Have you decided to invest in Bitcoin? Great idea!
In this article, we will give you all the keys to successfully pass this first step and engage serenely in virtual currency.
Here we will explain the basics of investing in Bitcoin cryptocurrency and why it should be taken seriously. You will also learn how to buy Bitcoins and, above all, how to protect and secure your investment.
Should I invest in bitcoin?
Today, it seems surprising to some people that a Bitcoin can be worth thousands of dollars or don’t know what is Bitcoin. What explains this?
If you take gold as an example of a currency. There is a limited amount of gold on earth. As new gold is mined, there is less and less gold available and it becomes harder to find and extract.
Well, it's exactly the same for Bitcoin currency, there are only 21 million of them, so over time they become harder and harder to mine. If you take a look at the rate, you'll see clear inflation.
But Bitcoins are not only scarce, they're useful.
In fact, this cryptocurrency provides a healthy and predictable monetary policy that can be verified by anyone. Bitcoin's healthy monetary policy is one of its most important features. It is possible to see when new Bitcoins are created or how many Bitcoins are in circulation.
Bitcoins can be sent to any wallet anywhere in the world. No bank can block payments or close your account. Bitcoin is a currency that resists this restriction.
Bitcoin allows cross-border payments and also provides an easy way for people to avoid monetary policy, which can be negative.
The world is increasingly depending on the Internet, which has made global information easy to access. A healthy global currency will have a positive impact on global finance and the global economy. This is why Bitcoin is gaining traction.
It is therefore not surprising that a secure, global and digital currency is increasingly attracting the interest of investors. Buying Bitcoin is open to all and offers an exciting opportunity to dive into a whole new asset class.
Investing in Bitcoin may sound scary, but it's easy to understand how it works. That's why buying it is a good idea.
The benefits of investing in Bitcoin
As we saw above there are only 21 million Bitcoins created. What does this mean to you?
Think about it, the more popular it becomes, the more people are going to invest in it. If there can't be any more Bitcoins created, demand will continue to grow, which will increase the price. So your investment is bound to appreciate.
Bitcoin can offer a return on investment that you won't find anywhere else.
You can also buy and sell it whenever you want. You don't have to place a stock market order and do it all yourself!
Here is a list of the many uses for which some people prefer to use Bitcoin compared to the traditional banking system:
It allows people to easily send money to each other.
Sending international payments is much faster and cheaper than with traditional banks.
People have control over their money, instead of the banks having control over it.
Transactions are anonymous, so people have real monetary privacy.
How do I invest in Bitcoins?
This is a beginner's favorite question. We know how difficult it can be to find the best option to invest. But don't panic! We are here to help you.
How difficult it is to buy Bitcoins depends on your country. Developed countries have a lot of purchasing options and liquidity. There are several Bitcoin brokers in the world. The best way to invest in Bitcoin for beginners is to trust a serious and popular platform.
Bitit allows you to buy Bitcoin using your credit or debit card as well as cash using prepaid coupons available at shops. Our website is user-friendly and makes it easy to create an account.
About 50 crypto-currencies are also available on Bitit such as: Ethereum, Litecoin and Bitcoin Cash and many others which make Bitit the go to platform where to buy Bitcoin. You can also use our platform to sell certain cryptocurrency.
Let's talk about security
First, you need to set up a Bitcoin portfolio. It's like a wallet in which you store your local currencies, the only difference is that a Bitcoin wallet is digital.
However, there are different types of digital wallets:
- Online wallets :
Online wallets should only be a temporary storage option for your cryptography. You should only leave your Bitcoin in these wallets temporarily. Although they are easy to use, they are less secure. Make sure you check the security of the site where you store your wallet before leaving your Bitcoins online.
- Software wallets :
Software wallets are like applications that you install on your computer or on your phone. They offer good security and give you full access to your public and private Bitcoin keys. What's more, they are free and easy to install!
- Hardware wallets :
Hardware wallets are a great option for storing your Bitcoin wallet. They allow you to store your Bitcoins offline on physical storage. You plug the hardware wallet into your computer (just like a USB stick) and transfer your Bitcoins to it. This allows you to store your crypto-actives offline so that they cannot be hacked.
However, they come at a price. Most hardware wallets cost around 60 euros.
Find out what is the best Bitcoin wallet with our guide.
Should you invest for the short or long term?
Which is the best investment choice?
If you look at the growth of Bitcoin over the last 5 years, it is clear that holding it for the long term seems to be the best option.
However, before investing, it is important that you have a clear strategy in mind regarding your investment.
Short-term investment can be time consuming and can be quite stressful when prices don't evolve as you would like. However, when things go your way, you can make a lot of money quickly.
Short-term investing is only recommended for those who are willing to spend a lot of time analyzing charts and doing market research. The price of Bitcoin can go up and down very quickly, so you should always look carefully at the charts and have prepared a solid investment plan!
It is not recommended to do this without any training. Feel free to talk to a financial advisor and ask before you invest.
Long-term investment - HODL
HODL is a slang term used in the Bitcoin mining community, referring to keeping cryptocurrency rather than selling it. Simply put, it means keeping your Bitcoin investments rather than selling them. As an example, long-term ownership of Bitcoin has been the best way to make a profit over the last 5 years.
Long-term investment is also the simplest. So instead of sitting in front of your computer all day analyzing charts, you can relax and wait for the price of Bitcoin to rise. But remember: never invest an amount that you can't afford to lose, because no investment is guaranteed!
You should now know if Bitcoin is the right investment option for you. And if so, then you know how to invest.
So far Bitcoin has proven to be an excellent investment over the years, but how do you know if it will continue to grow, there are so many different options for the future of Bitcoin.
In any case, if you want to invest, welcome to the world of crypto. And remember, only invest what you can afford to lose.