Are you an investor? Are you interested in Bitcoin investment? So how to invest optimally to bring the highest profit? Let's find out the following article with VakaFx.
What is a Bitcoin investment?
Just like you invest in gold or real estate, so does Bitcoin investment. Bitcoin investment is the use of the money invested in Bitcoin with the expectation that Bitcoin's price will rise in the future to sell at a price higher than the purchase price.
Is bitcoin investment safe?
Investing is always risky and so is Bitcoin investment. Because the technology that creates Bitcoin is still quite new and Bitcoin is also developing day by day to improve it.
No one knows what Bitcoin will be like tomorrow and whether in the future, will any coin replace Bitcoin? So when investing you should only use the money that when lost will not affect your life.
Bitcoin investment risks
Maybe you've heard of "No risk, no rewards". The bigger the reward, the higher the risk. Investing in bitcoin can bring you huge profits. However, the profit is high, the risk is also extremely high.
Here are some risks you should consider before investing:
- Price volatility: Bitcoin has a large price range. In a day it can fluctuate a few percents but sometimes up to 20-30%.
- Security: Although Bitcoin has never been hacked and it is very difficult to hack, but we don’t know it is not possible in the future.
- Exchanges: Many buyers store Bitcoin on the exchange, so when the exchange is hacked, they can lose their assets.
Should Bitcoin investment in 2020?
Surely everyone knows that 2020 is an extremely difficult year when the COVID-19 pandemic is raging all over the world. Many businesses, as well as financial markets, tumble. Bitcoin is like a ray of light in the night, it seems to go against the stock market. Many people have chosen Bitcoin as a store of value against inflation.
For example, billionaire Paul Tudor Jones (the 320th richest ranking of the US with an estimated net worth of US $ 5.1 billion) has stated that he owns Bitcoin with 1-2% of his net worth.
Robert Kiyosaki, author of the book "Rich Dad, Poor Dad" has also announced the death of the economy and advised to buy Bitcoin, Gold, and Silver to fight inflation. He also predicted that the price of Bitcoin would increase from $ 9800 (May 16, 2020) to $ 75,000 in three years.
How much money does a Bitcoin player need?
You should start with a small amount to get used to the market. And after having experience, you can gradually increase your investment.
Instructions on how to invest in playing Bitcoin for newbies
- Learn about Bitcoin
Before investing, you need to understand exactly what Bitcoin is? Here is a detailed article for you to find out.
- Create a Bitcoin wallet
Bitcoin wallets are where you can store as well as send and receive BTC. To ensure absolute security, you need to choose reputable and secure wallet providers.
You can refer to the list of best Bitcoin wallets here.
- Buy bitcoin
If you want to invest in Bitcoin, you must buy bitcoin. You can buy it at major exchanges like Binance, Okex, Huobi. Also, there are many other exchanges you can choose. Some users choose to buy BTC from individuals or organizations.
The list of best exchanges is updated here.
Some tips for investing in Bitcoin
1. Should start with a small amount
Bitcoin trading is unlike any other form of an online payment transaction. If you mistakenly send someone else's Bitcoin address, you can't get it back.
So when you start investing in Bitcoin you should trade a small amount. When you are proficient, understand the process of trading, you can trade in bulk.
Moreover, investment always comes with risks. So you should not use large amounts to avoid affecting daily life.
2. Always keep your account and wallet secure
Some tips to ensure account security:
- Do not access fake websites
- Do not give account information, private key to others one
- Do not access suspicious links
- Avoid scam messages
- Store keys or restore characters offline to avoid hacking.
3. Do not store Bitcoin so long on the exchange
In addition to storing Bitcoin via Bitcoin wallets, many people choose to store directly on cryptocurrency exchanges.
Usually, each exchange will allow us to create a separate Bitcoin wallet address to store directly on the exchange, each of them will provide 1 wallet for that coin.
This method is only suitable for short-term trading, but for long-term investment, you should store in your wallet.
Because exchanges are almost always "hacked" by hackers to steal customers' coins or collapsed exchanges, you will lose all the Bitcoin.
The latest example of Japanese MtGox exchange, which was stolen by hackers to steal over 750,000 BTC
4. Regularly updated Bitcoin news
News is an extremely important factor for the crypto market. It directly affects the price of any coins and Bitcoin is no exception.
Therefore, you should regularly monitor and update the news related to Bitcoin to understand the market situation and make a decision to take profits at the right time.
Some famous news websites in the field of crypto you can refer to:
Predict Investment Trends In 2020
- Cryptocurrency and Blockchain are still the future investment trend when a series of large organizations and banks.
- Practical applications will be launched, investment funds will focus on research and development.
- Blockchain startups that apply blockchain in practice - releasing tokens to the public
- The trend of opening trading exchange: centralized trading platform and exploiting Exchange and Margin Lending services
- Bitcoin Investment - Surfing will still be the dominant investment channels in 2020-2021.
- Bitcoin investment in particular and the cryptocurrency market, in general, are opening opportunities for anyone to seize the opportunity. Bitcoin or Altcoin are both profitable investment trends in the future instead of Gold or USD.
Therefore, we recommend that you invest in Bitcoin wisely and strategically. If you find the article useful, share it with more people. Or any other questions about Bitcoin investment, Altcoin leave below the comment section, we will reply to you as soon as possible.
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