The Guide You Need Before Making Your First $1M in Bitcoin & Crypto
One million US Dollars, the magic level, the dream for a lot of beginners - right before buying their first red Ferrari or orange Lamborghini or a nice villa near the beach.
As you are here, I suppose that you have the same dream.
If so, I have good news for you. It's possible!
But before you can make your first $1,000,000 in cryptocurrencies or any other market, you have to gain enough knowledge, education, and experience, use the right tools, strategy and risk management system and especially you need to have the right mindset. Without all of these, you will most probably (translation: definitely and certainly) lose in the long-term.
We are covering all the basics you need to know to get on the right path. And we will get to more advanced and professional topics later in this article as well as following ones.
A lot of chatter around the internet and the global market has been spreading since the last decade about an amazing idea of actually converting your physical money into the electronic currency.
All of you probably have heard about cryptocurrencies, and for those who are new to this field, let’s see first what is a cryptocurrency?”.
Cryptocurrency refers to the digital medium for exchanging funds and finances. It uses encryption and similar techniques to secure the processes involved in conducting transactions.
Cryptocurrencies are just digital impressions and they don’t have any physical validity. All of these operations take place independent of a central bank or any other physically financing authority.
There are many types of cryptocurrencies out there, the international market is exploding with this variety of different cryptocurrencies, and all of them have their own reasons to be perfect in some sense. But the most trusted, authenticated and oldest player in this field is Bitcoin. No other electronic currency channel provides such optimum security and value to their customers.
This was just a brief introduction of what bitcoin is. Next, we will be moving towards more specific genres in this article, so first of all, let me start with the history of bitcoin, the idea behind this profitable endeavor and how bitcoin actually came into existence as the first representative of digital currencies.
History of Bitcoin
Although bitcoin was the first cryptocurrency ever built, the roots behind this unique idea go way back. The first attempt to start a cryptocurrency was made in 1998 by developing secure channels for the sake of money transfers and similar operations behind the encrypted curtains. This very first attempt was named as B-Money and Bit Gold to take over as the first cryptocurrency platforms, but sadly they were never fully developed.
Although the plan didn't succeed yet, it delivered a unique idea of sharing a very secure and encrypted online system of providing large sums of money in a standard currency other than any present on the globe. Thus, came into being the idea of using cryptocurrencies, as the name implies the secured or encrypted delivery of finance over the internet.
Apart from multiple failures in this very cause, and extensive research on many cryptography forums, finally in November 2009 a superb breakthrough came along. A paper regarding the title as a "peer to electronic peer system" was posted to a cryptography mailing list authored by Satoshi Nakamoto. Later on, he implemented the bitcoin software as open source code and released it in January 2009
The first receiver of the bitcoin was Cypherpunk Hal Finney who created the first reusable proof of the work system. Finney then downloaded the bitcoin software on the release date and received 10 bitcoins from Nakamoto. The identity of Nakamoto remains unknown to this very time.
The whole chain started in late 2009, and the mining process begins for creating new bitcoins, and every transaction was recorded and verified over the blockchain.
In 2010 bitcoin for the first time catches fame and become as popular as the only decentralized and encrypted currency available. By the start of 2011, the other rival cryptocurrencies emerged and promised to deliver twice the speed, faster transactions and enhanced anonymity as well. But as to this day, only Bitcoin is considered the most reliable and genuine decentralized digital currency to pay with and trade over the internet.
2013 and 2014 were not that productive for bitcoin as many problems were stashed in its way by other rivals. In 2013 the price of bitcoin started to crash and became unstable and later on, during the next year, Bitcoin was accused of luring the users into a trap, and many false accusations of theft and scam were thrown. However, having no credibility or proof for the claims whatsoever, the false petitions were dismissed over time.
This is a general and brief history of Bitcoin, how it was first created and by whom. Let me roll about the mysterious person who made the idea a reality.
