Present Scenario Of Bitcoin Investment
6 years ago Ambex 0
Move over paper money, this is the age of bitcoins. Bitcoin is a payment system powered by cryptocurrency and it is decentralized. It is globally recognized and is safe digital money, which has caught the attention of buyers, sellers and investors. If you want to join the bandwagon, most probably you are thinking of bitcoin investment.
Bitcoin gives a fair opportunity to everybody to invest in it. Before proceeding to invest in this relatively new asset, it is mandatory that you understand why to invest and how it works.
Coming to the question of why you should be investing in bitcoins, know that they are extremely valuable and scarcely available. Just like when we mine more gold, the lesser it becomes and equally harder to mine more, it is the same case with bitcoins. There are 21 million bitcoins and as days go by, they are getting harder to mine. They are transparent too, in the sense we know when and how bitcoins are created.
Since the payments made through bitcoins are globally accessible, the potential of these coins is huge. Thus, investing in them is a sensible thing to do.
What exactly is investment in bitcoins?
When you talk about investment, decide whether you want to buy the coins or you want to venture into the companies dealing with bitcoins.
Buying: Most people buy bitcoins hoping that it will soar in value. This will work if indeed the prices go up. But remember these:
- Do not invest in an amount, which is beyond your budget or you cannot afford to lose.
- Buy coins from the trusted exchanges like Coinbase.
- After buying bitcoins at an exchange, transfer them to your personal wallet.
- Use the dollar cost averaging to buy the coins – you are not paying a lump sum to buy bitcoins at one go. Buy some on a regular periodical basis so that it is spread equally throughout the year.
Trading: As in usual trading practices, you buy the coins at a lower price and try to sell them at a profit. But one needs ample experience to indulge in bitcoin trading.
Bitcoin mining as investment option
Mining bitcoins is a popular business. Mining was once achieved with average expenditure but present day mining involves exorbitantly priced mining apparatus and consumes a huge amount of electricity. So buying bitcoins instead, proves to be a much more affordable thing than to get involved in mining, if you are serious about bitcoin investment.
The final verdict
It is not easy to recommend anybody to take part in bitcoin investment. Neither is it easy to state that this investment is full of risks. You have to do a thorough study of digital money and its effects, weigh its pros and cons, how it works, and then decide how to invest in it.
Bitcoins came into existence recently and they will have their influence on the rest of the world after a few more years.