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Cryptocurrency for Beginners

How do Beginners Actually USE Bitcoin? 7 intriguing ways

2 min read
EVERYONE starts off in Bitcoin AS A  BEGINNER and usually invests more energy in learning the fundamentals and technicals as they start seeing profit.

How do Beginners Actually USE Bitcoin?

 

EVERYONE starts off in Bitcoin AS A  BEGINNER and usually invests more energy in learning the fundamentals and technicals as they start seeing profit.

So , I will define a beginner as someone who has never made profit from Bitcoin and does not know how to identify the current market trend.

What makes each type of beginner unique is their end goal.

In other words, what they are trying to achieve by buying Bitcoin will determine how a beginner uses Bitcoin.

That’ said, Beginners usually use Bitcoin as an investment and to get their feet wet with Blockchain technology.

 

How do Beginners use Bitcoin?

  1. As a hedge
  2. To get their feet wet in Blockchain
  3. As a gamble
  4. To send money to loved ones anywhere in the world for low transaction fees
  5. Business – to expand their business to new local markets
  6. Exposure to blockchain technology
  7. To own a part of history
  8. Curiosity

 

1.As a investment HEDGE

Bitcoin is often referred to as anti-inflationary because of its limited supply of 21 million Bitcoin.

It is also called Digital Gold by investors.

Gold has been a historically popular safe have during economic uncertainty.

During the Covid-19 Pandemic, investors moved away from stock and towards Gold as well as Bitcoin as a hedge against inflations.

This resulted in Bitcoin skyrocketing from $6000 in March 2020 to $69000 by May 2021.

 

2. To experience Blockchain

While crypto is generally viewed as high risk due to its volatility , Bitcoin is considered the lowest risk option since it is the biggest player in the crypto market.

Investors usually start with Bitcoin to get their feet wet without risking too much.

These kinds of investors usually keep only a small percentage of Bitcoin in their portfolio.

 

3. A long-term gamble

Bitcoin is an attractive option for beginner investors who missed out on Amazon and Facebook.

Investors with a higher risk tolerance, view Bitcoin as a high risk high reward investment.

These investors tend to be of the younger demographic (under 30) and can afford to risk everything.

Bitcoin is viewed as highly speculative which is another reason

In November 2019, Facebook executive David Marcus said he did not see Bitcoin as a currency but as an investment

 

4. To send money to loved ones

Bitcoin as an investment tends to overshadow Bitcoin as a borderless cash system.

And yet, El Salvadore has made Bitcoin their official currency and Texas has recognized Bitcoin as legal tender.

 

 

5. An international payment method

Bitcoin is a game changer for online businesses because it overcomes the country restrictions as well as transfer limits imposed by many ecommerce merchant services (payment gateways).

This means that Bitcoin allows business owners to expand their markets for less fees.

 

6. Own a part of history

While NFTs allowed digital assets to gain popularity, Bitcoin will be the FIRST.

Before 2010, beginners got into Bitcoin just to support the movement.

 

7. Out of Curiosity

The original Bitcoin adopters were computer geeks who loved testing things out.

Back in 2008, before Bitcoin hit the exchanges, the early miners had no clue that in ten years Bitcoin would be mined from locations larger than 6 football fields.

People want to know how a digital currency with no owner or government was able to sell at a price for $69,000 in 2021.

 

Conclusion

Investing is a journey , everyone learns through mistakes.

The more educated you are the lower the risks.

However, no one knows what they don’t know and as the technology surrounding blockchain is evolving fast.

No one can keep up with everything that comes out.

For this reason, it is advised to test out (a.k.a risk) anything new with a trivial sum of money to feel the experience before using larger sums of money.

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