Choose A Crypto Exchange Or Platform
Your first step of course will be to choose where to buy your crypto.
Like USD, bitcoin is the same no matter where you withdraw it from. Therefore, your primary considerations will be safety, convenience and fees.
We’ve published a whole story on the best crypto exchanges, but to help narrow your search, here are my top three picks for beginners.
Strategies For Investing In Bitcoin
Despite the many differences between buying Bitcoin and buying other equities like stocks, there are inherent similarities that must be addressed. In fact, the actual strategies for investing in Bitcoin arent all that different from their stock counterparts. That said, many of the strategies for buying Bitcoin have to do more with investment timeframes. In particular, investors may exercise one of the three most popular Bitcoin investment strategies:
Buy and Hodl Bitcoin
What Will Bitcoins Be Worth In 2025
Most crypto analysts are confident that Bitcoin price will continue rising in the foreseeable future and that it could reach between $100,000 and $1 Million by 2025.
For instance, a survey on 42 crypto experts recently concluded that Bitcoin prices could reach $318,000 by December 2025. Ollie Leech, a Bitcoin investor and editor for CoinDesk Learn, on the other hand, is confident the crypto can reach $1 Million by 2025.
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Teslas Q1 2022 Report Shows Selling Off No Bitcoin From Their Balance Sheet Which May Create Hype
To be honest, Elon Mask & Tesla has been influencing the Bitcoin market since 2020, and it started with a positive tweet posted by Elon Musk at the beginning of the last Bitcoin Bull market.
Since then, Bitcoins price began to increase gradually. But after a certain time, Elon said that Bitcoin wasnt environment-friendly as Bitcoin miners emit a massive amount of carbon dioxide. After the comment came from Elon, everyone started thinking that Elon might have sold his Bitcoin, and thus, Bitcoins price was hard-hit.
But, Teslas recent Q1 2022 report shows selling off no Bitcoin from their balance sheet. So, we believe the news will bring a positive impact on Bitcoins price soon.
So, this positive news during Bitcoins low price can be a great opportunity to start your journey with Bitcoin with only $10.
Join A Bitcoin Exchange
First, youll need to determine where you want to make a Bitcoin purchase. Most Bitcoin investors use cryptocurrency exchanges. Theres no official Bitcoin company because its an open-source technology, but there are several different exchanges that facilitate Bitcoin transactions. These exchanges are the middlemen of cryptocurrency investing, like a stock brokerage.
If you decide to purchase from an exchange, youll have to decide which exchange you want to buy from. Here are a few of the most popular options:
Coinbase: A very popular crypto exchange that insures losses in the event of a security breach or fraudulent transfers
Binance: Founded in 2017, Binance is a crypto exchange with a strong focus on altcoins
Kraken: This San Francisco-based exchange allows you to invest in Bitcoin using various currencies from around the world
Gemini: Launched in 2015 by Cameron and Tyler Winklevoss, Gemini offers services for casual and veteran Bitcoin investors with different user interfaces and fee structures for both
Bitfinex : The longest-running cryptocurrency exchange thats optimized for advanced traders and lenders
As you might have guessed, choosing a Bitcoin exchange is becoming more difficult for investors as more options begin to popularize. Find everything you need to know about Binance vs. Coinbase and start investing, today.
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What’s Bitcoin Mining Again
Mining is how new bitcoins are put into circulation. When you offer some of your computer’s processing power to building and maintaining the blockchain, you’re automatically rewarded with a tiny trickle of bitcoin hence, mining.
Bitcoin mining is extremely competitive, but if you have a powerful computer with a dedicated gaming graphics card, you can still earn around $5 a day doing it. And unlike the old days of bitcoin mining, you don’t need a computer science degree to set it up. Nowadays, you can just add your computer’s processing power to a shared pool through a service like NiceHash and share in the rewards.
Factor #: Profit Tolerance
Although it can seem like stupid advice at first, think about it: if you invest an amount that can get you highly emotional when you lose it, what will happen if you x20 your money?
This happened to a lot of investors back in late 2017 when cryptocurrency was booming. They became millionaires because they made the decision to invest their life savings.
But if they were too greedy to be reasonable about their investment, do you think they sold their positions and took their profits? No, so this is clearly not the best way to invest in Bitcoin. Most of them went back where they were during the 2018 market crash.
Only reasonably-minded investors end up making profits with Bitcoin and cryptocurrencies.
So once again, think about the amount you plan on investing. How will you behave if its worth 20x its initial value in one year?
- Will you rent a bigger apartment? Buy a fancy car?
- Will you fall in love with your cryptocurrencies and hold them until you die?
So how to invest in Bitcoin? Once again, investing an amount youll feel emotionally detached from is essential, whether your assets go up or down. It will make you a solid investor that will lose less money when the market goes down, and profit more when it goes up.
