What is the smart way to invest in bitcoin?

in bitcoin-investment •  2 years ago

When bitcoin is viewed from an investment perspective, it is more often compared to gold than it is to other currencies. That is because bitcoin and gold have a lot in common as assets. Both are limited in supply, have functional use and are considered by many, despite their volatility, to be good stores of value. When gold and bitcoin were compared as investments over the last five years, bitcoin greatly outperformed the precious metal, generating an annualized return of 155 percent compared to gold’s annualized loss of 6 percent during the same period. These exuberant returns indicate that bitcoin is getting investors excited about the prospect of placing funds into a brand new asset class. Not only that bitcoin has a many platform , where people diversified the investment and earn from it as a passive income.

There’s a few factors at play other than the price of bitcoin that you should be aware of before making your decision. If you study , research and then making or Deciding on whether to invest in Bitcoins or not, and even calculate the risk part of the investment then,it’s called smart way to invest in bitcoin. Bitcoin price should not be based on it’s USD-Bitcoin pricing valuation at the moment. That number is no where near it’s real mark. Research Bitcoin, what it is used for, what it would do for society, and if you believe it’s going to be adopted, then invest in it. First of all, the value of Bitcoin is only as strong as the trust that the Bitcoin community places in it, which means it holds an intrinsic value and not a real value such as gold, silver or land.

Bitcoin has some challenges, such as its scalability issue, which could be improved or alleviated by a new digital currency that could then go on to take bitcoin’s place. However, bitcoin’s first-mover advantage and the growth of its ecosystem have positioned it so firmly as the leading digital currency that this possibility seems rather unlikely.

It is now at a level where it may be out of reach for the small investor and the route to taking the growth in Digital Currency is through other options and this may allow people with lower capital to enter and still achieve a return on their financial commitment. If you intend trading this requires skills in determining trends and at the same time evaluate your risk and profit goals. It also is important to have clear ideas about what you are trying to achieve.

If you do invest in Bitcoin or any other coin, it should be amounts you feel comfortable with completely losing, 100% because we’ve seen drops from $300 to $40 in months . So you could end up losing 10X% of your investment if the market panics and speculators decide to lock in profits and rapidly sell.
(You can minimize the risk to diversified the portofolio and invest where risk is very low for example , if you have a bitcoin Lending Bitcoin , now it is big business. See how to lend and borrow bitcoin and how to earn massive amounts of bitcoin extremely easily https://xcoins.io/investors?r=1vxzhz )

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