Bitcoin Founder: Satoshi Nakamoto
Satoshi Nakamoto is the creator of Bitcoin. In his peer to peer foundation profile, he just mentioned that he is from Japan and nothing more was stated. As of now, there is no actual proof or evidence relating to the creation of bitcoin to a single person or group of individuals. Actually, Satoshi Nakamoto is just a cover someone used for creating the ultimate matrix of bitcoin.
Before 2009 it was just an idea. Having an independent online currency, secured and encrypted with the best techniques and with records of every transaction - all of this was just an idea.
Then at the end of 2009 someone who used Satoshi Nakamoto as a cover put this idea into reality. Bitcoin has seen too many ups and downs since it was launched but it has survived this long race and still stands at top of the rank among other cryptocurrencies developed after Bitcoin.
No one knows the true identity of Satoshi Nakamoto for sure. It is believed some high-level intelligence agencies may happen to know the actual identity of Satoshi Nakamoto but nothing has been confirmed so far.
When no particular affiliation to the true identity of Satoshi Nakamoto was proved, people started to believe that Finney may have created Bitcoin and fabricated the whole story just to avoid getting credit for it. But Hal Finney denied all these rumors and stated ‘'I thought I was dealing with a young man of Japanese ancestry who was very smart and sincere.
The above statement clearly indicates that Satoshi Nakamoto is particularly real and how remarkable the idea of using a decentralized online currency is.
After creating a core working structure of the whole process, including mining, Satoshi Nakamoto disappeared from the web by sending a brief mail to Bitcoin core developer Mike Hearn “I have moved on to other things, the future of Bitcoin is in good hands.", Satoshi wrote regarding Bitcoin.
When no one could prove the true identity of Satoshi Nakamoto, a wave of revelation and disagreement spread all over the internet. Many successful entrepreneurs and business tycoons from around the World have tried to prove themselves to be the ultimate creator of Bitcoin, but others disagreed because of no solid proof or facts.
And many people were mistaken to be Satoshi Nakamoto which they already denied. There were many notable people on the list, and they all dismissed being the creator, programmer or let alone the helper on the Bitcoin project.
The true identity of Satoshi Nakamoto is still unknown to this very day, but the work the great person passed on is still up and rising. A simple idea that could be about to change the world of finance.
Bitcon Price Trends
As far as the actual value of Bitcoin is concerned, it keeps on fluctuating with time and also due to the rising competition with other cryptocurrency rivals. The price is never steady and always changes based on supply and demand factors in the markets.
The first price of Bitcoin ever was recorded in 2010, a year later from the launch date. And, technically the price of one Bitcoin in 2009 was $0. You will be thrilled to know that its price didn’t exceed even in 2010 and was below $1, or $0.39 to be precise.
If you had purchased bitcoins in the very first years, you would probably be among the wealthiest people in the world. A drastic increase in the bitcoin price was recorded after 2012 when bitcoin was worth $10, and it broke all the records in 2014 when the official rate of bitcoin went up to $1000.
And the price chart kept on shuffling since 2014 for the three following years, to 2017. The trend in the price of the bitcoin was up till December 2017 when the official closing price for bitcoin was almost $20,000. This was the highest price for Bitcoin ever recorded.
After 2014, there has been a dramatic conflict between the opening and closing price for the Bitcoin. And the price has been fluctuating since but has never crossed the highest price as of 2017 again for now.
If we consider the current price of Bitcoin, it is approximately $6500, which is not even half of the highest price. Some of the reasons for the decrease in the price of Bitcoin are the rising competition among the rivals and the new addition of other cryptocurrencies every day.
No one knows what the future holds, but the current price evaluation of Bitcoin is pretty low and could be an attractive investment opportunity.
Now, let’s discuss the factors which will greatly affect the price of Bitcoin. Then you will be able to better understand the Bitcoin trends ever since its creation.
1. Bitcoin supply and increasing/decreasing demand
The process of mining refers to the need for increasing the quantity of bitcoin over time by solving complex equations. The other side which directly influences the price of bitcoin is demand.
