATMs that are springing up all over the place.

These in-person machines allow you to buy, sell and exchange Bitcoin in a secure manner.

Place Your Order

Once you’ve found a Bitcoin exchange or a Bitcoin ATM, then you can link your wallet to it. From there, you can take your $100 and confirm an order. Remember that one Bitcoin is worth thousands of dollars.

So, when you purchase $100 worth of cryptocurrency, then you will receive a decimal percentage depending on the exchange rate and the current worth of Bitcoin. Congrats! That’s the basics of buying and investing in Bitcoin.

Is There a Good Time to Buy Bitcoin?

Sadly, it’s hard to tell exactly when is the right time to purchase Bitcoin. Like anything related to the market, nothing here is a sure thing. However, you can make an educated guess by watching for trends.

One trend with Bitcoin investing is high climbs in the price of the cryptocurrency. These hikes in value are usually accompanied by a gradual decline until the price stabilizes. As such, if you pay close attention to Bitcoin price charts, then you might be able to anticipate when the price of the cryptocurrency will suddenly rise.

It’s also important to remember that Bitcoin is a global currency. This is both a good and bad thing when it comes to investing. The good aspect is that the currency isn’t affected by the poor financial standing of any one country.

The bad aspect of this is that Bitcoin is prone to chaotic market trends. Influences from major markets, like the United States, China, or Korea, can massively affect the price of the cryptocurrency.

As such, it’s difficult to keep track of all of these influences at the same time unless you’re willing to put in the hours to study them closely.

Bitcoin IRA Investment Plans

Did you know that you can use your retirement savings to invest in Bitcoin? You can do this through Bitcoin IRAs. These are alternative investments that are provided by a few types of financial institutions.

Typically, an IRA is invested in traditional security options, like stocks, money market funds, and bonds. However, a Bitcoin IRA opens up the ability to also invest in cryptocurrency.

These accounts are run by custodians who manage the self-directed account. The biggest plus that comes with a Bitcoin IRA investment plan is diversification. When it comes to your retirement savings it’s helpful to spread them over as many sources as possible.

That way, if one of them fails, then you’re still covered. However, it’s also important to remember that Bitcoin IRAs aren’t for everyone. Bitcoin often goes through dramatic price swings.

When you combine this with the fact that the custodians don’t have any fiduciary responsibilities to the investors, you can see how it’s a risky investment. However, it’s good to remember that high risk often comes with a high reward.

As such, there’s a lot of potentials to make money. You just need to be prepared to potentially lose it. As such, we don’t recommend it to individuals that don’t have a lot of retirement funds to play around with.

How Much Bitcoin Should You Buy?

When it comes to Bitcoin investing you shouldn’t overextend your investment. That means don’t invest money that you don’t have, or you can’t afford to lose. One good strategy is known as dollar averaging.

This strategy involves buying a little Bitcoin at a time, every day, week, or month. The frequency and the amount depending on your financial means.

However, as long as you keep the price the same, then you avoid going all-in on an expensive price for the cryptocurrency.

Is It Better to Invest in Bitcoin? Or Should You Diversify With Other Cryptocurrencies?

Many newcomers wonder if they should stick entirely to Bitcoin, or invest in the other types of cryptocurrency options out there. It can be a good idea to diversify your investment portfolio. However, there are some caveats.

We recommend purchasing new cryptocurrencies by looking at the ones with the highest market caps. What you shouldn’t do is take the advice of a random person on the internet.

Even the most least-known currencies have a small group of individuals that are confident that they will shoot up in value. Don’t believe the hype. That’s one of the quickest ways you can lose money when it comes to cryptocurrency.

Can You Invest in Bitcoin Mining?

If you know anything about Bitcoin, then you’re probably familiar with Bitcoin mining. However, is it good to invest in this method of getting Bitcoin?

The answer is probably not. In the past, someone could mine a fair amount of Bitcoin using a simple home computer setup. However, these days Bitcoin mining has blown up.

This is due to specialized warehouses that are filled with computers. All of these computers are built specifically for mining purposes. As such, mining isn’t a viable option for new Bitcoin investors to do on their own.

However, there is one exception to this rule. Some mining locations run on a co-ownership model. These companies allow you to buy the hardware and then they handle all of the maintenance.

They also can work out a good deal on energy costs since Bitcoin mining requires a lot of energy from the power companies. As such, if you’re able to find a good deal on one of these locations, then it might be worth your money to invest.

Want More Content? Keep Reading

We hope this article helped you learn more about Bitcoin investment plans. As you can see, it’s still not too late to get in on the Bitcoin hype. However, like any other investment, you should still be aware of the risks.

Bitcoin investment can be risky, so it’s important to never invest anything that you’re not prepared to lose. But, as long as you follow the advice in this article, and make smart decisions, then you can make a lot of money this way.

Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep exploring to find more topics that you’re sure to love.

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