What is Bitcoin?
Bitcoin (BTC) is the first cryptocurrency to hit the market in 2008. It was released by an anonymous group called Satoshi Nakamoto. It gained popularity soon after 2009 and has been steadily increasing in value with a few dips on the way.
An important thing to note here is that the cryptocurrency functions without a middleman or any regulatory organization such as a bank or a government and as a result, its market value so extremely volatile. So, investment in any cryptocurrency has chances of high profit but also chances of major loss as it is completely decided by the demand and supply. So, any investment undertaken here is extremely risky with the promise of high profits.
Bitcoin has been the leading cryptocurrency to date but now it has some competition like Ether, DOT, etc. Opinion on the dominance of BTC is divided with many claiming that Ether will overtake BTC and many who claim that it will not be the case. Yet, despite these speculations, BTC holds a major position in the market and will still hold a major position in the market even if not at the top in the near future.
Most of the experts agree that cryptocurrency is here to stay. This prediction is validated by the fact that currently, governments and financial institutions around the world try are trying to find ways and means to incorporate cryptocurrency and regulate it. So, it is an advisable venture to invest in BTC as the current trends show that it is due to increase in value over the next few years.
Tips for Investment
The Crypto Market is a very volatile trading platform that promises large profits and can cause major losses. So, it is important to be aware of what course of action to take and what to avoid. The digitalization of the world now facilitates trading with the simple touch of a finger but it is also very confusing for a novice or sometimes, even an expert investor. So, here are some of the major Do’s and Don’ts while investing in Bitcoin:
Do’s while Investing
- It is important for the investor to educate oneself regarding how blockchains and cryptocurrencies function. It is also very important that the investor conducts thorough research on the value of the coins and their exchange rates instead of relying on hearsay.
- Investment in BTC is a digital asset and must be done through a reputable and secure platform lot of the exchange platforms are not transparent or secure, so though there are so many of them, it is important to sieve through the safe and transparent ones for any investment. Some of the famous ones are Razor, Tremor, KeepKey, and Block.
- To verify and crosscheck any and all information received in this regard.
- Once the purchase is done, it is extremely important that it is saved securely in a secure personal wallet as there is a great risk of being hacked.
- Do invest even if there were past losses as it does not necessarily imply that there will be future losses. It is never too late to invest and if resources and risk appetites allow and the instability in the market may work in one’s favor. So, if possible, investing in BTC should be undertaken.
- Do be aware of the other cryptocurrencies on the market as they influence the value of bitcoin to a large degree.
- Do hold onto the coins for a long time if unsure of whether to exchange and trade them for money if and only if one is certain they want to.
Don’ts while Investing
- Investment in BTC should not be undertaken without a stop-loss plan, i.e., a plan or a set of parameters to stop investing after a certain amount of loss. This is very important for minimizing the loss incurred if any.
- Do not attempt investment without proper knowledge of what financial trading is. This may lead to the investor not understanding the limits and stakes, thereby losing more than is necessary.
- Investment in any cryptocurrency is very risky, so the risk undertaken must suit the risk appetite of the investor. Do not spend too much money in these markets, especially if a novice, if one cannot afford it.
- Do not rely on only one storage to hide the key for if it is lost, it can lead to loss of the entire wallet.
- Do not undertake group attempts to try and change the value of the BTC. This procedure is often known as “pump and dump” where a group of investors gathers to manipulate the price of the currency. These schemes are very risky and a newcomer may be taken advantage of. Thus, it is important to avoid them altogether unless one is a part of the inner circle. It is important to note that these schemes are not illegal and thus, can appear enticing to the investor.
- The mainstream media has proclaimed the death of BTC a few hundred times and so, it is important that one does not get too swayed by it. BTC has flourished despite the negative press and is widely agreed that it will continue to do so.
- Do not be swayed by the popular trend of investing in cryptocurrency as it must be undertaken if only one is aware and wishes it.
The old saying goes, “there’s many a slip between the cup and the lip” which perfectly embodies the real-life scenario here. Despite being careful, unfortunate accidents happen so the overarching point here is to be patient and not give up as long as one can afford to. BTC has been on the top of the crypto market for a long time yet and is projected to be at the top in the near future, so it is a wise and efficient way to earn profits albeit a risky one. There are lots of leading affiliate program by using which you can invest and start making money.
- Blogger by Passion | Contributor to many Business Blogs in the United Kingdom | Fascinated to Write Blogs in Business & Startup Niches |