Should I Invest in Bitcoin Complete Beginner
The cryptocurrency market has been one of the more popular ways of investing money in the past decade. With over 1500 different cryptocurrencies, it is easy to get lost in the middle of these electronic investments. One of the most popular cryptocurrencies today is most certainly Bitcoin. One of the pioneers of the market, its value grew over the years. However, the growth was sporadic, and not at all certain. At one point, it was worth almost $20,000.00, but at this moment it's around $5,400. If you are considering investing in Bitcoin, here are some important things you must know.
Do not expect to find a pot of gold
There was a time when Bitcoin could earn you a fortune overnight. However, that time has passed. You'll need to invest a lot of money to make a difference and earn a substantial amount through crypto transactions. If you wish to have some money invested in it, it is fine. Just don't expect riches.
Are you considering to invest in Bitcoin? Be careful!
The easiest way of losing money is investing in something you are not familiar with. If you wish to play this financial game, make sure you educate yourself first. Learning about the cryptocurrency market, and the entire history of Bitcoin is a must.
If you think this will take too much time, and you just want to invest some money and wait for the value to jump, no one will stop you. However, know that the probability of you losing your investment is high.
Nevertheless, if you are interested in learning more, the best way to do it is to find a quality cryptocurrency blog and read as much as you can.
Follow YouTube channels
The first way I learned about cryptocurrency is via YouTube. There are many channels where you can get informed about the hot topics of the day. Not only that, but you can learn how to open an account and a wallet, or what sites to use to register. Furthermore, this is the fastest way to find out if there was any significant change regarding Bitcoin.
Follow the market every day
The way those more experienced players do it is they follow the crypto market. Knowing in time if the value is climbing or falling will make the difference between winning and losing money. There is a whole science behind tracking the success curve of each cryptocurrency.
Two ways of investing in Bitcoin
Let's say you have some cash on your hands, and you are willing to invest in Bitcoin. How would you do it? Well, there are two very different ways. One is more passive, while the other requires constant activity.
The passive way
This way is more simple, but it may require more money if you wish to earn anything. Simply, invest in Bitcoin and wait for it to jump. Once it happens, transfer the money and enjoy the difference. However, you should know that each time you withdraw money or send it to another account, it costs 2% of your money.
The active way
One word - micro transactions. What this means is, first invest some money in a cryptocurrency with a steady value. It is possible to purchase a virtual dollar. Its value is always exactly one dollar, and it doesn't change. This way, your money will not be lost due to an unexpected fall on the market. Next step would be to invest in Bitcoin and closely watch its value. As soon as you see it go up, buy back everything to the virtual dollar you purchased.
By repeating this process, you are increasing your wallet's value little by little. The process is more active, and you have more control. Still, it requires a lot of concentration and patience.
If you are planning to play with micro transactions, consider finding a suitable mobile app that will inform you as soon as the market changes. You can set it up the way you like. For example, if the Bitcoin value drops down by 3%, the app will notify you. The same happens if the value goes up. This way you can track the progress, and make sure you don't lose a large amount of money.
Where is the value of Bitcoin?
The value of Bitcoin, like any other currency, lies in its popularity. The more people invest in it, the value will grow. If people lose interest, the value will fall. And this is exactly how rich investors manipulate the market. The market cap of every cryptocurrency represents its value. So, if the market cap drops down by $20 billion dollars when the investors pull out their money, the value will go down. Once the value goes down, they will put the money back in, and buy the currency for a lower price. By doing that, the currency's value will grow.
If you think about it, it is quite easy to manipulate the market of Bitcoin, only if you have enough money. That's why it's not so safe to invest in Bitcoin, as you never know when the next large change will happen.
The safest way of obtaining Bitcoin is by mining it. Here is where the whole secret of cryptocurrency lies. However, setting up a mining rig will also cost money. The only difference is, once you buy all the hardware you need, you can use it to get your investment back without any risk of losing it. Still, this process is quite slower. Mining Bitcoin was easier in the past.
What to say as a conclusion to this story? If you wish to invest in Bitcoin, you have to be prepared to lose your capital. This is not a safe investment, and it requires a lot of knowledge. If your goal is to have some fun and try your luck, I advise you to play safe and put a limit on how much you'll invest. Still, if you wish to invest large amounts of money, be sure to know what you're doing.