Bitcoin made millionaires. Maybe even billionaires. It’s been a fantastic opportunity for people to invest in. And now’s the time for you to think about investing in bitcoin too. Who knows? The CEO and founder of BTC China predicted a price ranging from 5,000 to 11,000 dollars by 2020… So you’d better be ready for your bitcoin investment.
How to invest in bitcoin?
Bitcoin exceeded the price of the ounce of gold a few years ago. And the price of this digital money has been increasing almost constantly since the beginning of 2016. As a result, it’s attracting more and more investors. Aficionados and novices alike are all eager to embark on the bitcoin adventure. However, investing in bitcoin is nothing classic. Therefore, I’ll give you some warnings and advice before you start your bitcoin investment.
Understand how bitcoin works
Bitcoin is nothing like the fiat currencies of the world. In addition to being digital and used in purchases in peer to peer, bitcoin has very special features. Indeed, like precious metals, there’s a limited amount of bitcoin. Why? Because the creator of bitcoin, Satoshi Nakamoto, didn’t want to replicate the subprime crisis of 2008.
Therefore, nobody can manipulate the number of bitcoins, making it a rare and stable product. There will never be more than 21 million bitcoins in circulation.
Study the bitcoin price
Bitcoin is a highly speculative product. Indeed, it’s not backed by fundamentals or economic reality. Which makes a bitcoin investment totally different from a stock exchange investment. Therefore investing in bitcoin is still a daring bet.
However, forecasts on its price are possible. Indeed, it’s closely linked to financial and geopolitical events. For example, when there’s instability during elections, the bitcoin’s price surges. As a result, you should be aware of the current events that might affect its price. And you should also study the price history of the bitcoin over the last six months, or even over the last few years.
Bitcoin investment: Don’t start unprepared
If you don’t know anything about the stock market, you’d better start with products with lower risk-taking. Indeed, you need to understand the mechanisms. Furthermore, you should keep reading my site, BestBitcoinAlternative.com, to get my analysis on the evolution of the bitcoin price.
Buying bitcoins or selling bitcoins is relatively easy these days. Indeed, you just need to visit the best cryptocurrency exchange platform. While some interfaces may be complex, most exchanges work similarly. So once you’re used to it, you’ll be able to trade bitcoins. While you can always visit exchange counters, if you really want to invest in bitcoin, online is the real deal. Indeed, you need to buy when the price is right, not only during working hours…
Beware of scams
The Internet is a wonderful place. But it’s also dangerous. So you could fall into the traps of hackers or crooks if you’re not cautious. Furthermore, there are thousands of cryptocoins available online. Some are totally legit and well built like Ethereum or Litecoin. And others are just scams luring you to buy them without any hope behind. If an exchange promotes huge profits with zero risks, it may be too good to be true…
Also, when looking for the best bitcoin exchange, you should check if the platform is showing the real price. Because there could be a little difference, to their own benefit…
If you don’t want to take any risk, I’d recommend you to choose one of the exchanges in the list below. Indeed, I reviewed them all and they’re legit! So it’s a good start to invest in bitcoin.
Be aware of the risks
As you know, bitcoin is not regulated. Therefore you may use an exchange that is not reliable. Imagine that your exchange goes bankrupt with the coins in your wallet… You’d lose everything. So you should always manage your own coins and store them in a wallet you fully control.
Also, you should only invest what you’re ready to lose. I know it’s common sense. But it’s still, a worthy reminder. And if you don’t want to spend a dime, here’s how to earn bitcoin online.