Ever since the first investors of Bitcoin (back in 2008) became overnight millionaires, many people have at least contemplated investing in Bitcoin.
In 2017, Bitcoin is trading at around $10,000+ and the trend has been a rising one although not as exponential as it was for the first investors.
Before you actually put your money on Bitcoin investments going into 2018, there are various things to consider including what it really means to invest in Bitcoin.
Please note this is not financial advice, but this brief review of bitcoin in 2017 will help you clarify a few things:
What does it mean to invest in Bitcoin?
There are various ways to invest in Bitcoin.
The first and obvious one is buying and holding where you buy and hold onto Bitcoin in hopes that the value will rise.
This is the same strategy early investors used and they surely made a fortune from their exploits.
However, the Bitcoin value does not rise as significantly as it did in its early stages.
It also faces competition from other altcoins that may have a better change of increasing in value.
Nonetheless, Bitcoin is still the most popularly used cryptocurrency and its value is expected to rise.
It is important to do your research and lookup how Bitcoin has been performing over the last years.
The value may have shot into the $10,000 mark in 2017 and is steadily rising, but this does not predict a rise in 2018.
If you choose to buy and hold onto Bitcoin anticipating a rise in value, keep the following in mind:
- Do not invest more than you can afford to lose (this is a basic investment principle).
- Move your Bitcoin to a wallet, preferably a hard wallet (e.g Ledger Nano). If you cannot afford a hard wallet, use a paper wallet instead.
- Only buy Bitcoin from reputable exchanges that have been in the industry longer (GDAX, CoinBase, Gemini etc)
This is another form of investing in Bitcoin.
Any review of Bitcoin in 2017 will tell you that only a few experienced people can effectively make profits from trading Bitcoins.
It involves buying Bitcoins when the price is low and trading them when the price rises.
It requires experience, knowledge and a keen eye on the market. It is more like stock trading albeit done with more frequency.
The price of Bitcoin at any one time is the average price across all exchanges.
Having knowledge of the price and using analytics to gauge trends can help you invest wisely and make substantial profit from your trade.
Since newbie investors are often ready to spend money on buying Bitcoins, investors take this opportunity to target and exploit them by trading for prices than the current market value.
Investing in Bitcoin Mining
This is another way to invest in Bitcoin.
It involves investing in expensive equipment used in mining Bitcoin and then trading the coins for dollars.
Although it has the potential to provide an endless stream of income in the long haul, the huge upfront cost of buying equipment outweigh its benefits at least for newbies.
As an alternative, most people invest in Bitcoin companies that own these equipment and share profits made when the Bitcoins are traded.
This kind of earning through interest is an obscure scheme that requires keen review before you trust such companies.
There are a lot of these companies out there like USI Tech and BitConnect. BitConnect actually has a coin that they launched through an ICO and their market cap is now over $1 billion which is quite impressive, although some publications have outed BitConnect as a scam. See this review exposing BitConnect: http://nobsimreviews.com/bitconnect
There is a fairly new category of Bitcoin mining known as cloud mining.
These are companies that allow you to mine Bitcoin through them. One of the biggest ones right now is on the Bitcoin.com website: https://pool.bitcoin.com. I haven’t tested this however it does look like an interesting investment vehicle.
Most cloud mining offers are scams that will escape with your money while the genuine ones are bad investments.
Why should you spend on a cloud mining company when you can spend the money to buy actual Bitcoins?
Is it safe to invest in Bitcoin into 2018?
From the review of Bitcoin in 2017, investing in Bitcoin is not only a matter of whether you should, but also about how to do it.
Like any other investment, it is important to first find out how it really works and what potential is available.
Bitcoin offers opportunities to make profit on various ends, but it does not come as easily as most people assume.
2017/2018 is very different from 2008-2014.
Bitcoin currently trades at around $14,800 which is a lot of money compare to the $20 of 2008.
In order to make profit, you will need to think long term and explore other forms of investing other than buy-and hold.
Nevertheless, Bitcoin still presents your best opportunity to make money in the cryptocurrency world.
Learn Bitcoin from experts
Check out this video and see how you can learn more about Bitcoin from experts: