Has the question about how to invest in Bitcoin crossed your mind? In this article, I will be bringing your attention to the main things that you need to know before you can get started with this cryptocurrency.
The main things that I will explain include:
- Why more people are relying on Bitcoin to grow their nest of investments
- Why you should consider investing in Bitcoin
- Why the price of Bitcoin fluctuates
- When is the best time to invest in Bitcoin
- How to Invest in Bitcoin
- Will the bitcoins be secure?
- What about mining?
Why more people are relying on Bitcoin to grow their wealth
You can agree with me that people are relying on the internet more than ever. This has been the main reason behind Bitcoin gaining the attention of many investors on a global scope. Bitcoin is a digital currency that everyone can use to grow their wealth both in the short term and long term horizon.
Investing in Bitcoin sounds like rocket science to many people, but this changes upon the acquisition of sufficient information about how it works. The top-performing firms that are helping people invest in this crypto are actually investing heavily in client education, in a bid to ensure that everyone makes an informed decision.
Bonus point: Bitcoin is a payment system based on blockchain, while bitcoin is a currency or currency unit. ( Take note of the capital letter and small letter)
Why should you consider investing in Bitcoin?
Most people are still yet to come to terms with how bitcoin can be worth several thousands of dollars. It is essential to know why this cryptocurrency is valuable right from the word go. The main thing that makes bitcoin valuable is its scarcity and usefulness.
The scarcity and value of bitcoin can be likened to that of gold. As you already know, gold is a rare mineral that becomes harder to find as we continue to mine it. This leads to gold becoming more expensive by the day. The same holds for Bitcoin. The creator of Bitcoin, Satoshi Nakamoto, set the total number of bitcoin at 21 million. There are people who obtain their bitcoin through mining, but this is becoming harder with time. The chance of a person solving the complex arithmetics required in order to get rewarded with Bitcoin is becoming smaller by the day.
The odds of a miner solving the complex required for them to get rewarded with 1 Bitcoin is 1 in 13 trillion
The inflation rate of Bitcoin reduces as it gets more scarce. This is different from other currencies as we know them since they can be printed on-demand, hence spiking the inflation rates.
Bitcoin has also established its position as a useful digital currency. This is largely due to the fact that bitcoin transactions can be verified by anyone. Everyone who is part of the Bitcoin network can get access to information about the number of bitcoins in circulation, and can also know when new bitcoins are created.
Those who own bitcoins can transact them from any point in the world without facing any limitations from a financial institution. This is a major advantage of having this cryptocurrency: it is censorship-resistant.
Businesses that do lots of cross-border transactions can escape the tight regulations that are put in place by various platforms and governments. They can, therefore, send the money to any corner of the world within the touch of a button.
Most people have already heard about or even encountered materials related to Bitcoin. This has to a great extent contributed towards the utility of this currency. With the mass adoption of the blockchain technology on which Bitcoin is based, the utility of this cryptocurrency is expected to skyrocket in the future. The impact of Bitcoin will be felt on the global economy. Having a couple of bitcoins will is due to this be a very prudent move.
The Price of Bitcoin
The price of Bitcoin is very erratic, owing to the fact that it is set by the amount of money that people are willing to part with to obtain this digital currency.
A study of the Bitcoin price charts reveals that the value of this cryptocurrency is generally increasing over time, thus qualifying it as a suitable investment asset. Most cryptocurrency exchanges let you buy any amount of Bitcoin, which includes any amount of less than one BTC. You can also decide to purchase several BTC, depending on your financial capability.
When is the best time to buy Bitcoin?
It is hard to determine the right moment to make an entry into the market. Bitcoin increases in value at a very fast pace and experiences a downfall at the same rate. You can use several online tools to view the history of the price of Bitcoin, or you can simply reach out to the Bitcoin experts at a company such as Regal Assets to get help with understanding what you should expect with the value of this crypto.
One thing you should know about Bitcoin is that it is a global currency, thus is affected by the economy of several nations in the world. Whenever there is chaos in the global economic scene, e.g when China and the USA are not in the best terms, Bitcoin investors have been found to leap massively. with there being no central authority or government to control Bitcoin, most investors tend to switch to this crypto to avoid making losses by banking on hard currencies.
It is therefore important to consider the global economic trends when deciding when to purchase Bitcoin. The fact that the USA is doing well economically does not translate to this cryptocurrency either increasing or decreasing in value: you have to several global economic superpowers for you to determine whether you will buy or sell your Bitcoin.
How to Invest in Bitcoin
There are several ways through which you can make an investment income from Bitcoin. So far, my preferred method is investing through a bitcoin IRA, as you wait for the value of the Bitcoin to increase. This long-term investment strategy has been found to be quite effective and stress-free, more so when one is relying on a reliable Bitcoin IRA firm.
Will the Bitcoins be secure?
Bitcoin is very valuable, hence it is prone to theft by hackers and regular thieves. There are people who have also taken to conning innocent investors off their hard-earned money with the promise of delivering legit bitcoin, only for them to disappear upon receiving the payment.
I recommend that you take the security of Bitcoin very seriously if you intend to reap from investing in them. Since I have already recommended investing through a Bitcoin IRA, I will also proceed to state that relying on cold storage is a perfect security solution. Regal Wallet is the leading cryptocurrency IRA wallet in the whole world. Your bitcoins are usually stored in a cold storage unit and are insured against loss ( $200 million). This means that there is barely any chance that you will lose your investment capital through physical theft or hacking.
Do not be tricked into thinking about storing Bitcoin in your home or with your relatives. As much as you might convince yourself that they are secure, one wrong move could lead to you losing your very valuable investment.
What about mining?
Bitcoin mining is one of the ways through which you can get these cryptocurrencies. At the time Bitcoin was being launched, it was very easy to mine these cryptos. The people who understood what cryptos are actually ended up getting many BTC tokens using their desktop computers.
In the current day and time, it has become so hard to mine Bitcoin. If you want to mine Bitcoin, then you have to set up a dedicated data center, which will obviously cost you a fortune. Unless you have a million dollars lying around idle in your bank account, it is advisable to forego this approach.
I can assert that Bitcoin mining is not a profitable investment, and one could do better by simply buying the Bitcoin from a verified exchange such as Coinbase.
It is crucial to have an understanding of how Bitcoin works before considering investing in it. The best thing is that there is a lot of information about Bitcoin on the internet, thus it is easier for anyone to understand how this crypto functions. If you would want to get an insight into how other investors’ Bitcoin IRA assets are performing so far, you can request for a free Bitcoin Investment Kit from Regal Wallet.
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I hope that you enjoyed this article about how to invest in Bitcoin. Feel free to express your thoughts in the comments section, and to also drop a question if you have any.
I wish you success!
Eric, investor, entrepreneur and team member of Gold Retired.