Other bitcoin is a cryptocurrency, most people do not buy them because they want to spend them. Rather, they hold them so that they can watch there value grow. In other words, investing in Bitcoin is not about collecting the currency of the future, it is about protecting your financial future in your own currency. With that in mind, how do you invest in Bitcoin the right way?
About Investing in Bitcoin
It is only recently that bitcoin has really become recognized as an investment. The problem with it is that it is incredibly volatile, with the value changing on an hourly basis. As a result, it is almost impossible for bitcoin to be used as an actual transaction. Although it does not take long to complete a bitcoin transaction, it is possible that the value of bitcoin is much lower by the time your transaction completes than what it was at the beginning. Of course, the opposite is also true. However, this volatility means that it is unlikely that bitcoin will ever be used as an actual currency around the world, but it certainly is a very interesting investment.
By the end of 2017, bitcoin reached a value of nearly $20,000 per coin. However, throughout 2018, it has crashed tremendously. That said, it is still worth more than it was at the start of 2017, which means people are still earning quite a bit of money. The problem is that a savvy investor wants to find the perfect time to invest and that is simply impossible to determine with bitcoin. It is so in predictable that many professional investors simply avoid it all together. Yes, it is this very unpredictability that make it so interesting for everyday individuals. The same can be said for penny stocks, which some investors have compared to gambling in a Las Vegas casino, but if you have ever been to Las Vegas, you will know just how popular these casinos are anyway.
That being said, investing in Bitcoin does take real money and that real money is yours. You always have to be careful about how you spend your own money, particularly if you are spending in now with the hopes of ending up with more in the future. While you can open a bitcoin IRA, and this will be a completely self directed investment account, which means that you have to make all the investment decisions. Hence, before you even start, you need to investigate what the risks are and determine not just how likely it is that those will happen but also how well you will be able to carry those risks. On the other hand, this is also precisely what makes investing so attractive and exciting. Watching the value of your investments and grow and determining when the point is reached where it can grow no more is like the most tense game of chess you will have ever played in your life. If you are realistic about the fact that you stand a chance of losing it all, then this really is an investment opportunity not to be missed.