Currently, investment in cryptocurrency is a topical issue. One of the most popular is the Bitcoin. Many people around the world are considering investing in Bitcoin. If you are one of them, you mustn’t get carried away by impulses; you must be very well informed about the different options that exist, as well as the profitability offered by each of them and the factors that can make an investment success or an absolute failure.
Of course, you must be aware that the investment poses a risk due to its versatility; it is tough to predict the value that Bitcoin will have at any given time. That is why it is not at all advisable to borrow to acquire cryptocurrencies. When it comes to investing in Bitcoins, it’s best to do it with the savings or with the extra money you have. As in any investment, you can win or lose.
Bitcoin is a virtual currency not supported by any government around the world, whose transfers are complicated to track.
History of Bitcoin
The origin of Bitcoin dates back to 2009. It was then that it was born as a computer protocol and a P2P network; it aimed to provide users with an alternative way to current currencies.
One of the main features that have accompanied these cryptocurrencies since its beginnings is that the total number of Bitcoins in circulation cannot exceed 21 million globally. Thus, being a scarce good, it is a product with a certain intrinsic value.
From its inception to the present day, a wide range of companies such as Microsoft, have accepted payment with Bitcoins. It was in January 2015 that for the first time a European company offered the change from Bitcoins to euros. From then on, the European Union began to legislate this cryptocurrency.
Its use today is widespread, both in financial markets and in other illegal and/or criminal markets. In some of the latest cyber-attacks worldwide, cybercriminals have demanded a payment at Bitcoins to release the kidnapped teams.
As for the future of Bitcoin, the truth is that it is very diffuse. Some experts point out that it is a bubble about to explode, while others believe that it still has a long future ahead of it. What seems clear is that little by little, we will experience a rise of other virtual currencies.
Tips for investing in Bitcoin
Here are some tips worth considering to invest in Bitcoin.
- Term
When investing in this cryptocurrency, it is important to know that the market is not stable in the short term. We must, therefore, think about the medium and long term.
- Self-control
Today, the global Bitcoin boom is growing at Giant’s feet. So it’s very easy to get carried away by the thrill of making a lot of money in just a few months. However, an economic investment is an important decision that you must think and think about; take your time to do so, taking into account the pros and cons of doing so.
- Information
Information is power, and it is especially important when there is money at stake. There are currently many online platforms that allow you to invest in Bitcoins quickly and easily. It is essential that you bet on one that enjoys a great reputation so as not to fall into scams.
- Invest the Money You Can Lose
This is a basic principle when making any investment. You should keep in mind that when you invest in Bitcoins the same thing you can earn 30% in an afternoon than lose 60% in the morning.
The evolution of cryptocurrency is totally unpredictable, and the risk of losing the money invested is always there. Therefore, good advice is that you only spend the money that you can afford to lose without risking your heritage.
- Borrowing Money is Not Advisable
Directly related to the previous point, if for example, you can only afford to invest 1,000 euros in Bitcoins, but you want to invest 3,000, borrowing money from a friend or family member is not a good idea.
As we have pointed out, this is a completely speculative investment. So, if the price goes down, you might have to face a significant economic debt.