What is Bitcoin?
Bitcoin was created by a person(s) using the alias Satoshi Nakamoto, to enable online transactions to be sent peer to peer without the need of a financial institution.
First described back in 2008, Bitcoin is not the only type of decentralised electronic currency; however, it can boast of becoming the first-ever cryptocurrency to come into real-life use. A few perks of the digital asset include its high level of transactional privacy, fast and cheap international fees, and payments that can be made without the need of a third party. Plus, Bitcoin can be received 24/7.
During its infancy, Bitcoin was met with a great deal of speculation, scare-mongering, and negative press, causing significant volatility within the market. Perfect for those trading the market, capitalising on dips, and profiting from peaks. However, this did cause some concern for those investing – with only those with nerves of steel HODLing beyond the crypto’s first crash in 2013, to reap some tremendous rewards.
The ever-growing popularity and real-world usage of Bitcoin are evident. We at CryptoParrot believe the future of Bitcoin can only be a positive one, further cemented by music artists, banks, Elon Musk, well-known restaurants and more beginning to accept the cryptocurrency as a legitimate payment method. For assets such as property, land and cards, we could see a real demand for Bitcoin, offering security, privacy and lower fees.
Investing in Bitcoin – How to invest in Bitcoin and keep your funds safe.
From the outside, Bitcoin investing can seem intimidating. There are many stories surrounding Bitcoin scams and people losing large sums of money. Although aspects of this may be true, there are many ways to ensure your assets remain safe, including making use of our CryptoParrot trading simulator. The aim of our simulator is enhancing your knowledge, and putting your investment strategies to the test before diving into the live trading world.
Below, we have highlighted some key considerations to think of to help get your Bitcoin investment journey off to the best possible start.
Getting started – Learn and earn as you get to grips with investment strategies.
Before jumping into the deep end, we always suggest doing your research and trialling your investment plan first.
By making use of our trading simulator, you can become savvy with indicators, charting tools, and market movements while trading risk-free under live market conditions. Setting up your account is nice and easy; you can even link it directly with your Google account to save time. Once set up, your account will show $100,000 tradable demo coins, ensuring you have plenty of opportunities to test your nerve in the market!
CryptoParrot is also home to a thriving community looking to help and educate fellow investors to get started, by sharing, commenting, and promoting worthwhile investments as well as discussing successful strategies. Top traders will have the opportunity to earn real crypto, too – an excellent way to celebrate those who have proven themselves as top traders.
The CryptoParrot site has plenty of valuable educational resources to help develop your understanding of Bitcoin; we also offer overviews of other popular cryptocurrencies and links to external sources that will help to bolster your overall investment knowledge.
What to expect – Blocking out the nerves and negative noise.
During your first few investments, it is completely normal to experience initial nerves, and you will be intrigued to see how your Bitcoin investment is doing throughout the day.
Our advice is to trust the process. Provided you have reviewed the Bitcoin whitepaper, understand where the team is on their roadmap, see positive mentions across social media, and are backed by big-name investors, there should be no reason to worry about the coin’s growth and potential market movement.
Investing is a long game; at times, you may wait months or years before selling an asset. There will be ups and downs; that is the very nature of the market and why so many day traders are interested in trading cryptocurrency. There will be lots of scare-mongering, usually done to promote negative movement in Bitcoin’s value, causing some holders to sell their Bitcoin or for stop-losses to be triggered.
Thankfully, the CryptoParrot platform is full of cryptocurrency enthusiasts. You can surround yourself with positive and well-informed members of the investing world, blocking out the negative press from those looking to gain from short-term movements.
Further education – Enhance your knowledge and become a Bitcoin pro.
From your CryptoParrot dashboard, you can keep up to date on all the latest breaking news, as well as reading through our reviews on cryptocurrency strategies, guides on platforms and much more. Researching should be a huge part of your investment career, and reflecting on past wins and losses is a great way to self-assess and further understand your investment strategies too.
What could you have done differently? Did you review the roadmap in its entirety? Have any big-name backers left or joined the company since your initial investment? These are all questions to be asking along the way, as well as staying up to date with the latest news.
Investing, as previously mentioned, is a long-term trading strategy, but when real funds are involved, there is no harm in readjusting or closing your position to re-evaluate and reconsider whether this was a suitable investment for you.
Whilst investing in Bitcoin risk-free with CryptoParrot, be sure to make use of our community forum, get talking, get researching and be sure to reflect on your wins and losses.
Taking the plunge – Choosing the right exchange to invest in Bitcoin
The previous three components of our how-to-invest top tips relate heavily to your own research, testing methods and reflecting on the good, the bad and the ugly.
We now discuss life away from the CryptoParrot trading simulator, reviewing the different types of platforms that traders can use to invest in Bitcoin, when you are comfortable, you have found a winning technique and strategy.