And some of them include awareness/popularity of bitcoin among general public and trust among the investors and mining platforms. With the number of bitcoins being finite, the supply is very controlled which is a positive factor for its price/value.
2. Government Regulations
Any specific government regulations do not bind Bitcoin, and this is why many governments like Japan, UK, USA, and Canada already tried to impose particular policies regarding the purchase/sale of bitcoin.
Many other countries have imposed bans over the use of Bitcoin and this has caused drastic swings in the price of Bitcoin. Low demand driven by fear can then create negative trends in the price of Bitcoin as we’ve seen in the past.
3. Bitcoin users/developers
The crypto community comprising of Bitcoin users and developers serve the dynamic role in influencing the rise and fall of the price.
Trust plays a vital role in determining the value of Bitcoin and trading it in a free market has benefited the currency. In short, the more people enter the market and the more the Bitcoin market grows the more stable the price of Bitcoin will be.
Bitcoin Price Analysis
Price analysis refers to taking in account all the factors which influence the price, especially daily updates on charts. The current trend of the Bitcoin inside the market, and also other variables which help in determining the price of Bitcoin comes into the play.
Let's have a look at the price action of the Bitcoin and its explosion in its prices over recent time and what comes next.
The price analysis is done with the help of charts, indicators, price patterns and other tools. The primary purpose is to compare the hourly to the yearly trend of the Bitcoin. Here is how price analysis is done for bitcoin:
1. Hourly chart (H1)
This timeframe allows you to monitor the bullish or bearish trens of bitcoin over an hourly base. The current momentum, resistance and ups/downs can be easily observed using the hourly chart. However, the differences cannot be fluctuating enough other than the $10-$200 every hour. This is the minimum hit either lower or higher which the Bitcoin is going to have. But this still creates a nice potential for profit.
Most of the time, there is no deliberate occasion, and the price of the Bitcoin can remain the same as it was last hour. The continuous update allows the Blockchain Researchers to monitor the trend of Bitcoin more accurately and in the same fashion will enable them to predict the next move regarding investment.
2. Daily Chart (D1)
This chart works by monitoring the up or down surge in the prices of bitcoin and has a particular limit set. The limit is considered as upside (Maximum) limit and downside (Minimum) limit. If the prices of bitcoin close in between somewhere than the market price is accepted as stable.
However, even a small change below or above the limit can cause instability in its price. Either the Mining has to be stopped, or it has to be pushed beyond the limits in order to support the rising demand. Whatever the outcome might be the price factor should coincide between the set limits otherwise there will be consequences which are not favourable for the development of Bitcoin.
Is Bitcoin Bottoming out?
Another great deal of anxiety among the investors and programmers is spiking. As mentioned earlier that the highest price scored by Bitcoin was almost $20,000 and there has been a dramatic decrease in the price ever since. This fact has pushed the investors and management of bitcoin that Bitcoin is either going to fall or lose its worth over the upcoming years.
But it is not true at all, the price may not have been stable, but a $150-200 increase has been confirmed over the last couple of months, this explains that the Bitcoin is not out of the game, it is just pushing hard to maintain its place in the crypto world.
The steady progress among the price of Bitcoin for a couple of months has been a tremendous success as the investors are regaining their trust in investing more and more revenue in Bitcoin. The process of Mining has also been upgraded since 2016 and is performing well. On an average, the minimum extraction of Bitcoin on a daily basis is indeed satisfactory and in answer to the question that whether bitcoin is taking a fall; Absolutely not. It is now making a comeback in a pretty dazzling way.
Price Prediction for Bitcoin
It is easier being said than done, analysing the prices of already known trends for bitcoin is one thing, but actually predicting about the future prices and
similar trends is more of a systematic and sophisticated approach.
All these exciting forecasts or prediction reveal that a near shot can be taken for the price of a particular day of a specific week, but the end results in no assumption should be considered final or accurate. It is just a hunch economy, and global market experts play to get a foresight of how the trends are going to roll in the upcoming days.
