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Investing in Bitcoin in 7 Simple Steps: A step by step guide

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With the increase in popularity of digital cryptocurrencies, more and more people have flocked to bitcoin as a means to invest and make money. Bitcoins are even beginning to be accepted as a formal method of payment in many cases.

Parallel to the increase in demand for bitcoins is the fact that the number of bitcoins that can be mined goes down by half every four years. With the decrease in supply of bitcoins and the increased demand, the value of bitcoins is going steadily up, making now the perfect time to start investing in bitcoin.

Keep reading for a step by step guide on how you can easily start investing in bitcoin.

 Disclaimer: When investing in bitcoin, your goal is to maximize returns while minimizing risk. To minimize risk and invest in a safe manner, we always suggest only investing an amount of money you’d be comfortable losing in a worst-case scenario.

investing-in-bitcoin

Step 1. Create your online bitcoin wallet

The first step to being able to invest in bitcoin is to create your own bitcoin wallet. We suggest Coinbase, but there are several other options out there that you can choose from.

We won’t go into detail about setting up your wallet here, but do make sure that you read what you need to know and take appropriate steps to secure your wallet.

Step 2. Look into bitcoin investment programs

There are numerous high-yield investment programs out there in which you can invest your bitcoins. When choosing a program to invest in, there are several key things you should do:

Look into programs that give at least 1.5% return daily.

These programs tend to be a little longer lasting, and will help you maximize profits.

Diversify your portfolio.

As with any investment strategy, it’s important to diversify your portfolio and pick multiple programs to invest in. Choose a few different programs and stagger your investments.

Make a short-term strategy.

The goal of bitcoin investment should be to get in and get out at the right time.

Manage each account daily.

There is some involvement that comes along with investment. However, managing each account should only take around 5 minutes a day.

Step 3. Hyper-compound.

Day 1-30

Hyper compounding is the idea of withdrawing part, but not all, of your profit every so often. This way, if any one investment fails, you still have money left to invest and to profit from.

With most bitcoin investment programs, you’ll be able to double your money within the first month. We suggest waiting 30 days for your investment to double, then withdrawing your initial investment and continuing to invest with your profits. In order to see how much you’d make, go to the compoundaily.com calculator to look at different scenarios.

Step 4. Mitigate risk

Day 30-60

Once you’ve withdrawn your complete initial investment, you’ve essentially mitigated the risks involved. Now, you can play around with pure profit and safely reinvest 100% of your profits without losing any of the initial money you put in.

Step 5. Pay yourself

Day 60-90 or 60-120

With the risks mitigated, you can now start to pay yourself after the second month of investment. Now, you can reduce your daily compounding to 50% and pay yourself the rest of the profits for one or two months.

Step 6. Prepare for exit plan

Day 90-120 or 120-150

The last step is to prepare your exit strategy. The important part of this step is to stop compounding. Since most programs lock you in for a 30-day contract, you don’t want to get locked in into another month before you can withdraw you profits.

As you prepare for your exit, withdraw profits every day and do not reinvest any money back in.

Step 7. The exit

Day 120 or 150

You’ve made a nice sum of money and mitigated risks by withdrawing your initial investment. When you approach the 120-day or 150-day mark, start packing up and looking for a new program. It’s important not to get greedy – there are plenty of other programs out there to invest in.

Be safe and have fun investing!

Image Credits: Invest
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