Investors are more than interested in investing in bitcoins these days and that is because of its immense popularity as cryptocurrency. For having limited number of coins like only 21 million across the globe, security, easy and fast transaction and zero interference of the central authority are some of the reasons behind bitcoins’ popularity. However, there is a buzz among the investors about the effectiveness of investing in bitcoins, rather is it the right time to invest in bitcoins? As we are standing in the threshold of 2019 and 2020, it is better to analyse all possibilities in terms of the relevance of the upcoming year.
Safety and security
Regarding safety, many people question bitcoin. To address this question it can be said that it is zeigte in unserem Test that bitcoins have been dead for more than 350 times. However, it is still at the top of the list of profitable cryptocurrency. It is recommended to buy and hold bitcoins. With the market fluctuation, if you start exchanging those in lower cost, the loss will be yours.
There is a tool called bitcoin investment simulator. This is quite efficient and useful for many investors. With this tool you will be able to calculate your profit in respect of your investment and the current status of bitcoins. On the internet, the tool is easily found.
To be honest, bitcoins or any type of cryptocurrency is extremely volatile and a lot of risk is involved in the investment. If you don’t know already, it is to tell you that bitcoins suffered the market fluctuation a lot. In fact 80% fall of the price is also noticed by the early investors. This is what bitcoin is. If you expect stability, you can’t find that. It is not a stock or a company share, it is a currency which is expected to rise in terms of value, but sometimes, downfall is normal.
Buy and Hold
The best recommendation to get proper value for bitcoin is to buy and hold. This is the strategy that the giant investors follow. Holding is termed as hodling in bitcoin investment and this is the key of earning profits from it. Be in this year or the next, here are some tips that you should follow before making any move:
Don’t Follow Blindly
Don’t invest in bitcoins by following someone else blindly. The person or a group of people you are following may be well acquainted with the investment planning, you may not. Hence, you may face such problems that they may not.
Bitcoins involve risks. Be aware of it before investing so that you don’t have to fall in trouble in future.
After purchasing bitcoins, always transfer those to your bitcoin wallet. It would be foolish if you give it for exchange immediately after getting it. The fraudsters are there all over the market and with this whimsical decision of exchange you may end up losing bitcoins. Experts prefer hardware wallet to store bitcoins. But as this is an expensive option, you can go for paper wallet.
Don’t invest in bitcoins from anywhere, you can be conned on. Rely on the authentic bitcoin exchange for purchase. Often the reputable exchanges take some extra money, but it is always better to spend some extra money that losing a lot more than that.
So there is no right time to invest on Bitcoin. You will decide the time you want to buy and hold Bitcoin. It is not something you start trading it immediately. Patience is the key here, so you have to practice it.