Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
What Did Crude Oil - Platinum Link Tell Us Last Week? - 17th Jul 18
Gold And The Elusive Chase For Profits - 17th Jul 18
Crude Oil May Not Find Support Above $60 This Time - 17th Jul 18
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18
US Stocks Set For Further Advances As Q2 Earnings Start - 15th Jul 18
Stock Market vs. Gold, Long-term Treasury Yields, 10yr-2yr Yield Curve 3 Amigo's Update - 15th Jul 18
China vs the US - The Road to War - 14th Jul 18
Uncle Sam’s Debt-Money System Is Immoral, Tantamount to Theft - 14th Jul 18
Staying in a Caravan - UK Summer Holidays 2018 - Cayton Bay Hoseasons Holiday Park - 14th Jul 18
Gold Stocks Summer Lows - 14th Jul 18
Trump US Trade War With China, Europe Consequences, Implications and Forecasts - 13th Jul 18
Gold Standard Requirements & Currency Crisis - 13th Jul 18
Focus on the Greenback, Will USD Fall Below Euro 1.6? - 13th Jul 18
Stock Market Outlook 2018 - Bullish or Bearish - 13th Jul 18
Rising Inflation is Not Bearish for Stocks - 13th Jul 18
Bitcoin Picture Less Than Pretty - 13th Jul 18
How International Observers Undervalue the Chinese Bond Market - 13th Jul 18
Stocks Trying to Break Higher Again, Will They? - 12th Jul 18
The Rise and Fall of Global Trade – Redux - 12th Jul 18
Corporate Earnings Q2 2018 Will Probably be Strong. What This Means for Stocks - 12th Jul 18
Is the Relative Strength in Gold Miners to Gold Price Significant? - 12th Jul 18
Live Cattle Commodity Trading Analysis - 12th Jul 18
Gold’s & Silver’s Reversals’ Reversal - 12th Jul 18
The Value of Bitcoin - 11th Jul 18
America a Nation Built on Lies - 11th Jul 18
China, Asia and Emerging Markets Could Result In Chaos - 11th Jul 18
Bullish Gold Markets in the Big Picture? - 11th Jul 18
A Public Bank for Los Angeles? City Council Puts It to the Voters - 11th Jul 18
Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - 11th Jul 18
Argentina Should Scrap the Peso and Dollarize - 11th Jul 18
Can the Stock Market Close Higher For a Record 10th Year in a Row? - 11th Jul 18
Why Life Insurance Is A Must In Financial Planning - 9th Jul 18
Crude Oil Possibly Setting Up For A Big Downside Move - 9th Jul 18
BREAKING: New Tech Just Unlocked A Trillion Barrels Of Oil - 9th Jul 18
How Trade Wars Penalize Asian Currencies - 9th Jul 18
Another Stock Market Drop Next Week? - 9th Jul 18
Are the Stock Market Bulls Starting to Run? - 9th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Things You Need To Know If You Want To Invest In Bitcoin Now

Currencies / Bitcoin Jun 21, 2018 - 01:02 PM GMT

By: Boris_Dzhingarov

Currencies

2017 was a wonderful year for Bitcoin but 2018 did not yet live up to initially set expectations. Basically, people that are specialized in Bitcoin and crytpocurrency investments are now divided. Investing in Bitcoin is something so many are interested in but before you do this, there are some things that you absolutely have to know.




Bitcoin Is Volatile

The most important thing to remember about Bitcoin is that it is not a stock or a company. It is practically a currency. Bitcoin investments are more similar to Forex investments than stock investments. You need to fully understand what you invest in and most people simply do not. You have to buy Bitcoin in order to make any investment.

There are different ways in which you can invest in Bitcoin. Every single option needs to be considered. The common things to take into account, especially when knowledge is not really high, are the following.

Holding Bitcoin

This is the most common way to invest in Bitcoin. You practically buy the currency and hold it until it increases in value. Then you sell it. The problem here is volatility. According to Cryptoext, some specialists think Bitcoin is going to reach $60,000 this year, which means a 10 times increase in value. Others say that Bitcoin is not going to climb and that it is better not to hold the cryptocurrency. Various Bitcoin predictions are laid out at the moment.

All this practically means that you have to be ready for huge price variations. The volatility here is much higher than with other investment options available. You need to be prepared to deal with this and weather the storm if prices go down.

Bitcoin Trading

This is different than holding since you want to actively trade the cryptocurrency as you buy at lower prices than what you sell at, all done in short time intervals. Successful trading in this case requires a lot of practice and knowledge. Every single piece of news that appears about the crytpocurreny needs to be taken into account. We are now looking at a market that is filled with large players. They take advantage of traders that do not have knowledge and trade without an aim.

If you are interested in Bitcoin trading, you need to start small and practice. A failure to do this can lead to huge losses.

Investing In Mining

This is a pretty unique way to invest in cryptocurrencies. Instead of buying Bitcoin, you buy the equipment you need to buy Bitcoin. Mining equipment is quite expensive though so you will need a larger initial budget. Also, if you do not live in an area where electricity is cheap, running costs for Bitcoin mining can be very high. The truth is that for most people out there it makes much more sense to buy Bitcoin instead of investing in mining equipment.

It has to be added that there are sites that allow you to mine through them. In this case we refer to cloud mining. The sites that offer such services fall into one of 2 categories:

  • Complete scams that will never give you Bitcoin.
  • Not scams but very bad investments on the long run. You would basically get more Bitcoin if you were to straight up buy with the money available.

By Boris Dzhingarov

© 2018 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules