With so many conflicting accounts, it can be tough to know what to believe. Should you put your money into Bitcoin? Does this cryptocurrency make a good investment?
It’s not easy to answer these questions without explaining a bit more about Bitcoin itself. There are certainly many benefits of Bitcoin, but there are also a few things you need to be wary of. Keep reading to find out a bit more about both ends of the scale, so you can make your own informed decision.
Benefits Of Investing In Bitcoin
First, it’s relatively easy for you to get hold of Bitcoin. Because of this, it’s easy for everyday investors to join the market. Even in countries that have strict regulatory systems in place for other investment opportunities, you’ll be able to find a cryptocurrency exchange.
Another highly appealing factor is the ability to get involved in a growing market. Cryptocurrency is poised to become a major disruptive force. As it becomes more socially accepted, and a more common method of payment, the value of Bitcoin will continue to rise. For example, three years ago Bitcoin had a market cap of $1.3 billion. Today, it has a market cap of around $10 billion. If Bitcoin becomes a legal tender, it has the potential to hugely increase the price. Some experts speculate that you might be able to get a whopping 200% return on investment if this occurs.
There are also some people who want to invest in Bitcoin because they like the security that the cryptocurrency can provide. The blockchain technology ensures that transactions can’t be traced. It also ensures that you can remain anonymous. Also, the currency is decentralized so it won’t be impacted by the effects of inflation and other bank activities. This can make it a more stable choice.
Things To Watch Out For
While there are several reasons why you might want to consider investing in Bitcoin, there are also a few potential downsides that you should consider.
First, you should make sure to choose a trusted exchange to buy and sell Bitcoin. When doing this, you should make sure that you are thinking about how the fees are charged. By doing a bit of research, and finding the exchange that offers the best rates, you’ll be able to save yourself money in the long-term.
You should also make sure to study the way that Bitcoin works before you invest. Sadly, many people are investing without understanding anything about Bitcoin. This will allow you to spot potential opportunities in the market so that you can make even more money. Research is especially important if you intend to invest in altcoins or another Bitcoin derivative. Remember, these products will generally involve a higher level of risk than investing in Bitcoin.
You should also be aware that the price of Bitcoin can fluctuate very rapidly. For this reason, you should think about how you intend to trade the cryptocurrency. Some people might prefer to act on a shorter-term, taking advantage of weekly, or daily, movements in the price. On the other hand, others might be investing in the long-term, waiting for years to make a withdrawal. Because of this, you should make sure that you are using a timeframe, and investment plan, that works for you.
Finally, you should be aware that, while there are multiple genuine sites, there are several scams that might try to take advantage of you. In some cases, these scammers have cost people their whole portfolio. The best way to protect yourself is by doing your due diligence. Make sure to investigate each site thoroughly before you put any money into it. Some typical red flags can include, poor reviews, a lack of customer support, and whether or not they are properly explaining all the risks involved in investing in Bitcoin.
Bitcoin can be a great investment. As demand for the cryptocurrency begins to grow, it’s expected to continue to increase in value, producing more gains for investors. There are also likely to be more vendors that will be willing to accept Bitcoin as a form of payment. To find out more about this exciting opportunity and how you can take advantage of it, make sure to get in touch with our friendly team today.