Everyone knows it's bitcoin right? Well maybe not everyone, remember that as of this video we are still less than 1% in this market between all the people who have access to the internet worldwide hello I give you the welcome to this sphere eclipse channel my name is miguel and I hope that be very well wherever you are there are many new enthusiastic investors and people who are knowing the crypto sphere and who plan to start investing in bitcoin and other crypto currencies for the first time so in this video I want to take the opportunity to focus it on the basic concepts that should be know before starting any investment in bitcoin or other crypto currency primarily for all new enthusiasts who are each month being caught or attracted to bitcoin and not so much because it is a digital currency decentralized global safe and so on but also because it is a market enormously lucrative to invest and for some reason bitcoin has been and is the buzzword among many economists and financial traders and you'll be of agree with me on that i know that for the beginner investing in bitcoin can look scary but you should know that it takes time and effort to understand how they work bitcoin therefore especially if you are new or new and such that you do your research before investing your money earned with effort so I'm going to talk about seven concepts that you should know before of investing and before we start talking about it monthly reminder is that if you like this type of content subscribe now and activate the notification bell so you don't miss my future videos and also support this channel leaving a like to the video as you all know digital advancement and technology has helped us significantly to change our lifestyle and one of the main ways in which it has changed is the online banking through which we perform payments and transactions with changes that have been notable and that have allowed to send and receive payments without any inconvenience the advance more recent in this regard are the writers like bitcoin which are they are becoming increasingly popular between mainstream and bitcoin It has been very successful since its launch and has gained much more fame than its rivals – because according to its foundations and also according to opinion of many experts is because the crypt is a safer age is significantly scarce and also decentralized for that reason has also increased its value and its adoption although we are still crawling when it comes to usability but especially the last two years bitcoin is becoming most popular and has gained a lot of attention worldwide not only financially but also technologically at the time of this video a bitcoin has a value of $ 8,999 and of course it is expected to increase further in the future by what is attracting investors to the market but this is a statement as valuable as the previous one is to say the economy depends on the relationship between supply and demand so it is important that you have updated information on crypto currencies as the consideration that governments have over this asset the importance that bitcoin is getting by the world's largest industrial giants like amazon google or other factors that can mark a trend in the demand for crypto currencies in terms of adoption usability and so on to exemplify what I say there are some observations we saw in the past with statements about bitcoin like that of bill gates the co-founder of microsoft who said in the 2014 that bitcoin is exciting because it shows how cheap it can be bitcoin is better than currencies since it doesn't have to be physically in the same place and of course for large transactions currencies can be quite inconvenient and although it was interesting to hear from his mouth say that about bitcoin was even more interesting to hear him say the opposite of this much later but hey is not the point of this video well seen this I particularly want to ask questions like why someone should invest in bitcoin what are the advantages and disadvantages of forming part of the crypto currency market and how to progress in the bitcoin market now after we witness the most exciting year in the history of vitic price in which it experienced an exponential growth of around of 1,900 percent in 2017 amounting to almost 20 thousand dollars that year was the one that led the first crypto currency adopters to become millionaires in the process and although the value of bitcoin has gone down and has since stabilized bitcoin is still a market enormously lucrative to invest therefore what are the reasons why that bitcoin has been the buzzword in the mouth of many economists and financial traders here are the following reasons first bitcoin is decentralized and this has a positive side and a side negative on the positive side is that bitcoin is not subject to the control of no third party compared to fiat currencies of any bitcoin government does not include a central government or other financial institutions and since their technology exists under a system decentralized this gives it a more democratic nature means that you don't need to worry that an entity can confiscate or freeze your funds or that the system be closed for external interference only you have the only authority for its use without worrying that it has been seized or devalued by a third party the opposite is that the most disadvantages apparent of a decentralized system is crime that is the lack of access or control by governments or other financial entities has led to some level to an increase in criminal activities online this has damaged the credibility of certain sectors towards crypto currencies like bitcoin and like no one can be banned from using crypto currencies and decentralized block systems change that means there are criminals trying to take advantage of people and the system itself so fighting these problems is almost impossible if you want to have a true decentralization there are also some problems for users who are not experts in this technology or even for those who have made simple mistakes is to say that in a system decentralized you cannot call your service provider and let them reverse a transaction in your account if you lose your wallet information then you have lost the funds that were in it therefore have this consider and the total market capitalization of bitcoin is in several billion of dollars and the reason behind this high valuation is that bitcoin is scarce and useful gold for example is valued at such a high price because the planet stores it in a limited amount and as more is extracted and more is left less what becomes harder and more expensive to find and to extract and the same applies to bitcoin there will only be 21 million currencies and over time it will be more difficult to extract it is estimated that the last bitcoin will be mined in the year 2000 140 that gives you an idea of ​​how difficult it it will be as time passes