Bitcoin can be a great alternative to diversify a varied portfolio of investments that guarantees a more prosperous future. This is due to the potential profitability that we can obtain in the medium or long term as Bitcoin is a totally disruptive new type of money with traditional money and that today is gaining enormous speed of adoption. Buy bitcoins it’s getting easier. Perhaps for this reason at some point, we have asked ourselves:
WHAT IS BITCOIN INVESTING, AND HOW CAN IT BE DONE SAFELY?
To answer this, it is good to understand what lies behind this amazing technology. And also, know what are the characteristics that make Bitcoin a safe and reliable system.
First of all, you have to talk about the underlying technology behind Bitcoin, the blockchain. It is this technology that makes possible the functioning and operability of this entire digital and decentralized payment system. One that is not operated or controlled by any bank or central entity.
Thus, the blockchain is the one that allows for keeping a single, detailed, transparent and unalterable record of all the operations and movements carried out. In addition to being distributed among all users connected to the network. It is these users who keep an exact and updated copy of it every time new information is added. Amazing, right?
This technology has allowed Bitcoin to become the digital currency that it is today. In addition, of course, to its software design and consensus protocol. This is what allows Bitcoin to be used from anywhere in the world if you have an Internet connection. In this way, carrying out cross-border transactions is no longer a problem. In addition, these transactions only take a few minutes and their commissions are very cheap.
BUT WHAT ELSE DOES BITCOIN OFFER US?
In addition to all of the above, this cryptocurrency also allows us to perform transactions without having to reveal our private data. What increases the level of security when carrying out our operations. Thus, to make or receive a transfer, you only need to have a public address that anyone can know without risk. We certainly don’t talk about complete anonymity, but Bitcoin is capable of protecting our privacy in a unique way.
For its part, today there are many exchange houses or exchanges where we can exchange our bitcoins for fiat money. . Likewise, the number of companies and businesses that accept payments in this cryptocurrency has also grown. A situation that ends up making things easier for us. It is because of this and many other qualities that Bitcoin is considered the digital gold of our era. And for this reason, it is revolutionizing our current way of seeing finances and money.
This cryptocurrency has given us absolute power back over our own funds and assets. Since they cannot be devalued or frozen by any entity or person. So, after knowing its incredible qualities, you would like to know how to invest in Bitcoin safely? Know if it is really worth investing in? If it is profitable? Well, all that and more will be examined below.
ADVANTAGES OF INVESTING IN BITCOIN AND OTHER CRYPTOCURRENCIES
One of the biggest advantages that we can see in this type of investment is the enormous profitability that we can have. Bitcoin remains the market leader with the highest capitalization in the cryptocurrency market. Likewise, his value as a project. Despite the price rises and falls, it has been increasing significantly over the years. In addition to new protocol improvements, tens of millions of new users, tens of thousands of companies that accept it as a means of payment, and hundreds of companies developing services around it.
In addition, the boom that has had among important characters and companies in the world give it greater Trust to this system. The markets around cryptocurrencies continue to grow steadily. So these assets are seen as an important investment alternative.
Although investing in Bitcoin and other cryptocurrencies also carry its risks. For example, its exponential revaluation in a few years is not a guarantee that the value will continue to grow in the future. We have witnessed the high volatility of this cryptocurrency in its development, significantly changing its value from one moment to the next, which can provoke certain doubts and some fear. So for short-term investments, it is not recommended.
Many experts agree that this volatility is typical of a growing asset, which will stabilize and mature over the years.
TIPS TO INVEST IN BITCOIN SAFELY
With the popularity that cryptocurrencies have gained in recent years, it is not surprising that we receive hundreds of messages every day inviting us to enter the world of Bitcoin or another altcoin. These messages or advertisements constantly encourage us to invest our money immediately in these cryptocurrencies. Promising us big profits in a short time.
But will it be safe to do so? What must we know to invest in Bitcoin without greater risk of losing our money? Well, let’s see some useful tips to know how to invest your bitcoins safely.
· Do Not Act Impulsively
Investing our money in an asset is a decision that we should not take lightly. It does not matter if they are a few euros or thousands of them. Our money, product of effort and work is valuable, regardless of the amount. So, we cannot get carried away by those miraculous pages that promise us endless wonders without effort. These, in most cases, end in fraud and our money disappears.
· Use A Secure Wallet
There are not a few cases that we have heard of hacks and thefts from platforms or wallets where users have lost fortunes. For this reason, you must operate with a reliable wallet that allows you to make purchases and sales of bitcoins with total security.
Make some copies and store them in a secure location. Also, if you’ve decided to make a long-term investment, use an offline wallet. This will provide you with increased security and will protect you from computer attacks.
· Diversify Your Investment Portfolio
Although the most famous cryptocurrency is Bitcoin, we cannot simply bet everything on it. Its high volatility and large movements can return in juicy profits. But they can also turn into big losses.
Therefore, having a diversified investment portfolio is essential when it comes to investing safely.
· Be Aware And Realistic
Not for nothing there is the saying that you invest only what you can lose. Never use money from family savings that can get you out of trouble. Or money you need to live and pay your expenses. Also, you should not aspire to become a millionaire overnight.
Be realistic, the key to success in this world is investing amounts that you can lose and setting goals for the medium and long term.
· Beware Of Scams
Many people are going to want to take your money. Be careful who you give your cryptocurrencies to, it is best to always have them under your control or if you temporarily leave your cryptocurrencies in the hands of some platform, it is assuming that if you have not investigated in-depth you could lose that money or cryptocurrencies.
Pic Credit: Anne Nygård