What is Bitcoin? Read here. Now you know what is bitcoin and what is it’s worth, next read How to Invest in Bitcoin.
How to Invest in Bitcoin?
Now, the big question is How to Invest in Bitcoin. Before you start investing in bitcoin, you need to know what it means to invest in bitcoin. Bitcoin is not a company, stock or share. It’s a virtual digital currency. Even, you cannot trade with bitcoin. So, investing in bitcoin means Buying, Holding and Selling bitcoin.
Buying, Holding and Selling bitcoin :
The most common investment in bitcoin is buying the currency in hopes that it will appreciate in value. Many people believe that digital currency is the future. But, do not listen to anybody’s advice or forecasting or believe. Do your homework, carefully observe the trend in daily price of bitcoin, learn about bitcoin; and, then come to a conclusion. Whether you want to invest in bitcoin mining or not? And, if interested to invest in bitcoin, then how much & how frequently?
Things to remember while investing in bitcoin:
Like any other asset, the principle of buy low & sell high applies to bitcoins as well. However, remember the following points while investing in bitcoin:
- Make sure you transfer the bitcoins to your own wallet after buying them. Do not leave bitcoins in exchange.
- Choose an exchange to buy bitcoins which has proven it’s reputation.
- Don’t buy all your bitcoins in one go. Buy a fixed amount every month, every week or even every day, throughout the year. In this way, you will average out the buying price over the course of whole year.
A Wise Advice:
The financial products carry a high level of risk; and, can result in the loss of all your funds. Therefore, you should never invest money that you cannot afford to lose !!!
The Bitcoin price is highly volatile, may not be related to the underlying Bitcoin value and the highly promising blockchain technology that for the first time in history enables distributed consensus, triple-entry bookkeeping and programmable trust by being able to transfer value over a communications channel is still being proven.
However, it may be wise to buy Bitcoin, even just a little, just in case it becomes something of extreme usefulness. And, developing the technical literacy to do so is valuable. There was a time when everyone had to learn how to send an email; and, now everybody knows.