First off, what exactly are bitcoins? In simple words, bitcoins are digital money which you can use anywhere in the world. Bitcoins is one of several types of digital money which are known as cryptocurrencies.
Cryptocurrency was first created in 2009 by Satoshi Nakamoto, with the aim to have a decentralized worldwide digital currency. It means money which can be used anywhere with anyone without any restrictions. This opens up a whole new free capital market for users – no regulations from Federal Reserve or even the govt.
WHAT YOU MUST TO KNOW BEFORE GETTING INTO THE WORLD OF CRYPTOS
- Trading and Investing in Bitcoins: One can invest by buying some bitcoins which is pretty simple. You just have to deposit fiat money in exchange for bitcoins from cryptocurrency market platform such as Coinbase and BitStamp. Make sure you read https://www.investopedia.com/articles/investing/082914/basics-buying-and-investing-bitcoin.asp for a more thorough insight into the basics for bitcoin buying and investments.
- Bitcoin is Still new and Volatile: The whole thing about bitcoin and cryptocurrency is it is very young and has yet to establish itself as something which can be relied upon as a stable financial asset. Although we’ve seen its recent spectacular surge from 0.3 cents to 7300 dollar per coin value, it can decline just as quick and dramatically as it rose.
Remember that you are not guaranteed to make money from bitcoins, you might make it and also you might lose.
- BITCOIN’S UNCERTAIN FUTURE: One of the biggest advantages of bitcoins over fiat money is that it gives unrestricted freedom with no regulation from other body or entity like the bank and govt. This is exactly why bitcoins don’t have a guaranteed future. Because bitcoins has the potential of causing jeopardy to the govt. and entities which has total control over our fiat money as of now. These entities aren’t going to let that happen. For instance, China and Vietnam has recently tried to regulate certain cryptocurrency exchanges.
- Don’t Invest Considering Bitcoins’ Past Performance: Bitcoins recent soaring value doesn’t necessarily guarantee its high value in the future. Here’s a short and helpful video for additional pointers on what you need to know before bitcoin investment https://www.youtube.com/watch?v=DHtilrc4zLQ
- Not Accepted Globally: Sure, cryptocurrencies are global money but it hasn’t been accepted by everyone. You can’t expect to use your bitcoins in everyday transaction in most places. Not yet.
- The BIG Question: Do we really need bitcoins?: We are living in an era where monetary transaction across the world is not a problem anymore. We already have card and online payments for that. So there’s always the risk that bitcoins is just a temporary craze which will fade out and your investment along with it.
- Comparison to Gold: Bitcoins are being referred to as the 21st century gold. With its scarcity and high value, in a way it is could be rightly called the digital gold, with the added bonus of its easy store and transfer. But there is no way we can realistically compare it with the precious metal. It’s a fact that gold has an accepted use and value in history while bitcoins hasn’t even got the mainstream acceptance.
- Bitcoins High Chance to Flourish: While it’s filled with uncertainty, there’s also an equal chance that bitcoins will stay in the mainstream. There are people already using and loving it. There are usually two types of bitcoin users – ones who buys and hold it waiting for the right time in the future when its value will shoot up; and those few who use it to buy n sell online – which is faster and cheaper compared to traditional online payments involving banks. Find out why you should invest in bitcoins and how to secure it at https://www.buybitcoinworldwide.com/kb/investing-in-bitcoin/
- “To the Moon”: The aptly given bitcoin phrase “to the moon” can be quite captivating but earth’s gravity might pull it back to the ground. So, if you are one who isn’t afraid to take a chance and like to gamble with your wealth, go ahead! If it is solely looking for ways to expand your meager wealth, then think again, Bitcoins might not be your best option. Remember, anything that promises to pay too much can’t help being risky.
- BITCOINS is 100% Speculative: Cryptocurrency is an extremely speculative business. Nobody could say for sure how it will end up or in what manner it will continue. Never invest money you can’t afford to lose in bitcoins!
Listen to this interesting podcast on bitcoins investments must-knows https://www.youtube.com/watch?v=UEFiu52ZGUs&authuser=0
- Is Bitcoin a Smart investment?: Yes and no. We can say it’s the new age money; much cheaper and faster than the established financial system. All those complicated processes involved in one traditional transaction are removed in bitcoins transaction. However, there are other ways you can invest in, such as silver, gold, platinum which are safer and more stable compared with bitcoins in the current financial market scenario. Also, the fact that bitcoins relies solely on the internet means it can’t be used in the practical sense as in without access to internet you can’t use your bitcoins. Get wise bitcoin investment tips right here https://www.youtube.com/watch?v=xbmkd38vrKY=
- Be Ready to Diversify: There are other digital currencies besides bitcoins such as Ethereum, Litecoin which are more or less equal to bitcoins. So, if you are seriously into investing in digital currency, it’s good to be versatile and branch out to the other cryptocurrencies at the right time. Put an intent close watch on the market behavior and act accordingly.
- Work up Your Monetary Knowledge: Research and get all the info and knowledge you can about bitcoins as well as how the traditional money system has been working over time. This will help a lot in your venture into cryptocurrency. After all, digital or not, it’s money you’re dealing with.
- Maintain a Separate Device: If you have decided to go for this new age digital coins, make sure your wealth is safe from hackers and haters. It’s advised to use a computer/device separate from your daily use to operate your cryptocurrency transaction for optimum security.
So, that’s bitcoins broken down for you. Would you invest in this 21st century digital money or would you rather stick to the traditional fiat money? Leave your thoughts in the comment section below.
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