Fiat-to-crypto exchanges, as the name suggests, allow for swift transactions between fiat currencies (GBP, USD, CAD) and cryptocurrency. Often depending on regulatory jurisdictions and whether an exchange offers crypto crosses, this style of exchange is the easiest and often quickest way to get your Bitcoin. Users will often find this type of exchange is centralised and requires its customers to go through a KYC/AML process.
Regardless of which cryptocurrency you are looking to purchase, you will need to find a platform that hosts fiat-to-crypto to get you started. Once your crypto has been purchased, or if you are already the proud owner of crypto now looking to invest in Bitcoin, you can look to make use of a crypto-to-crypto exchange.
Appealing to investors looking for the next big thing, crypto-to-crypto exchanges cater to smaller, lesser-known altcoins and offer a platform to invest in Bitcoin. Generally, these types of exchanges offer fantastic usability and allow for fluid transactions to be sent, received, bought and sold.
We briefly mentioned centralised exchanges earlier, and now it is time to discuss decentralised exchanges (DEXs). As a decentralised exchange does not rely on a financial institution to govern money movement, there is no KYC/AML process for users to follow, making them ideal spots for direct transactions to occur. One downside to this type of exchange is the liquidity available, as they generally do not have the trading volume associated with centralised exchanges.
Marketplaces are the final type of platform to feature on our list; another way for users to invest in Bitcoin. With a huge emphasis on privacy and security, these open-source marketplaces do not require registration but suffer from the same fate as DEX’s with limited liquidity.
With Bitcoin being the #1 and most recognised cryptocurrency in the world, those of you looking to invest will not have to look far for a platform that accommodates your needs. Once your chosen platform is selected, it is then advisable to consider how you are going to store your latest investment.
Investment Security: Hardware Wallets
Once you have acquired your Bitcoin, it is important to know how and where to store it. Some platforms will have a built-in wallet, allowing their users to make quick transactions from the marketplace to your account. Ideal for those of you looking to get in and out of the market with ease. However, due to your funds being kept online and in one place, this isn’t always the smartest option for long-term investments.
A hardware wallet, also referred to as cold storage, is an external piece of software that works in a similar fashion to a USB device. Simply plug it into your desktop, enter your private keys, and your crypto assets will be ready to deposit, send, and invest within minutes.
We at CryptoParrot believe the hardware wallet is the perfect Bitcoin investment storage method, encrypting access to your account, and providing another level of security to your funds that you won’t always receive from hot storage.
Another appealing feature to the hardware wallet is the lack of accessibility. With your wallet being stored offline, only to be active when depositing or withdrawing, hackers have little to no opportunity to target your funds, allowing you to rest easy in the knowledge your Bitcoin funds are safe and secure.
Of course, all wallets have pros and cons. The only downside we can see for cold storage is that the owner is solely responsible for transactions. This means there is no one to turn to if you deposit or withdraw to an incorrect Bitcoin account.
As with all wallets, users will have private and public keys. The private key will give you access to your account, much like a pin code for your bank account, whilst a public key works similar to a bank account number & sort code, allowing others to send Bitcoin directly to your wallet – providing you look after your private key and are careful when inputting your public keys your hardware wallet will be the perfect choice for your long-term Bitcoin investments.
Conclusion – Speculate on price movement, simulate your strategies and accumulate rewards.
When you are looking to invest in Bitcoin, what better place to start than with CryptoParrot.
We offer our users advice on how to invest in Bitcoin, educational resources to increase your understanding of Bitcoin, markets, and strategies, as well as a platform to put your methods to the test risk-free.
Our community is as enthusiastic as we are about Bitcoin and understands its real-world use. We appreciate the market can be volatile, and at times you may feel anxious surrounding your investment, so be sure to get talking and commenting on market movement with your CryptoParrot peers – they may well be able to put your mind at ease!
Prove yourself as a top Bitcoin investor and earn recognition as well as real crypto funds, eligible to be used within the OspreyFX platform.
When you are comfortable with your strategies and understanding of Bitcoin, take your knowledge to the next level. Just remember, the risk associated with Bitcoin is genuine – please only invest what you can afford to lose.
Investing in Bitcoin 2021 FAQs
❔What is Bitcoin?
Before looking to join the Bitcoin investment world, it is worth doing your own external research into the world’s leading cryptocurrency. We have dedicated cryptocurrency info detailed within our site and educational reviews on strategies to help you get the most out of your investing career, here at CryptoParrot.
💻 What is the best platform to invest in Bitcoin?
Investing newbies and pros alike will all benefit from the use of a trading simulator. Here at CryptoParrot, we take the risk out of investing, offering a safe place to trial new methodologies and strategies. Earn rewards and recognition as you prove yourself as a CryptoParrot top investor.
👀 How can I keep my Bitcoin investment safe?
There are many components to consider before selecting your chosen wallet. Hot storage allows for the rapid transfer of your Bitcoin from wallet to exchange, but offers greater risk to online threat. Compared with cold storage, that is stored completely offline but takes a much longer time to connect to your platform.