Is Bitcoin a good investment for 2020?
The Internet has caused everyone to be reliant on it. So, it’s no surprise that this currency has been claimed as the interest of investors being a Global, Secure, and Digital currency.
Bitcoin provides an exciting opportunity to delve into an entirely new asset class and is open to everyone. While investing in it may seem scary, it takes time and effort to understand how Bitcoin works.
There are multiple varied perspectives on Bitcoin globally which should be kept in mind. Based on where you live, do your own research. Now anyone can buy digital currency online with ease.
Why Invest in Bitcoin?
Even though it may seem silly to some people, one Bitcoin can be worth thousands of dollars.
What causes bitcoins to be of this much value?
You first need to think if you want to buy a house in Rapid city, South Dakota or you want to invest in Cryptocurrency. If you do plan to invest in crypto then makeup your mind to bear some loss or all of your money. It is not at all a conventional investment.
MPs in the year 2018 called cryptocurrencies a “Wild West Industry.” Adding another layer of risk, they are not regulated by the UK watchdog. The Financial Conduct Authority will impose a ban on the sale of complex derivatives that speculate on cryptocurrency movements. For Spread bet Options, Futures and Exchanges traded notes that focus on digital currencies causing firms to prohibit from offering retail customers contracts.
Andrew Bailey, Governor of Bank of England recently explained that he was worried for people using bitcoins for payments.
Is bitcoin a good investment?
Bitcoin is said to be at the very “High risk” type of investment. The price of cryptocurrencies can go bust, is volatile, could be scams, and one can produce a return for investors and may increase in value.
Cryptocurrencies could become mainstream, remain niche, vanish without a trace or anything in between. Do you research well before investing in cryptocurrency and don’t put all your hopes on one company or one crypto. Spread the risk by spreading your money.
Less riskier ways of investing in Cryptocurrency ?
Potential solutions to the problems of volatility and credibility for crypto assets exist in stablecoins. Like regular currencies, stablecoins have actual assets behind them unlike cryptos.
TUSD and DAI are two of them. Both of them are backed with the US dollar. To invest in the actual currency as DAI is hosted on the Maker (MKR) platform, crypto platforms can also be safer. Gains are very low or nil as risk is low too. In the companies associated with cryptocurrencies, it could be less risky to make long-term investments.
How to buy Bitcoin
From where can I buy cryptocurrencies ?
Binance and Coinbase are two of the world’s largest bitcoin trading platforms. They are known as the fast and easy way for new users to purchase cryptocurrencies such as Bitcoin. There are several other ways to buy that includes investment platform eToro and digital currency app Ziglu.
Gemini was founded by the Winklevoss brothers which is a digital exchange that allows customers to store, by , and sell Cryptocurrencies. It is regulated by the New York State Department of Financial Services and was recently awarded an operational licence.
What are the fees?
There will be a certain fee, if you want to buy Bitcoin or other cryptos such as Deposit Fees, Transaction Fees, Trading Fees, Withdrawal Fees, and Escrow Fees of the total transaction value.
When is the right time to buy?
Nothing is for sure as is the case with any market. Anyone’s guess is just as good as when it comes to predicting near term Bitcoin prices. Bitcoin has generally increased in value at a very fast pace throughout its history. Until it stabilizes, it is followed by a Slow and Steady downfall.
Tools like the Bitcoin price chart can be used to understand and analyze Bitcoin’s price history.
To sum it up, like any other investment, Bitcoins have their share of riskiness. One should do proper homework before investing in Bitcoins.