In the last decade, Bitcoin has become the talk of the town. It is difficult to predict whether this cryptocurrency will become a store of value as widely accepted as gold or the global reserve currency. Some investors may be wary of the thrill of riches and ruin alike, but others want to invest in bitcoin in order to have a chance at making massive profits. Is Bitcoin a good investment? Let’s find out:
Understanding the Risk of Bitcoin Investment
Just like any other speculative investment, purchasing Bitcoin comes with its own risks. Bitcoin has remained the pioneer cryptocurrency and it developed a following of investors who consider it a replacement for the physical monetary system. Today, it has become a household name as governments and institutions develop ways for serving the growing demand of their clients for exposure. Bitcoin has received its fair share of criticism, considering it is a speculative investment. In 2021, El Salvador became the world’s first country to make it legal tender and it appears that other countries will follow suit.
The current adoption rate of Bitcoin has outpaced the internet, as its user base is the same as the internet had back in 1997. With the traditional financial world realizing the potential of disruption of Bitcoin, they have to choose whether to adopt cryptocurrencies or become irrelevant. As far as your personal decision of investing in Bitcoin is concerned, it comes down to your perspective of the future and appetite for risk.
Where to Invest in Bitcoin?
You can find Bitcoin on an array of centralized crypto exchanges and the safest ones are those based in the U.S. because people have to comply with the Know your Customer (KYC) guidelines of the SEC. When you make your account on an exchange, you will need to provide some personal information, including your address and social security number, due to tax reasons.
To invest in Bitcoin, you have to open an account with an exchange, connect your bank account to it and deposit funds in your wallet. Purchase the Bitcoin you want and get a wallet (optional). Some of the platforms to consider for Bitcoin investment are:
You can trade popular cryptocurrencies on eToro, connect with traders and also get a chance to explore portfolios managed professionally. Currently, the platform provides support for around 15 unique cryptocurrencies, which include Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Ethereum Classic, Dash, MIOTA, TRON coin, Tezos, Cardano, Stellar Lumens, NEO, EOS and Zcash.
Buying, selling, or just holding onto Bitcoin is made simple on Coinbase. You can also use a $0 account minimum for buying a portion of Bitcoin. You can connect your bank account, or use your debit card to pay for purchases. The process is very straightforward; create an account, verify your identity and then buy the crypto. There is also a program known as Coinbase Earn, which actually pays you for learning about cryptocurrencies. It is an excellent way of adding crypto to your portfolio without having to invest your own money. You can also use Coinbase’s mobile app for taking control of your Bitcoin investment wherever you go. The brokerage enables you to hold onto your Bitcoin, convert it into any other cryptocurrency, transfer it to anyone in the world, or spend it on something.
The proprietary platform provided by BitcoinIRA can be used for self-trading crypto anytime, which enables you to take action, as soon as there is market movement. First you have to create your account, which means get access to a customized dashboard and digital wallet. Add funds to your account, check out live pricing and increase your knowledge.
You also have to transfer your IRA in a few easy steps. You have to decide how much you wish to invest, what method you wish to use for funding your account and your profile information. It takes three to five days for most accounts to be ready. You can now trade digital assets within your self-directed retirement account through the proprietary platform. You can buy, swap or sell anytime and anywhere by going to the self-trading area on your dashboard.
With Bitcoin investment, you will be able to lower inflation risk, enjoy liquidity as well as get access to new opportunities.