mining bitcoin due to its difficulty what will create a appreciation in the exponential price for the more than likely continued demand for the currency and the slow and limited offer of it and that is that the solid policy Monetary that has bitcoin is one of its most important features is possible for anyone to see how many when and how often they are created new bitcoins or how many bitcoins are in circulation the bitcoin can be send from anywhere in the world to any other place in the world no bank can block payments or close your account or delete your Bitcoin wallet is censorship-resistant money bitcoin makes possible the cross-border payments and also provides an easy way for you to people escape the failed monetary policy of governments and these last two are the basics of bitcoin technology by what we are now going to the point where we can see the commercial aspect of investment in bitcoin as google president eric schmidt once said bitcoin is a remarkable cryptographic achievement the ability to create something that it is not duplicable in the digital world it has enormous value many people will build business on it and the third point is to learn to store your bitcoins correctly see if for example you leave with a friend a value of five thousand dollars in coins of gold that friend could easily escape with your coins if possible never see him again but it would be relatively easy to trace his whereabouts but bitcoin exists on the internet which further increases the ease of steal or lose it and make it harder to track and recover bitcoin in itself is safe but bitcoins are as safe as the wallet in which they store it and investing in bitcoin really isn't a joke and secure your investment should be your top priority therefore bitcoin as any other crypto currency should only be kept in wallets in which you control the private key are for example are the two wallets of bitcoin safer and more used and they are also the most recommended one is the law hernán or léger is a bitcoin security company that offers a wide range of devices that are safe and currently looks to the law hernán ox as the safest wallet in léger and then we have three another hardware wallet that was built to secure your bitcoins the which generates your private keys offline now these wallets are not free they cost between 75 to 100 dollars approximately but yes Do you ever wonder if you should buy one because the value of your investment is very small I can say in my opinion that any investment in krypton heras that supposes a percentage greater than 5% of your total net worth then if you must buy one that is to say if you have invested at least 500 dollars or more in bitcoin as an example but let's say your savings are valued at 50 thousand dollars then losing that money will not affect your financial status and I would understand that you think it may not be worth it or the time or the trouble of dealing with a hardware wallet to store $ 500 all for course is relative and depends on your risk tolerance but if you want be 100% sure or sure that nobody can hack your bitcoins buy a hardware wallet because about 500 dollars of bitcoin today can be worth five thousand dollars tomorrow it is important to learn the basics about the mechanics of buying and sell bitcoin before starting with bitcoin trading investigate what are The main cryptocurrency exchanges to know more platforms easy and safe to start buying bitcoin for this you can help this video that I made earlier where I mention concepts fundamental to choose an exchange and I mentioned a small list of those who have a good acceptance in the market an example of these exchanges It is with beige that tends to be a good starting point for any investor beginner because it has an intuitive interface and the ability also to start buying other crypto main currencies of the market how a bitcoin houses light coin and so on after the mechanics of the Trading the purchase or sale of crypto currency is a simple concept is that The more valuable the amount you buy, the more rewarding and lucrative it could be the sale and although this sounds good in theory you should keep in mind that Successful trade requires knowledge and practice because big fish are whales in the market are waiting for newbies enter and take your investment and trade aimlessly and with this I want say you must set a profit target Of course when opening an operation because with bitcoin it is very difficult to know what the adequate time to buy and sell because of the volatility of the asset by that is important to establish clear profit and loss objectives when opening an operation in bitcoin because most beginner traders they fail because they fall in love with their investments and don't know when to leave a bad position from my point of view and honestly I'm not a rookie in although trading does not consider me an expert but my experience has led to establish an exit point for my earnings and a stop loss in if the price goes against me because I consider it easier minimize losses and live to fight another day than die in one operation letting an investment drop zero usually daily average movements in the value of bitcoin or its index of volatility is about 3 25 percent monthly compared to gold that It is 12 percent or compared to major currencies such as American dollars or euros that have average movements between the 05 to 1% this can give you an idea of ​​the level of bitcoin price volatility at point number 5 we will talk about the right time to buy that is what is the best time to buy bitcoin as I said earlier is not an easy task to know the perfect moment play wait to find an ideal entry point burns more people than it benefits and is like try to grab a knife that is falling so it is imperative that you have an investment strategy personally I think those who are made that question or look at the perfect time to buy really tells me which has a focus on short-term price performance and pursues fast returns and honestly that is a mentality advised against because krypton adopters those serious don't care about short earnings term and also anyone who is eager to buy bitcoin quickly neither should bitcoin is a revolutionary form of solid money is not a scheme to get rich quickly I think the best perspective on this sense is to follow simple principles before buying any crypto currency The first thing is to educate yourself to know in which asset you are going to invest and learn the market trends cycles to buy in the falls and sell gradually when you reach your goals and also if you decide to buy bitcoin as an investment keep it long term because it is the best strategy in this regard there are many theories and strategies but one of the strongest is the average cost in dollars which in terms simple means that an investor places a fixed dollar amount in a investment determined on a regular basis and the investment is usually performs every