I decided to write this article mainly because I think Bitcoin will be technology that changes and has changed our world forever.
Bitcoin, which was created in 2008 by Satoshi Nakamoto (side note: no one knows who he is), has recently gained a lot of attention due to its huge rise in value and popularity.
Its price spiked from about $0.01 per Bitcoin back from its inception, all the way up until it hit $68K in Q4 last year! That’s insane.
But here’s the thing: I think you haven’t missed the boat yet, and Bitcoin can go up in value, even to $500,000 at some point!
All speculation aside, I will show you how you can invest in Bitcoin before it’s too late!
Things to consider before investing in Bitcoin
Bitcoin’s value has fluctuated wildly over time, so it would make sense if you do some research on this topic before deciding whether or not you should invest in Bitcoin.
If you’re considering investing in Bitcoin or any other cryptocurrency, it’s important to keep a few things in mind. The most significant risk is the volatility of cryptocurrencies as they are subject to bull runs and market crashes which can lead people into losing all their money quickly.
Experts recommend not investing more than 5% of your overall portfolio because otherwise, you’ll lose out on diversification.
Other considerations are whether or not there is an exchange you want to use, how much government regulation is involved, and what kind of regulations will be applied for taxation purposes.
To invest in Bitcoin, an investor should consider that it is only one small aspect of a successful portfolio. In addition, passive investing can be a handy way for people to build wealth over the long term (years) by building up their assets without any active involvement.
Before investing in Bitcoin or any other cryptocurrency, it is important to consider what you want to achieve. For example, if someone wants a more stable investment that you can liquidate quickly and easily at a low cost of entry – then they should invest in stocks and bonds.
How much should you invest in Bitcoin?
The amount you choose to invest in Bitcoin depends on factors such as your risk tolerance and the amount of money you can afford to lose. If you consider investing in Bitcoin but have no idea how much you should invest, it is usually a good idea to start with small amounts of up $100-$200 at first.
Most investors should consider investing somewhere in the range of 5% to 30% to be on the safe side. However, most successful Bitcoin investors will agree on one thing: it’s best not to start too big because you’ll be paying for your mistakes later.
I personally strongly believe that cryptocurrencies are an asset worth investing in. It’s easier to buy Bitcoin now than later on because there is a limited supply of currency, with more people acquiring coins as time goes on.
The ups and downs of Bitcoin
The pros are many, including its decentralized nature, low fees, anonymity, speed, and acceptance worldwide. The cons include its volatility, which means significant changes in value can occur from one day to the next.
It’s essential to think about both pros and cons before investing in Bitcoin because it can be a significant decision with long-term implications.
The ups and downs of Bitcoin are dramatic, and Bitcoin has been on a wild ride. This unregulated digital currency is now worth more than gold and fiat currencies, but it can still fall prey to the same volatility that all cryptocurrencies experience.
The price of Bitcoin is determined by confidence, which can change at any moment, and investors should consider this when choosing to invest in the currency or not.
Although Bitcoin was initially created as an alternative cryptocurrency for people who were tired of paying high fees or had difficulty accessing traditional financial systems, its popularity skyrocketed in 2017 when the price surged from $1,000 per BTC to over $19K before falling precipitously by 2018.
It’s also been plagued by scandals, hacks and other controversies.
Although the fluctuations in Bitcoin’s price make it seem like a risky investment to many people who are not well-versed in cryptocurrency trends or economics, it may be worth considering for those with an open mind about digital currencies.
Fees when buying Bitcoin
If you’re looking to invest in Bitcoin, be aware of transaction fees and taxes. However, the investment is worth it because of its security and potential for profit. You can buy many things with Bitcoin, including cars and plane tickets, making this a worthwhile investment because of the high ROI potential.
Because of the fees and an overall market that is not regulated, it can be hard to get into Bitcoin. However, there are still ways around this, such as buying a small amount of Bitcoin at a time or using peer-to-peer exchanges.
The only minimum amount of Bitcoin needed to get started is set by the platform you’ll invest in your first pieces of Bitcoin. The platforms that accept fiat currency as a method for buying and selling Bitcoins have different fee structures, but most are free or low-cost if you purchase $100 or more worth of BTC.
Once a user has their first piece, they can then move on to purchasing other smaller amounts where fees may be higher than those available with more significant investments because there’s less liquidity available.
How to buy and invest in Bitcoin
To buy and invest in Bitcoin, you must first understand the structure of an asset. The price at which an investment is purchased or sold is related to the cost of buying and selling it. If someone sells when their original purchase price has increased, they will make more money than if they had held onto the investment for an extended time.
