What is the first thought that comes to your mind when you hear the name Bitcoin? Most traders associate it with an incredible jump in price in the first place. Within a period of 10 years, its value grew from a few cents to around $70,000. And that is the key fact that propels the demand for it. Yet, due to all sorts of gossip and false prejudices, many beginners cannot dare to make such an investment and miss considerable profits.

Bitcoin was the first cryptocurrency to enter the market. This event took place more than a decade ago ― in 2008. So, over this period, traders and investors had an opportunity to make sure that this asset was substantial enough. Its value and impact keep on growing year after year. Yes, there are certain perturbations from time to time, but the situation recovers stability every time as well.

It is well-known that this crypto is decentralized and cannot be controlled by any governments and banks. Then, how is the Bitcoin price formed? There are 8 factors:

1. Long-term investment volumes. The higher demand, the higher the rate.

2. Short-term trading activity. This crypto is characterized by increased volatility, which allows speculators to make good money from its daily fluctuations. Every day, one can watch billions of bubbles and liquidations in the corresponding charts. That provokes extra fuss and panic, which attracts more traders and pushes the rate higher and higher.

3. Development of decentralized finance. New inventions in the sphere of blockchain contribute to the value of this crypto.

4. Popularization of Bitcoin as a payment means. It is already supported by PayPal, Visa, and Mastercard.

5. Decisions and announcements made by governmental bodies and politicians. Although they cannot have a direct influence on its rate, such news makes a huge fuss.

6. Statements made by celebrities, big businessmen, and influencers. The most commonly known example is Elon Musk.

7. Reductions in refunds paid to miners. Such procedures are predetermined by the code of this crypto. They took place once in 4 years (approximately). And, according to statistics, within 1.5 years after such a reduction, the price of the crypto grows by several times. So, for the latest time, it was executed in May 2020. At that point, the rate was around $10,000. And 1 year later it reached $60,000.

8. Growth of its user base. The more wallets, the higher the value.

In sum, as of now, there is no single opinion on whether the rate of this coin will move upwards or downwards, although there are many proofs in support of the first variant.

As of now, Bitcoin is the oldest, the most well-known, and the most valuable crypto on the market. Hence, it attracts interest from both professional traders and beginners. That is why we have decided to compile a simple guide that will be easy to understand to everyone, regardless of the experience in trading.

To start with, Bitcoin is a digital currency, it does not have any paper or metal counterparts. It is used in electronic form for executing online transactions mainly. In practice, such a coin is a system of symbols, which is included in the general network. It operates on a person-to-person basis. In other words, users can sell and buy this crypto directly without any intermediaries or regulatory bodies.

Another important fact ― this network is created using blockchain. To explain the technology of Bitcoin for dummies, one can compare it with a ledger, where each record is a block. Every new entry in this chain is connected with a previous one with the help of crypto ciphers, which is why this asset is called a cryptocurrency. The system is decentralized, and every owner of such digital coins has a copy of a general ledger.

It is accessible to everyone and at any time. Its code is published publicly. Its participants keep on mining new coins via complex calculations on computers, but the overall number of such assets is limited to 21 million so that there is no risk of inflation.

Also, it is a well-known fact that this crypto constantly grows in price. As of 2021, its price is almost $70,000. For comparison, its initial price in July 2010 was around $0,08. Obviously, investors expect it to keep on increasing in value in the future.

Here are 7 major pros of this asset:

1. All information about an owner is confidential and untraceable. However, today, if you want to register on a legitimate crypto exchange, you will have to disclose and confirm your identity.

2. The currency is decentralized and cannot be issued or expropriated by any governmental bodies or central banks.

3. It is 100% protected from hacking and breaking.

4. No inflation risks.

5. You can use it to legally pay for diversified goods. And the list of countries, which plan to legalize this crypto, is constantly extended.

6. Experienced traders often invest in it to diversify their portfolios, along with stocks and bonds.

7. You can make decent profits from its price fluctuations (which are rather frequent).

So, where to buy it? We recommend the Binance and Coinbase exchanges as they offer a huge selection of coins, low trading fees, easy-to-use functionality, and advanced protection of your funds.

In sum, if you decide to extend your portfolio with crypto, Bitcoin is one of the safest choices as it possesses high liquidity and outstanding potential for further growth in price.

