What does it mean to invest in bitcoin and is it worth doing it in 2018? (Topic)

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What does it mean to invest in bitcoin and is it worth doing it in 2018?


At the beginning of 2017, the bitcoin price broke through the $ 1000 mark and continued to rise. The excitement around the cryptocurrency market also grew. Thousands of those who doubted the prospects of bitcoin, nevertheless took the risk of making their first investments.

But there are still enough people in the world who still cannot understand whether they should invest in Bitcoin now or wait a little.

First of all, we must not forget that bitcoin is a currency. Therefore, when you invest in bitcoin, you are, by and large, buying a currency with all the ensuing consequences in the form of sharp jumps in value and a potential collapse.

What does it mean to invest in bitcoin?

There are several options: you can buy bitcoin and store it in the hope of a rise in price, you can take part in exchange trading, participate in cloud mining, or you can invest in companies related to bitcoin transactions.

Purchase and storage

This is the most common form of investing in bitcoin. Its essence is to buy a currency just before it starts to rise in value. Determining the perfect moment is not easy even for a financial expert, and if you are new to the foreign exchange market, you will depend on luck.

Do not listen to those who try to dissuade you: your first steps in the financial market are the most valuable personal experience that will stay with you for life, no matter what it turns out to be. The main thing:

  • Do not spend everything you currently have on buying bitcoins . There is always a risk of losing your investment, so determine the amount with which it would not be too offensive to part;
  • buy bitcoins only on those exchanges that have proven their reputation (EXMO, Poloniex, Kraken). Before registering, learn about the methods of depositing / withdrawing funds. Not all exchanges support work with bank cards. Some are not interested in attracting USA investors, so their interface is not translated into USA;
  • Buy bitcoin by averaging the currency value . This means that you should not buy cryptocurrency in one transaction: divide the amount into equal parts and conduct several transactions at regular intervals - every other day, week, two weeks or a month. By averaging the cost, you will be able to save;
  • After buying bitcoins, do not leave them on the exchange : be sure to transfer them to your personal wallet.

Exchange trades

Bitcoin trading is no different from trading any other asset: you buy cryptocurrency at a low price and sell at a high price. The difference is your profit. Knowledge and practice are required for successful bidding. The exchanges are just waiting for newcomers to appear, who will throw in all their money and leave with nothing.

Investing in cloud mining

Some would like to mine bitcoins on their own, but in recent years it has been profitable to do this only on a large scale. It is not realistic for an ordinary person to buy so much equipment that it will pay off in a couple of months. Therefore, there was such a phenomenon as cloud mining. It allows you to borrow the power of someone else's computer for a certain amount, without spending money on upgrading your own and spending on electricity. Websites that offer this service fall into one of two categories:

  • 100% scammers who will disappear with your money;
  • not scammers, but you will still get less profit from them than if you started trading or just bought bitcoins.

We have previously described in detail the only profitable and non-pyramid mining and it is still extremely profitable

Investing in Bitcoin startups and HYIP projects

On the Internet, you may come across descriptions of companies that attract investors, promising quick profits in multiples. Investing follows a complex pattern, and the projects themselves can be classified mainly as fraudulent or a kind of Ponzi scheme.

In the beginning, the sites do make payments, but the money for them is taken from new investors. An illusion is created that the project really works, it attracts the attention of an increasing number of people, and after 3-4 months it simply disappears. And no one else will see any payments.

So is Bitcoin worth investing in 2018?

By now you should have realized that the answer is not so simple. It's not just how you are going to invest, but also how the political and financial situation in the world will change.

In January 2017, no one could have imagined that in November Bitcoin would be worth $ 10,000 , and in December its price reached almost $ 20,000 . This was followed by a recession, and no one will say for sure how events will develop in 2018. Therefore, start simple: learn about the history of bitcoin, its impact on the world, advantages and disadvantages. This will help you more clearly determine the decision - do you want to invest in it or not.

The Topic of Article: What does it mean to invest in bitcoin and is it worth doing it in 2018?.
Author: Jake Pinkman