Bitcoin is a market not for the faint-hearted. Like any other volatile markets, investing in Bitcoin has its risks which means you can easily profit or lose. Hence, you need to take precautionary steps before jumping in. Better still, you should know what strategy before entering the market and stick to it!
What you get in investing into cryptocurrencies?
Why you should invest in Bitcoin? There are almost 900 different ones, which one should you take and when would be a good time? We will try to give you the answers to these bugging questions.
How big is Crytocurrency?
One thing for sure, those who are for cryptocurrencies believe that it is the future of investment and that it is definitely here to stay. After all, since Bitcoin enter the scene, it has made inroad across the world. There will not be so much talk, particularly from the finance fraternity if it has not created any waves. Some has strongly claimed that Bitcoin and digital currency is a bubble and would be ready to burst anytime.
What it means to have Bitcoin?
Owning any form of Bitcoin means you become part of the worldwide community to have some form of share in this currency. Never before has there been any currency in the history of the world to be this huge. To put that into context:
- Bitcoin will be the single biggest currency if it ever gets there
- The value of a single Bitcoin could breach the USD10,000 mark if it is dominant
How do you actually invest into Bitcoin?
The numbers never lie, the value of Bitcoin has increased by more than 25,000% since it came into the market back in 2011. Meanwhile, its alternative (and another major currency), Ethereum has increased by nearly 3,000% since 2016. As a whole, the market capitalization has already breached 10,000% in the last few years. With such an amazing performance, it is no wonder analysts are fast concluding that it is a bubbling and is heading to destruction.
Have you missed the ship?
The usual question is that since Bitcoin has already peaked, wouldn’t you have missed the chance to invest? The answer is No! because it is like investing in any other financial market. If you had known this 5 years ago, you wouldn’t have been reading this now. Before going further, know this, investing in cryptocurrencies is very high-risk.
Rule No:1 – Don’t overinvest
This is the best advice any analyst will tell you. NEVER overinvest. You need to be able to invest and go about your normal life. This means that you must be ready to lose all your investment (should it come to that!) in Bitcoin and still have enough to live by. This is one of the most important rules of investment whether it is in stocks, Forex, or any other platforms.
What is your plan?
This can be quite easy because you need a starting point.
- Build your portfolio: Note that Bitcoin is not the only currency around. In the past, (before 2017), Bitcoin was the only one. Today, we have what is known as Altcoins and there you have more choices. Take them as penny stocks but you need to build a portfolio around it. Bitcoin is still the standard but it NOT the only one.
- Filter the good and the bad ones – Do your homework. There is no way you can make any money without any research. Look for those with very transparent vision and where the development team is constantly heard. Determining which Altcoin to invest in means you must be sure that you have access to these information as and when you need to. Transparency is key!
- Find reliable Exchanges – You can very much find the exchanges everywhere. Buying Bitcoin is quite easy but finding a reliable one might be challenging because you’d never know when they disappear after a while.
- Good time to buy? – This is the golden question most people will ask. Generally, there is no best time. What you want here is to buy when the price is stable, not when its at its peak or when its crashing.
- Not like other markets – one thing for sure, if this is a bubble, it is not the same as the other previous ones. So don’t make such comparison to decide. Take time to invest, don’t act hastily. If it jumps 500%, chances are it might happen again.