The value at which an asset is sold determines how much can be bought in return for that asset. In general, Bitcoin’s value is highly volatile. The trick to buying and investing in Bitcoin is not to panic when the value goes up or down, but rather to let your emotions stay rational while you wait for a price that suits your needs better.
It’s essential to invest in Bitcoin as a whole, and not just for the sake of investing. The rewards can outweigh the risks, but it is always worth checking out other investment opportunities before deciding on this one. You will need to take some regulatory hurdles into account when buying or selling Bitcoins, so if you’re going through with this, then make sure your strategy matches up well with them first!
Is the risk worth it?
There is no such thing as a risk-free investment. Some say the current market for Bitcoin is too volatile, with highs of $68,000 in 2021 and lows of $40,000 in 2022. Even if you believe that the volatility will be low in 2022 and investing could propel your portfolio to success in two years – how much do you know about Bitcoin?
Bitcoin has proven over the past year that you can’t trust it. Many questions surround its usage as currency, and the lack of regulation makes it difficult to determine whether or not you should invest.
The cryptocurrency market is still new and volatile, so it’s essential to be patient and make sure that you’re comfortable with the risks before investing in digital coins. There are many investment options for beginners and experienced traders in this space.
While many investors are wary of cryptocurrency investments because they lack stability, stablecoins can be less risky than other cryptocurrencies. Stablecoins like USDT and USDC provide a dollar-backed currency that can become more popular in 2022 as it becomes more mainstream.
Tether (USDT) has not been without controversy as it’s had fines and bans imposed on them for their use of the USDT token that was supposed to peg one US Dollar with each token issued by them. Despite this criticism, there is still an option for any varied portfolio because if other investments start to suffer then, Tether can provide stability.
Where to buy Bitcoin?
This section compiles a list of the best platforms to buy Bitcoin and provides introductory information.
Binance – Binance is one of the best crypto exchanges because of its high volume and liquidity. It’s also a good idea for newbies who want a more accessible way into crypto-currency investing because they have lower trading fees than other platforms like Coinbase or Gemini.
Binance also offers an extensive range of alternative coins.
Coinbase – One of the most comprehensive options in the United States, with a broad range of different cryptocurrencies. Coinbase is not the cheapest cryptocurrency exchange, but it is one of the most flexible and apparent standouts.
RobinHood – With no transaction fees, you may buy and sell Bitcoin, other cryptocurrencies, stocks, and options. Additionally, Robinhood offers the best cryptocurrency selection of any site that is not a cryptocurrency exchange.
eToro – eToro is one of the best platforms for beginners because of its simple interface and practice accounts that allow you to experiment with purchasing Bitcoin without risking real money. Users may begin trading Bitcoin on eToro for as little as $50, and its revolutionary trading platform allows users to follow the moves of chosen traders with a proven track record. However, keep in mind the hazards associated with dealing with these highly speculative assets.
Gemini – For casual investors, Gemini provides an easy-to-use trading platform, a complex platform for professional traders, and a peer-to-peer trading site. It offers more than 50 different cryptocurrencies and insurance of digital assets against exchange hacks.
Webull – Webull’s clean design for desktop and mobile apps will appeal to the mobile-first generation of recreational investors. Still, the exchange offers an incredible selection of tools for serious traders. However, its teaching material is somewhat lacking, leaving absolute beginners in the cold, and it misses access to a few common asset types.
Cex.io – CEX.IO claims to be one of the first cryptocurrency platforms to provide fiat-to-crypto transactions (swapping crypto assets for fiat money such as USD or EUR) via card transactions and bank transfers. Not only does the marketplace provide quick buy/sell transactions (only for credit and debit card purchases) and cryptocurrency trading, but it also offers a CEX.IO Prime platform for enterprises. Individual traders may also benefit from margin trading, staking prizes, and other features.
Final thoughts
Bitcoin is the world’s most popular cryptocurrency, and it has been gaining popularity in recent years. This digital currency can be bought with a credit card or debit card through popular exchanges like Coinbase and Binance.
Investors have been flocking to this booming market because of its potential for high returns (ROI).
Investing in Bitcoin can be rewarding, but it is crucial to consider the risks. For example, never invest at the expense of saving for emergencies or paying down high-interest debt.
It’s also important to note that Bitcoin is not the only cryptocurrency out there. Other alternatives include Ethereum (ETH), MATIC, Cardano, Dogecoin, and many more.
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