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Factor #: Change Of Mind
Ive never seen any cryptocurrency investor say Ill invest $X in cryptocurrencies and stick to his/her words. People change their minds by nature, even more when they are confronted with an ever-evolving market.
So, before you make a final decision on how much to invest in Bitcoin, leave room to change your mind in the future. The easiest to go about this is to divide your investment over time. Set the amount you have in mind, and invest it within the next 3, 6 or 12 months.
Lets say you want to invest $12,000 over the next 12 months. But the market is currently close to its all-time high. Instead of investing $1,000 every month, you can adjust the amount to start with $400 per month and invest more to compensate when the prices go down and that is how to invest in Bitcoin.
How To Buy Bitcoin In 4 Steps
Think about how to store your cryptocurrency. Are you going to keep your bitcoin in a hot wallet or a cold wallet?
Make your purchase. Figure out how much you want to invest in bitcoin.
Manage your investment. Determine your long-term plan for this asset.
varies by type of transaction other fees may apply
depending on payment method and platform
in bitcoin for getting started on Coinbase
when you make your first trade of $10 or more
for new users after trading $100 or more within 30 days
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Whats The Minimum Bitcoin Investment You Can Make
There is no minimum amount of Bitcoin you need to buy to get started. The only minimum is the one set by the platform on which youll invest in your first pieces of Bitcoin. For example, Coinbase allows the minimum Bitcoin investment from $2.
However, I do not recommend buying such a small amount of Bitcoin because exchange platforms charge fees for buying, selling and transferring cryptocurrencies. These fees will kill your investment quickly if you decide to go for the minimum investment..
All in all, I recommend investing in a minimum of 50$, even if you can invest lower amounts that should be your Bitcoin minimum purchase.
Some Questions You Should Ask Yourself Before Investing In Btc
While $100 may not seem like a lot, there are still a few things you should consider before investing in Bitcoin.
First of all, make sure you understand what Bitcoin is and what determines its value. This is essential for being able to anticipate its price movements. Dont invest in BTC just because its the new cool thing to do you stand to lose a lot of money that way.
To understand whether youre just satisfying your FOMO or are genuinely interested in BTC, answer the following questions:
- Why didnt I buy it earlier when Bitcoin was cheaper?
- Why am I buying it to hodl or to make a quick buck?
- If its the latter, then why do I think I will be able to sell it later at a higher price?
- Am I OK with the risk? Can I afford to lose all the money that Im going to invest in Bitcoin?
- Am I fully prepared to invest in BTC? Have I found a reliable cryptocurrency exchange and Bitcoin wallet?
Your answers to these questions should help you to understand whether you should invest in Bitcoin or not.
Additionally, we would advise against investing in Bitcoin or crypto in general if you are prone to falling for gambling traps. The crypto market is highly speculative, and its high-risk rewards nature can easily suck in people who are vulnerable to gambling addiction. Please remember to be careful.
How Can A Beginner Invest In Bitcoin
Its as easy to buy Bitcoin as it is to buy anything else online! There are tons of great services that offer user-friendly and hassle-free ways of purchasing Bitcoin and other digital currencies. Make sure to choose a cryptocurrency exchange that will keep your personal data safe and has a favorable exchange rate.
You can check out our guide on how to buy Bitcoin here.
Factor #: Risk Tolerance
The crypto market is very volatile.
So, when thinking about how much you should invest in Bitcoin, think of an amount that you feel comfortable losing entirely.
Think of how much you want to invest. Picture this amount, and imagine yourself in the future:
- Will you feel comfortable losing your full investment – say $12,000?
- Will you judge yourself severely because you decided to invest? Will you lose sleep or even consider suicide?
If the answer to any of these questions is even maybe yes, you need to lower the amount you had in mind and ask yourself the same questions again. If youre not sure of your answer, ask your friends and family.
Investors who invest too much money will also be tempted to panic sell at a loss. Selling at a loss can be the right decision sometimes, but only if the decision is rational – not emotional.
Keep the amount you invest at a level where it doesnt affect your judgment.
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Decide How To Store Bitcoin
Bitcoin can be stored in two kinds of digital wallets: a hot wallet or a cold wallet. With a hot wallet, transactions generally are faster, while a cold wallet often incorporates extra security steps that help to keep your assets safe but also make transactions take longer.
With a hot wallet, bitcoin is stored by a trusted exchange or provider in the cloud and accessed through an app or computer browser on the internet. Any trading exchange you join will offer a free bitcoin hot wallet where your purchases will automatically be stored. But many users prefer to transfer and store their bitcoin with a third-party hot wallet provider, also typically free to download and use.
Why choose a wallet from a provider other than an exchange? While advocates say the blockchain technology behind bitcoin is even more secure than traditional electronic money transfers, bitcoin hot wallets are an attractive target for hackers. As Bitcoin.org warns: Many exchanges and online wallets suffered from security breaches in the past and such services generally still do not provide enough insurance and security to be used to store money like a bank.