month regardless of what happens in the market the result of this is that when the price of the asset increases the investor can buy less quantity and when the price decreases the investor you can buy more quantity or units and with this you get that after a time frame determined as a year for example having bought at the price average of that asset in a year and protects you against the volatility of crypto currency market as I said before are highly volatile much more than traditional investments this can be so good as bad for you can get quick benefits and easy in a few days but you could also lose all your investment in the next bitcoin throughout its history it has generally increased in value at a very rapid pace and then has come followed by a slow and steady fall until it stabilizes and we have seen it in 2018 for example but bitcoin is global and is not affected by the financial situation or stability of any country global chaos is generally considered beneficial for the price of bitcoin since that bitcoin is apolitical and is beyond the control or influence of any government and there is an investor sector among the community of crypto currencies that generally believe that the economy and politics will affect the bitcoin price but I think it is more important to think on a global scale and not about what is happening in one country the next point is that you don't leave much money in exchanges look for the investment diversification is often said not to put all your eggs in a single basket so it can be applied to the case of not leaving all your funds all your bitcoins or other crypto currencies in the wallets of a exchange if you leave your money to another person either an exchange bank cetera you run the risk of not recovering your money the platforms of Bitcoin and other crypto currency exchanges may be vulnerable to piracy and we have seen quite a few cases of robberies and exchanges in the past by therefore all your funds can be lost in a few seconds plus even if you use more secure and reliable passwords that security feature may sometimes not protect your account against hackers therefore to be always safe or secure you must Be careful what you invest in and avoid making a purchase a sale using any platform or any market exchange make sure it is a regulated exchange with security levels acceptable for the storage of funds in addition if you do not plan to do trading operations with your store funds in that exchange make sure you don't leave your bitcoins in those wallets of exchanges for a long time and the seventh point is that you diversify your crypto currency investments look This is an important point because it is quite easy for investors to bitcoin fall in love with kryptonite due to its popularity but keep in account that bitcoin is one of the thousands united crypto available to invest it is important to think about diversification because you need a risk management strategy you know what they say don't lay all your eggs in a single basket instead cover your bets by investing in any of the salt coins that experience growth equal to or better than bitcoin As an extra point I want to mention that I don't consider bitcoin mining profitable I want to say that mining has become an industry that has accelerated at an incredible rate in the early days of the history of vitico on a computer or an average home computer could be used to solve crypto puzzles and win new bitcoins but Unfortunately today in 2019 the only way in which mining of bitcoin is done profitably is within data centers specialized in warehouses that are of these machines built solely for the purpose of mining bitcoin and currently a domestic mining configuration would cost a few thousand dollars today and in particular I am not an expert in mining but caught quite the idea of ​​everything that goes into mining thanks to one of the youtubers that I follow and certainly to set a configuration of mining for bitcoin and keeping it profitably involves an investment quite high and a fairly reduced kilowatt-hour rate in addition to other factors including cloud mining according to my own calculations is little or nothing profitable which means that in my opinion it is probably better consider directly investing the bitcoin currencies that are already in circulation I will finally tell you how then up to crypto currencies that investing in bitcoin or any other crypto currency is something that should be based purely the need or interest you have of these assets also in the understanding of how money works and ultimately on your own research instead of taking someone else's words and opinions like me for example to make that decision to invest your money so so much is up to you to try and with this I want to tell you to do your own research before investing and invest only what you can allow you to lose in the extreme case that the investment also fails Bitcoin investment introduces you to an extremely diverse community is tell by looking at the history of bitcoin that has brought us to the moment we are today bitcoin today looks like widespread as digital gold but bitcoin was created just after the 2008 crisis as an alternative to the evils of the monetary system that we currently have at that time nobody who heard about him believed in technology or in what it would do in terms of few price returns years later initially the narrative under which created bitcoin can be an alternative to all the evils of this system monetary we have and only attracted people with thoughts anarchists and libertarians who share those ideas and then bitcoin began to bring to computer scientists and passionate about new technologies after that the capitalists arrived with a higher risk profile and then retail traders and speculators began to enter and now particularly since 2018 the institutions banks hedge funds and so each one of these new groups have been changing and evolving the current community of bitcoin which is quite varied so far but mostly the average bitcoin enthusiast or investor are not people who want protect your capital but people who aggressively seek wealth because believe in your future this maybe helps you identify what is your main motivation to invest in bitcoin and to which or which of these groups do you belong at this point I think you know what things you should consider before invest in the billy coin market and watch this video can help who comes to the market to take into account some investment considerations in kryptos I hope you find value in this video and if you liked to let him also a like please subscribe and activate the notification bell leave a comment if you have any questions about the subject in question I will try to answer you as soon as I can if you liked this content you can continue seeing more by clicking on this window and in addition to youtube you can also follow me on twitter so thanks for viewing and until the next video