With Bitcoin being as popular as it is now, it can be daunting for first-time investors to enter the space in a way that doesn’t seem so intimidating. Especially with cryptocurrency, in general, leaning deep into the usage technologies and rapid trading as part of its identity as a currency.
This goes especially true for Bitcoin, one of the first and likely the most major cryptocurrencies in the market today. Often people who are heavily invested in cryptocurrency will spout out different facts, metrics, and economics to explain what’s so innovative about the currency. This may cause some outsiders to wonder: “Do I need to Understand Any Math to Use Bitcoin?”
What You Need to Have to Use Bitcoin
Luckily for you (and likely most of here), you don’t need a specifically mathematically attuned brain to understand how Bitcoin works. However, that doesn’t mean you can just jump into the investment part without needing to develop a few key foundational skills to better navigate the market.
Basic Level Math
While you don’t need to understand higher-level math, it’s definitely integral to have a good sense of your basic level arithmetic to keep up with the often volatile movement of the Bitcoin value. You won’t necessarily need to utilize deeper functions or financial modelling, but you’ll definitely need to understand relationships between numbers to see how certain actions in the market can affect the overall price of Bitcoin. You won’t need to be a master, but you’ll be better off being comfortable with seeing numbers regularly.
A good thing to have in your pocket coming into Bitcoin trading and investing is to be a bit familiar with certain trading fundamentals. This doesn’t mean that you needed to have been holding a large portfolio for several years, but you’ll need to do homework on the functions and essential guidelines when it comes to trading. This includes understanding your portfolio movements and knowing what certain derivatives mean (like options, futures, etc.), as well as how to read security charts (similar to those you see in stocks).
Novice Level Technological Skills
Lastly, you’ll fare much better in the Bitcoin space if you have a good understanding of how computers and general software work. Bitcoin, and the surrounding decentralized financial system, is essentially a large market that operates closely with a technology known as the “blockchain”. Without getting into too much detail, it’s important to have an understanding of how the blockchain works and why it’s so integral to what makes Bitcoin different.
Final Thoughts on Bitcoin Use
Bitcoin is definitely not something you should just jump into without much thought. It may not require a degree in math, but you’ll need more than just one skill set surrounding investing to understand the little nuances that come into buying and selling Bitcoin. If you feel ready to start your Bitcoin journey, visit BitLeague and learn how you can start your own Bitcoin portfolio today.