As a matter of fact, many solitary and crippled predictions about the price of the bitcoin have been made earlier, some of them were just like hitting the air, but others proved to be somehow accurate. The correction rate for any prediction made through the technological channels cannot be higher than 45-55%; how it will play out, in reality, is practically unpredictable. But in fact there are certain price patterns that give us an edge over the market and opportunities for nice profits. I will describe my trading and investing strategies in following articles.
There are some factors which influence the price of bitcoin and understanding these factors and deriving more empirical reasoning out of these can help to predict a particular trend or change in the price of bitcoin. These factors include;
- Interests of the investors: when we corroborate with this specific factor then the security and integrity of the system pushes the people and business tycoons to invest in bitcoin, thus increasing the demand and ultimately the supply in the form of mining. More bitcoins are extracted, and the more stable the system gets.
- Cybersecurity threats: If the overall system is lagging or always corrupt even a fool won’t believe in the system and there will be no buying / selling of bitcoin at all (or even huge selling pressure only). It pushes us over the brink of giving up what we have achieved so far. But when people realise that people trust in the system overall or the system issues have been fixed, bitcoin receives a positive push.
- Awareness and Recognition: This is the primary factor determining the future of this very cryptocurrency. If people have the knowledge and they recognise the need of this particular system then Bitcoin is already stable and will gradually increase in its value and price over time. Many people tend to rely on media, that is why media should play an exclusive role in bringing awareness and recognition to the people regarding the Bitcoin.
These were many factors which help the experts to devise a particular assessment scheme about the upcoming trends in the price of bitcoin. The most fundamental and crucial factor in predicting the price of the Bitcoin is its demand. How more and more people from different regions of the world are engaging themselves in investing and exploring more about this cryptocurrency drives the most basic and vital prediction analysis for the upcoming price trends.
Instead of the possibility mentioned above, there is not any other reliable source that can help someone predict the accurate price of the Bitcoin, as explained before, the chances are 10-20 in a 100 and that is also a maybe. But if you have made up your mind to invest in Bitcoin then do it already, because you are never going to find any foolproof or accurate way of knowing that when the Bitcoin will be low so, you should buy it and sell it when it is touching the sky.
All of this is a game of luck and taking some risks as well, but know this if the cryptocurrency doesn’t make you a millionaire then it will also not leave you hanging in between nothing.
Bitcoin trend refers to the current situation of the cryptocurrency in the market, whether it is bullish or bearish. For those who are new to this concept allow us to elaborate in detail;
Bullish trend refers to the overall upward trend of the bitcoin regarding its prices in the open and global market as well. The bullish trend indicates the recovery of the economy even if it is for shorter periods of time.
The downward or bearish trend reveals the low or unstable nature of the cryptocurrency, it means that bitcoin is struggling lately in the global market and the odds of recovery are not in favour. This can last for a few hours to even days or weeks depending upon the nature of crisis and recovery time of the currency.
The trends, as well as the price of bitcoin, are never stable, they are continually changing despite the factors which influence the change.
For the last decade or so Bitcoin has been pushed in some upward and downward conditions, from the day of its creation to the year 2014 the market trend has been bullish, and that is why investors of that time and people who have an entrepreneurial mindset have cashed millions in the name of Bitcoin. Then we seem to witness a constant Bearish trend from 2014 to late 2017, the price has been dropped during this specific timeline and was even cut out from the half of the once the highest price.
The constant change in the trend and susceptibility of shifting it from bearish to bullish or from bullish to bearish depends on many factors, and some of them are as follows:
- The difference of supply and demand for Bitcoin in the global market.
- Rivalry / Competition with other similar cryptocurrencies.
- The onset of long-term or a short-term crisis over the internet regarding cryptocurrency.
- Failure to create or develop more bitcoins to meet the current demand via mining.
- Investor to asset ratio.
