Bitcoin

The US government regulates the crypto exchanges in the country. Investing in cryptocurrency largely depends on your risk tolerance capacity, investment goals, and stability.

For long-term investments, Bitcoin and Ethereum are the best and most trusted options. It's actually good for beginners, too.

For stability and a low risk factor, invest in Stablecoins. USDT and USD coins provide you with stability.

Dogecoin and Solana are other good options where you can invest.

There are many things you need to consider before investing in cryptocurrency to avoid the risks.

Prices of cryptocurrency fluctuate very quickly, so invest mindfully. You could lose money if someone hacks the wallets where you store your bitcoins. The world of cryptocurrency is still evolving, creating uncertainty, and changes in regulations could potentially impact the market. Unlike other traditional investments, the government does not provide consumer protection for cryptocurrencies. Crypto transactions are irreversible, meaning once money is sent, you can't get it back.

There are 2 main types of wallets available to secure your Bitcoin. Hot Wallets and Cold Wallets.

Hot Wallets: These wallets are connected to the internet for frequent transactions which makes them more vulnerable to hacking.

Web Wallets: These are online wallets, hosted by 3rd parties like Coinbase or Blockchain.com. You need to trust these 3rd parties with your private keys.

Software Wallets: These are digital wallets installed on your mobile, desktop or tablet. Examples are Trust Wallet, Bitcoin Core.

Cold Wallets: These wallets are not connected to the internet, which makes them a more secure option to store your bitcoins.

Hardware Wallets: These are physical devices that store your private keys offline, which makes them the most secure option to store your bitcoin. Trezor, KeepKey are some examples.

Paper Wallets: These are physical pieces of paper with keys stored physically on paper, and because of this they are vulnerable to damage and theft.

If you want to trade frequently, then Software Wallets are good option, but if you want to store your bitcoin for a long duration, then Hardware Wallets are the best option for you. 
But selecting which types of wallets totally depends on your requirements and your risk tolerance capacity.

Cryptocurrency is a digital currency that employs cryptography techniques to safeguard transactions. This method directly converts information into a code format, which only an authorized party can decode.

Cryptocurrency operates on decentralized networks; that means there is no central authority controlling their creation or distribution.

There are many factors that differentiate the cryptocurrency from any other traditional currencies, like decentralization, cryptography, transparency, and volatility.

Bitcoin, Ethereum, Tether, and Solana are some common examples of cryptocurrency.

Hardware Wallets (Ledger,Trezor) are the safest option for storing your Bitcoin, since they hide your keys offline and shield you from hacks.
Set up two-factor authentication , Use strong passwords and avoid sharing your private keys.

In the States, cryptocurrencies are considered taxed property. This means you must pay taxes on any profits you make from selling or trading bitcoin. There is no tax on just moving money from an exchange to your bank account; taxes apply to any earnings from trading or selling. You must maintain a record of your transactions for your tax returns, allowing you to track any gains or losses.

Thanks for your advice. But I am planning to invest around $150-$200 in bitcoin. I want to know if investing this much in bitcoin would be worthwhile for around 20 years. Does it make sense?

For buying and selling bitcoin in USA there are some user friendly platforms:

Coinbase: most trusted place to buy, sell and manage bitcoin. It’s quick, easy and user-friendly crypto tool, making it ideal for beginners.

Kraken: known for its security measures, have diverse range of cryptocurrencies and gives advanced trading options.

Binance: offers a wide range of digital currencies, advanced trading features, which makes it good for beginners.

In the US, there is no federal regulation of bitcoin, but still many agencies manage distinct aspects of it.

Securities and Exchange Commission (SEC): It regulates some bitcoin-related investments and derivatives.

Commodities Futures Trading Commission (CFTC): It permits the trading of crypto assets on public derivatives markets by regulating them as commodities.

U.S. Financial Crimes Enforcement Network (FinCEN) : FinCEN requires to maintain the record of cryptocurrency exchanges that verifies the identity of users.

IRS: users must report their income, gain, or loss from all taxable transactions involving virtual currency on their federal income tax return for the taxable year of the transaction.

Investing in a bitcoin at very young age is a great move. For a long term strategy,
Dollar-cost averaging is a good approach, which means some fixed amount of money is invested on a regular basis. It’s a good way to develop an organized investing habit.

To learn the basics of cryptocurrency, Investopedia is a good option. And to purchase a bitcoin, tutorials are available on NerdWallet.

Bitcoin is a volatile investment, means its price can fluctuate very easily. So it’s better to do a full research before investing.

There is no need to report to the IRS if you buy or hold any Bitcoin. Purchasing and holding the bitcoin does not come under the taxable bar.

But if you sell or exchange it for another cryptocurrency or use it to purchase goods or services then it comes under the taxable slab, which means you need to report to IRS.

While filling out your tax return, you must include your digital assets, if you have any. And always consult a tax expert who knows about cryptocurrencies.

Well, investing in crypto is all about the safety and security. And the US government is working in this direction. Rules at state, federal, and FinCEN level centers mainly focus on consumer protection, fraud and money laundering.

New technologies like Blockchain analysis tool, manage risk and protect their customers. Then there is MFA( Multi-factor authentication) in which the customer is granted access to the website only after giving 2 or more evidence to an authentication process.

Before investing, just make sure you are using authorized US Exchanges, consider hardware wallets and stay connected with SEC official website (https://www.sec.gov/).

Just understand that crypto is still developing, so it's better to be more conscious to reduce the risk of fraud.