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Friday, April 19, 2024

Investing in Bitcoin: analysis of the virtual El Dorado

Investing in Bitcoin

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How to invest in Bitcoin?

Whether you are looking at Bitcoin with the idea of ​​investing or you are simply passionate about cryptocurrency, there are certain criteria that are essential for buying Bitcoins:

Find out about the platform where you want to buy: to do this, you can go to forums or specialized websites.
The means of payment : some platforms only offer payment in BC, but it is possible to buy Bitcoins by bank transfer or PayPal.
The price of Bitcoin , which can vary significantly from one platform to another.
The amount of fees in the form of commission on the purchase or resale.
The security of the buying and selling platform.
The responsiveness of its customer service.

How to invest your money in Bitcoin?

If Bitcoin can be used for the purchase of goods and services, payment by crypto currency is still not very democratized, making its use difficult in everyday life. As a result, it is more than ever considered a financial crypto asset for investing, as an investment that could well be profitable. Investing in Bitcoin means betting that this innovative technology will be sustainable.

Opinions differ as to investing in cryptocurrency : it is certain that when buying or trading crypto assets, it is necessary to be in a situation where one can afford to lose the sums invested .

If you wish to invest money in Bitcoin, you can either buy tokens (the coins of cryptocurrency) or go through an online broker offering cryptocurrency trading via Contract For Difference (CFD), such as eToro by example.

In terms of investing in Bitcoin on the stock market , the American platform Bakkt, managed by the Intercontinental Exchange, was one of the first to offer the purchase, sale and storage of cryptocurrency, followed by many American banks.

You can thus become the happy owner of Bitcoins by selling a good to an individual and requiring payment in cryptocurrency , or by doing an exercise of converting a classic currency (in our case, the Euro), into currency. said encrypted. To do this, you will have to go through specialized platforms by registering beforehand.

The creation of a wallet is necessary before buying Bitcoins : after all, you have to store your currency somewhere! This virtual one will take the form of a series of numbers and a secure password called a code.

To store their Bitcoins, investors use electronic wallets resembling a USB key, in order to avoid leaving their coins on the exchange platforms.

Which site to buy Bitcoins?

To invest effectively in Bitcoin, it is essential to know the net and the financial markets. Cryptocurrency purchase transactions are carried out via platforms that charge each of them: plan between 2 and 10% commission!

It is imperative to favor secure and popular websites and platforms :

Site For who ? Why ? Or ? Crypto currencies available Fresh Payment method
Coinbase Beginners Buy Sell United States Bitcoin, Ethereum, Litecoin High rates Credit card, transfers, cryptocurrency
eToro Beginners Trading Cyprus Bitcoin, Ethereum, +12 Means Credit card, transfer, PayPal …
Kraken Experienced Exchange United States Bitcoin, Ethereum, +15 Low rates Credit card and transfers
Binance Experienced Trading Asia Bitcoin, +200 Low rates Cryptocurrency only
Coinhouse All profiles Trading, Buying and Selling France Bitcoin and Ethereum Means CB, prepaid cards …
Besides the platforms listed above, there are many others with varying rates. Anyway, take care to learn about the security of the site in question: scams and risks are still present, although they have been reduced for several years. For example, $ 1 billion worth of Bitcoins had been stolen in 2017, and $ 1.1 billion in just one quarter in 2018!

Cryptocurrency crowdfunding

With the introduction of different crypto currencies, it did not take long to witness the birth of different uses of this new technology. Thus, it is now possible to invest differently: crypto-equity crowdfunding is the perfect example.

Behind this Anglicism hides in reality a simple principle: that of financing projects using fundraising from individuals or professionals, who can support this project via cryptocurrency! Since 2014, the latter have been financing business creation on dedicated platforms, Swarm for example.

Our advice for investing in Bitcoin

Funny product that we have here. It is certain that investing in Bitcoin is not the easy way, compared to other financial products and other stocks on the stock exchange , nevertheless, in some cases, the rewards are worth the candle.

In some cases only, we repeat it, since it is estimated that ¾ of the buyers of cryptocurrency end up losing the amount of their investment. In other words, only invest what you can afford to lose! But why is that? Simply because the price of Bitcoin is highly volatile.

We are talking about volatility taken to the extreme: the magnitude of variations in the price of the crypto currency peaks at 133% on average over the year. For example, this rate is only 20% for gold . To generalize it, it means that you can win very big, but also lose a lot. Are you still optimistic?

The year 2017 saw the price of Bitcoin fall, which led to an 80% capital loss of their bets to investors that year. In 2017, the price of Bitcoin was $ 20,000 per unit. Two years later it was $ 4,000.

So, to invest in this virtual gold, we advise you to:

Learn as much as possible about Blockchain technology , the fundamental system of cryptocurrency.
Invest in the most popular crypto currencies : bitcoin remains the most “safe” value compared to the plethora of new virtual currencies.
Keep up to date on official websites and join a community (Reddit or Slack for example), in order to interact with other investors. Investing in Bitcoin will thus go through the consultation of many forums!
Limit your investments : Bitcoin’s volatility will be the main reason why you should especially not invest all your capital in cryptocurrency, a market that presents high risks of losing money.
Investing 100 euros in Bitcoin can be profitable in the long term in some cases, with a significant share of luck, but it should be borne in mind that it would be counterproductive and dangerous to invest all your money on a financial product whose value does not stop fluctuating.

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