2017 started with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result we get about 2 emails/calls a day from people who are asking one very simple question: “Should I invest in Bitcoin?”
Before we begin, I want you to keep in mind that – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, watch this video- see video page. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.
What does it mean to invest in Bitcoin?
In order to answer this question the first thing you need to answer is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?
Buying and holding
The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also known as “holding”). If this is the case then you need to decide for yourself if you think this is a good time to buy. Meaning, do you think the price will continue to rise.
Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just starting, but that’s my own opinion and you shouldn’t consider that as investment advice as well.
A few pointers for buying and holding Bitcoins:
- Never invest more than you are willing/able to lose – Bitcoin can be a very risky investment and you should keep that in mind at all times.
- After buying Bitcoins make sure to move them into your own personal wallet and never leave them at the exchange. My personal recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, try a paper wallet.
- Make sure to buy Bitcoins only from exchanges that have proven their reputation.
- Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a fixed amount every month, week or even day throughout the year. This way you average the price over the course of a whole year.
Trading in Bitcoins
Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively trying to buy Bitcoins at a low price and sell them back at a higher price in relatively short time interval. Trading successfully requires knowledge and practice. The trading market is occupied by very large players who are just waiting for newbies to come in and throw their money away by trading aimlessly.
If you want to learn more about Bitcoin trading- [Kindly comment below & you’ll receive a FREE copy or Use subscribe to our newsletter to get the latest information]
Investing in Bitcoin mining
Some of you may have heard of all sorts of sites that allow you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:
- They are complete scams that will run away with your money and don’t actually use it to mine Bitcoin.
- They are not scams, but they are bad investments since you will probably get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.
Invest in Bitcoin companies / grow your Bitcoins / HYIPs
Finally, every other day we get a question about a site or company that claims to double your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of complex and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).
What these sites usually do is they take money from people around the web and promise to give them good returns. They will then start off by paying these returns through money they get from new sign ups and create a big buzz around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed. Does that sound like MMM?
Any site that promises you something that is too good to be true is probably just a facade for scammers trying to steal your coins.
How can you find out if a site is a scam for yourself? Easy, use our Bitcoin scam test tool. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL DOUBLE YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.
So should you invest in Bitcoin?
By now you can probably see that the answer isn’t that simple. It’s not just a matter of should you invest, but also a matter of how to invest.
We usually like to let our visitors and potential customers know that, digital currency (ref: Bitcoin) has a number of advantage, some include:
1: It’s PaperLess and Stressful
Digital currency can’t be compare with paper Money, that’s bank note. Cause, the world as of today is going paperless no body wants to carry millions around cause of security reasons….. Digital currency are secured and better.
2: It’s easy to use.
3: You want more advance
4: It has a solid future.
5: Security is Awesome.
6: Only you have access to it.
Like we said at the beginning, start by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our online video page here.
After you feel you’ve acquired some basic education it’s time to answer this question. REMEMBER – only you can answer this. You can consult ATEL and read online but never follow someone’s advice blindly.
At Altecho Trading and Exchange Limited- ATEL, we give you news, opinions, advice and research on Crypto-currency (eCurrency, digital currency), computer/general security issues and the latest internet threats.
Contributor: OFIR BEIGEL