There are many hot wallet providers, offering a range of wallet types. Here are a few:
Although some hot wallet providers offer insurance for large-scale hack attacks, that insurance may not cover one-off cases of unauthorized access to your account.
How Much Could You Be Worth If You Invested In Bitcoin In 2010
In 2010, Laszlo Hanyezc bought a pair of Papa Jons Pizza delivered to him. He paid for this with 10,000 Bitcoins, effectively giving them an implied value of $0.0025 per BTC. With a $10 investment, you would have received 4000 Bitcoins. At the current rate of $65,000 per Bitcoin, your $10 investment would have grown to $260 Million today.
The Cons Of Bitcoin Investing
Unfortunately, the high volatility of Bitcoin makes it a hazardous investment, and you could lose money if youre not careful.
Depending on how much youve seen in recent months about Bitcoin, it may seem like one of the best investments to make, says Jim Pendergast, SVP of altLine, but the crackdown of governmental policies is making Bitcoin decrease in value, especially now.
Bitcoin and other types of cryptocurrency are also at high risk of pump-and-dump schemes. Predatory investors will reach out to amateur or unassuming investors and convince them to pour a lot of money into Bitcoin. The resulting surge causes Bitcoin prices to increase rapidly.
The predatory investors are smart, and they sell all of their holdings before the buying surge ends, making a huge profit. But when investors stop buying, the value of the coins falls to extremely low prices. A coin bought for $200 could wind up having a valuation of just $30. The unknowing investors would be throwing their money away.
You could always make a profit by selling your coins before the price collapses, but its impossible to predict when the buying surge is going to stopprices could fall 50% in only a matter of hours. Thats why any volatile asset, like cryptocurrency and penny stocks, are considered high-risk investments.
Manage Your Bitcoin Investment
Your final step to becoming a bona fide bitcoin trader is to know when to buy, sell or hold or as crypto stans say, HODL .
For lack of a better idea, there’s nothing wrong with a buy-and-hold strategy. Timing the stock market is tricky, and by comparison, bitcoin’s behavior is less predictable than a pig on LSD. So timing a bitcoin trade just right can be extremely difficult even a lesson in futility. You may simply want to hold until you need to sell for a large cash purchase, like a home down payment or emergency bill.
I’ll leave you with this: the original forum post from 2013 where the legendary term HODL originated. The drunken diatribe perfectly encapsulates why so many crypto traders have adopted a buy-and-hold strategy they truly believe in the promise, potential and skyward performance of bitcoin.
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Alternative Ways To Buy Bitcoin
You can also now buy crypto through some digital payment platforms you may already have accounts with, like Venmo, PayPal, and Cash App, as well as the investment app Robinhood. But they might not be right for every investor.
Paypal and Venmo dont let you transfer your holdings into your own crypto wallet, meaning your private keys remain in the platform. Robinhood recently announced its creating a crypto wallet offering so customers can move their coins off-platform. But for crypto enthusiasts who believe in the common crypto mantra not your keys, not your coins, these platforms without the option to move your holding off-platform fall short. They can also charge high fees for buying and selling cryptocurrencies , so its worth comparing the prices youll pay to more traditional exchanges.
These apps can be a simple solution to buying Bitcoin, though. For beginners, using your Venmo or Cash App account to buy Bitcoin may be more accessible than an exchange like Coinbase or Gemini, and allow you to buy in while you learn more about investing in cryptocurrency. Just keep in mind that if you ever reached a point where you had a larger crypto position, these apps might limit your ability to transfer it to another platform.7
Whats The Best Strategy To Invest $10 In Bitcoin Today
If you calculate 10 United States Dollars to Bitcoin today, you will see that you will get 24,789 Satoshi today for a $10 investment in the currency. Its because the price of Bitcoin was around $40,300 when we were writing this article.
Now, we are saying one thing to make you understand The Best Strategy.
- What does The Best Strategy mean?
Actually, you can choose any day to invest your $10 in Bitcoin but, through the term The Best Strategy, we are hinting at some special tactics by following which an investor can reap maximum gain from his little investment.
Maybe, everyone will recommend you follow the Dollar Cost Averaging Strategy for a $10 investment. We know that the Dollar Cost Averaging Strategy is Greek to many. And so, we are giving a brief on it-
- What is Dollar-cost averaging in the Crypto market?
Dollar-cost averaging is an investment method of investing a small amount in the crypto market at a given time.
For example, a retail investor named X has a large amount of money in his hand. He is willing to invest a total of $10K in the Crypto market.
He gets a salary of $500 a month and he decided to invest $10 in the crypto market every month. This approach is known as Dollar Cost Averaging Strategy.
To be specific, we wont say the Dollar-cost averaging strategy is the best one.
Whats the reason behind not being the best? Lets make a cross-question to you-
Do you know, how do 10 dollars grow in Bitcoin?
So, whats the solution?
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