Bitcoin was very cool in 2017. We saw how its price rose by more than 1,000% – from $ 1,000 at the beginning of the year to $ 19,000 by mid-December. Because of this rapid growth, Bitcoin has attracted the attention of people from all walks of life who have begun to invest in it. Now hedge funds and novice investors are trying to connect to the growth of cryptocurrency and get massive profits.
But is Bitcoin really the same good investment in 2018? Or has the train already left? Let us state our understanding of the situation and tell whether it is worth investing in bitcoin.?
[Please note that we do not provide financial advice. Investing in cryptocurrencies is very speculative and risky. The opinion presented here is subjective and should be considered that way. Invest at your own risk.]
What are you investing for?
In our opinion, there are two types of people investing in cryptocurrencies. Those who believe that this technology is the future and plans to maintain a decentralized financial system. And also those who just want to make money on it. Now it is not necessary to relate to the first or second, but investors, as a rule, are interested in bitcoin for the sake of earning.
If you believe in the future of money, then you invest in this currency in the hope that one day it can be used to pay for purchases. And, of course, you hope that it will be in price. However, for Bitcoin to ever be used as an everyday currency, it must get rid of daily fluctuations within hundreds of dollars or thousands of dollars. The question that you need to ask yourself is whether it will be calculated at the current price? If you think that bitcoin will grow in the long run, then it makes sense to invest, but for this you will need to go through many fluctuations.
If you just want to make money on cryptocurrencies, then the situation is a little easier. As mentioned above, Bitcoin reached a price of $ 19,000 in mid-December 2017, and a month later fell to about $ 11.000. With market fluctuations of this nature, you can make money (and pretty decent). We can safely assume that in the near future volatility will not become less pronounced. Nevertheless, if you plan to trade on a short game, then there is such an opportunity.
Where to start?
If you are new to the cryptographic world, you should start by exploring this subject. You should never invest in anything, without understanding the direction. Always find and study information, intending to invest in a particular asset. Usually, people first jump “into the crypt” because public resonance shows them green light. But this is a bad habit that will not lead to good results in the future..
First, learn about the blockchain and how it can change the financial world. It would be nice to find themed channels and listen to some videos on YouTube. Experts carry out a lot of work on the decomposition of concepts, as well as give expert opinions on current news, which will allow you to understand whether it is worth investing in bitcoin, and indeed to understand the topic.
Open a new account
When you are ready to invest, you can open an account at Coinbase. This platform has a convenient user interface and is great for beginner investors. You can also sign up for free $ 10 loans here. Or use EXMO – Probably the most adapted exchange for the Russian-speaking user (fully Russified from the interface to technical support)
There are many videos on YouTube that demonstrate step-by-step instructions on how to access and use other exchanges in trading, use this.
At first, this whole process may seem complicated, but, believe me, as soon as you begin to understand at least a little, everything will go easy.
This is the last, but no less important step – to protect your bitcoins. They can be stored on Coinbase or EXMO, but it would be better to send them to offline wallets like Bitcoin core. Also popular now Armory and Electrum. This technology allows you to store bitcoin offline in any safe place..
Exchanges, as you know, have already been hacked in the past, and those who trusted them with their crypto coins have lost everything. Therefore, it is better to spend extra energy on security than regret in the future..
In the end
As with any other investment, you should understand that there is a risk of losing everything. In addition, it is necessary to constantly study this area and stay updated on current trends. Bitcoin is still a promising investment in 2018, regardless of whether you practice long-term or short-term investments..
Read also: Bitcoin and the fate of other financial bubbles
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