Investment in Bitcoin 2020
Since the beginning of 2017 Bitcoin shot through the $1000 spot with no sign of slowing at all. Resultantly people from around the world want to ask one very simple question that should we invest in Bitcoins?
Bitcoin is not a stock or a company, it is a currency. So whenever you want to invest in Bitcoin you are simply buying a currency. On the other hand, there are also some other kinds of investments in Bitcoin.
What does it mean to invest in Bitcoin?
The most general form of investing into Bitcoins is buying the currency in a hope that it will appreciate in value well known as HODLING. If this is the case then you yourself need to make a decision for yourself if you really think this is a right time to buy or make an investment. Which means, are you sure that the price will continue to rise. Do not take anyone’s suggestion or recommendations regarding what will happen with the currency simply do your homework, learn more about the Bitcoins and then come to a conclusion.
Pointers for purchasing and holding Bitcoins:
- Never invest more than you are willing or able to lose.
- Bitcoin is a risky investment and you should keep this in mind every time you are making an investment.
- After purchasing Bitcoins make sure that you have moved them into your own personal wallet and never leave them at the exchange.
- Make certain that you buy Bitcoins only from those exchanges that have proven their reputation.
Trading in Bitcoins:
Bitcoin trading is different than holding and buying. When you are trading Bitcoins it means that you are vigorously trying to buy Bitcoins at a low price and then sell them back at a relatively higher price in short time span. Trading successfully requires practice as well as knowledge. The market is controlled by large players who are waiting for newbie’s to come in and throw their money away by trading pointlessly.
Here are some practical tips on Bitcoin trading that will be helpful.
- The Bitcoin mining
Since past few years mining Bitcoin is only advantageous if done at large scales. This means you will require getting expensive mining equipment and optimistically having access to free electricity. It is also usually much more cost efficient to buy Bitcoins with this money instead of utilizing it to buy mining equipment.
You might have heard of all kinds of sites that allow you to mine Bitcoins through them. This is well-known as cloud mining and these sites fall into one out of two categories:
- They are absolute scams that will run away with your money and do not actually use them to mine Bitcoin.
- They are really not scams, but still they are bad investments because you will most likely get more Bitcoins if you simply use that money to buy Bitcoins instead of paying the site.
Invest in Bitcoin companies or HYIP’s
Every other day you see an online website or a company that claims that they will double your Bitcoins or give you ideas to invest them in some kind of complex and obscure scheme. These sites can be classified mostly as HYIPs (high yield investment programs) or scams.
What these websites usually do is they take your money from around the web and assure you give good returns. They will begin by paying these returns via money they get from new sign ups and then create a big buzz around the websites. Typically they will also have some kind of referral program so that users can bring in their family and friends. This will go on for around 4-6 months until a day the website will just go offline and the funds will be gone. No further payments will be made and a lot of people will get crazy that they got scammed.
So should you invest in Bitcoin?
Till now you can almost certainly see that the answer is not that simple. It is not just a matter of should you invest, but also of how to invest. As told earlier, simply start by educating yourself. Learn about the currency i.e. bitcoins, what affects it, what are its pros and corns, etc. You can get a lot of basic education through the internet. After you really feel that you have acquired some basic education it is time to answer the question. But REMEMBER that only you can answer this. You can seek advice from others and can also read online but never follow someone’s advice blindly.