Cryptocurrencies
You may be thinking about investing in bitcoins and just as I asked myself several things at the time, I’m sure you’re also having some doubts, which I will try to solve in this text or through any comments you may leave.
Bitcoin have attracted the attention of thousands of investors from around the world, including large investment funds. It’s a safe and global digital currency, which has been increasing all through 2017, and I don’t have to tell you how good it is to move in favor of the market.
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Is Bitcoin a good investment?
If you invest in bitcoins, you’re doing so with a currency that has been working since 2009 and which, thanks to blockchain technology, has proved to be quite revolutionary.
This currency and the technology that backs it is here to stay, its innovations are still being applied in practically every productive sector. A good sign that we are facing something with a great future is that the best international programmers are still working on its development.
- Bitcoin was designed so that the number of coins created would be increasingly smaller, and there won’t be more than 21 million bitcoins. This makes it scarce, something completely opposite to conventional money, where more and more bills are printed and these lose value over time.
- This coin is useful for making cheap transactions in any place on the planet, which nobody can hold or freeze and which have to be shared among a global population, for which it is becoming more and more desirable.
Bitcoin Profitability
It’s easy to see the graphs and realize how profitable this digital asset is. Like any investment, it has its risks, but thanks to its progressive revaluation, it’s hard to find someone who has lost money by investing in bitcoins.
Investing by buying bitcoins
For me, the best way to invest in bitcoins is by buying them directly, by accumulating and saving them to ensure a better future. To acquire coins, you need to change your euros for bitcoins in an exchange or you can even buy them directly from another person using cash.
Invest using Coinbase
This is the most recommended exchange if this is your first time investing. It provides all the security that any investor needs and makes the entire purchase process absolutely clear, quick and easy.
Right now the most important exchanges for purchasing bitcoins are Ethereum and Litecoin. It can be found in virtually every country in the world and has at least 10 million customers.
Receive $10 with my invitation when you buy $100 in cryptocurrencies.
Payment methods accepted
- You can make instant purchases with your credit or debit card.
- They have added instant purchases by bank transfer.
Investing using Localbitcoins
This exchange is somewhat different to others, since we’ll be buying or selling bitcoins directly from or to other users. In this case Localbitcoins only acts as an intermediary and ensures that both parties receive the money and bitcoins they have agreed upon.
The advantage of this exchange is that users are willing to accept various forms of payment:
- Credit cards, PayPal, cash exchanges, bank transfers, etc.
Another way of making an investment that is directly related to Bitcoin, is by buying stocks from listed companies that manufacture mining equipment, which are really necessary for maintaining the network and verifying its transactions.
AMD: its direct rival is NVDA, who had a better performance this year. The GPUs that they manufacture are somewhat cheaper and are still being used in mining.
NVDA: miners prefer manufactured graphic cards. Their products literally disappear from the stores and there is now a great scarcity, which has led both two brands to think about manufacturing models with which one can only mine cryptocurrencies.
Before investing
- Ticker or stock exchange codes are used in exchanges, so you will find bitcoin as XBT.
- Bitcoin prices are shown for what 1 bitcoin costs, although you can also buy fractions of the currency, as it can be divided by up to 8 decimals.
- This is a very speculative market, so one day you may see a 30% drop and the other a 50% rise. In any case, trust the technical analysis and be patient when choosing when to buy.
- One of the first rules to follow in any investment is to not invest more than you can afford to lose.
- Remember to keep your coins safe in the best Bitcoin wallet available at the moment, it will always better to leave them in an exchange in which you can’t control the private passwords.
There are two types of bitcoin investors. Which one will you be?
Blanca Guillen
I work as a software developer and for several years I started to get interested in the blockchain technology and Bitcoin cryptocurrency. I have decided to create this blog as a guide in which anyone can start acquiring knowledge about cryptocurrencies.
You can find me at Linkedin and Twitter