Basics for the introduction with bitcoin and crypto currencies

Last year showed that bitcoin and crypto currencies are in demand. However, beginners often do not know how to get started and what the really important foundations for the digital currencies are.

It is not necessary to buy a complete bitcoin. You can buy 0.1 Bitcoins or 0.001 or 0.00001 Bitcoins. More about the Bitcoin units.

Bitcoins and crypto currencies are risk investments
Lately, all you can hear is how he or she got rich through Bitcoin and there is only one way for Bitcoins – up. This assumption is wrong and complete nonsense.

2014 is the best negative example of this. In 2013 Bitcoin reached a high of over 1200 US dollars, only to fall to 200 US dollars next year. It can happen again and again. That’s why it’s important to be careful how much you invest.

A good tip: Consider the bitcoin and crypto investment immediately as lost money. This way you make sure that no more money is invested than you can lose.

There are no guaranteed winnings

Once you encounter a new digital currency that promises guaranteed profits, you should watch out. This is probably a pyramid scheme. Therefore, question the new digital currency: How are guaranteed profits possible? Do you have to invite people to make bigger profits?

Unfortunately, greed often eats the brain, it’s only human. And there are no guaranteed profits, risks always exist.

Don’t forget the tax
Bitcoin and Co. are not exempt from tax. Find out when you have to pay taxes. In the meantime you will find many useful contact points for the first overview. For more complex matters, you should consult a tax consultant who is familiar with Bitcoin.

Tip: Print out your Bitcoin purchases and put them in a separate folder to keep track of them. This saves you work for possible later proofs.


Novel technology has errors

Crypto currencies are new territory. The blockchain technology is new and improvements are constantly being made to the protocols. Mistakes can never be ruled out, which is why you should take this into account when making an investment.

In addition, Bitcoin Wallets should be constantly updated to close any security gaps.

Safe storage of bitcoins

Bitcoin bristles are attractive targets for hackers because it is difficult to track bitcoins. Therefore Bitcoins should not be stored on a stock exchange.

To store Bitcoins you need a secure Bitcoin Wallet. A Bitcoin Wallet is software you need to receive and send Bitcoins.

Hardware wallets are particularly suitable for beginners – but they are expensive. Hardware wallets are devices that create and store your private access codes securely. Creating and using a Hardware Wallet is not too complicated and offers beginners the greatest possible security. As long as your PC is free of malicious software, a desktop wallet is sufficient.

Safety first
Once you start with Bitcoins, you should rethink your behavior on the net. Yes I know this is a lot of work and unpleasant, but you have a small fortune with Bitcoin on your computer or smartphone. And you were supposed to protect that. There is no Bitcoin bank to reimburse you for losses.

That’s why you should set up two-factor authentication for every important website. You should also choose an antivirus program that works well for years, such as Kaspersky* and Bitdefender*.

And, of course, the usual clues: Don’t open foreign files from e-mails, watch out for phishing and only save your data encrypted.

Reading and collecting information
You don’t have to be a Bitcoin Guru to use Bitcoin and Co. Still, you should know your tools of the trade. This means you need to know what a wallet is, how to use a wallet and how to store Bitcoins safely. At Bitcoin you are your own bank and responsible for your own losses.

You don’t need anything else to handle it. After a while you will automatically want to know more about Bitcoin. It doesn’t hurt to learn more about Bitcoin and the technology.