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Today we have a guest blogger, Danial Pervaiz, who will give you the low down on how to invest in bitcoins for beginners with no experience since there are tons of new people wanting to know more about cryptocurrencies.
I hope you will enjoy this post and that you will find it helpful to you. If you have any bitcoin stories you’d like to share, we would love to hear it in the comments below!
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See My #1 Recommended Way of Making Money Online:
INTRO
What is a bitcoin?
How can we invest in bitcoin in this competitive world?
There are some easy ways to do that if you can learn these skills, which I’m going to show you in this article.
But first, we should know that what is a bitcoin and the history behind it.
Also, always remember, only invest an amount you are willing to lose as bitcoin and other cryptocurrency coins are highly volatile and is considered an extremely risky investment.
WHAT IS A BITCOIN?
Bitcoin is a virtual currency. The founder of bitcoin cryptocurrency is Satoshi Nakamoto.
The difference between paper money and the bitcoin is very simple. Paper money is controlled by the government and bitcoin has no central government.
The government has no control over this currency yet. Investing in bitcoin could be a very hard thing for you if you don’t understand it.
If you are a beginner and really want to go more in depth into bitcoin, then you can read this amazing book Mastering Bitcoins For Beginners, which you can check out here:
The Hype of Bitcoin
I remember back in 2010, the price of bitcoins was around $0.30 and my friend bought 10 bitcoins.
From 2010, the prices have soared from $0.30 to a groundbreaking $12,000 in 2018. It went up to $20,000 in 2017. The prices are fluctuating every month in the bitcoin world.
So here is the question, should you invest in bitcoin? Or is there any easy way to invest in bitcoin without any risk?
The answer is yes! Keep Reading this article to find out how.
Investing In Bitcoin As A Beginner
When it comes to bitcoin investments, there is a possibility of a crash in the market.
I saw a lot of people investing in bitcoin by watching other people winning in this game.
But when the market crashed in January 2018, a lot of people lost their life savings. The Bitcoin dropped from $19,000 to $9,000 (at the time of this writing).
Some experts say, that it will go back to the old price ($18,000 – $19,000). But we don’t know yet.
There are two ways to invest in bitcoin:
- Buy them directly from an exchange;
- Bitcoin Mining
I will go through each one quickly below.
How to Buy Bitcoins?
Bitcoins can be stored on your local computer or either in your online bitcoin wallet.
If your computer got crashed or your bitcoin wallet gets hacked, then all your money is gone.
Despite the negatives, buying bitcoins today is very simple.
There are some online companies in the U.S and abroad for buying and selling the bitcoins. If you are in the U.S then CoinBase is the best option to go with.
You can use CoinBase to purchase bitcoin with your bank account (takes a few days to confirm but locked in at the right you confirm your buy) or a credit card (higher fees but faster).
If you don’t want to deal with this one, then BitStamp could be a better option for you. It’s a very popular exchange in Europe and you can buy and sell bitcoin directly in this exchange as well.
Here’s a quick comparison chart between the two found on Ether Plan (etherplan.com):
I saw a lot of people talking about bitcoin scam nowadays. If you understand the cryptocurrency properly, then you can lower the chances of scams like Bitcoin Advertising and Bitcoin Millionaire Club.
There is another way of making money with bitcoin. Maybe you don’t like the idea of CoinBase or BitStamp. You can still earn bitcoins by becoming a bitcoin miner.
WHAT IS BITCOIN MINING?
Bitcoin mining involves commanding your computer to solve complex mathematical problems.
Each problem takes 4 – 5 days to solve and miner gets $0.50 – $1.60 without electricity cost. Bitcoin mining eats a lot of electricity.
With time, these problems get more complicated and take 1 – 2 years.
Now, how can we make money if it takes years?
Miners use different hardware to solve these problems very fast. There are some hardware and software on the market to mine bitcoins.
We will talk about hardware and software stuff in a minute. But first, let’s talk about the history of bitcoin mining.
History of Bitcoin Mining
In the early days, Miners used their computers to solve different mathematical problems but the ordinary graphics card of your computer can’t really solve your problems.
Miners started using the external graphics card for mining. But these graphics card eats a lot of electricity and can’t really give you any profit.
Then there were chips, that were introduced to mine bitcoins. These chips were faster than graphics card but still power hungry.
ASIC Chips for Mining Bitcoins
ASIC chips were introduced in 2017 and were faster than the graphics card.
These ASIC chips consume less electricity and give you more profits.
The bitcoin mining is increasing every single day and it’s getting difficult to solve these mathematical problems.
To fix this problem, miners found a way to work in pools to make profits.
Now, what is a pool?
