Bitcoin Investing 2017. Your Next Investment: Is This The Right Time For You To Invest In Bitcoin?
Bitcoin Investing 2017. Bitcoin started 2017 on a high note – busting through the $1,000 mark with no immediate signs of decelerating. With that in mind, you may be wondering if it’s your time to invest in Bitcoin.
Of course, the first thing you have to understand is that Bitcoin isn’t stock or company. No, it’s just currency. If you want to make an investment in Bitcoin, it means you’re buying currency. Still, there are other kinds of Bitcoin investing to consider.
Bitcoin Investing 2017. What Does Investing In Bitcoin Mean?
When it comes to answering the “What does investing in Bitcoin mean,” the first question you have to answer really is, “what does it mean to want to invest in Bitcoin?” Are you making a purchase in the currency with hopes that’ll rise in value? Are you looking to invest in companies that deal with Bitcoin? Do you want to day trade using Bitcoin?
4 Things You Should Understand About Buying and Holding
The most common kind of Bitcoin investing is known as buying. People do this, hoping there will be some type of appreciation in the value. Before you buy, make sure you look hard at the situation. Is the price going to still rise? Rely on yourself – no one else to find out about Bitcoin. While you can listen to others’ advice, you should still rely on your own feelings and research.
- Don’t invest more money than you could afford to lose. Since Bitcoin is a risky investment, it’s something to consider all the time.
- When buying bitcoins, transfer them into your personal wallet. Avoid leaving them in the exchange. Consider a hardware wallet for your Bitcoins. If you’re unable to pay for a hardware wallet, go with a paper wallet.
- Purchase Bitcoins from reputable exchanges.
- Purchase Bitcoins via a dollar-cost averaging – This means you don’t focus on one trade to get your bitcoins. Rather, you focus on a fixed amount every day, week or month. This allows you to average the price over the next year.
How Is Bitcoin Trading Different From Buying and Holding?
When it comes to Bitcoin trading, you’re actively buying Bitcoins at a fairly low price and selling them at a high price in a short period of time. In order to be successful in your trading venture, you need to practice, and you need to gain some knowledge. After all, the more established players are looking forward to working with newbies who just make trades without any forethought.
What You Need To Understand About Bitcoin Mining
There are some folks who invest money into Bitcoin mining. In the past, the only way Bitcoin mining would work was when trading at large sums. You would have to get costly mining equipment with the hope that you’d have free electricity. In terms of cost effectiveness, it’s best to purchase Bitcoins with the money rather than using the money to purchase the mining equipment.
There are many Bitcoin websites that let you mine for Bitcoins. This is called cloud mining, but the sites can be categorized one of two ways.
Total scams that take your money and run, not letting you use it to mine for Bitcoins.
Not scams but horrible investments, as you’ll get more Bitcoins buying them rather than paying the site to get them for you.
Should You Get Involved With Bitcoin Companies?
Now, you may be wondering if you should work with a company that claims it can double your bitcoins, giving you daily interest or helps you to invest Bitcoins using some complicated scheme.
However, steer clear of these sites – most of them are noted as scams or known as high-yield investment programs.
These sites will take your money and promise you good returns. These returns are then paid by the money they get from new sign-ups thanks to the news generated about the site. There’s always a referral program tied to these companies. This goes on for several months until the day comes when the website is down, and you lose your money. No payments are made to you, and people get angry because they were scammed.
Although there are many Bitcoin investment sites out there – Bitcoin Trader and BTCJam – investing in them is throwing caution to the wind. It’s a real gamble. If a site claims it can double your money, run away.
Is Bitcoin Something You Should Consider Investing In?
Obviously, it’s not easy to decide whether or not investing in Bitcoins is something you should do. You really do some research. It doesn’t just come down to “should you” but “how should you.”
There’s an old saying, “knowledge is power.”
Use the knowledge you learn about Bitcoin to determine if it benefits you or doesn’t to invest. After some consideration and research, you’ll know the answer. While you can talk to others and get their advice, it’s more important to rely on your own feelings and thoughts. Are you comfortable with making this trade?
Next Article: Let’s take a look at Bitcoin’s main competition