Bitcoin sees price surge following Elon Musk endorsement
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Bitcoin prices have been on a steady incline since March last year after the token plunged to lows not seen since 2019. But the real bull run kicked off in October when BTC skyrocketed from about £8,686.74 ($12,000) on October 20 to £2,1716.85 ($30,000) in January this year. And it seems as though the bitcoin rally is not over just yet thanks to newfound interest from the likes of SpaceX and Tesla chief Elon Musk.
Earlier this week it was announced Tesla had bought more than £1billion ($1.5billion) worth of bitcoin to diversify its investment portfolio.
The company also said it would begin to accept bitcoin as payment for its products.
The news was welcomed by crypto traders across the board and pumped more value into the token.
On Tuesday, BTC prices smashed through another record, breaking past the £34,800 ($48,000) mark on the crypto markets.
Paolo Ardonino CTO of Bitfinex on Bitcoin, said on Tuesday bitcoin edging closer to £36,205 ($50,000) will lead to more corporations eyeing up the cryptoasset.
He said: “All the stars may be aligning for bitcoin as mainstream adoption happens in real-time.
“Rather than succumb to FOMO, those new to the space should take the time to educate themselves about this amazing technology rather than seeking to speculate on it.
“Always do your own research and never trade with resources you are not prepared to lose entirely.
“Meanwhile, attention is turning towards who will be next to jump on the bitcoin train as the space evolves at a breakneck pace.”
Bitcoin: Expert discusses recent drop in cryptocurrency value
How to buy bitcoin?
Before you think about buying bitcoin or any other cryptocurrency, it is best to consider the risks involved.
Although BTC was conceived as a means of decentralising and digitising money for the future, bitcoin is prone to very volatile swings on the markets.
The Financial Conduct Authority (FCA) warned in January this year investing into cryptoassets is risky business.
The FCA said: “If you buy cryptoassets, you should be prepared to lose all your money.”
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However, if you are positive you want to own some bitcoin – or fractions of a bitcoin – here is what you have to do.
Before you sign up with a crypto exchange or online brokerage that trades bitcoin, you will want to find a safe and secure crypto wallet.
Crypto wallets can be online, physical or even pieces of paper you carry around with you.
A paper wallet, for instance, is a piece of paper on which you have written down private and public keys, which you can generate on certain websites.
The private key is your most important key and you should never share it with anyone as it grants you access to your token.
Your public key, meanwhile, allows people to send you bitcoins, so it is safe to share with others.
Another option is a hardware wallet, which is often a USB stick-like object that stores your private keys offline.
All BTC transactions are carried out using a technology called blockchain – a decentralised ledger that records all transaction – and the keys grant access to bitcoin on the blockchain.
Websites like Investopedia can guide you through the process of selecting what is best for you, so read up before making any decisions.
Once you have a secure wallet, you will want to sign up with a crypto exchange or service that trades cryptocurrencies.
Popular choices include Coinbase, Kraken or eToro.
Take a moment to read about what each service offers and find the one that suits your needs best.
You will then want to sign up for a profile with details such as your full name, your birth of date and address.
Some exchanges might ask you to upload documents to verify your identity before you are allowed to trade.
After that is sorted out, the next step is deposit funds into your account – many exchanges have a minimum amount of money you need to deposit if you want to trade.
The next step is to search for bitcoin or BTC on the exchange.
BTC will appear with its current price and you will want to click on Buy.
Select how many tokens you want to buy, or how much money you want to put into the trade – you can buy fractions of a bitcoin – and complete the transaction.
As soon as BTC appears in your portfolio, you will want to transfer the tokens directly to your wallet for safekeeping.
Remember to never share your private key with anyone.
The same applies to any other crypto you might buy, such as ethereum or ripple.
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