Over a decade, collective insanity has been sprouting around bitcoin. It's difficult to predict whether this cryptocurrency will become a store of value accepted as gold. Buying Bitcoin carries risk similar to any speculative investment; besides, it has become a household name as governments and institutions' ways to serve their users/customers increase demand for exposure.
Should I invest in Bitcoin?
Bitcoin is a decentralized digital currency that you can sell, buy and exchange directly. There are numerous questions you should ask yourself before investing in Bitcoin:
- Am I happy with the risk level?
- Am I aware of what I'm investing in?
- Compared to a few months ago, how much more expensive is it now?
- How can I know if the prices rise even higher?
It's not a good idea to invest in Bitcoin if you don't have answers to these questions.
Think before you invest:
Like any investment, cryptocurrency also comes with potential rewards and risks. One thing is clear that cryptocurrency is risky compared to traditional investments.
Before investing in Bitcoin, there are certain things to consider:
- It's best to see it as gambling, so invest a small amount.
- Invest the amount that you can afford to lose, but not more than that.
- Left at the end of each month, if you haven't got much money.
Pro: In every country, cryptocurrencies have the same value.
Con: It's a very risky investment.
Can I lose my money in Bitcoin?
With Bitcoin, mainly there are three ways to lose your money:
- Crypto price is determined by sentiment, and hence if you sell an investment for less than you brought, you lose your money.
- As per the experts, 20 percent of all the cryptocurrency has either been lost or forgotten with the present value.
- According to Atlas VPN, scammers and hackers steal around $10million worth of cryptocurrency daily.
Ways to Invest in Bitcoin:
One of the most common ways of investing in Bitcoin is buying the coins on a cryptocurrency exchange. Besides, there are many other options:
- Invest in organizations/companies involved in the Blockchain because Bitcoin is built on Blockchain.
- Buy shares in Bitcoin-related companies.
Be prepared for the ups and downs of the cryptocurrency market because of its volatility; apart from that, you could see drastic swings in the prices. So, it's not a wise idea to opt for cryptocurrency. But, if you want to invest, go for Tesla because Tesla has made more money on Bitcoin than selling batteries and cars this year. Hope this article helps you to make a decision, whether to invest in Bitcoin or not.