In recent years, due to the increasing popularity of Bitcoin, many novice users heard that they can make money through Bitcoin and considered buying it. However, there is also a lot of confusion among them. Like where to buy Bitcoin? Can I use Alipay? Can I use RMB? What is the specific purchase process? What procedures are required? How much Bitcoin to buy? Can I make money after purchasing? How to Safely Keep Your Bitcoin Purchases and More. Next, let’s briefly talk about some issues that novices need to pay attention to when entering the currency circle.

First, about where to buy Bitcoin. Novice investors usually choose popular exchanges to buy Bitcoin because these exchanges are the safest, have low fees, have comprehensive functions, timely listing of coins, and a good experience. Personally, I think Binance is the best choice.

Secondly, regarding the payment methods supported for purchasing Bitcoin. Buying Bitcoin using RMB can be done through Alipay, WeChat Pay and bank cards. The specific process is to select the sell order on the exchange and pay first. The platform will freeze the corresponding number of Bitcoins in the merchant's account. After the payment is completed and the merchant confirms, the Bitcoins will be transferred to your account. You can first buy USDT in the legal currency trading area, and then use USDT to buy Bitcoin in the currency trading area. You can also buy Bitcoin directly in the legal currency trading area. In the exchange's application, new users usually have instructions to follow. There are no handling fees for this type of peer-to-peer transactions in legal currency.

Many newbies have questions: Should they buy Bitcoin? Can I make money after purchasing? How much money can you expect to make? Generally people who hold Bitcoin like to refer to the logic of "inflation". They believe that legal currency has been continuously issued, and that Bitcoin, an asset with a limited amount, is similar to gold and will inevitably appreciate in the long term. But it depends on whether you buy into this logic.

Let’s talk about this issue from the perspective of historical prices. The price trend of Bitcoin from 2017 to 2022 is that the high point in 2017 was US$20,000, the low point in 2019 was US$3,000, a drop of 80%; the high point in 2021 The high point is $60,000, an increase of more than 3 times from the previous high. The low in 2021 is $30,000, a 50% drop. Judging from the trend in the past five years, two conclusions can be drawn: First, Bitcoin is highly volatile, and it is normal for the drop from high to low to be between 50% and 80%, so it is normal to choose to buy it. When choosing the right time, you need to pay attention to whether you can bear this risk; secondly, Bitcoin is very volatile, and you can expect to gain considerable profits after buying it at a low point. Therefore, Bitcoin can be used as part of the asset allocation in the investment portfolio other than cash, real estate, and the stock market, and its value is valued for the elasticity of position returns. For example, if you allocate 10% to Bitcoin in your portfolio, you could potentially achieve a 30% volatility return in 1 to 3 years. Losses are also limited, with a maximum loss of 5%, and if you make a profit, you can get a 30% gain. This kind of volatility value is unmatched by stocks and cash.

So, if you have limited funds and are young, I recommend increasing the proportion of Bitcoin in the portfolio, because young people need more investment possibilities (volatility). If you have strong funds, it is recommended to control the allocation ratio of Bitcoin to about 10%. This can increase the flexibility of the position and limit losses. If you make a profit, you can greatly increase the income of the position.

Many people also ask, is it recommended to buy Bitcoin now? When is the right time to buy Bitcoin? The simplest suggestion is to start buying when Bitcoin drops 60% from its highest point, and buy the full position when it drops to 90%. You can refer to this rhythm. If you have less funds, you need to choose the right time to buy. If you have more funds, you don’t need to be too picky about the timing and can buy in batches.

Some people are worried that the price of Bitcoin is too high and they cannot afford it. What should they do? This is a misunderstanding made by many newbies. An important feature of Bitcoin is divisibility, even if you buy 0.01 Bitcoin or spend 100 yuan to buy Bitcoin, it is possible. So don’t worry about how much you can’t afford, just think about how much Bitcoin you’re willing to buy.

Is it safe to buy Bitcoin? Will the exchange run away? In addition, how to keep Bitcoin? If you have large amounts of Bitcoin funds, it is recommended to use personal wallet software to store them. But if you just want to hold and trade digital currencies, just keep them on the exchange. Just choose a reputable exchange (such as Binance), since this is a lucrative business, the exchange will not run away, and there are certain security measures in place. On the contrary, if you keep your Bitcoins in personal hands, the risk of loss is higher. Therefore, keeping it on the exchange is a safer way to go.

For novices, getting started may be risky, so investment needs to be cautious. I hope the above information can help you better understand and deal with some problems when entering the currency circle.