Are you considering buying cryptocurrency? If you have invested in bitcoin at launch in 2009, it would be worth millions or billions of Australian dollars now because the initial value was AUD0. Since then, cryptocurrencies’ values have been volatile, yet it achieved outstanding gains during the past decade. If you’re planning to buy digital currency for the first time, it’s important to know some tips & tricks before you buy Bitcoin.
Purchase the right wallet
Just as when buying a physical wallet, it’s important to choose wisely when selecting a digital wallet. The main options are for light or heavy amounts of cryptocurrency. A light purse is a good option if you’re getting started since you can use your mobile phone to access the money.
There are a few key factors to consider. One is how fast the wallet processes inputs or outputs. This factor will affect how easy it will be to buy and sell digital money, which is critical during a bitcoin price explosion. Another factor is how easy it is to transfer your account or wallet to another device. It could involve factors like transferring all data stored on your old smartphone to a new smartphone, for example. Finder reports Aussies replace mobile phones at an average of 3.5 years.
Select a reliable purchase method
Just as malicious software has become an issue in the digital age, it’s also important to avoid malicious cryptocurrencies. In June 2020, the Australian Competition & Consumer Commission reported scams had cost Aussies over AUD630 million during the past year.
In fact, this situation helps to explain why it’s sometimes more difficult to purchase bitcoins than other times.
The key is to select reliable crypto exchanges that offer features like fast payment methods and easy trading. It’s important to consider what your goals are, which can include buying currency and finding sellers.
One red flag is thematic forums. While you can find a good rate due to no commissions, there are higher risks involved. It’s better to use these sources to learn about how to buy and sell bitcoins more effectively.
Don’t buy Bitcoin after take-off
It might seem practical to take this action if you hear that a particular crypto has sky-rocketed in value. Here’s why. The reason is this could be the result of factors like a correction. Experts generally suggest avoiding them to buy a new crypto wallet.
Instead, wait until the digital currency drops. It allows you to pick up the currency at a rock-bottom price. Patience is a virtue. The Independent reports a 2011 YouTube video showing how to make an online pizza order at Domino’s involves crypto worth over AUD1.3 million at today’s exchange rates.
Be rational and stay calm
There’s no question that investing in cryptos can be thrilling. However, it’s important not to take action when there’s an uptick or downtick in your digital money’s value, for example. In fact, you should generally consider bitcoin as a long-term investment like mutual funds.
If you do sell off some cryptocurrency, experts often recommend that you hold the remaining money in Bitcoin. It’s unknown what will happen during the next decade, but some 2030 projections show the digital money surging in value during the next decade.
If you’re considering your next investments, then the option to buy Bitcoin might be one of the best options as the financial world is quickly shifting to decentralized banking and digital currencies. If you’re new to cryptos, then it’s important to consider factors like wallet size, purchase method, and investment length. Weighing such options can make your first bitcoin transaction a big success.