Is Bitcoin A Good Investment?
People used to put their hard-earned money under their mattress earlier thinking it was the secure spot ever. But, those days are gone now as the recognition of the virtual currencies develops with time. Accordingly, an increasing number of investors are getting on board for the developed methods used to store cryptocurrencies. Occupying a certain amount of cryptocurrencies is easy although choosing the right coin needs completely different skills and knowledge.
The entrance to Bitcoin investments has never been so tough, but there are still significant steps that one needs to consider to reach an ideal level in the global trading market. When it comes to trading Bitcoins, the most valued investment is time. You should make sure that you put in a significant amount of time and do your research to make a trading strategy. After researching those strategies, you need to carefully evaluate which options are meant for you to acquire your desired amount of profits from the market.
A Short History of Bitcoin
Bitcoin is the oldest and most valuable cryptocurrency in the world. It is regarded as the new generation of digital gold created by the anonymous developer Satoshi Nakamoto. The concept of digital currencies was first introduced to the mass in the year 2008. Later the programmer himself brought it into light with the pseudo name Satoshi Nakamoto. His real identity is still unknown. Bitcoins can be used by anyone with a computer and internet access. The process of Bitcoin mining and making any transaction is based on an open-sourced protocol.
Bitcoin has no fixed value. The happenings in the crypto markets set their value. However, traders are allowed to buy even the smallest unit of Bitcoin. The global financial crisis, political happenings, and statements by the crypto influencers are some of the factors that contribute to the rise and fall in Bitcoin’s price. Following is the entire chart of Bitcoin’s price since its inception when it has no value:
Bitcoin’s Volatile Price Movements
Bitcoins are currently accepted in different parts of the world for the reason they are managed through advanced encryption techniques. Bitcoin transactions are usually unalterable after several blocks confirm the transaction. This makes the transaction more secure and seamless. But, we can’t deny the fact that Bitcoin is a very volatile asset which makes the investment process risky and speculative at times. Yet, it’s possible to earn a lot of money rapidly using this volatile asset, whereas it’s also possible that one can lose every bit of his assets that have already been invested. If some investors decide to invest in Bitcoins, then they have to make sure that they are investing the amount which they can lose and understand the risks they are taking.
How to Secure Bitcoins?
Storing Bitcoins is similar to storing cash, which means you need to protect it from being theft and loss. You must choose the best and secured wallet addresses to ensure the security of your coins. Experts suggest, the Bitcoin investors should hold their virtual currencies in offline storage that is encrypted, and copy that storage address to hard drives or paper backups, which can be kept in protected deposit boxes.
Why is Bitcoin Gaining Traction?
Bitcoin is gradually becoming more widespread and profitable. A lot of multinational and large businesses are accepting Bitcoins as a payment option for themselves, as well as their service providers. Investors and users of Bitcoin have realized that they can now use Bitcoin to pay for everyday services in real life, and every day more people are seeking to earn, spend and make transactions with Bitcoins. As a result, the market Bitcoin is expanding, its value is increasing, and it is receiving global adoption. All of these are possible because of the decentralized nature of Bitcoin, its anonymity, and the additional level of security it is providing for the transactions.
Why Invest in Bitcoin?
For many investors, Bitcoin is an entirely new concept of investing as not everyone is aware of this digital gold. People are living under a rock and don’t really understand what Bitcoin is. Accordingly, the financial market has also not seen this except a group of crypto enthusiasts across the world. Not only is Bitcoin currency, but it is also a new and innovative technology. After understanding all these, a person usually starts seeing the light and realizes what investing in Bitcoin really means.
At this time, Bitcoin is also regarded as digital gold and a store of value. Despite all the market volatility, it is a valuable asset, which would be a much better investment option than any other traditional investment in the past ten years.
Can Bitcoin Be Converted to Cash?
Yes, there are multiple easy ways out there to convert your Bitcoins into cash i.e. USD, INR, EUR, etc. The easiest among them is to find out a cryptocurrency exchange in your area that accepts fiat currencies from where you can sell your Bitcoins in exchange for fiats like mentioned above. You can also use a Bitcoin ATM. You will find over 2000 Bitcoin ATMs across the globe that you can use for exchanging your Bitcoins into cash. So, search for the one which is located near you and use it.
But if you are in a hurry and cannot waste your time in finding ATMs, you can sell your Bitcoins to your friends in exchange for fiat currency. Or else you could find a website that allows people to sell their Bitcoins. There are a lot of websites that provide a prepaid debit card in exchange for Bitcoins.