Cryptocurrencies are super-stars of modern financial market; by investing in them, you can both lose everything and make a fortune overnight. A risky but highly promising endeavor, isn’t it? And many people are ready to put all their savings at stake and try their hands at crypto-investments. The risk is high, but the other option is so attractive that many beginners and expert traders just can’t resist making a Bitcoin investment.
Why Bitcoin, you may ask? That’s simple. While other altcoins enjoy rising popularity and promise high yields, their minute of glory is still the matter of chance and future. Bitcoin has already shown strong growth by rising nearly to $20,000 in 2017, which means that people know it can work and bring them money. Thus, investing in Bitcoin remains much more popular than trading manipulations with other altcoins, and the first thing you need to do to get the most of such an investment is to learn the principles and specifics. Many traders fail, that’s true. But knowing the nuts and bolts of the process, you will have much higher chances for success.
Too much has been said about what Bitcoin is and how good it is, so we’ll stop briefly on this point. A short definition is necessary as it’s hard to invest in something that you don’t know. Thus, a basic understanding of the concept and principles of its existence is a vital step to grasping how to invest in Bitcoin.
Bitcoin, or BTC, is the first successful cryptocurrency launched in 2009 by Satoshi Nakamoto. This form of digital currency can be bought, sold, stored in an e-wallet, and transferred to other BTC users, just like any other digital money. The only difference is that you can’t cash it, unless you exchange it for conventional currencies like EUR or USD. More than that, you can create your own BTC by mining, which is a fundamental difference from traditional currencies that can be issued only by the central bank. All information about BTC transactions and ownership is held in the ledger enabled by blockchain technology. The blockchain also keeps the owners’ coins protected from hacking and theft.
It used to enjoy modest popularity among a small group of geeks and technical experts for several years, but its immense price increase in 2016 and 2017 made it world-famous. After the success of Bitcoin and its soaring prices, even laypersons got actively interested in buying and selling Bitcoins as a source of income, as well as making Bitcoin investments.
First, it’s necessary to clarify whether Bitcoin investing is overall a good idea. At the end of 2017, it definitely seemed a great asset, with the price of BTC growing hour by hour. Moreover, Bitcoin has been named the best investment for the past decade. However, at the start of 2018, its rate reduced more than threefold, and there is no definite answer to the question of whether Bitcoin will rise in price again or not.
Together with all the price fluctuations that Bitcoin shows within the past 10 years, there is still a number of Bitcoin invest pros:
These pros definitely suggest that if not getting rich with Bitcoin, you can still derive numerous benefits from having some BTC for transactions and payments. And who knows, maybe storing some coins will make you rich overnight?
Before giving your hard-earned money to traders, let’s also deal with some reasons not to invest in Bitcoin. You should know both sides of the issue to make a reasonable decision.
These are not scary tales, but realistic facts about the current status of BTC. So, take these factors into account when making investment decisions; if you are ready to live with these drawbacks of Bitcoin investment, then this area is for you. In case these hurdles may become a source of serious discomfort for you, then maybe investing in BTC is not your piece of cake?
Now that you have made up your mind on whether to invest or not to invest in BTC, let’s quickly cover the places where you can make that investment. The choice may be:
The starting step in this process is to select a cryptocurrency exchange that fits your needs, supports your currency and payment method, and works in your country. The global leaders in crypto-transactions are Kraken, Coinbase, Coinmama, Coinbase, etc. But hundreds of smaller exchange platforms may have more attractive terms and fees, so we recommend first researching the market.
Any of you can invest a couple of bucks in Bitcoins; that’s not hard at all. The process of joining the crowd of BTC investors is as follows:
Unfortunately, Bitcoin is not a company with a public offering of shares or stock, so you can hardly find any place to buy stocks for Bitcoin or Bitcoin shares. Thus, an answer to the question, “is Bitcoin a stock?” is definitely no. Though many bloggers and authors on the Web present an over-simplified image of cryptocurrency as a digital security in which you can invest in the expectation of high yields as soon as its rate soars, in fact, it does not possess some vital features of securities.
Despite such essence of crypt-money, many people continue asking online, “how to purchase Bitcoin stock?" and expressing a desire to get some stock Bitcoin for their investment portfolios. So, is the demand not corresponding to the supply of offers in terms of crypto-investment? In fact, it is, as some companies (e.g., trading platforms and exchanges) have already captured the value of Bitcoin and have gone public. Thus, answering the question, “how do you buy Bitcoin stock?” we may advise buying the stock of such companies investing heavily in BTC and working solely with it. For instance, companies that work with blockchain and Bitcoin and invest in it, include Facebook and IBM, the BTL Group, 360 Blockchain, Coinsillium Group, Hive Blockchain, and many others. While business giants like FB and IBM may have unaffordable, expensive stock, other business entities are only starting their way in the market, so their shares/stock are cheap to acquire. Thus, you may join the company’s list of shareholders even with a dozen bucks in a pocket.
All in all, Bitcoin has become an attractive investment for thousands of people worldwide. Even though it lives through tough times right now, its price is expected to rise one day soon. Thus, despite numerous fluctuations and general instability of the BTC trading and investment market, more and more people make the choice to invest in BTC every day. Join the pool of BTC owners and wait for your favourite moment to get rich!