Now, many traders are excited about a new type of token ― NFT. These unique assets seem quite promising, although one cannot trade them in a casual manner like other types of crypto. So, in case you are interested in innovations, we recommend you familiarize yourself with NFT right away.

The first point is to understand what NFT is. It is interpreted as a non-fungible token. Its distinctive feature is that it is used to encrypt unique information, for example, an exclusive photo or painting. And that means that there are no two identical NFTs. Consequently, they are not interchangeable. In other words, you cannot sell them and buy them back like Bitcoin or Ether. They are not meant for conventional trading. Instead, investors buy them to obtain the right for a piece of art, music, image, gaming tools, domain names, real estate, etc. In practice, any intellectual or physical object can be transformed into a unique token.

As for the value of such assets, it can reach unbelievable heights. For example, Jack Dorsey, who is the CEO of Twitter, has managed to sell his first tweet encrypted in an NFT for about $3 million. Obviously, investors buy such assets expecting them to dramatically grow in price over some time. It is usually a long-term investment.

Where to buy NFT tokens? They are not sold via usual cryptocurrency exchanges. Instead, you must find a specialized online marketplace. Such platforms work similarly to Amazon. You can buy an NFT selected just by pressing the “Buy” button and making the corresponding payment. But some of them are sold via auction procedures. Then, you will have to make the highest bet to obtain an asset chosen. Another important detail ― payments are usually accepted in cryptocurrency: Ethereum, Bitcoin, and others.

Now, to make your choice easier, we have determined the top 10 NFT marketplaces for you: Binance NFT, OpenSea, Alibaba NFT, Axie Infinity, SuperRare, Rarible, Foundation, Nifty Gateway, KnownOrigin, Sorare.

But, where to store NFTs after a purchase? There are two options: you can either keep your assets in your account on the same marketplace or transfer them to your crypto wallet (depending on the technology used for creating the NFT).

To sum up, an NFT is a great object for long-term investments. Yet, like with other collectibles, there is a risk that the asset bought will drop in price. Thus, stayaware.

Do you want to diversify your trading portfolio with cryptocurrency? Then, we recommend you get an account on Webull, in case you do not have it so far. It is a number-one choice for novice crypto traders. Do you want to know why? Find all the answers below.

Let us provide the key pros of buying crypto on this online broker service:

·   0% trading commissions (the spread is 1%, which is standard for all brokers);

·   direct trading (instead of futures offered by other platforms);

·   extended trading hours ― 23 hours per day and 7 days per week;

·   immediate settlement;

·   fractional coins are available with a $1 minimum purchase limit;

·   an extensive range of coins, including Bitcoin, Ethereum, Dogecoins, Cardano, Uniswap, Litecoin, Stellar, and others;

·   price quotes of other coins that are not available for trading;

·   demo trading with virtual funds for new users;

·   free-of-charge ETFs, stock, and options trading;

·   helpful and comfortable customer support, which is accessible 24/7;

·   a good selection of profound educational materials and easy-to-use research instruments.

Are you ready to give Webull Crypto a try? Then, follow our guidelines:

1. Register an account on their website or via their mobile app (which is even easier). Press “Get Started” and type your email address and password. The next step is email confirmation.

2. Pass verification. This is a must on any legal crypto exchange, so be ready for that. You will need to take a photo of any of your IDs.

3. If you plan to invest in cryptocurrency, choose between a margin and a cash account.

4. Wait for your account to get approved (as a rule, it takes one working day).

5. Get permission for buying crypto. To supply a request, press on the icon of the exchange, then choose “More” and “Crypto Trading”.

6. Deposit your balance. You can make use of a bank card, wire transaction, ACH transfer. This service is free of charge in most cases, but the procession can last several days. As for the sum, there is no minimum deposit limit on this platform, which is great news for those on a small budget. Yet, experts recommend starting with an initial capital of $100–200.

7. Go to the list of available crypto. Click on “Market” ― “Crypto”.

8. Make a purchase. Select the coin needed, choose a payment method, and confirm your request.

9. Now, you can watch the rate changes and your profits via the main dashboard.

In sum, one can safely say that Webull Crypto is the best option for beginners with limited experience and a meager budget. But, if you still have any doubts, you can start from a demo account, which is free of charge and risks.