Bitcoin is the most widespread cryptocurrency and one of the advanced means of keeping money by investments. But considering the point that it’s changing in price very frequently, is it safe to invest in BTC?
What is Bitcoin?
The concept of making digital currency belongs to Nick Szabo, but the first who implemented blockchain and brought Szabo’s plans to life was an unknown man, who calls himself Satoshi Nakamoto. The project became extremely popular, and now almost everyone knows about Bitcoin.
Bitcoin is operating on a decentralized system: here’s why it’s supposed to be a safe asset. What does decentralization give to a coin? The decentralized network doesn’t let any structure/institution control the transactions. This excludes third-party from the process, and everything becomes more transparent and more protected.
Reasons for Bitcoin’s popularity
It’s natural that before investing, you would ask yourself a question: Is Bitcoin reliable?
Bitcoin and many other crypto coins are gaining popularity day by day, and this has an explanation. These statements are also emphasizing the safety of BTC.
The very first thing to mention is, of course, anonymity. You can transfer coins anonymously to any corner of the world, and the charges for this transaction will be minimal.
The second cause of BTC’s popularity is stability. This may seem contradictory because many of us have seen Bitcoin ups and downs, but the truth is that it isn’t a subject to hyperinflation, which gives comparable stability to the coin.
The third is that BTC and a bulk of other thriving crypto coins are faster than fiat currencies. And this is a great cause to use them frequently.
The fourth reason, which is essential to mention, is the period that Bitcoin subsists. Many cryptocurrencies are appearing and disappearing in the short term. Bitcoin is proving it’s reliability by existing for already 11 years.
And the fifth is the safety of Bitcoin. Cryptography and blockchain run fabulous together and compose an exceptionally secure coin.
An alternative case, when people are choosing BTC as a means of saving their money, is when the political or economic situation in the country is becoming unstable. Two examples of this case have taken place lately.
The first is happening in Hong Kong. The political situation made people actively deposit in BTC, which also took the price up.
The second in Argentina, where the situation with peso became so uncertain that many people started to invest in Bitcoin, which brought to a coin’s price growth in the region.
So, this case is proving that Bitcoin has become a reliable asset of investments and a lifebuoy in extreme situations.
Investing in Bitcoin
The process of investing in Bitcoin is the same as with other coins. The initial thing which is required is the crypto wallet. The wallet is needed for being able to keep the coins you are going to obtain.
The second point is to find an exchange that supports the coin you’re investing in. The case of Bitcoin is more manageable, cause the most significant part of modern crypto exchanges does support BTC. Sign up an account on the platform and buy some Bitcoins. Congrats, now you’re a BTC investor.
Trending: Monero hits its highest price for 2020
There is also an alternative method of investing in Bitcoin, and it’s known as mining.
The network validates all transactions, and if everything is accurate, it adds a new block to the chain. Miners are the ones who are responsible for this. They’re connected to the blockchain and are solving hard mathematical puzzles to verify transactions and let the system work accurately. At the inception, every simple PC in the world could handle that mathematical puzzles, and each of us could be a miner, but now these mathematical puzzles are so complex that you must have specific technically equipped computers to cope with them. So, it’s becoming obvious that this model of Bitcoin investments is pretty hard and expensive.
Is it legal to own Bitcoin?
The majority of people avoid funding in Bitcoin because they believe it’s illegal. But the truth is that owning Bitcoin is legal in the majority of countries.
The particular case, when your actions and investments are shifting out of the law is when you’re applying them in a darknet.
So, be free to obtain your Bitcoins and take your investments to a safer level.
How to sell Bitcoin and get make more profit?
For getting higher revenue, it’s simpler to hold your coins until the price increases so you can sell them. But if the time has come and you need to trade your Bitcoins, you’ll need to know the methods of selling the currency.
Open an exchange account. The most popular and reliable exchange nowadays is Coinbase, but you can choose any different if you wish to. Link your crypto wallet and bank account to the exchange. Now you’ll be able to swap your Bitcoins into fiat currencies and get them in your bank account.
Place a sell order in the exchange. This is also an uncomplicated method. Just choose the amount you want to trade and place the order. The good point in this method is that you can place a “limit” order, which means that your coins will be sold when the value of Bitcoin grows as much as you have set before.
Nowadays, many billionaires are also crypto enthusiasts who are in love with investing in BTC, cause these fundings have brought enormous revenues to them. For instance, Bill Miller announced that Bitcoin’s price growth in 2019 brought him a 46% extension.
Advanced investors gain a lot of money by depositing in Bitcoin, and they are using excellent strategies and techniques to reach better results.
For having success in investments too, just spare some time for learning news about the currency you’re going to invest in. If you have already purchased some coins, wait until they grow in price and then sell them. Remember to always track changes that happen with the crypto. And, eventually, make your research before putting your money in any project, even if it is a stable currency like Bitcoin.