Bitcoin seems to have no limits.
In December 2017 it reached 20,000 dollar. Then the whole of 2018 was falling into the market and we reached 2019 where many believe it will bottom out and start another bullish cycle with the intention of surpassing the previous one.
As a result, we received about 2 mails a day from people all over the world who are asking a very simple question:
“Should I invest in Bitcoin?”, “Should I invest in Ripple, Ethereum… (write here any other Cryptocurrency or Altcoin)?
Before we start, I want to clarify something important – Bitcoin is not a company or an action, it is a digital currency.
If you still don’t understand what Bitcoin is, watch this video.
So when you want to invest in Bitcoin, you are basically buying the currency.
However, there are also other ways to invest in Bitcoin.
Before find the right answer to: Should I invest in Bitcoin in 2019? Here are 4 basic questions you need to know first.
Ways to invest in Bitcoin
Answering these questions to know what kind of investor you are. You will know what objective you can expect from your investment and in what period of time.
These are the questions you should ask yourself before entering the cryptocurrency market:
– What does it mean to invest in Bitcoin? This question leads to two possible results. We will explain this questions a little more in detail:
– Do you want to buy Bitcoins in the hope that it will gain value in the future? (be a “holder”)
– Are you interested in trading with bitcoin and cryptos?
Finally, it does not want to limit itself to an investment in Bitcoin and wants to bet on investments in less consolidated projects, but with a possible path and much greater growth, that is to say:
Do you want to invest in companies related to Bitcoin, i.e. other crypto currencies or altscoins such as ethereum, ripple, bnb, iota, neo, etc?
Let’s go with the first of these options, the simplest and surely the most recommended for most of us…
1 – Buy and hold Bitcoins (Hodl)
The most common way to “invest” in Bitcoin is to buy the currency in the hope that it will appreciate in value (also known as “hodling” or “hold”).
If this is the case, then you need to decide for yourself if you think this is a good time to buy.
In other words: Do you think the price will continue to rise?
Once again we recommend that: Do not follow anyone’s advice about what will happen to the coin, do your homework, learn about Bitcoin and come to a conclusion.
Personally I think we’re just getting started, but that’s my own opinion and you shouldn’t consider that as investment advice.
In spite of this let me highlight some basic tips for those who want to start investing in crypto currencies that I think will be of great help….
Some tips for buying and maintaining Bitcoins or Cryptocurrency.
- Never invest more than you are willing to lose – Bitcoin is a very risky investment and you should keep it in mind at all times.
- After buying Bitcoins, be sure to take them to your personal wallet and never leave them on an exchange. My personal recommendation is Ledger NANO, a Bitcoin wallet that uses a physical piece of hardware to be able to operate and keep it safer. Examples of hardware portfolios are TREZOR, LedgerWallet and Keepkey.
- A hardware portfolio is usually more secure, as it is considered a form of cold storage.
- If you can’t afford a hardware portfolio, try a paper portfolio. A type of Bitcoin physical portfolio. Instead of keeping private keys on a piece of hardware, it is written on a sheet of paper.
- Make sure you buy Bitcoins only from exchanges that have proven their reputation here our best recommendation would be COINBASE to buy Bitcoins with Euros or dollars and then use BINANCE to buy other crypto currencies with these BTCs.
- We do not recommend you to buy all your Bitcoins in a single operation, but you buy a fixed amount every month, week or even day throughout the year. In this way, you average the price over an entire year. This is one of the best tips for beginners who have no practice in this type of markets.
2 – Should I trade Bitcoins?
Bitcoin trading is different from buying and holding (“Hold”, as they say in the investment world).
When trading with Bitcoins means that you are actively trying to buy Bitcoins at a low price and sell them at a higher price in a relatively short time interval .
Successful trading requires knowledge and practice.
The trading market is occupied by big players who are just waiting for the rookies to arrive and throw their money aimlessly.
If you want to know more about trading with Bitcoin and other crypto currencies here are some practical tips to help you, especially when analyzing whether investing in a crypto project is worthwhile.
Where to do trading?
Although there are a huge and growing number of exchanges for Bitcoin trading, our recommendation is certainly to use Binance.
Main reasons to make trading on Binance:
- Binance has proven to be one of the safest exchanges and has contained several attacks defending its users. This is of great importance as these sites store hundreds of millions in customer assets and are targeted by hackers all over the world.
- Binance has relatively low commissions in the world of trading.
- On the platform they constantly conduct contests, activities and challenges with which users can win crypto coins.
- They usually take care of all the maintenance and changes (forks, mainnets, upgrades) of the crypts that you can buy on their platform.
- It is the platform where more liquidity and market movement exists so you always find who buys or who sell your crypto currencies.
- Sign up for free
Is this a good time to invest in Bitcoin?
Let’s face it, the answer to this question absolutely depends on when you will be reading this!
The key to the market and only secret is without a doubt the following: “buy cheap and sell expensive”
But when it’s expensive and when it’s cheap?
As a general rule, markets follow upward and downward cycles.
This is especially noticeable in Bitcoin and other electronic coins like ripple, etherium, cardano, nano, Stellar etc. Because it has periods of growth and other very explosive price drops.
According to the recent history of Bitcoin In times of crisis, where you can hear many news and articles talking about whether the BTC is going to disappear is usually a good time to start thinking about entering the purchase and on the contrary in times of euphoria where the price goes up without limits and talk of very optimistic figures is usually a much more dangerous time to consider buying crypto currencies.
But then when are we?
Is it too late to buy Bitcoin? Market Cycles
In my opinion, NO, the market is still settling and once Bitcoin starts to recover, all the investors who appeared in optimistic market moments will reappear with the intention of getting quick money, getting rich, etc.
They will come back and will be buying Bitcoin at a much higher price than you and me. It has happened many times before.
Personally, I use Bitcoin as a very volatile savings account, which brings a little bit of my income each week, and I no longer operate since I discovered that retaining my Bitcoin is more profitable.
However, the decision to invest depends on oneself, if you are ready to invest in Bitcoin, you can use Coinbase or Binance (where you can buy many other Cryptocurrencies, some with a much larger growth potential than known greats).
This will allow you to buy Bitcoins and will provide you with an online wallet to save your money for a future where some of us think the money will be completely digital.
And that related to the shortage of Bitcoins (as there will never be more than 21 million Bitcoins) could make your investment in bitcoins multiply its price by several units.
In any case as the most important advice when any investment in an asset as volatile as the cryptos is important to remember always: do not invest more money than you are willing to lose!
This will cause you to have much less pressure and your investment will not end up becoming a source of stress.
Conclusion: Is a good idea investing in Bitcoin?
So: Do you want to invest in Bitcoin?
Now you can probably see that the answer is not that simple.
It’s not just a question of whether to invest, but also of how to invest and when.
As I said at the beginning, start by educating yourself.
Learn about the currency, what affects it, what its advantages and disadvantages are, etc.
After feeling that you have acquired a basic education, it is time to answer this question. REMEMBER- You can only answer this.
You can consult others and read blogs, watch videos on youtube or listen to a lot of suggestions from supposed experts, but never follow someone’s advice blindly.