We have discussed before about what is btc (bitcoin) or cryptocurrecny and how it works and today we are going to continue whether you should invest in bitcoin or cryptocurrency or not and if you want to invest then, how?
We tried to explain before in the simplest way about bitcoin. Today, we are more focusing on investment in bitcoin and cryptocurrency and at the end, we hope that you will have a clear mind whether you should or not.
Should you invest in bitcoin or other cryptocurrencies?
We have assumed that either you have knowledge about bitcoin or you have read our previous post related to bitcoin. Well, bitcoin is not the only cryptocurrency used today. There are some other famous currencies as well like Ethereum, Dash, Ripple or Litecoin etc. Ethereum and Litecoin are two famous cryptocurrencies after bitcoin. Investment in any of the cryptocurrency can be done but first you need to look into few things.
Cryptocurrency is the future money and it seems like the number of people investing in it are increasing every day. People are starting to trust in them more than ever because of the advance security they can feel. In the start, when bitcoin value was increasing hundreds of dollars every day, people thought that it will collapse like this too. But for the last 2 years, value of bitcoin is stable.
However, no one knows or can guarantee how far it will go. Some says that it will go up to $20,000 or $25,000 USD and will fall but no one can be so sure. Therefore, you have to be careful and do some research before investing in bitcoin. And if you have made up your mind regarding investment in cryptocurrency, make sure that you research all the cryptocurrencies and then choose the one which looks more secure and profitable.
Finding a related person already in the business can be helpful. Use his/her experience for best decisions. Next we will see about how to invest in bitcoin or other cryptocurrency.
Important things you need to know before investing in bitcoin:
Doesn’t matter how profitable bitcoin becomes, still it is considered as a risky investment. Cryptography investment is not recommended if you want to put all your wealth on stake. Moreover, many companies don’t consider it as a legit exchange. According to some, bitcoin is a good investment after retirement.
How to invest in bitcoin or other cryptocurrency?
There are two ways to invest in bitcoin and you can buy bitcoins through these ways easily.
First, there is a marketplace of bitcoin cryptocurrency where you can buy or sell bitcoins. Coinbase is where you can order the bitcoins and they will either make bitcoin or cryptocurrency investment or source them from a seller. If bitcoin value is at extreme or close to extreme, it is bad strategy if you try to invest in it and Coinbase will have issues with it due to coin sourcing especially when hundreds and thousands of people are trying to invest at the same time. This is because Coinbase won’t be able to source all these coins.
On the other hand, if the value of bitcoin or any other cryptocurrency falls unexpectedly and people who have invested in it starts to think that maybe the price will not rise again and so they try to sell. This approach is not complimentary and many people trying to sell at the same time will create a situation of weak liquidity.
Second and better way is to find someone who is selling or is willing to buy bitcoin in such situation rather than ordering a new bitcoin from Coinbase. This way the liquidity is high and you can avoid all those hectic order fulfilments.
3 steps summary of how to invest in cryptocurrecny:
- Open an account with any exchanger available like Coinbase or Kraken.
- Purchase the desired amount of any cryptocurrency you want to invest in like Ethereum, Litecoin, bitcoin (btc), Dash or Riddle etc.
- Stop buying or selling for some time and let it run.
If you don’t know about what bitcoin crash is and what is the complete history of bitcoin since 2009, we suggest you should have a quick look at it too. Click here.
How to exchange bitcoin with real cash?
There are various cryptocurrecny exchangers available Coinbase and Kraken are among the most famous ones. They can give you cash in exchange of bitcoins or give you bitcoin or other cryptocurrency in exchange with the bitcoin. You can transfer and withdraw this cash directly to your bank account.
We hope you like our content. Comment below your thoughts or share your experience with your fellows or ask us any question you want. For more interesting articles related to bitcoin investment and other cryptocurrency, visit our earning section. You would love to see our amazing collection of business tips and strategies in earning section. Stay tuned to other sections as well as life needs some colors as well.