Bitcoin & Cryptocurrency Explained for Beginners
Hey there, it’s Mike Swigunski here and I’m the founder of global career and best-selling author of Global Career: How to Work Anywhere and Travel Forever.
Today I’ve got a super exciting video about bitcoin and cryptocurrencies. I’m going to explain it in the simplest way possible. If you stick around to the end, I’m going to explain the investment strategy that I’ve been using for the past two years. I’m also going to give everyone who sticks around ten dollars worth of bitcoin so let’s go ahead and dig right into cryptocurrency and bitcoin for beginners.
Hey everyone, so just a quick background about my relationship with bitcoin is I’ve been investing with bitcoin since 2017 before it took a bull run at the end of 2017. I’ve continued investing since then again. My investment strategy will be shared at the end of this video, but first, let’s go ahead and start off with explaining bitcoin in the simplest way I can possible. There’s a really good tweet from Francis Pouliot, and I’ll go ahead and share it on the screen here right now.
Bitcoin is an unfakable digital gold that you can instantly teleport from one impenetrable vault to another open only using your self-generated password nobody is able to stop your payment with no registration or intermediary required. There will never be more than 21 million bitcoins now. This is one of the most straightforward explanations that I could find, and I think it does a really good job of explaining what bitcoin is in 140 characters or less.
One of the biggest things holding people from getting into bitcoin is that many people are overwhelmed with this complexity. I think utilizing these analogies to explain what bitcoin is and show some of the incorporated more benefits means that governments don’t control it. It’s decentralized uh there is a limited number of bitcoins like it says there’s only gonna ever be 21 million bitcoin. It is essentially digital gold. Holding it as an asset against other fiat currency like dollars is a really good hedge no matter what country or what background you have, and there’s a lot of great ways to get involved with bitcoin.
So the other aspect that a lot of people misunderstand about bitcoin is the mining strategy. Essentially the easiest way to talk about how bitcoin is generated is that it is mined by people solving really difficult math problems. These computers are trying to crack these math problems, and it takes a long time and a lot of computing power to solve these equations, so the reward for these people or these companies or conglomerates or even individuals mining bitcoin.
Once they do solve this problem, they’re rewarded with bitcoin. This essentially will become harder and utilize a lot more electricity and resources in the future, so it is becoming harder to mine bitcoin. Hence, the easiest way to get involved in cryptocurrency is by using a reputable cryptocurrency exchange, and coinbase is one of the largest again, you should never buy bitcoin and hold it on an exchange you should hold it on one of these wallets, so again i’m going to talk about my investment strategy. After that, I’ll show you how you can get your free ten dollars worth of bitcoin.
So my strategy has been to essentially utilize a very well-known and well-proven investment strategy called dollar-cost averaging essentially, dollar cost averaging is investing the same amount of money over a long period of time, so my strategy is to every month invest in a percentage of my income into cryptocurrency and into the s p 500 so if you can breaking this down into monthly or daily times where it takes all of your thought out of it you’re not trying to time the market you’re essentially setting it and forgetting it, and that’s what I’ve been doing for the past few years every day on the same day of the month I buy a cryptocurrency. I buy through the s p 500.
The way I find out to figure out how much to invest is I’ve taken a percentage of my income I recommend at least 10 of your income or your profit, whatever you feel more comfortable with, and reinvesting that into the stock market and into cryptocurrencies. I’ve been doing this for the past two years. It’s been paying off really well. This essentially takes any of my thought processes out of it. I don’t have to try to time the market, and I’m buying when it dips; I’m buying when it peaks. Everything in between, so over the longest period, there’s been a lot of investment strategies that have been analyzed, and dollar-cost-averaging has worked out the best because you’re not trying to time the market. You’re essentially taking the average gains of being in the market.
So figure out there’s a great exchange called coinbase. You can set up recurring buys for bitcoin or other cryptocurrencies and i’m going to leave everyone who made it this far I’m going to leave you a free ten link to get bitcoin, so I’ll leave that in the description. Make sure you utilize that again I appreciate you so much for staying this long if you haven’t gone ahead and subscribed yet, make sure you go ahead and subscribe to get notified about when i release two new videos every week and please if you haven’t already if you enjoyed this video thumbs up and subs up thank you so much have a wonderful day.
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