You may have heard of Bitcoin, that magic currency that increased form $100 to $20,000 in a couple of years, here are five things you need to know before investing in bitcoin:
#1: Only invest what you can lose: This is the most important rule, bitcoin market is so volatile and can change drastically in an hour so only invest the amount you are comfortable with losing, don’t put all your cash in and waiting for it to increase.
#2: Bitcoin is good for long term investment, the market is very volatile due to the curious buyers or short term investors who want to gain rapidly, but for a better return on investment, buy your bitcoins, put them in vault or print them then wait for some years, their value is gonna increase probably more than 20k.
#3: Bitcoin isn’t secure: If you have 1 mn dollars would you keep them home or in a bank? I believe the latter as it’s more secure, but what if there’s no such a thing as bank? By only having your email password anyone can get your Bitcoins and despite the security measures put in place it is still not secure.
#4: High fees: Bitcoin trading isn’t free, if you use bitcoin for instance you will be charged a fee starting 1.49% with a bank account of 4.99% with a debit card, this means that if you invest just a small amount your profits may be absorbed by the fees.
#5: There’s no central bank for bitcoin, meaning all the fluctuations aren’t regulated which may result in very drastic drop in price in the future.
Happy mining.
