This short article is going to give you a better understanding of the Best Way to Invest in Bitcoin. It is important to know what you are doing in this space and keeping your Bitcoin investment online is NOT recommended, so in this article, you will learn how to safely store your Cryptocurrency investment the best (and safest) ways.
It has always been the unspoken rule of thumb to conduct sufficient research on a given type of investment before committing your hard-earned cash into it. You do not want to make expensive mistakes as a result of the lack of proper research, since in most cases you may end up squandering your chance at becoming a financially successful person. This knowledge is constant across the board, and it applies to those who are thinking about investing in Bitcoin as a means of growing their wealth. There are many ways to investing in Bitcoin, but which is there one specific one that can be relied upon to help an investor reap the most income while minimizing the risk of loss?
In settling for the best approach as you seek to grow your wealth through investing in Bitcoin, you close to automatically set yourself up on a trajectory that leads to a better financial future. In the same manner, you end up securing your nest of investments, which in the long run gives you the much-desired freedom to have the kind of lifestyle you would like to have in the future. As much as having this lifestyle is subject to a number of factors, you surely do not want it to be subject to your lack of money due to using the wrong approach to investing in Bitcoin.
For starters, investing in Bitcoin takes the buy and hold approach, where you purchase the Bitcoin and sell it at a later date when its price has risen considerably. The part where you get to hold the Bitcoin is the investment part, like with other physical investment products, hence it is crucial that you hold this cryptocurrency in the right and most secure manner. Some of the popular methods include encryption, doing a backup of your Bitcoin and through cold storage.
The best way to invest in Bitcoin is through cold storage or offline storage as it is also popularly known. Like the term offline suggests, this type of investment involves storing your Bitcoins away from any form of internet access. By doing this, you usually have minimized the potential risk of hackers “breaking into” your Bitcoin wallet and digging out your Bitcoin.
Cold storage is, therefore, the most preferred option in Bitcoin investment, in the manner in which it minimizes the risk of loss through a breach in the security of Bitcoin storage platforms. People who regularly trade in this cryptocurrency as an approach to making investment income not only expose themselves to the uncertainties created by the variable market forces, but also to hackers’ activities.
Offline storage cuts of the risk of hackers and beyond that gives you the opportunity to wait for the value of Bitcoin to increase so that you can sell high and earn an income. Cold storage can to a great extent be compared the purchase of precious metals and placing them in a secure vault and waiting for their value to increase so that the investor can sell them and make a profit.
There are several methods of cold storage that every person seeking to invest in Bitcoin should know about. These methods include:
1. Hardware wallets – hardware wallets are water and virus proof devices which are designed to facilitate the secure storage of Bitcoin. These devices are created to support multi-signature transactions, which is a much-desired form of convenience in the world of Bitcoin transactions. BitSafe (http://www.butterflylabs.com/bitcoin-hardware-wallet/ ) is one popular example of a hardware wallet that investors are relying on in the current world.
2. Sound wallets – this happens to be a complex method of cold storage. This method is used to secure the cryptocurrency by having the private keys encrypted in the form of sound files that are stored in vinyl disks and Compact disks. If an investor wants to retrieve the private keys, then
encrypted codes in the sound files are usually decrypted using a high-resolution spectroscope or a secure spectroscope app.
3. Paper wallet – this method essentially involves the private keys of the investors’ Bitcoin being printed on paper. In this way, the Bitcoin is usually secured from access by hackers. Since the paper on which the private keys are stored is prone to theft by people intending to rob a person of their Bitcoin investment, it is usually essential to have the private keys being printed in an encrypted format. Another approach to ensuring the safety of the paper wallet is to have copies of the paper created and stored in safe locations which are inaccessible to unauthorized people.
4. Removable storage devices – This method entails having the private keys being stored on a secure and stable removable device of the investors’ choice. Again, like with the paper wallets, it is necessary to store these removable storage devices with the private keys in a vault or safe that is not accessible by unauthorized personnel.
Depending on the fees charged by companies offering cold storage facilities, you can proceed to select the method that best suits you. All in all, it goes without much emphasis that you cannot go wrong with cold storage as an approach to investing in Bitcoin. All you have to do is to purchase the Bitcoin (on a regular or one-time basis), store it using one of the above-listed methods and wait for its value to grow, and you are well on your way to earning a great amount of money.
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I hope you found this short article on the Best Way to Invest in Bitcoin to be helpful and that you now have a better understanding of the subject. Please share your experience in the comment section below as it can help others! Also, if you got any questions about this I would be more than happy to answer them below!
I wish you success!
Michael,
founder of: Gold Retired
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