How to Invest in Bitcoin
In the global market today, many corporations are leaning towards the idea of digital currencies like Bitcoin. Fans love Bitcoin because of the liberation it brings, and critics call it a volatile creation heading for doom. Bitcoin and other cryptocurrencies are always in the headlines.
There is a certain amount of mystery that surrounds cryptocurrency. Satoshi Nakamoto outlined bitcoin’s original implementation software and conceived the first blockchain database in 2009.
If you have any interest in any of the following, then keep reading;
- Investing in bitcoin
- Bitcoin investment strategy
- How can I invest in bitcoin?
- Bitcoin as an investment
- Trusted bitcoin investment sites,\
- How to start investing in bitcoin
What Is Bitcoin
You may not believe that a digital currency you cannot see is worth thousands of Dollars. The lines of code of each bitcoin are worthless alone, but the markets value one bitcoin more than Fifty Thousand US dollars.
Bitcoin is valuable partly because transaction costs are relatively cheaper than fiat transactions. Bitcoins are now scarce and so much harder to mine. The total bitcoins in circulation is slowly approaching the 21 million limit its creator set in 2009.
If bitcoin’s demand exceeds the production rate, the price will increase. Since Jan. 2020, miners already have 18.15 million, or 86.42% of the total Bitcoin in circulation.
Some Traits of cryptocurrencies
- Cryptocurrencies are wildly unforeseeable, even popular ones like Bitcoin. In Dec 2017, Bitcoin was worth $19,116.98, but today, it is worth nearly Sixty Thousand Dollars.
- The value of Bitcoin heavily depends on how much faith investors put in the coin. It will affect its integration into financial markets and public interest in using the coin. The performance of Bitcoin compared to other cryptocurrencies, such as Ethereum, is also crucial in determining its value.
Is Bitcoin Still a Good Investment Today?
Bitcoin remains at the “high-risk” end of the investment spectrum. Cryptocurrency prices are very volatile; they can lose value or be a scam. However, occasionally the coin will increase in value and produce an investment return.
As Danny Cox, from financial services company Hargreaves Lansdown, puts it: “Cryptocurrencies can remain niche tomorrow, become popular, or vanish without a trace. Therefore, investors need to consider any investment as very high risk.”
Like any investment you undertake, conduct due diligence and pinning all your hopes on one investment company. Also, do not keep one cryptocurrency: spread your money around, so you spread the risk.
Ways to Invest in Bitcoin
Investing in Bitcoin can seem difficult, but we are breaking it down. You don’t have to understand computer programming to realize that banks, businesses, the bold, and the brash are cashing in on cryptocurrencies. This guide can help you know crypto when starting to invest, but remember that Bitcoin investing carries a high degree of speculative risk.
Is there a safer way of investing in crypto?
According to Gavin Brown, “Stablecoins” may be a safer investment option. Gavin Brown is an expert and an associate professor in financial technology at the University of Liverpool. He further states that “Stablecoins will continue to evolve and will eventually solve problems of volatility and credibility for crypto assets. Unlike its counterparts, cryptos, stablecoins have actual assets behind them, like regular currencies,” he says.
Brown points to Tether, the largest stablecoin, which the US Dollars backs by one dollar per coin. “Tether bounced back during the pandemic’s lockdown, not only maintained its position as the largest stablecoin but more than doubled its market value – from $4.6bn to $9.2bn. It shows volatility has gone down.” In theory, the Stablecoin may never exceed more than a dollar. But, it is going to be an exciting option for any investor’s portfolio to include Tether.
According to Brown, making long-term investments in the companies associated with cryptocurrencies may be safer. For example, shares in Facebook, which is planning to launch its Libra currency soon, JPMorgan, which has the digital JPM coin equal in value to the US dollar, and the bank Wells Fargo, which is developing a US dollar-linked stablecoin.
Invest in Bitcoin and Make Money
There are several ways of getting your returns from bitcoin investment
The fastest way to gain from Bitcoin is through Bitcoin mining – the process involves creating new coins and verifying transaction information. High-powered computers perform mining which solves complex mathematical problems. Miners get Bitcoin as a reward whenever they add a new block of transactions to the blockchain.
Methods of Investing in Bitcoin
It is possible to invest in Bitcoin by purchasing and keeping the cryptocurrency, hoping it will increase.
We recommend Investing in Bitcoin only to people who have good knowledge of the coin, and you can afford to lose their funds. You also need patience because your Bitcoin will need time to grow in value.
Trading Bitcoin is riskier than investing, but if you succeed, it can be enriching. The idea behind trading is buying at a low price and selling it immediately after the price increases.
Trading is suitable for people with knowledge and experience because you are prone to lose money.
Bitcoin Lending carries a very high level of risk as well. It is possible to receive high returns from Bitcoin lending if you do it right.
Using websites like Unchained Capital, BTCpop, or Bitbond, you can lend your Bitcoin to someone else at an interest rate of up to 15%.
The primary risk is that the borrower may not pay you back, meaning you’ll have lost the entire loan amount.
You will have to start by creating a bitcoin wallet, purchase bitcoin. You can either buy and sell bitcoin on bitcoin exchange or any other cryptocurrency exchange/trade platform. Build your personal finance and become one of the blockchain technology investors.
Purchase bitcoin easily through your bank account, credit/debit card, or bitcoin atm. Keep your bitcoin private key safe, and start investing in bitcoin. For the most secure and profitable bitcoin investment, visit –