I Want to Set up Bitcoin, What Should I Do?
Have you ever asked yourself how to go about setting up Bitcoin? Possibly, for Singaporeans, that can be a common question because of the way crypto trading is becoming increasingly popular. The country’s non-interference with the crypto industry as expressed by MAS (Monetary Authority of Singapore) sometime back favors companies in the sector. This has seen a rise in investors streaming in the country in droves. Today, investing in Bitcoin is a major money-making opportunity. As a beginner, what should you do to succeed in Bitcoin trade, and how do you set it up? Read on to find out more.
The Basics of Bitcoin Investment
A cryptocurrency is a digital currency that’s decentralized and whose transactions are safeguarded using cryptography. Among the numerous cryptos, Bitcoin is the most popular and the first to have been launched. Currently, there are about 18million of Bitcoins in circulation with the total number being 21million expected to be reached in 2040. Their scarcity in the market makes them valuable for trading. Like other currencies, BTC functions as a store of value and means of exchange. Below are some features that make Bitcoin a special currency for you:
- It’s a decentralized currency. This means that it’s not controlled by any government and cannot be shut by anyone unless the person shuts down the internet.
- It’s not simple to use the coin for a crime. Every BTC transaction is recorded in a public ledger like blockchain.info that displays all transactions. This way, you can trace your trading deals right from the time you started.
- Unlike bank transactions that might involve credit cards that can disclose details, with Bitcoin there’s no revealing of personal data. You don’t need a CCTV camera or security system to guard the currency. They’re safe in what’s called a wallet.
- Low transaction cost. The banks charge high interests and fees on any withdrawals/deposits you make. You can even incur much cost larger the amount you’re transacting. Bitcoin’s low cost makes it suitable to purchase.
How to Acquire Bitcoins
Regardless of where you live, anyone can own Bitcoins. To acquire and accumulate them, you can choose to use either mining or buying them with real money.
Mining is a technical method and might not be preferable for starters. It involves encrypting and adding BTC transactions to a public ledger by running the mining tool to break through mathematical puzzles. It requires a 24/7 computer-network connection. Since this option tends to be a bit tricky, most people prefer purchasing Bitcoins.
There are three ways of buying Bitcoins in Singapore that you should know. But, first, you need to ensure there’s enough cash/capital for beginning the trade. You can seek financial assistance from platforms like Instant Loan. After that, use any of the below methods to buy your Bitcoins:
- These are online platforms that allow buyers and sellers to transact business while charging some small commission. It’s the most common way to go. Popular exchanges in Singapore include; – CoinBase, CoinHako, itBit, and FYB-SG. You can cross-check with them and choose the best one depending on their terms of service. You’ll need a place to store the coins. Such a digital store is called a wallet and is the most secure way of keeping currencies. Many wallets are also available so you can select a suitable one.
- Third-party brokers. These are direct peer-to-peer sellers who negotiate large BTC purchases and sell them either online or in person. Most individuals prefer buying Bitcoins from exchanges directly.
- Bitcoin ATMs. These operate similar to standard bank ATMs. You can purchase BTC by depositing cash and converting it into BTC. There are currently about nine of the ATMs in Singapore.
Reasons Why You Should Set Up Bitcoin
People choose to trade Bitcoin for various reasons, and understanding them is vital to making a potential decision. Here are some ideas for you to set up Bitcoin:
- They are scarce. This limited supply makes them precious. Just like Gold which is rare and has a high value, so is Bitcoin.
- Ease of access. You can send them to anyone and anywhere in the world. No bank will obstruct your payment or freeze the account. The crypto makes possible and simple cross-border payments and is an efficient way to evade failed government monetary policy.
- Low inflation risk. When you invest in this coin, worries about fluctuations due to inflation rates are gone.
- Interest generation. You can buy and invest in them like we do with fiat money and be guaranteed of interest. There’s no hurry in the trade; you can store your e-coins safely for as long as possible.
- The increasing demand for digital payment worldwide will hopefully favour Bitcoin investment.
It’s noteworthy to know that, Bitcoin trade like any other has its share of risks that you should know. These may include; – volatility (prices are highly volatile everywhere, including Singapore and susceptible to economic changes), money laundering, fraud concerns targeting the newcomers, and competition from other altcoins.
Significant Tips to Consider When Setting Up Bitcoin
As a non-regulated currency, there’s no set formula for success. Some people join the industry with the notion of getting wealth fast ending up making grievous mistakes. Of course, that shouldn’t happen to you. If you decide on investing, the following tips can help.
- Research thoroughly. Try and understand what you’re engaging in fully. Know the market situation and all the risks involved to avoid investing blindly.
- Carefully select your exchange and wallet. There are multiple exchanges in Singapore, and not all will be excellent. Choose the most suitable as this will be instrumental in profit-making. CoinBase is an ideal and reliable one. Different wallet types are also available, like software and hardware ones. Trezor is a great option for long-term and secure Bitcoin storage.
- Be careful and invest only in what you can afford to lose. As a startup, it would be wise to begin small and increase with time as you get to learn the market trend.
- Accept losses when they come and move on. Some individuals try to rebound with huge amounts whenever a loss occurs to compensate. You shouldn’t do that; it can be disastrous. Accept and proceed on, hoping for better results.
- Always keep your coins in wallets to avoid needless risks. If possible, use hardware wallets; they’re the safest and can’t be hacked.
- Know the proper time and price to buy. Purchase and hold; don’t allow the sudden market highs and lows throw you off the course.
- Have clear goals for trading and keep your emotions in check. Be patient, diligent, and optimistic while closely observing the trends and patterns.
The Bottom Line
Are you still there? There’s much that’s taking place in the crypto industry currently. Bitcoin trade is a perfect deal when there’s proper know-how. You can be sure that it’s a must-try trade for those determined, positive, and goal-oriented people. If that’s you, then you have all it takes to set up Bitcoin. Feel free to explore more on the subject.