[vc_section][vc_row][vc_column][vc_column_text]Cryptocurrency is one of the hottest properties in the finance world right now, but chances are, you have very little understanding of it. The big question remains: should you invest in the bitcoin or not?
The numbers look like this: In 2016, the price of a bitcoin is $710.09. To open this year, it was valued at $3,890. It may be hard to believe but those who invested in cryptocurrency are now enjoying the tangible proofs.
Thinking about trying it out for yourself? Here are some important tips to get you started.
- Open a digital wallet.
There is a program called “wallet”. You need this to get inside the bitcoin network. Wallets are made up of two unique cryptographic keys: a public key and a private key. The public key is where transactions are deposited to and withdrawn from. This will also serve as your digital signature on the blockchain ledger, much like your username that you use for social media. Meanwhile, the private key is serves as the password. You need it to buy, sell, and trade your bitcoin in the wallet.
- Prepare your personal documents.
While the bitcoin is digital in form, you still need to provide your papers. Following the Anti-Money Laundering Policy of The U.S. Securities and Exchange Commission, every person with a digital wallet must verify his or her identity using personal documents like your social security number or driver’s license.
- Securely access your digital wallet.
Much like protecting any information online, you must use discretion whenever you access your digital wallet. Do not trade your bitcoin using public or insecure networks.
- Connect your wallet to your bank account.
Real money is still used to trade bitcoin. To exchange your dollars to bitcoin currency, just connect your wallet into your bank account or credit card and start trading!
- Access online exchanges.
The last step is to buy bitcoin. After your wallet is connected to your bank account, you can begin accessing exchanges online. These are the marketplaces where you can trade bitcoin, similar to the platform that traders use to buy stocks. Just access the exchange and trade your traditional dollars for bitcoin. Now you are in and start enjoying the ride![/vc_column_text][/vc_column][/vc_row][/vc_section]