Bitcoin Mining in Pools
The goal here is to solve math problems in less time. In pools, bitcoin miners work together to solve math problems to make profits.
So how to start with mining pools?
You can use mining software like Nice-Hash. Nice hash is a software that puts together tons of miners to solve these complex mathematical problems.
Then they distribute the profit. You need a good graphics card or ASIC chip to mine bitcoin.
I can recommend you the following:
- ASUS GTX-1060
- GeForce GTX-1080
- GeForce GTX-1070
- GeForce GTX-1060
How Much Can You Make with Bitcoin Mining?
Well, it depends on the number of hours you put in each day.
Miners make from $200 – $3000 a day.
You can earn a different type of coins like altcoins, Ethereum, and bitcoins. The current price of a bitcoin is $9000.
On the other hand, Ethereum is $900/coin and Altcoins are $1100/coin. It can go up in the future or it can crash even more.
What about your investments?
Here are the benefits of bitcoin mining, you only invest in graphics card or chip to mine bitcoins. There are no other costs. You will have to pay the electricity bill.
But if you are working in pools, then you can make money each month. If you are using Nice Hash, then you can read the documentation on their website to learn more about it.
CONCLUSION
The easiest of the two ways discussed above to invest in bitcoin is just buying it on an exchange like CoinBase if you don’t want to get into bitcoin mining which can be significantly more technically involved.
For the average person, buying bitcoin on an exchange would be your first step as you can buy other cryptocurrencies with it.
Many other exchanges that allow you to buy other cryptocurrencies will need you to buy them with bitcoin or ethereum because these other exchanges don’t allow you to buy these alternative coins with fiat currency.
At CoinBase, you can directly buy and sell bitcoin, ethereum, litecoin and bitcoin cash only so you will have to check CoinMarketCap.com to see where you can buy the coin you want to invest in.
You can learn more about making money with bitcoins on Beginner Tuts. Consistency is the key to success. Learn and take actions. You will be successful.
Share this amazing article with your friends and family.
The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional financial advisor for investment advice.
You make bitcoin mining sound like a good thing. Bitcoin mining is a catastrophe. At the end of 2017 bitcoin mining was consuming around 0.13% of the entire worlds electricity. That is insane and this destructive mining process will not allow bitcoin to scale much more than it is unless there are some serious changes.
Mining is a dying industry that has very little future and anyone that gets involved in mining, bitcoin mining in particular, is going to have to cough up thousands and thousands of dollars to compete with some of the big mining operations going on in parts of the world.
Mining in general is a horrible idea and mining bitcoin in particular is the worst idea that could possible exist.
Bitcoin will die out if it keeps with the POW protocol that it currently uses.
Thanks for your opinions John, very interesting because I have other colleagues that would argue the other spectrum and in fact have set up even more elaborate mining labs because the money is so good.
I don’t mine bitcoins myself, but appreciate your insights here. 🙂
Thanks for stopping by,
Grace
Its nearly impossible to enter into the bitcoin mining market at this point in time. Buying a couple ASIC miners is a complete waste. Your colleagues must have a lot of machinery running to be able to compete. For a newbie you need a ton of startup capital or you have no chance.
Well, he was making $200/day and now he’s going to build it til he makes $500-$600/day, he only started mid last year so not that long at this at all and he started as a newbie.
I think it’s each to its own, and if one is determined to mine bitcoin, one can make it work. I’m not that way, I’d rather just trade crypto because it can get pretty complicated if you don’t know how to build the mining rigs.
It is important though that people know that the more people that mine, the harder it is to earn and I’m sure the mining market is more competitive now than before as people can see the potential last Dec.
Appreciate your thoughts again, thanks!
Grace
I use furcoins, no sign up or verification, pretty easy. Usually any transaction with them always takes 45 minutes to 6 hours to be completed and there is provision for Live Chat Support/WhatsApp for purchase or sale of bitcoins or any other cryptocurrency.
Interesting, thanks for sharing! 🙂
How I got my lost funds recovered and lost Bitcoin, through the help of Cbackinc..I have been in deep shit all this while I almost lost all I have been investing from day one, I tried all I could to remain unbeatable I never gave up, sometime ago I was referred by a friend to one recovery firm for assistance with their master class intelligence, they were able to track back and retrieve all my lost funds. I’m so happy. If you need help with any recovery service whatsoever, do well to contact them on Whatsapp [removed]
Hi Harry, thanks for sharing your story and providing that contact but since you’re not offering a website where I can check it out to make sure this is legit, I have to erase the number.
If you can provide more proof this is real, then I’ll put it back.
Thanks!
Grace
I am a newbie and has lost a lot of money by investing in different companies. I would love to learn how to trade bitcoin on my own. Hope someone will assist me.