How to invest in Bitcoin stocks starts with pre-investment research, buying, mining, promotion, selling, to monitoring the market.
Scienceloversss - How to invest in Bitcoin stocks starts with pre-investment research, buying, mining, promotion, selling, to monitoring the market. For beginners, how to invest in Bitcoin stocks requires extra foresight by not rushing to buy and sell stocks.
Cryptocurrencies such as Bitcoin are one way to play stocks that are not under the auspices of the Government and are referred to as investments that will last for a long time.
Although not from the Government, its existence has been validated by many parties, has a strong enough influence, and is protected.
Investing in the Bitcoin stock market is the most common stock investment way for beginners to gain investment experience. Its long-term nature and promises of abundant profits make it never empty of investors.
Here, Sciencelovers reviews how to invest in Bitcoin stocks from various sources.
How to Invest in Early Bitcoin Stocks
1. How to Invest Bitcoin Stocks from Pre-Investment Research
- Understand the Amount
How to invest in Bitcoin stocks, the first thing to do is research. This is done because the circulation of bitcoin is very limited. To date, there are only about 21 million worldwide.
Limiting the number of circulation is what makes how to play Bitcoin stocks more interesting to understand. Of course, the price of bitcoin will tend to continue to rise.
- Investment Risk
But keep in mind that no investment will continue to run smoothly. Some financial experts such as Professor John Quiggin from the University of Queensland stated that Bitcoin investment could be bubble, because it has no real asset value.
How to play Bitcoin stocks for the first time, must really understand the risks, benefits, taxes, and how the system works. For beginners, how to play Bitcoin stocks, start investing in Bitcoin slowly.
- Do not rush
Do not rush to put all the money you have to buy this digital money. How to play Bitcoin stocks with a structured method is an effort to learn safe Bitcoin investments and make them more proficient.
Make sure that potential Bitcoin investors already have special money used for investment. The investment money is meant for money excluding living expenses and emergency funds.
When it's fully matured, open a Bitcoin Wallet account on the trusted site blockchain.com to start registration and verification. When you already have the wallet, create an account before the transaction. The goal is to make it easier to monitor Bitcoin's ups and downs in real time.
2. How to Get Bitcoin Stocks from Buying
- Buy
The second way to play Bitcoin stocks is to get Bitcoin by buying. Potential investors must first download a Bitcoin wallet to make transactions. If you have followed the previous steps by creating an account, then open the wallet.
The most popular marketplaces for exchanging money for cryptocurrencies are Bitfinex, Bitstamp, Coinbase, and Coinmama.
Perform cryptocurrency exchanges provided by your Bitcoin wallet provider. How to play Bitcoin shares by getting exchange, can be with a debit card, credit, or PayPal.
- Write
In addition to buying, how to play Bitcoin shares can be obtained for free through the writing method. Write about cryptocurrencies. This method is perfect for those who have writing skills to be able to get it for free.
Currently, the crypto world already has a news site that will load various kinds of news. Playing Bitcoin is indeed an easy matter as long as you understand how, one of which is by trading Bitcoin every day.
3. How to Get Bitcoin Stocks from Mining
- Other Users
How to play the fourth Bitcoin stock, try to get it from other users. This method is known to be the easiest for beginners. This way of playing Bitcoin stocks can be applied because its function can be likened to conventional money.
Its function is as a medium of exchange in all types of transactions. Along with the development of increasingly sophisticated technology, Bitcoin can now be transferred like cash in general. The way to play Bitcoin stocks is to use a Bitcoin Wallet Address.
- Mining Bitcoin
Furthermore, how to play Bitcoin shares can get it from mining or mining. However, there are drawbacks, how to mine or Bitcoin mining cannot be done individually.
In order to be able to get Bitcoin as capital, potential investors must collaborate with several users. Although quiet, its use is very flexible.
For Bitcoin mining, users need to complete several devices in hardware and software. One more important thing is that potential investors must understand how the system works.
4. How to Play Bitcoin Stocks from Promotions and Trading
- Bitcoin Affiliate
Bitcoin affiliate is a link for activities to promote something. How to play Bitcoin stocks on this one will make potential investors post a link on their website.
In the end, how to play Bitcoin shares will make the installer get a reward in the form of Bitcoin in every impression that can be used for investment capital.
These links can be easily found on various exchange sites for rupiah currency. There are two categories of crypto exchanges, from Fiat money to crypto and from crypto to crypto. These things must be understood, especially for novice players how to play Bitcoin stocks.
- Airdrops
How to play Bitcoin stocks by looking for free capital can rely on airdrops. This method is one of the trading strategies of a company.
The goal is to provide cryptocurrencies for free without any prior terms or conditions. Usually, the requirements that need to be done in this way of playing Bitcoin shares are the company's Twitter account or retweeting posts and others.
However, by using airdrops, these conditions do not have to be met. Cryptocurrencies can be exchanged for rupiah through various exchange sites on the internet.
5. How to Play Bitcoin Stocks by Understanding the Market
- Following Price
If you have managed to get Bitcoin coins to be used for investment, the next way to play Bitcoin shares is to follow the price and sales.
The fluctuating value of Bitcoin makes potential investors not immediately put all their money and investments. The worst risk when playing Bitcoin stocks in a hurry is that when the price falls, all the money that has been invested will also be lost.
The value of bitcoin will continue to move every minute. The way to play Bitcoin stocks that must be practiced once is to monitor their movements in real-time. There are several features that investors can use to play Bitcoin stocks, such as a bitcoin checker and a bitcoin ticker widget.
Both can provide a warning if the movement has reached the value that investors want. After that, all you have to do is make a decision, want to buy or want to sell it as part of how to play Bitcoin stocks.
