No one can deny the sudden popularity of Bitcoin. Due to the number of people who has turned to millionaires overnight, you could resist the temptation of investing in Bitcoin. However, some people don’t go beyond research. They never make it to the point that they actually invest in Bitcoin due to questions regarding its legality.
I mean, how safe is it to invest in Bitcoin? In this article, we are going to discuss the answers.
Different Ways To Invest In Bitcoin?
Before anything else, let us talk about the various methods of Bitcoin investments. When we talk about Bitcoin investments, it sounds like a singular thing. However, there actually numerous ways to try and multiply your money through digital currencies.
One way would be to buy and hodl Bitcoin. The thing about Bitcoin is that it is not some kind of magic currency that automatically doubles the money that you invest. There are times that it is on a stand still. Other times, it sits in the low market. There are also rare cases wherein Bitcoin gains such as a momentum that the price is pulled up significantly.
There is a rule thumb that you need to consider when it comes to Bitcoin investing. When the market is low, this is usually the time to buy Bitcoin. One also need to watch out when the market is on the high end of the spectrum because this would be the perfect time to sell your Bitcoin.
Selling Bitcoin does not necessarily entail that you need to look for a buyer. Most of the time, selling Bitcoin refers to the conversion of crypto to fiat currency.
Playing decentralized apps is also one way of investing in Bitcoin.
The great thing about decentralized apps is that you get to earn money while you play your favorite online games. This also has a downside. The decentralized apps market is not fully developed just yet. With that, you cannot expect high-functioning games. However, the market makes up for it because you get to gain income while you play.
All you have to do is get some Bitcoin and then use it within the game. For instance, if you use your digital currency to purchase a game character, you just have to keep on playing so that the character gains a lot of XP points that will make way for strength and endurance boosts. In that case, the value of the game character becomes higher.
The stronger your character becomes, the more you will be in a good position to sell it for a higher amount. Of course, you would be paid in Bitcoin but this is a good thing.
You can either decide to invest the Bitcoin that you earn or you can convert it to fiat currency.
How Risky Is Bitcoin Investments?
Once again, we are asking the wrong question. We shouldn’t even be asking a question related to this at all.
This just shows how little we know about investments.
The truth about investments that they all carry a specific percentage of risk. It does not matter whether we are talking about stocks of the cryptocurrency market.
If you want to be an investor, you need to be prepared to carry the burden of these risks that your asset comes along with. Here’s one rule of thumb. When it comes to investments, you should only invest the amount that you can afford to lose.
With that, you should keep in mind that when you invest something, you are most likely to never see it forever. The thought of gaining something in return should only be at the back of your mind.
When you do this, you will see that you never lose in the game of investments.
The reason is that when you only invest the amount that you can afford to lose, you are prone to learning more and more about the technical aspects of investments.
That being said, we can conclude that Bitcoin really is a risky investment but that’s only because all investments are risky.
There are lots of investments scattered all around the internet that aren’t risky but you can bet that most of them would only be taking advantage of your money and wouldn’t even get a single dime.
Is It The Right Time To Invest In Bitcoin?
The answer is yes.
Right now, people are arguing whether we have already met the end of Bitcoin or not. The truth is that the Bitcoin Era is about meet another turn of the century this coming May 2020.
With that, it would be a pretty good idea to start buying some Bitcoin now so that you can take advantage of the rise in prices that is going to come in the first quarter of 2020.
It does not really matter which country you are in whether you are in India or in the US. When we talk about Bitcoin, everything becomes universal.