Some things you just need to know before investing in Bitcoin and other cryptocurrencies.
Cryptocurrencies are not going to disappear anywhere, despite analysts’ forecasts.
Bitcoin left in the fool those who invested in it – as they said many years ago. This, of course, pissed off investors in cryptocurrencies and other people.
At about the same time, China announced that it was going to ban Bitcoin for its citizens. Due to this sad news, the largest cryptocurrency collapsed to $ 3.5 thousand per coin. After that, after about a month and a half, Bitcoin grew up to $ 7.3 thousand per coin, having multiplied the money of many people by more than two times in just a few weeks. On average, the stock market gives about 10% per year, and therefore no one could have thought that Bitcoin investors could double their investment capital in just a few weeks!
Let’s focus on four important aspects of Bitcoin that you should know more about before you decide to invest in cryptocurrencies. No field of activity gives a 100% guarantee that you can earn by investing your own money. This applies to the linear business and the cryptocurrency market. As an example, in connection with the coronavirus, the tourism and cafe industries are not in the best of times. More often, people lose money on investments than they earn. Therefore, it is better to always pre-chat with industry professionals in order to better understand how those rules are structured according to which you can profit from investments in cryptocurrency, as well as when buying cryptocurrency for a credit card.
Do not invest in emotion cryptocurrency
This, one can say, is not so much an investment advice for beginners as a recommendation for life, and especially this applies to the sphere of buy digital currency. Today, one can often come across a statement that if you invest $ 100 in cryptocurrencies now, then confusing the years this money will turn into millions of dollars. But at the same time, do not forget the downside that your $ 100 can turn into $ 10. A couple of years ago, complete madness happened, but not the fact that such a scenario will be repeated in the future. This is an emotional argument, not financial advice. Always remember that you buy Bitcoin or cryptocurrency here and now, and not in 2010. No one can predict whether cryptocurrencies are destined to rise in price or fall from the current value. Remember the good expression from the movie Wolf from Wall Street? “And nobody knows where the market will go.” But since cryptoworld is a very young market, accordingly it is very volatile. He can shoot very quickly and soon, as has already happened in the past, but he can also go as fast in peak.
Know what you are buying
Bitcoin is a type of cryptocurrency (virtual currency). This is a decentralized digital currency (asset), which is used and transmitted using a distributed registry or blockchain. This means that Bitcoin is not regulated or controlled by any government or other person. It is also not controlled by any private entities, be it the Federal Reserve System or large banks. This is great news for crypto enthusiasts and those who have just discovered the cryptocurrency market, because they appreciate that these institutions cannot influence the price of cryptocurrencies, as is the case with fiat money – they simply print billions of new banknotes on their own whims. However, the bad news is that these structures, of course, will not want to lose their dominance. And they can do their best to block or ban cryptocurrency. And we are constantly observing how this happens in different countries.
Bitcoin has the property of going through a peer-to-peer network, that is, users of this currency can monitor all transactions and network activity. The peer-to-peer value transfer system is quite new, which makes it quite problematic to use Bitcoin as a currency. At most points of sale, bitcoins are not yet accepted. But at the same time, many people are delighted, because over the past few years at least several giant companies have already begun to consider the possibility of investing in Bitcoin as an asset and developing projects based on a blockchain network. And in November 2017, Amazon bought several cryptocurrency-related domain names.
You should also know how Bitcoin is valued. For the most part, Bitcoin costs as much as people are willing to pay for it. It is better to regard this concept as the law of supply and demand. On the one hand, the demand for Bitcoin is increasing as more people learn about cryptocurrency. Information is usually distributed through Bitcoin brokers and news portals dedicated to the crypto industry. On the other hand, the deficient component is embedded in the Bitcoin protocol. In total, there can be only 21 million BTC in history. Once these 21 million are created or “mined”, no one else will be able to create new bitcoins. As we know, when demand for something that is not so much grows, the price also rises.
Learn How To Buy Bitcoin By Credit Card
If you decide to buy a cryptocurrency by credit card or invest in Bitcoin, you need to use a cryptocurrency exchange that allows you to buy and sell BTC, or a service with a minimum commission for the sale of cryptocurrency. Most popular traditional exchanges do not allow cryptocurrencies to be traded (certainly, except cryptocurrency exchanges, since this is their main activity). Different countries have different rules for passing KYC and AML. In addition, there are countries like China or Vietnam where cryptocurrency exchanges are generally banned in the region.
Do not be greedy for trading Bitcoin
Yes, we know that Bitcoin once grew from $ 0.003 cents to more than $ 20 thousand per coin. But remember, the events of past years are not necessarily a predictable factor in influencing the future.
If you are already satisfied with the profit that your previous investments in Bitcoin or other digital forex brought to you, then just lock it and take your money. Now there are many who still doubt whether to sell bitcoins or hold them a little more. But what if Bitcoin jumps again to $ 20 thousand and more? I will lose so much money! Well, if you are concerned about this issue, then you can sell coins in stages. Thus, if the crypto collapses, and does not begin to rise in price, then you will have at least some profit, and not lose everything without a trace. If you think that you are already ready to buy cryptocurrencies, then you can wait for a profitable moment, since Bitcoin still suffers quite strong volatility. The fact is that no one can predict the future of cryptocurrencies for you.
In general, always remember that investing in Bitcoin is possible only those amounts that you can afford to lose, and of course the link where you can buy cryptocurrency by credit card.