What is Bitcoin?
Bitcoin is a decentralised currency that was described in a concept paper written by Satoshi Nakamoto in 2008. Nakamoto is still a mystery, and no one knows who he or she is. The idea stemmed from the realisation that a single, unaccountable body shouldn’t manage our monetary system. Users should have the final say, and trust could be built via a trustworthy digital network that verifies all trades.
By 2009, the mining of Bitcoin began in earnest. Fast forward one year, and Bitcoin was spent for the first time on two pizzas; they cost 10,000 bitcoin, and by 2011, more coins began to come into the global market.
Today, Bitcoin has grown into a global online currency and has become an investment option. There is so much more about Bitcoin that beginners can get lost without proper guidance.
Is investing in Bitcoin safe?
Investing in Bitcoin is just like investing in any other financial instrument; it is only safe when you start with the proper preparation. For those who take adequate precautions, their Bitcoin investments have been profitable and safe.
Users that have invested in Bitcoin through the Chillur platform have seen their portfolio grow over 200% over time.
Here are some safety types you can employ to make your investment in bitcoin safer:
Always invest through trustworthy sources
When it comes to investing in cryptocurrencies and Bitcoin, particularly, always make use of trustworthy sources. Read through the information on the website, and go through verified forums for reviews. Find out how long they have been in business. If possible, look for current users to get their first-hand experiences. Some credible exchanges include Binance, and Coinbase.
Do not jump at promises of free Bitcoin
Many newbie investors lose money because of promises of free Bitcoins. Like the proverbial “free lunch,” these promises are usually scams.
Look for regulated service providers
When looking for a trustworthy operator, one measure to examine is to check if the appropriate bodies in Australia regulated them. Chillur is an AUSTRAC regulated exchange and this greatly increases its trustworthiness for clients.
While Bitcoin being risky might be enough to scare some investors away, it also provides a solid way to build wealth.
Is investing in Bitcoin risky?
Sort answer: Yes, investing in Bitcoin can be risky business.
Generally, the cryptocurrency market is extremely volatile compared to the other global financial markets. It is important to keep in mind that all financial markets and platforms of investments all carry varying degrees of risk. While investing in gold is relatively safe, it has had periods where its value fell, and if you are hoping to get a lot of returns from gold, you have a long wait ahead of you. The stocks and Forex markets also have their level of risks but they are still heavily traded and investment in them does not dwindle.
While Bitcoin being risky might be enough to scare some investors away, it also provides a solid way to build wealth. It is easy to notice that with the financial markets, high risks equal high returns also. That is why investing in Bitcoin could yield returns of over 100% but a bank account, which is safe only returns 1-3%. One disadvantage of keeping your money in a bank account does not account for is inflation.
With Bitcoin, the value of your money increases and, in the long term, usually beats inflation as a result.
Should beginners invest in Bitcoin?
While investing is not a game of luck or chance, it doesn’t also preclude beginners from starting out. Every expert investor started out as a beginner, but if you are just starting out, you need to be patient and learn the basics of investing.
Chillur is a platform that is geared toward making cryptocurrency trading and investing accessible to beginners.
How much Bitcoin should a beginner buy?
There is no fixed amount of Bitcoin that a beginner is supposed to buy, rather beginners are often advised to start small. But starting out with a considerable amount is not really the focus, rather cultivating a habit of investing consistently. Investing consistently should be the goal, especially as a beginner investor.
Many investors, especially beginners, overlook the effect of compounding. Compounding affects both the psychology and market knowledge of an investor and also increases the likelihood of getting substantial returns from investing.
What this should create in the mind of a beginner investor is the desire to invest consistently rather than focusing on a large or fixed amount. A beginner investor should be much more concerned about how much they can invest regularly to build a good investment habit. This could be as low as $5 weekly as long as you can do this consistently and keep up with it.
What is micro-investing in Bitcoin?
What we just mentioned in the previous section refers to a type of investment strategy that is called micro-investing. Micro-investing in bitcoin involves buying small amounts of bitcoin at regular intervals over a period of time. This can be done automatically by the platform you are investing with, or manually if you prefer that option.
Micro-investing is both a safe and profitable way for beginners to get into investing in bitcoin. For beginners, micro-investing is more of a long-term strategy for investing. This is perfect for investing in Bitcoin and other credible cryptocurrencies. This is because although they have been around for quite a while, cryptocurrencies compared to other established financial markets are still in their infancy and there is still a lot of room for growth. Beginning to compound investment in cryptocurrencies now will yield a lot of profit down the line.
How to invest in Bitcoin in Australia
You can buy cryptocurrency through any digital currency exchange. All digital currency exchanges in Australia are regulated by AUSTRAC.
Chillur is an Australian digital currency exchange, registered and regulated by AUSTRAC, that specialises in cryptocurrency investing for beginners.
We simplify the process of cryptocurrency investing through Bundles.
Step 1: Create an account
Create your Chillur account using an email address and password. You will then need to verify your identity using either your passport or drivers licence.
Step 2: Buy the Chillur 10 bundle
The Chillur 10 bundle is a basket of cryptocurrencies including Bitcoin. The advantage of buying a bundle is that you automatically create a diversified portfolio for yourself.
Just use your banking app or web banking to transfer funds to your Chillur account.
Once the funds settle (1-2 business days), the system will automatically buy the bundles you picked.
Congratulations – You are now investing in Bitcoin!
Step 3: Track your investment performance
Simply login into your Chillur account and track the performance of your portfolio either through a laptop or your mobile phone.
Remember, investing in Bitcoin is a journey to build long term wealth. Aim to make investing a habit by putting in small amounts of money consistently every week.