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Should I buy Bitcoin

Anyone who is asking if they should buy Bitcoin must have decided to invest in the cryptocurrency market. If you have chosen to go into trading Bitcoin, then you have made an intelligent move. This article will explain why you should buy Bitcoins and all you need to know about the crypto exchange market.

We also enlighten you on the factors to consider before investing in Bitcoin to be safe. Although Bitcoin is enticing, you need to be able to make informed decisions.

Anyone can make a profit as well as incur losses. With the correct information, you will be on your way to making significant gains and managing risk better.

Reasons why you should buy Bitcoin

Once you ask where to buy Bitcoin, you may have made up your mind to buy Bitcoin. If you are still in doubt as to whether purchasing Bitcoin is wise, there are several reasons why you should buy Bitcoin. Here are some reasons why Bitcoin is a wise investment.

The rules of Bitcoin are permanent

Bitcoin has set 12 million coins as its target of coins to produce. Although other currencies like the Binance coin are regularly added to the circulating supply, Bitcoin has a target. They made this public, and it has remained a permanent rule since.

This feature contrasts to fiat printed and circulated more frequently as they tagged as “quantitative easing.” The U.S. government prints regularly. With Bitcoin, no company can produce the money. There would be no more mining Bitcoin once it hits the limit.

Bitcoin gives you privacy

If you do not appreciate having the eye of the government on your investments, you should get on the cryptocurrency exchange. You may need to process personal data and all that, but it does not pry into your privacy like the traditional financial institutions.

Investing in bitcoin is a way of keeping the companies, banks, and government away from manipulating your assets. With Bitcoin, you can do the verification yourself using a public ledger. Whether you are one of the retail investors or an institutional investor, your assets remain your business.

Bitcoin is scarce and will maintain its value

This digital currency is not common. Since the entrance of Bitcoin into the crypto market, it has consistently grown. Bitcoin has been increasing in value because it is scarce. The fact is that there can only be 21 million Bitcoin.

What this means is that you have the chance of owning more Bitcoin than most people. To think that some people may never invest in Bitcoin improves your chance of owning more.

The Bitcoin ETF has the potential to increase in value. Initially, Bitcoin was worth just a dollar. Today, it is worth way more than that, and it can be worth more than any expert can predict tomorrow.

Bitcoin has great profits

Since its creation, Bitcoin cash has been on the rise in terms of profits. Although there have been increases and decreases in the prices so far, there is hope that the coin will increase in value. Given that the market is volatile, there is no guarantee of things.

However, from the performance of Bitcoin so far, it has a bright future. People who invested in Bitcoin a few years back have now earned a lot from it.

Bitcoin is transparent

One reason why people buy Bitcoin is its transparency. Bitcoin is transparent and decentralized, unlike fiat currency. The masses don’t have a way of auditing the Federal Reserve or a Central Bank. People do not know how much is being printed, and we cannot decipher the movement of taxes.

There is no way one can know vividly how transactions in the fiat currency go. With Bitcoin, everything is visible to all concerned. You have more control over Bitcoin than you have over the value of the money in your bank account.

You can verify any transaction in the Bitcoin blockchain. You can verify things and be sure that you have some form of control over money movement.

Bitcoin is immune to censorship

The decentralization that Bitcoin offers makes it uncensorable. In 2017, China banned mining farms and cryptocurrency exchanges, but it did not kill the crypto coin. The network is still living. People are still investing in crypto assets and taking gains.

Bitcoin is great for diversification

With Bitcoin, you just acquired another means of owning assets. It affords the chance to diversify. The co-author of “Bitcoin: Ringing the Bell for a New Asset Class,” who is also a blockchain analyst at ARK Investment Management, explained why Bitcoin is a new of owning assets when he said that;

“If an investor who holds bonds and equities swapped a percentage of their prior holdings into Bitcoin, because of Bitcoin’s low correlation and absolute superior performance, they could have decreased the volatility of the portfolio while simultaneously increasing absolute returns.”