- Foreign policies governing the sale / use of bitcoin in their territory.
These were various factors which determine the upcoming trend of the bitcoin, and some of these help us to understand the late trends of bitcoin from the past.
It is simply a game of understanding and while no 100% sure accurate prediction can be made, it is still possible to make huge profits thanks to various time prtime-provenoven patterns.
Buying and Selling of Bitcoin
Buying and Selling of bitcoin is a rather difficult task than you ever think it is. Whether you have to buy or sell already bought bitcoins it will require certain things taken care of before initiating the procedure.
You will have to purchase or get a hold of a secure digital Wallet; this wallet will be used to store or keep your purchased bitcoins safely and more securely. Every wallet is protected with an end to end encryption and more security inputs. It is almost impossible to hack in or steal anything from within without the authorisation of the user.
2. Trading Platform
After you have successfully set up your wallet, you need to set up your account with for example Paxful. The website will allow you to open a free account, give your deliberate personal information and at the end selecting your budget and start buying bitcoin instantly.
3. Payment method
After all the initial steps are done, the very next thing to do is set up a payment method. It will also allow you to interact between physical and digital finance. You can set up a credit/debit card, your bank account, PayPal or any other substantial method of payment via which you will be able to buy bitcoins and sell them as well.
When you decide to buy bitcoins, your physical money will be deducted from the payment method you chose, and you will be credited with cash once you select to sale some of your bitcoins. This is how this system works.
As the basic requirements for buying/selling the bitcoins have been accounted for, the next step is to investigate various online and secured channels where you can buy or sell bitcoins without any hassle. Don't worry about searching for random places and hesitating to invest in unknown parties as I have already researched for you.
Here are some of the most trusted and appropriate channels where you can easily buy and sell the bitcoins:
1. Coin Base
The multi-national trading platform allows you to buy/sell bitcoin using their most advanced and secured channels. The organisation was founded in 2012 and claims to have $150 billion in trading over the day of its first operation.
Users are facilitated with an offline wallet and secured encryption along with insurance for the cryptocurrency which they store in their servers. They charge 1% flat fee for each purchase, while if you want to sell some of your bitcoins, you can do it for almost free.
The funds will instantly be delivered to your physical bank account and a summary of all the purchases and sales opted on coin base can be retrieved on user's request.
2. Gemini Exchange
The only limitation this exchange carries that only US dollars is the supported currency, but they operate worldwide in many countries and almost in all states of US. You will be provided with a Gemini account accompanied by an offline Wallet to store bitcoin. You can come in contact with many potential buyers and sellers on this trusted platform and start trading Bitcoin.
It is an international exchange which facilitates many cryptocurrencies especially Bitcoin to be precise. They have got a very low and affordable trading fee which is 0.20% of the purchase you make using their servers. The website is user-friendly and has a vast network of helpers and financial advisors to guide you related to trends, predictions of prices and other facts about the bitcoin.
4. Bitcoin.org (directing to Paxful)
The most trusted and widely affiliated online channel through which you can buy bitcoins with potential security and at right price. Paxful offers around 300 ways to buy bitcoin using their channels with other affiliated bitcoin markets. You can start buying as much as you want using your physical money and almost all kinds of currencies are supported here.
Having a worldwide recognition, the buying/selling of bitcoin has never been this easy. You can exclusively buy as much as you want using your credit/debit card. All your buying will be transferred to an offline wallet. Only you can access it whenever you want. The very polite and friendly staff will not only assist you with utmost perfection when a problem presides but will also help you in learning the world of cryptocurrency.
These were various platforms which you can use to buy/sell the bitcoin without a risk of being hacked or theft issues. Feel free to reach out to these trading systems and start trading in Bitcoin now.
How to Buy Your First Bitcoin
After you have gathered all the useful information regarding bitcoins, what they are and the possible benefits associated with investing in them. Now is the time that you should have all the necessary knowledge of how to buy bitcoin.
