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Bitcoin has been proclaimed dead hundreds of times, but it has still found its way back into the market. To be honest, 2018 was not a very good year for Bitcoin. After peaking to the worth of $19,000 in 2017, it dropped as low as $3000 for the major part of 2018. Bitcoin is most probably the most volatile form of currency out there. Every person should think twice before investing in it. Before discussing if it is still a good investment or not, let’s see how you can invest in it.
How to Invest in Bitcoin?
The most popular way to invest in Bitcoin is in the form of buying the currency and holding it in hopes that its price will skyrocket in the future. However, if you are going for this investment option, there are a few things you must take into consideration:
- Always do your own research instead of just following someone blindly. As Bitcoin is a very volatile currency, you should do some homework, learn everything about the current trends and then go for it.
- Bitcoin is a good yet very risky investment. Never try to bite off more than you can chew and keep an average profit/loss margin.
- Make sure that you are buying Bitcoins from a reputable exchange. If you are not sure about the credibility of the exchange, you can make hardware or a paper wallet and transfer your Bitcoins there.
- Instead of buying all of your Bitcoins in one trade at a fixed rate, try to buy them at an average pace over the course of several days or months.
Making Money through Investment Platforms
Aside from going for the longer investment options, you can make money with Bitcoins in a shorter period of time. There are a lot of investment platforms out there that let you earn money through commissions from selling Bitcoins. You can sign up on a platform like xCoins and deposit the amount of Bitcoin you want to invest in your wallet. After these platforms sell the Bitcoins, you receive the invested amount in addition to the commission you made directly into your bank or your PayPal account.
Trading Bitcoins
This method of investment is a little different than the ones already discussed. Trading bitcoins is like trading in a foreign exchange market. By actively investing in bitcoins when they hit the lowest in the market and selling them when they are at their highest, you can make a lot of money. But, successful trading requires a lot of knowledge and practice. It is different from buying and holding as holding requires a lot of patience, and it is a one-time investment. Trading bitcoins is an ongoing process that requires continuous knowledge and is done in short intervals.
Mining Bitcoins
Another popular yet expensive way to invest in Bitcoin is by mining them. Mining bitcoins means generating them through expensive equipment. Therefore it is only profitable if you can make a lot of upfront investment and are ready to do it on a large scale. However, once you have set up your mining rig, you can expect to make a lot of money in the future.
Is This a Good Time To Invest In Bitcoin?
Investing in Bitcoin has never been a question of profit or loss. It is always a matter of patience. Due to the general skepticism regarding bitcoins, there is no better time to invest in it than today. The advancement in blockchain technology is making this digital currency more and more secure, and as long as there are machines out there mining bitcoins, it will always be tradeable and make a silent comeback.
