I am sure when you first heard about Bitcoin investment, you were almost certain it was a physical form of money which included gold coin investing. Bitcoin is a currency and as it’s not controlled by any government held captive by the changing economy of a country,it is defined as a global currency. While Bitcoin can fluctuate, a simple and clear thought-out value isn’t stamped on this type of currency. The mere rate of its changing value makes it impossible at the moment. Yet, in 2013, the value of one Bitcoin currency hit a sky-high rate of $1200 and only a few years later in 2017, a staggering $9000 and rising!
A senior financial analyst, Mr Spencer Fleming from Olsson Capital, said, “Although a small drop or two is to be expected, Bitcoin will make good comebacks within a short period of time, making this type of currency investing one that will change the way of investing forever.”
When wanting a share in this virtual way of moving currency across the world with a tap of a digital button, you can either choose to invest in this currency or use it to your benefit when making purchases from a wide variety of companies. You need not only use Bitcoin to buy goods. You can even become a Bitcoin trader or investor, creating wealth from this coin that isn’t held in the palm of your hand.
Should you want to become the proud owner of a Bitcoin investment, you need to have wallet software on your computer to store your coins when not in use. This software takes up some disk space on your computer and other means of storing currency has been developed such as an online wallet service. These services include Coin base for US users and My Wallet for UK users which enable you to see exactly how much your currency is worth and how many coins you have at your exposure.
How to invest in Bitcoin
Keeping in mind that the number of Bitcoins distributed across the globe can’t be counted; investing in this form of currency seems to be the future of trading. There are 4 main ways to invest in Bitcoin.
Buy and hold investing
When deciding to invest in Bitcoin by making use of buying and holding, you need to prepare to do your homework. You need to determine whether you think it’s the right time to buy a Bitcoin and if you do, to make sure the value of the currency rises over time, thus leveraging you with a profit margin. Should you choose to invest, you need to make sure you don’t invest more than you prepare to lose as it can become a high-risk transaction, leaving you with more expenses.
Trading in Bitcoin gives you the advantage of being able to regain a profit from the trade if the transaction is done correctly. By trading Bitcoins, you commit yourself to purchasing the currency while the price of it is low. You then, without holding onto the currency for long, sell it at a higher price back into the players market, thus earning a profit with bitcoin, depending on the scale at which you trade.
The definition of Bitcoin mining is the procedure of adding recent transactions that have taken place in Bitcoins books or in other words, a Block chain calculated within your computer’s adequate software. Calling this process a Block chain is adequate as the structure of transactions form a virtual chain of transaction blocks. When mining Bitcoins, you need to keep in mind that it only works if you mine on a large scale and will work better if you have a network of miners that help mine the coins.
Investing in Bitcoin companies
Many companies give the promise of taking your purchased bitcoins and returning your investment worth double its value within a few days. Should this be the case, we would all be rich and making Bitcoin investing our main source of income. With sharks out there waiting to pounce on investors looking to make quick money, its best to keep your coins safely stored in digital software that. As of today, a legit company for investing your coins with has not been born and scammers take note of it easily. It’s in your hand, as an investor, to determine whether investing in companies of such kind is worth it in the long term.
Thus, cryptocurrencies such as Bitcoin not only brings wealth to you, it brings wealth to the world – something everyone can look forward to!