Bitcoin has value in part because it has transaction costs. Bitcoins are also scarce and become more difficult to obtain over time. The rate that bitcoins are produced cuts in half about every four years. This rate is expected to halve again sometime in 2024. The total number of bitcoins in circulation is gradually approaching the limit of 21 million set in 2009 by Bitcoin's creator, Satoshi Nakamoto.
If the demand for bitcoins exceeds the rate at which it can be produced, the price will increase.
All these and more contribute to the increase in bitcoin price.
There are some things that any aspiring Bitcoin investor needs. A digital(Bitcoin) wallet, personal identification documents(for KYC), a secure connection to the Internet, a method of payment, and an account at a cryptocurrency exchange platform are the usual requirements. Valid methods of payment using this path include bank accounts, debit cards, and credit cards as it's obtainable on Luno
It is also possible to get bitcoin at specialized ATMs and via P2P exchanges. There are additional details on buying bitcoin that we will not cover here.
Getting Started
Get Bitcoin Wallet: The first thing that you'll need to get started is a wallet to store bitcoin. There are many wallet platforms you can chose from.
When choosing a wallet, there are things to consider. The include security of the wallet, the KYC requirements, the ease of trading on the platform, the interface of the platform and the prevailing exchange rate.
In Nigeria, South Africa, Zambia,
we recommend Luno Wallet. Otherwise, Coinbase or Blockchain wallets are good. Luno makes it easier for you to buy directly from your bank/debit card.
Deposit money on your wallet: Luno is one of the most popular platforms and has a straightforward process. Some of the mentioned websites below will follow this same process.
With Luno, you open a Luno account and link your bank account or credit card. Then transfer funds from your bank account to purchase BTC using your debit or credit card.
The mechanics of purchasing BTC involve entering a Naira (or Zar) amount or a BTC amount. The website will then convert the other currency. Where exactly does the BTC you’ve purchased go? After all, you haven’t invested it yet. Your BTC sits in what’s called a digital (BTC) wallet. Most all exchanges have their own wallet that you use to contain your BTC.
There are some exchange platforms that doesn't allow money deposit. In case that the exchange doesn’t allow purchasing BTC by transferring funds or using a credit card, you can deposit BTC from another exchange. Example on Paxful, Blockchain, etc.
This is done by getting your wallet address from the target exchange. Then enter it on the source exchange along with the amount of BTC to transfer to the new exchange.
The transaction takes a few minutes for the exchanged BTC to appear in the target wallet.
Investing
First and foremost, it is worthy to not that bitcoin can has been on the increase over the years. One of the simplest way of investing in bitcoin is purchasing bitcoin and leaving the bitcoin in your wallet for couple of years. From 2018 till date, bitcoin price has increased by over 100%.
The only disadvantage here is, the price of bitcoin can also decrease within the period.
Some bitcoin investment platforms are listed below:
Luno
Luno platform is the most popular in Nigeria and South Africa for bitcoin Trading. You can deposit directly from your bank and withdraw back into your bank. The platform has easy and simple interface.
You can trade on luno and be making good daily profit as long as you can read the trading charts and know the right time to buy and sell.
Click here to learn how to trade on luno and be making good daily profit
eToro
eToro has been around for a while in the UK and throughout Europe, but they are now allowing traders from other countries. They offer a huge variety of digital assets to buy and sell on their platform, and even better, they have a practice trading account so you can give it a try before you actually use real funds.
Conclusion
Open a wallet account at a platform that allows crypto investments
Deposit funds from your bank into the wallet (exchange) account.
Buy a bitcoin using deposited funds (cash balance).
Later sell the bitcoin for a gain. Funds are returned to your cash balance.
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