Bitcoin, which is a free and decentralized cryptocurrency, was the first to be created, and is recognized all over the world. Since its launch, this currency has risen in value year after year. In May 2016 you could buy 1 Bitcoin for just 500 dollars, but as of May 2022 with just a single bitcoin you would have around 20,000 dollars, which is equivalent to 106,000 reais.

Buying cryptocurrencies is a subject that has gained a great deal of prominence among outsiders. A market that has moved around 33,000 Bitcoins, which is equivalent to R$5.3 Billion, all this just in May 2022 according to the Central Bank of Brazil.

What is Bitcoin? How does it work?

Bitcoin is a decentralized digital currency that operates without the supervision of banks and governments. It was the first cryptocurrency, launched in 2009. Today the entire cryptoasset market is worth around R$1.3 trillion, with Bitcoin accounting for 45% of this market. In addition to Bitcoin, there are also several other currencies such as Ethereum, Dogecoin, and others.

How to buy Bitcoin:

It can be obtained in two main ways, one of which is to acquire it without actually buying it, but rather by mining, which is the process by which new bitcoins are created. Although this can be a more lucrative activity than trading the cryptocurrency in Brokerages, nowadays it has become practically unfeasible for the average investor. The other way is through exchanges, which are called brokers, and is similar to the stock exchange.

Nowadays, with so much information, new investors tend to feel pressured by the market due to their lack of knowledge and preparation, and there are a number of doubts and possible mistakes that scare any new investor. We've put together some tips on the safest ways to get involved in this booming market.

Should I invest in Bitcoin?

When the price of bitcoin goes through the roof, investing in the cryptocurrency can be tempting. But while it has the potential to be a lucrative investment, you should be wary: it's an extremely volatile purchase that professionals wouldn't recommend buying large percentages of money. These operations often offer a high risk that is often overshadowed by the temptation of the great reward.

Choose a reliable exchange

Look for a reputable exchange that doesn't promise guaranteed profitability. Also pay attention to the level of reliability of the technologies used by exchanges, which may have a number of advanced ways of stealing confidential information or even your money, just like any other malicious website or application.

Study bitcoin

Research everything so that you know what you're getting into. One source of research is the White Paper by Satoshi Nakamato (Creator of Bitcoin), which is a document in which the inventor of Bitcoin himself explains how the technology works. Once you've understood various points about cryptocurrencies, the tip is to delve deeper into the movements and feelings of this type of market, its appreciation trends, its patterns, its uses and its risks.

Keep your bitcoins safe

The world of cryptocurrencies can offer many risks. But there are also some simple measures that can save your privacy and your cryptocurrencies. Create a wallet. The safest way to keep your bitcoins secure is to store them in a wallet, which is a file that receives and sends Bitcoins. This is usually done by companies that specialize in this type of service and have their own custody of these wallets, which are protected by encryption.

Stay within your budget

Great investors don't put all their money into just one type of investment, but rather seek to diversify them. So don't put all your budget into just one type of investment, such as Bitcoins alone, not least because it's a volatile market with an unknown future, but also into other types of crypto-assets or even shares. Also consider the fees and taxes that must be declared to the IRS when sales exceed R$35,000 in a month.