The online world has allowed many amateur investors to take their first steps into investment. As well as there being many online platforms, there are also a series of dedicated apps that allow us to play with dummy money, as well as investing in real stock should we want to take the plunge.
The variety of platforms available often leads to the question “where am I best making an investment?” In recent years, Bitcoin has made the ears of budding investors prick up due to the alluring qualities it is able to offer. However, there has been fluctuation in the Bitcoin market that could cause to stray away from the digital currency.
The truth is that any investment is a risk, so it’s important that we are only investing what we can afford. However, if you’re doing your research, then there’s very little reason as to why you can’t benefit from investing in Bitcoin.
How Are You Looking to Invest?
The word “investment” is a broad term, and can relate to several types of investing. For example, you may be wishing to invest in companies that deal with Bitcoin, or are you looking to purchase Bitcoin in a bid to make a profit. It may not seem important in the first instance, but having an idea of what you’re trying to achieve will mean that the process is a made a lot easier.
If you’re looking to invest in Bitcoin directly, then you will not be investing in stock or a company, but a currency. For a currency that doesn’t physically exist, this can be a little off-putting for some. However, it’s important to recognise Bitcoin as a digital currency as opposed to a physical one.
The popularity of Bitcoin can be cited thanks to the placement of dedicated ATM machines. Sure, these aren’t recognised around the world, but it does show just how much traction Bitcoin has made since being introduced back in 2009.
What Makes Bitcoin Investment Worthwhile
Of course, there is no secret algorithm that can be used to determine the future of any currency, as there will always be different factors to consider. While the rise of Bitcoin has been a profitable one, this doesn’t mean it hasn’t dropped in value. In some instances, can decrease in value more rapidly than other commodities. However, Bitcoin has seen a steady, albeit slow, increase in value.
One of the reasons Bitcoin is so valuable is because the masses use it. This alone can add value when investing in Bitcoin, but it can mean playing the waiting game. While a quick profit isn’t impossible, it’s not something that should be relied on.
This isn’t to downplay the popularity of Bitcoin, but we can never truly know what lurks around the corner, especially in the financial world. As such, we should treat a Bitcoin investment like any other, and approach it with care and caution, whilst being sure we’re not placing all our eggs in one basket.
Making an Investment
Those who wish to invest in Bitcoin will be effectively buying currency, and holding onto it hoping it will increase in value. The right time to do this can depend on several factors. The most important factor is timing. If investing in Bitcoin is something that you’re constantly putting off, then you could be missing out on a golden opportunity. Making an investment in any kind of stock or commodity means doing our homework, and knowing the best time to buy and the best time to sell.
When purchasing Bitcoin, it’s important that we only use a reputable exchange. I would always suggest that you read this guide before deciding which exchange you want to use. While for the most part, the Bitcoin community is nothing but welcoming and helpful, there will always be those who try their luck with newcomers. Not knowing your surroundings means that you could be paying over money for a Bitcoins that don’t even exist.
Fortunately, newcomers can avoid such pitfalls by only dealing with a reputable exchange. Depending on the exchange you use, there will often be a fee. The right kind of platform to use can depend on your personal preferences and goals, so it can be worth having a good look online before committing straight away.
You will also need to ascertain how you plan to store the Bitcoins. If you’re new and wish to save some money in the interim, then a paper wallet is for you. This is effectively an online wallet that holds your Bitcoin currency. There are also hardware wallets available, which are essentially physical drives that store the currency.
If exchanges aren’t for you, then there are other options available. If your fortunate to live in an area where you have access to a Bitcoin ATM, then you can use this method. There is also an offline solution in the guise of platforms that pair buyers with those who want to purchase Bitcoin. This approach needs to be used with caution, in that you should only meet strangers in public places.
The truth is that Bitcoin has seen a steady growth that doesn’t appear to be slowing down anytime soon. However, you should still carry out research and not carry out kneejerk reactions. Like any investment, how much you make can depend on timing and the quantity you purchase.