It took me three months to pull the trigger after I initially decided to invest in Bitcoin. I procrastinate, because I didn't know how, where or when to invest in Bitcoin.
The main reasons I had for waiting to invest in Bitcoin was it's complexity, and lack of legit guides.
The thing is that he crypto market waits for no one. It moves fast. For this reason I've created a simple, step-by-step guide on how to do it.
At the time, I regarded Bitcoin as one of the stronger investment cases of 2021.
How I Invested in Bitcoin
Back in the day, investing in Bitcoin used to be super complicated. Luckily, it's easier than ever, and can be completed in 30 minutes.
Here's what you need to do:
Registrer at a crypto currency buying platform
Enable bank transfere/put in your card info
Get youself a safe wallet off the exchange
HODL
How to Invest in Bitcoin - Step #1
At publication, retail investors commonly used centralized exchanges to purchase Bitcoin. I compared platform availability, fees, supported assets, and withdrawal rules before choosing one.
How to Invest in Bitcoin - Step #2
The next step is to actually invest in Bitcoin. You'll have to choose between bank transfer of to buy with your credit/debit card.
The pros of bank transfer are lower fees, and that there's a higher weekly limit to the amount of crypto you can buy.
In other words, if you're planning to put hundreds of thousands in, do it by bank transfer.
The pros of using you card is that it's easy and safe. You don't risk sending money to the wrong place, as might happen when using bank transfer.
I used a card for my first small purchase, while bank transfers generally carried lower fees.
The exact purchase flow depended on the exchange. I reviewed the order amount and fees before confirming.
How to Invest in Bitcoin - Step #3
Now that you have your Bitcoin, you need to store it safely.
This is not an issue at first, but as you begin to accumulate assets of significant value, safety becomes a concern.
A hardware wallet, also known as a cold wallet, was one storage option I considered as the value grew.
A hard wallet is a place to store your crypto that's not connected to the internet.
Keeping keys offline reduces exposure to online attacks. It's similar to using a physical safe.
I later used a hardware wallet myself as my holdings grew.
If you'd like to keep you crypto safe, but not pay for the hard wallet, you can always go for a hot wallet.
Hot wallets are digital wallets kept as an application on your desktop, or online. These are locked with a password, preferably combined with something like google authenticator.
In other words, I enabled two-step verification when using a hot wallet. I used one for a long time, then switched to cold storage as my assets grew.
What I Did Next
For my plan, the next step was holding through volatility.
The last step is to HODL, meaning hold on for dear life.
It might sound like a joke, and it kind of is, but it's really not.
A lot of people expect the market to treat them with mercy. Let me tell you; Bitcoin does what Bitcoin wants to do.
Even in bullmarkets we experience 20-40% drops in price.
I did not treat those declines as a reason to abandon the thesis.
We all know we should buy low, and sell high. Why then, do so many people do the opposite?
Why do so many people buy high and sell low?
It's the fear that gets them. They buy high, in fear of missing out (FOMO), and sell low in fear of further depreciation (FUD).
I tried not to repeat those mistakes and held while the thesis remained intact.
In the bull markets I examined, each downturn had been followed by a larger upturn.
My approach was to hold.
Related: Bitcoin bull markets