Surely there are many platforms out there which offers compatible services when it comes to buying/selling bitcoin. But all of them are not genuine and may use your personal information and wallet info to rob you or worse. So, it is advised to work with those trading companies which are registered and have an authenticate license of exchanging, mining and trading in bitcoin. Only then an assumption to do business with these platforms can be constructed.
Ways to buy the bitcoin with brief instructions:
1. Selecting the most compatible wallet
The digital wallets are used to store the bitcoins which you purchased using a trading platform. It is the most critical and featured step in buying the bitcoin online. Wallets are different regarding services provided, platforms where you can choose them and encryption techniques used for your wallet. It is recommended to buy that one which can be used on multiple platforms and to which you have ready access.
Another great tip is to set up an offline wallet so that in case the online service goes down due to abundant traffic over the internet you'll still have ready access to your bitcoin at all times.
2. Choosing a perfect trading site
Although there are many ways to trade bitcoin online but the most secure and recommended channel is an exchange where you can buy bitcoins using trusted and encrypted methods.
Out of many trading platforms the one that is time-proven and trusted is for example Coinbase, but there is no harm checking the other platforms as well. All you have to do is sign up giving your personal and financial information. Don't worry they keep a good track of transactions and value your privacy. It is 100% safe, and also offer a more extensive array of the payment methods, and you can choose whichever suits you best. You have the most secured encryptions installed over your account and there is a verification before making a transaction.
3. Selecting a payment method
After you have chosen the wallet and made up your mind to purchase the bitcoin from a trusted platform, now is the time to choose the ultimate payment method which you will be able to pay for the bitcoins you buy form the online platforms.
There are a number of payment options which you can choose depending upon your own preference;
- Credit Card
- Using other payment options, bank wire or other payment wallets
From the above-listed options, the most secure and trusted worldwide is the Credit Card option. Following are the extended details below:
How to buy bitcoin with a credit card?
If you chose the credit card as a payment option, then you couldn't have chosen wisely. Because it provides substantial proof of all your transactions and moreover, your bank is authorising and keeping track of each and every purchase.
Here is how you can set the credit card as a buying option for bitcoin:
- Notify your bank or financial organisation prior to starting trading in bitcoin.
- After some brief duration of time, they will notify you that your credit card now has international access for trading cryptocurrency and buying assets all over the globe.
- When this is taken care of, log on to your online account which you created for buying bitcoin over the platform you trust.
- Choose the credit card as the payment option. You'll be asked to submit your photo ID for verification along with your credit card and banking details.
- Service may take 1-2 working days to verify your identity and financial information with your bank.
- If no red flags appear and everything goes just fine, you’ll be able to buy the bitcoins online using your credit card.
Follow them, and you'll get along just fine. The steps above can vary a little bit bank by bank or in different countries.
4. Buying the Bitcoins
When you have payment tab completed, now you can officially purchase some bitcoins over the platforms which you are using for exchange. Browse through different categories and deals available over the website to buy the bitcoin.
You are most likely be given a discounted price being the first timer, cash this offer and buy your first bitcoin at a discounted price. Go slow with the process and buy only that much amount which you can afford especially when you are new to this sort of financing.
After you have bought some bitcoins, you can store them in your online as well as an offline wallet and let them be there. Only chance when you are going to get some profit out of them is when the prices will go up.
5. Using your coins
All the bought bitcoins will be safe in your wallet, and only you will have access to them at all times. If you are going to use the bitcoins for purchasing them or you have made up your mind to sell them, prepare a solid end game prior to this action. The end game being the current price of the bitcoin, if you are going to sell them then only do it when the prices are up so you can earn some nice profit.
By planning on when you are going to sell them, you’ll be mentally prepared and second thoughts won’t be able to get better of you.
This was the extended article about bitcoins and possibly every information related to them as well. I hope that you would find the article well and helpful. And I definitely hope that you will get some clarity about purchasing and selling the Bitcoins for your own good.
Stay tuned for more updates and upcoming articles!