Educating Yourself On Bitcoin – Things You Must Know Before Deciding To Invest

Apr 14, 2018 at 13:07 // News
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Educating yourself on bitcoin

During last year 2017, crypto currencies like bitcoin, ethereum and so many others have been booming. The number of daily searches on the topics is as if they increase geometrically, on a daily basis.

Something about them is that not many people really know what they’re about. It has become like a trend to buy beside Bitcoin the most exotic cryptocurrencies and tokens pure for speculation. The most popular among them are Ethereum, Ripple, Litecoin, Dash and Monero. We have outlined a guide for anyone who will like to invest in bitcoins or other crypto’s in near time.

Things You Must Know to Successfully Trade in Bitcoins

There are some things everyone who is interested in trading in bitcoins must be aware of. This information will not teach you how to become a millionaire crypto trader, nor pitch a graph promising you that the value of any of the currencies or Bitcoin will rise by 1000% in the next seven years. Bitcoin is not so much about earning, but more about learning about money.

What Is the Bitcoin All About?

According to Wikipedia, the bitcoin is a cryptocurrency. It is a worldwide accepted form of payment. It is the first digital currency to be decentralized, and the system works without a system administrator or central bank. It is a kind of peer-to-peer network which takes place between persons without any middleman or intermediary. Network nodes are used to verify the transactions and they are recorded in a public distribution ledger better known as a blockchain. Bitcoins are distributed during the mining process and then exchanged on the markets and used for buying other products, services and even currencies. It is a new decentralized payment system that mimics the function of gold without third parties nor censorship. Bitcoin is often called digital gold, it is hard to mine and very scarce digital asset for secure value transactions. It has no third party risks and is not a debt liability, no it is an vehicle for claiming financial sovereignty, privacy and freedom. Particularly in the light of the war on cash where all the money circulates through banks, we need a secure digital equivalent of digital cash for enable us to transact with other people permissionless in privacy, without the systemic risks inherent of a fiat debt based banking system.      

Reflecting and learning about money, Bitcoin and our banking system takes time. By following a bitcoin course such you can find on the Best Bank Bitcoin Course, you will be doing yourself a lot of good. There are so many other things you must do before embarking in a bitcoin investment. We will share a few of them here:

·         Educate Yourself Properly: The internet is free, and there are so many cheap courses all around us, so why run blindly into something because you heard that it’s paying? BesteBank.org  has a lot of in depth articles and tutorials that you can use to know the best crypto currencies to invest in. You might see testimonials on websites, especially those who are luring you into investing with them but sincerely, no one will tell you the cons until you’re in. That is why personal studies are very essential and visiting the right information sites.  The site Best Bank in the Netherlands has created a free knowledge bank on crypto’s and bitcoin.   

·         Invest in value: In everything you do, make sure to get the best value for your hard earned money. Many people will create white board videos and attractive blog posts, telling you of how people are making thousands of dollars from crypto currencies, but you should always ensure to invest in the best values of all.

·         Diversify: Yes…you should diversify! Remember how bad it is to keep all your eggs in one basket. Never invest 100% of your money in bitcoins

·         Invest only your spare money: You shouldn’t try duplicating your ward’s school fees or your house rent by investing them in bitcoins, there are better ways to do that or you might stand a risk of losing everything. Invest only money that you can bear the loss, but remember that you must take risks to make it.

·         Never invest to the point of your emotional commitment: How bad it will be to commit suicide because of a loss in crypto investments. Cognitive bias caused by an emotional instability due to wrong investments has brought so many companies, firms and businesses down. That is very bad; as I said earlier, please invest only what you can bear to lose. It’s true that the businesses are very promising, but they can be more disastrous than they actually look.

Conclusion

The cryptocurrency world and Bitcoin  is here to stay, however we must gather knowledge and apply wisdom in our investments and see the bigger picture then just our short term gains of a relative price increase in fiat terms. We need to participate and invest in better open source permissionless decentralized financial systems for the common good of humanity. The journey starts with educating yourself on money and Bitcoin and in the process to become a better investor.   

Disclaimer. This article is paid and provided by a third-party source and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds in any company. CoinIdol shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any such content, goods or services mentioned in this article.