In today’s modern and digital-driven world, digital currencies are an exciting investment opportunity. As a matter of fact, recent statistics show that around 19 million bitcoins are in circulation now, and the figure is expected to rise even more.
Individuals who have the right knowledge about the industry tend to make a lot of profit by trading in Bitcoins. However, new investors risk losing their capital as either they don’t have the knowledge or scammers lure them.
So, today, let’s shed some light on the essential things you should know before investing in Bitcoin.
What Is Bitcoin?
Putting it simply, Bitcoin is a digital asset that operates just like the normal fiat currency but with some notable differences. A peer-to-peer payment method is used in bitcoin transactions, and since no bank is involved, there won’t be a banks-cut with every transaction you do.
Each bitcoin in the market is created using an encrypted code – a string of numbers and letters. The same equation that is used for the creation of this encrypted code can unlock it. You may not know it, but bitcoin is finite in number, and only a total of 21 million bitcoins can be mined.
Why Should You Consider Investing in Bitcoin?
Initially, you may find the concept of digital money to be a bit confusing. However, once you get knowledge from the right forum and familiarize yourself with it, you may be able to reach new heights by investing in cryptocurrency.
Cryptocurrency is becoming the new norm. With each passing day, the number of crypto users all around the world increase. Not only that but several brands and merchants are also adding crypto to their list of active payment methods. A great example is Tesla, the world-renowned car company that has started to accept crypto in exchange for its cars.
So, if the world is moving in the forward direction and transitioning to a digitalized revolution, it would be a good idea not to stay back and rather be a part of it.
Is Bitcoin a Secure Investment?
Bitcoin tends to be a highly speculative investment. Shortly before, in November 2021, Bitcoin hit an all-time high of around $68,000 before falling down to $42,000 in January 2022. This is one of the major instances in the history of ups and downs.
That being said, it is quite possible to expect a hefty return on a crypto investment, but you also need to prepare yourself for the worst. However, it does pose quite a lot of benefits as well, such as the perk of selling or purchasing it at any given time.
Even though bitcoin is a risky investment, those individuals who have the proper knowledge can make big purchases and extract even bigger profits out of them. So, yes, bitcoin is a secure investment, but only for those with the essential knowledge about the industry.
What Are the Advantages of Investing in Bitcoin?
Despite it being in the market for over a decade now, people are still not aware of the perks that bitcoin offers. That being said, let’s look at the advantages offered by bitcoins.
1. Freedom from Bank Fee
Occasional deposits and transaction fees come with the package of regular fiat currency transactions. However, there are no such fees involved when it comes to digital currencies like bitcoin.
Not only will you be free from all sorts of transaction fees, but you will also be able to protect yourself from any hidden charges that might be involved.
2. Huge Profit Potential
Despite the fact that bitcoin is volatile in nature, it can present you with quite a lot of opportunities to generate huge profits.
Back in March 2017, you could’ve bought one bitcoin for just $975, but just a few months later, in December 2017, the price hiked up to $20,089 in exchange for one bitcoin. Imagine how much profit you could’ve generated if you made the decision to invest in it at the right time.
3. Instant and Hassle-Free Payments
Traditional bank transfers may require you to go through a complete process if you want to deposit money or if you wish to make transfers. For some people, the process may even be complicated and time-consuming as well.
Bitcoin takes away all such problems as bitcoin transactions are instant and don’t really take much time. Other than that, several websites like Coingate offer gift cards that can be bought with bitcoins and can be used at any of your favourite brands without you having to go through the hassle of carrying cash or a credit/debit card.
Given the perks that it offers, bitcoin can turn out to be a smart investment if done in the right way. However, it is essential that you gain as much knowledge about the industry as possible so that you can eliminate the risk of loss and generate huge profits.