- Understand Sales
How to play Bitcoin stocks at the decision-making stage is not an easy matter. Don't be careless and just rely on luck, okay! Based on the many experiences of investors on how to play Bitcoin stocks, it takes good foresight to do it.
When examined more deeply, it is true that the value or exchange rate of Bitcoin continues to creep up every year. There are opportunities that are increasingly wide open because of it.
But it needs to be understood, how to play Bitcoin stocks by selling carelessly without paying attention to the market will only lead to a loss. It could be that the price could drop far from the purchase price. So stay observant in Bitcoin trading, yes, as a way to play Bitcoin stocks for beginners!
Bitcoin is not privately owned, so in terms of controlling negative impacts, it will be easier. One of them is controlling the institutional lobby. So, it is certain that the future of Bitcoin investment will be bright.
How to Invest in Stocks for Beginners
1. Understand Stock Investment Carefully
How to play stocks for beginners will really need a prior understanding in playing stocks. Many of them, especially novice players in the world of stocks, mostly know that stocks can generate huge profits.
Even though the risk that will occur is no less big, if we ignore the basics in stock investment. Keep in mind, playing stocks really requires strategy, patience, and in-depth knowledge so that later you can get fantastic profits. Do not let this basis be ignored later.
2. Exploring Valid Information
How to play stocks for beginners must be observant to dig up valid information. With the increasingly sophisticated technology, of course, there is a lot and it is easy to obtain information digitally.
Don't just rely on what other people have said. You must be able to directly access various valid websites such as the Indonesia Stock Exchange (IDX) and others.
3. Using Capital Wisely
Capital is the main thing that needs to be prepared in playing stocks. This of course will really need to be considered considering that stocks are a medium with minimal capital, even with only Rp. 100 thousand, you can own them. With these conveniences, many of the beginners in the world of stocks are not wise in using them.
Keep in mind that the benefits that will be obtained are actually directly proportional to the capital that will be issued. Therefore, it is necessary to manage capital wisely by investing according to ability and not to go too far in pouring a lot of money.
4. Buy Stocks When Prices Are Low
Similar to other buying concepts, how to play stocks for beginners must also apply the concept of buying the item when the price drops.
However, keep in mind that with this theory you should not buy stocks without thinking. In the world of stocks, falling stock prices can also be a bad sign. This point should also be considered for stock players for beginners.
5. Targeting Banking Companies or Consumer Goods Industry
The next way to play stocks for beginners is to buy shares from banks or the consumer goods industry. Companies like this have businesses that are always needed by the community so that they will be able to generate stable profits or even increase every year.
That way, the value of the shares that are planted safely. Even if the stock price suddenly drops, this kind of company will be able to bounce back and return to making profits.
6. Choose a Financially Stable Company
The next way to play stocks for beginners is to choose a company that is financially stable. Do your research beforehand and read the ins and outs of the company concerned. This method is also an important method for beginners when they want to play stocks.
Feel free to spend more time doing the selection in each company. Also, make sure the finances of the company will be good so that losses can be minimized.
7. Monitor Economic Movements
How to play stocks for beginners, which is quite important is to monitor domestic and foreign economic movements. By knowing the stock market situation, you will be able to predict the movement of the shares you have.
If market conditions are normal, you can start to invest in new stocks. Conversely, if market conditions are deteriorating you can refrain from buying or selling stocks. Understanding market sentiment is also important. Market sentiment can also be a factor in the ups and downs of stocks.
8. Choose the Right Stock Index
A stock index is an imaginary portfolio that measures changes in the price of a market or part of that market. When the stock index moves up, it means that the prices of most of the stocks measured by the index move up. Conversely, if the stock index moves down, most of the constituent stocks of the index move down.
For beginners, you can choose stocks that are part of the LQ45 or IDX30 index. The LQ45 index is an index that measures the price performance of 45 stocks that have high liquidity and large market capitalization and are supported by good company fundamentals.
Meanwhile, the IDX30 Index is an index that measures the price performance of 80 stocks that have high liquidity and large market capitalization and are supported by good company fundamentals.
Advantages and Disadvantages of Investing in Bitcoin Stocks
- Advantages of Playing Bitcoin Stocks
1. Safe Transaction
The transaction process does not contain personal information such as names or credit card numbers and eliminates the risk of consumer information being stolen for fraudulent purposes or identity theft.
2. High Growth Potential
Some investors buy and hold a lot of this currency, with the bet that if the trust and use of Bitcoin increases in the future, the value of bitcoin will also grow.
3. Not Involving the Government
Due to the financial crisis and the great recession, some investors want to embrace decentralized alternative currencies, which are outside the control of ordinary banks, government authorities or other third parties.
- Disadvantages of Playing Bitcoin Stocks
1. Non-Stable Price
The 2017 bitcoin price hike was driven by speculators rushing into the Bitcoin market, as NerdWallet staff writers discussed at the time.
This gain is good news if you bought bitcoin in December 2018. Those who bought Bitcoin in 2017 when the Bitcoin price shot towards $20,000, need to recover from their losses.
2. Limited
In May 2019, telecommunications giant AT&T joined forces with companies like Overstock.com, Microsoft, and Dish Network to start accepting payments with Bitcoin. However, these companies apply some exceptions that are not in line with company rules.
3. Risk of being hacked
While the blockchain technology behind Bitcoin is believed to be more secure than traditional electronic money transfers, Bitcoin wallets have become an attractive target for hackers.
For example, in May 2019 it was stated that more than $40 million in bitcoins had been stolen from several high-value accounts on the cryptocurrency exchange Binance.
4. Without SIPC
SIPC (Securities Investor Protection Corporation) or a company that protects securities investors, will usually ensure investors up to $500,000 if the broker fails or funds are stolen. However, the insurance does not cover cryptocurrencies like Bitcoin.
