Over the past ten years, a collective insanity has grown up around bitcoin. It’s difficult to forecast if this cryptocurrency will replace gold as the world’s reserve currency or whether it will become a commonly used store of value. Some investors are leery due to the excitement of financial success or failure, while others are drawn to the potential for enormous returns from investing in bitcoin. Bitcoin is undoubtedly a ground-breaking technology, and in 2022 it poses far less danger than it did in 2012. After El Salvador makes it legal tender in 2021, other nations will want to imitate this decision to spur innovation, while others may outright forbid it in an effort to protect their fiat currencies. In the current geopolitical environment, Bitcoin has assumed a central role, and 2022 appears to be the year of widespread acceptance.
To understand more and decide for yourself if bitcoin is a good investment for you, start with our guide.
Where to Put Bitcoin Investments
There are several centralised cryptocurrency exchanges where you may buy bitcoin. The safest exchanges are located in the United States, which also means you must adhere to the SEC’s know your customer (KYC) regulations. Making an exchange account requires entering personal data, including your address and social security number, for tax-related reasons. When you have this at hand, you are prepared to begin.
The steps for buying bitcoin are as follows:
- Create a bitcoin exchange account.
- Funds may be deposited into your exchange wallet by linking a bank account.
- Buy Bitcoin (BTC).
- Buy a wallet (optional)
1. eToro
Trade well-known cryptocurrencies, look through well managed portfolios, and establish connections with traders. eToro presently allows users to buy and sell a number of well-known cryptocurrencies. View the list of some of the more well-known trading assets on eToro.
2. KuCoin
At KuCoin crypto exchange, you may purchase, sell, and hold bitcoin easily and safely using KuCoin. As well as, check up on the price of bitcoin.
Pay for items easily by linking your bank account or using a debit card. Creating an account, confirming your identification, and purchasing your cryptos are all that is required to own bitcoin on this brokerage. Additionally, the KuCoin Earn program rewards you for learning about cryptocurrency. Without really having to invest any of your own money, KuCoin Earn is a fantastic method to expand your cryptocurrency holdings.
Use the KuCoin mobile app to manage your bitcoin investments wherever you go. The brokerage enables you to keep your bitcoin, exchange it for another cryptocurrency, use it to pay for things, and send it to anyone, anywhere in the globe.
3. BitcoinIRA
You may self-trade cryptocurrency using BitcoinIRA’s proprietary platform at any moment, allowing you to act as soon as the market changes.
This is how it goes:
- Create an account.
- Transfer funds
- Start trading
Wunderbit is yet another fantastic Bitcoin purchasing option. The website enables you to trade Bitcoin, Ethereum, and other cryptocurrencies at the most competitive prices available. Additionally, users may add cryptocurrency to their accounts or purchase cryptocurrency using a credit or debit card. The capability of Wunderbit to recognize “dirty” bitcoin is another fascinating feature that sets it apart. This bitcoin may have been used in hacking, money laundering, or other illicit activities and may be subject to confiscation by law enforcement
Benefits of Investing in Bitcoin
Traditional and institutional investors have both been interested in bitcoin due to its outstanding performance as a currency and investment. Is Bitcoin a wise financial decision? Fair enough, it gives you a few benefits over conventional investing.
Liquidity : Due to the widespread construction of trading platforms, exchanges, and online brokerages, bitcoin is probably one of the most liquid financial assets. Bitcoin may be quickly and easily exchanged for cash or other assets, like as gold, with very minimal costs. Bitcoin is a fantastic investment vehicle if you’re searching for quick returns due to its high liquidity. Due to their great market demand, digital currencies may potentially be a long-term investment.
Lower Chance of Inflation : Bitcoin is resistant to inflation, unlike other international currencies, which are controlled by their governments. The blockchain system is limitless, therefore you don’t need to be concerned about your cryptocurrencies losing value.
Fresh Possibilities: Since Bitcoin and cryptocurrency trading are still relatively new, new currencies are regularly entering the mainstream. Unpredictable price and volatility changes brought on by this novelty may present possibilities for enormous profits.
Disadvantages of Bitcoin Investments
Bitcoin could be the way money is exchanged in the future, but it’s also critical that you be aware of the risks associated with investing in cryptocurrencies. Here are a few factors that might prevent Bitcoin from becoming a wise investment. Keeping the advantages and drawbacks in balance is frequently the most crucial thing an investor can do.
Volatility : Bitcoin’s price is always fluctuating back and forth. Bitcoin cost $20,000 on December 17, 2017, if you were to purchase it at that time. Weeks later, you were unable to recoup more than $7,051 from your investment. Even if you’d be rich in 2021, not all investors can afford to retain investments for an extended period of time.
Danger of Hacking : Although the Bitcoin blockchain has never been compromised, people can still become victims of a hack if they divulge sensitive data, such as their private keys. Furthermore, hackers frequently target lesser-known exchanges. Use a cryptocurrency wallet like the Ledger Nano X that saves your digital assets away from the internet on an external device for the highest level of protection.
Is Bitcoin the Future?
As financial institutions include Bitcoin in their balance sheets and El Salvador formally recognises Bitcoin as legal cash, it appears that Bitcoin will eventually replace paper money or at the very least become a widely used store of value. Risk-averse investors are still unwilling to purchase Bitcoin, much less any other cryptocurrency, given the market’s extreme volatility.
Since Bitcoin is decentralised, it has a lot more sound monetary policy than any government. Since the specifications in the code determine Bitcoin’s monetary policy, Ark Invest CEO Cathie Wood refers to Bitcoin as a “rules-based monetary system.” Investors are seeking for alternative assets to protect against inflation since governments are creating more money than ever as a result of the epidemic. Many are using Bitcoin to achieve this, which will promote long-term use of cryptocurrencies.
