How to invest in Bitcoin?
January 28, 2019 8:37 am,
Bitcoin has become the most used digital currency in the world, and also the most trusted one. Since its inception in 2009, people have been trying to learn more and more about it. Earlier, the knowledge and accessibility of this cryptocurrency were limited only to computer geeks and gamers, but since the growth of the digital realm, it has become a familiar term. More and more people have begun investing in Bitcoin, as there are ample examples of people gaining from their investments in bitcoin and other altcoins. But as a beginner, there are some things to be kept in mind before making an investment in Bitcoin. It is much safer than the other cryptocurrencies because of its high value and popularity, but the risk is not zero.
Value of Bitcoin
In an economy, the value is given to a commodity based on the two important factors: scarcity and trust. If an item is unlimited, the price and value of it are decreased. But whenever there is scarcity, there is the need. This is the case of bitcoin. There can only be 21 million bitcoins. Not more than that can be created. Also, the trust people have in this cryptocurrency is also really high. Altogether, we can confirm that Bitcoin is highly valuable and is a great option to be considered for investment. But when and where to buy Bitcoins makes a whole lot of difference.
When it comes to buying Bitcoins, Coinbase is the best option. The country of residence of the investor also is an important factor to be considered. The liquidity is high in developed nations when compared to developing ones. Any time is the right time to invest, as the value of bitcoin keeps increasing with time. The challenge is to find a good exchange site. Coinbase helps people buy and sell bitcoins with comparatively fewer transaction fees. The security is also very high. People can either buy Bitcoins and then sell them later for a higher value, or engage in bitcoin mining and earn rewards. Taking part in ICOs can also be an effective option.
Is investing in Bitcoin safe?
The first step to ensure a safe investment is to have a secure bitcoin wallet. It can be either a hot wallet or cold storage. As there are hackers prevailing in the digital realm, having a high-security wallet is essential. Again, investment of any form has its own fair share of risk associated with it. The investors have to do deep research on Bitcoin, cryptocurrency and other altcoins before finalizing the decision to invest. Since the concept of Bitcoin can be a bit hard to understand, greater care has to be taken before finalizing the investment. The rate of returns is really attractive.
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