Are you planning to buy Bitcoin in 2022? If you are interested in buying these coins, you are not alone. Statistics estimate that more than 46 million Americans will express their interest in buying BTC by 2023. What started out as an unusual decentralized economic idea has turned into one of the most revolutionary inventions! Today, Reddit-fueled meme-inspired promotion of the benefits of cryptocurrencies has inspired many amateur investors to invest in bitcoin, the so-called “Wild West” of cryptocurrencies. However, these investors don’t know some facts about BTC and why anyone should buy crypto in early 2022.
What should you remember before buying bitcoin (BTC)?
The increasing popularity of cryptocurrency may indicate that people are more interested in learning some basics about this new investment opportunity. Unfortunately, surveys show that 96% of American respondents could not answer simple questions regarding bitcoin. That’s why prospective investors should increase their crypto-related knowledge before starting to invest in the BTC bubble. The recent market crash basically serves as a warning to those who consider Bitcoin as a way to make quick money without learning some important things about cryptocurrency. As Bitcoin remains the most popular form of virtual currency, we are highlighting some of the most important things people should keep in mind before buying.
Buy Bitcoins Wisely:
Remember that Bitcoin is virtual money, and you don’t need to buy a whole coin! People buy fractions of these coins (because they are cheap) and these fractions can be as low as eight decimal points. People should buy BTC wisely and visit reliable platforms like https://currency.com/ for authentic transactions. Now divide one bitcoin by 100,000,000 (one hundred million) and this division is called one satoshi. You can buy 9,000+ Satoshis by August 2022 by paying $1 to a trusted exchange.
Shopping is not free.
It is a service offered by these platforms as they use cryptocurrency exchanges to buy bitcoins. Buying bitcoins is not free as they often charge a small fee for this service. Exchanges say they don’t charge fees for your trades, but some fees do. However, you shouldn’t let these fees stop you from buying Bitcoin. These exchanges only aim to profit from the “spread” or the difference between the price of buying and selling bitcoins.
Beware of volatility;
Bitcoin has been flexible since its inception, and this flexibility makes it very easy to convert virtual currency. Volatile, vulnerable and unpredictable seem like apt words to describe the characteristics of cryptocurrencies. Therefore, BTC can surpass the previous records in a few days to drop significantly in a few seconds. There is a simple principle of supply and demand at work here. When people buy, the price goes up and when they sell, it goes down. So be careful!
Beware of the “rising”:
In the year In November 2021, Bitcoin reached an all-time high above $68,000, prompting many skeptics to consider the possibility of the cryptocurrency becoming mainstream. However, in May 2022, many of these skeptics returned after some digital currencies fell to $0! Experts advise people to avoid buying crypto in the “initial” position. Instead, you should wait for the drawdown period and let your chosen amount depreciate. This is how you can profit from trading bitcoins.
Buying is not anonymous:
Can you buy bitcoins anonymously? Well, you can’t! Cryptocurrency is designed to be transparent to future scrutiny. As long as you don’t rely on privacy-prone coins like ZEC and XMR, your transactions will be part of the blockchain’s public ledger. This means your purchase history becomes public knowledge, and the government can expose your identity by linking it to your address. That’s why you should give up any idea that BTC transactions are private.
paying with bitcoin;
Many people see Bitcoin as an investment opportunity. According to recent research, 12% of Americans use crypto, and these people are mostly investing. However, you can now use BTC as a form of payment. You can pay for various services and products with bitcoin. But not all companies accept payment in BTC, and you should check the names of enterprises where a customer offers virtual currency as payment. Just remember to be careful when sending money.
Store coins properly;
How should you store your coins? We recommend you to get some digital wallets where you can protect these coins from hackers. It is not dangerous to leave your coins on a cryptocurrency exchange. But we strongly recommend crypto wallets for better measures of crypto security. Investors also prefer hardware wallets for added security (safety from online hackers). Now you have to manually protect this thumb drive from thieves. All your assets are stored in this wallet for best protection.
Protect your passwords.
Exchanges take precautions when it comes to protecting customer assets. However, hackers are always trying new ways to infiltrate these platforms and steal virtual currency. So create strong passwords to prevent these hackers from stealing your digital assets. Once a hacker steals your smartphone and confirms the transaction, you won’t be able to do anything about it, so enable 2FA to prevent people from logging into your digital account. Your money is gone forever, and your efforts are wasted!
You don’t get too tired;
Several years ago, some journalists reported that Americans were selling their homes to buy Bitcoin! In the recent market crash, some passionate low level investors lost their lives. Many Americans have been left devastated after some digital currencies became worthless. That is why we ask our people to avoid overcrowding. Don’t sell assets to buy cryptocurrency. Buying Bitcoin is an admirable investment plan, but it is not without risk. Therefore, investors should be careful when buying.
Bitcoin is taxable:
Do you have to pay taxes on your virtual assets? Well, it depends on your country’s regulations. So a person who buys BTC in the United States has to pay for the profit earned after trading the Bitcoin. Conversely, you can make crypto-based donations to avoid paying heavy taxes. That’s why we recommend that you exercise some caution when discussing Bitcoin with your country’s laws. Also, some states have banned their citizens from owning bitcoins. So read the law to avoid some lawsuits.
We found that most Americans don’t know the basics related to crypto. So, before buying or trading these coins, they should understand some basic facts about cryptocurrency. What should you know about bitcoin now? Remember that buyers buy a portion of this digital currency after paying a small fee to the cryptocurrency platform. Always invest what you can afford to lose, and don’t sacrifice your life savings with this highly volatile investment opportunity. You don’t have to invest in BTC; One can pay with virtual money. Buying BTC is anonymous as the government tracks all payments. Plus, if someone steals your account, your virtual money is gone forever. So be careful!