How to Invest in Bitcoin So You Don't Boncos

Find out how to invest bitcoin in the most popular virtual currency today. Don't invest carelessly without knowing how, you can get boncos if you just play.

Bitcoin is many things to many people and is the future of currency. The most brilliant digital innovation since the internet. But for astute investors, bitcoin is one thing above all else: the best performing asset of the last decade.

The way to invest in bitcoin so you don't go broke is to know that BTC is very volatile. Yes, bitcoin (BTC) has far and objectively outperformed stocks, but the peaks and valleys have been more extreme.

If you bought some bitcoins in late 2017, for example, and were forced to sell during the pandemic, you could lose up to 60 percent of your investment.

Does that mean the bitcoin way of investing is a bad investment? Not necessarily, just the volatile ones that are only in the riskiest corners of your portfolio.

Well, so that you do not lose, VCGamers have summarized several methods or ways to invest bitcoin correctly. Just scroll down!

How to Invest Bitcoin For Beginners

You must be very interested in this BTC because it provides big profits. Let's look at the steps for the correct bitcoin investment below.

Choose the Best Crypto Exchange or Platform

The first way to invest in bitcoin is, of course, choosing where to buy crypto. Like USD, bitcoin stays the same no matter where you "pull" it. Therefore, the main considerations are safety, convenience, and cost.

There are some of the best crypto trading wallets or platforms. One of the official ones in Indonesia is Pintu Indodax and Toko Crypto. However, more investors are starting in Binance.

Binance is the world's largest cryptocurrency exchange by volume. Although it may not have all the features and altcoins (non-bitcoin crypto) of its international parent.

The main advantage of this platform is its low fees, only 0.5 percent for instant buying and selling. You can lower your costs even more if you use Binance's cryptocurrency, BNB, to cover those costs.

Binance is also an excellent exchange for beginners to develop. They offer simple and advanced dashboard options and a wider selection of altcoins than Coinbase.

The downside to using Binance.US is that the platform currently attracts regulatory scrutiny. That's not uncommon for a crypto exchange but still it's something to be aware of.

Connect Bank Account to Exchange

The second way to invest in bitcoin is quite easy. At some point, the crypto wallet you choose will ask to link a bank account as the primary payment method. Provide your bank account and routing number and you're good to go.

Most banks treat crypto purchases like cash advances. Therefore, the bank will immediately charge a down payment fee of 3 percent to 5 percent of the purchase amount. It also doesn't have a grace period, which means you'll soon be accumulating high interest on buying crypto.

But the bank doesn't mind transferring money from the bank account to the exchange. So, if you expect that the way to invest in bitcoin will be free, it's likely not.

Buy BTC

Now that you've signed up for an account and attached a bank account, it's finally time to buy some bitcoins.

On most exchanges, you're never more than a click or two away from buying bitcoins. Click the Buy/Sell button and you will have BTC aste. Many investors still prefer cold wallets because of security concerns. 

To date, several billion dollars of crypto have been stolen by hackers stealing private keys. And since crypto holdings are not insured, the victims are mostly out of luck.

Major exchanges have stepped up security and purchased private insurance, but many experienced traders are still unsure. So, you have to be able to get the assets that you have bought right.

Also read: Bitcoin Drop? Fear Not, Here Are 5 Ways To Deal With It!

Manage Purchased Bitcoin Investments

The last way to invest in bitcoin is to know when to buy, sell or hold. For lack of a better idea, there's nothing wrong with a buy and hold strategy.

Timing the stock market is complicated, and in comparison, bitcoin's behavior is less predictable. So “timing” a bitcoin trade precisely can be a very difficult, even a futile lesson.

You may only want to hold off until you need to sell for a large cash purchase, such as a down payment on a house or an emergency bill.

The process of buying bitcoins has never been technically easier, but you still have important decisions to make along the way. Are you investing in bitcoin itself or on the bandwagon? Which wallet did you choose? Where should you store your assets?

Also read: Bitcoin Price Can Reach ATH Again For This Reason!

But hopefully this how to invest in bitcoin guide has helped to answer these questions and help you understand how to invest in bitcoin so that you can invest not only efficiently, but also safely and smartly.