The world is slowly and surely becoming reliant on the internet. So, it is not a surprise that Bitcoin, a global digital currency, has gained investors’ attention. It is open to everyone and provides an excellent opportunity to dwell in a new asset class. However, for a newcomer, investing in bitcoin can be very scary as he would need considerable time and effort to understand how the concept of Bitcoin works. One should also keep in mind that regulations on Bitcoin vary from one country to another. But before you jump into the world of cryptocurrency, here are a few tips to get you started in the crypto world and to calm your nerves.
Bitcoins are scarce
We all know that there is a limited amount of gold on this planet. As new gold is mined, it becomes harder to find new mines, and we have less gold left. For this reason, gold has always been considered as a hedge against monetary inflation. Similar is the case with Bitcoin. There will be only 21 million Bitcoins as time passes it will become harder to mine.
Bitcoin is the Undisputed Leader
There are thousands of cryptocurrency tokens, but each one of them is modeled after Bitcoin. The other coins are collectively known as Altcoins, and Bitcoins serve as the benchmark for their price. It has been around for a decade now, and with a market cap of USD 226 billion, it is here to stay for a long time.
Bitcoins are Useful
We all know that Bitcoins are scarce, but they are useful too. Bitcoin or BTC has a predictable monetary policy that is verifiable by anyone. It is the monetary policy that constitutes its most important feature. It is straightforward to find out the number of new Bitcoins created, the creation of a transaction, or the amount of BTC in circulation. BTC can be sent to anyone in the world, and no bank can block your payment or close your account. In a nutshell, it is a kind of money that resists censorship. Bitcoin is a sound and global currency, and it has the same impact on the global economy and finance.
Know the Crypto Exchange
One needs to move the cryptocurrency to an exchange. However, before one opens an account and loads funds, it is good to conduct comprehensive research on the exchange. Believe it or not, where you carry out the trade will largely determine how successful you are in the crypto world. Coinmarketcap maintains an exchange ranking system that is very useful.