Where you should buy Bitcoin

There are several places where you can get Bitcoin once you have decided on the investment. There are several crypto exchanges for a Bitcoin transaction. They make provision for both beginners and experts.

Here are some of the best places to buy Bitcoin:

Coinbase

If you are a new Bitcoin investor, you need a platform to render the necessary support to you. Coinbase is easy for beginners. You need to start at a platform that will not discourage you.

You need a platform that will encourage you into the trade. If you find things difficult from the onset, you will think that everything about cryptocurrency trading is difficult.

Coinbase is a cryptocurrency exchange and wallet provider situated in San Francisco. Aside from being beginner-friendly, Coinbase has an impressive reputation. They are leading authorities in the trade. It is a great place to start your Bitcoin investment.

Coinbase can boast of more than 56 million users verified and authorized to trade on the platform. A platform can only garner many users if the first few users are satisfied. Giving the number of users the platform serves presently will provide you with an idea of how good they are.

Today, Coinbase is present in over 100 countries. Coinbase claims to facilitate over $335 billion in trade in each quarter while holding over $223 billion in assets. These figures are impressive and show that this is a platform that you can trust because they have great results.

Coinbase supports a large number of currencies. This platform does not restrict you. It gives you the chance to trade on whatever currency you chose so long as it is among those supported by the platform.

Coinbase is secure. This platform goes the extra mile in ensuring security for traders. It offers two-factor authentication and Coinbase Vault. The platform also stores client assets offline. Your money is always extra safe.

A cold wallet is safer than those online. It rules out the possibility of hackers and scammers having access to the assets. If you can keep your details safe, you would have no issues with cold wallets.

Coinbase charges some fees, which you will know from the beginning. Every transaction has a fee which is quite reasonable compared to some other options out there. However, if you are making a transaction with your debit card, the fee increases to up to 3.99%.

Coinbase offers an upgradable system where users can upgrade to Coinbase Pro. Here, the system uses its pricing system. If you are taking crypto seriously, upgrading is advisable.

Robinhood

Robinhood is suitable for beginners to Bitcoin if they have invested in the stock market before. It is pretty easy to understand and use. Robinhood is a stockbroker that does not charge a commission fee for any transaction you make. On this platform, you can transact in Bitcoin without any commission.

Aside from the usual Robinhood stock investment account that you have, the platform also lets you have a Robinhood Crypto account.

You have to consider that the platform does not support as many cryptocurrencies as some other platforms. However, most Bitcoin buyers are okay with the list that they can work with.

Etoro

Etoro is a go-to platform for newbies. If you are a beginner, Etoro is a great platform for you. It has a beginner-friendly platform that is easy for you to navigate. You do not have to look for features because they are easily accessible.

Within a short while, you will catch up with the system. It also offers a practice account for beginners to mimic to enable them to have a good grasp of the system and how it works.

The platform even offers beginners up to $100,000 in virtual money for practice, and when they sign up, their actual money is safe. As a beginner, you can practice until you are sure of your capacity and start investing with real dollars.

The spread price for Bitcoin is 0.75%, while this figure goes up for other currencies. Etoro is a smart platform to work with, especially for those investing for the first time.

CoinMama

CoinMama is another platform with authority in the crypto world. Setting up an account on CoinMama is fast and stress-free. Verifying the account is also very fast compared to some other offers out there.

On this platform, you can have instant delivery on your order. Once you have a wallet and want Bitcoin in the fastest possible time, CoinMama is your go-to platform. This platform also gives leverages to buy Bitcoin and pay with several payment options instantly.

However, the instance purchase service comes with some price tag. You can buy any of the currencies CoinMama supports with a debit or credit card. CoinMama will instantly verify your funds when you place an order, and in no time, you will receive the cryptocurrency in your crypto wallet.

And if you are in the EU or UK, you have access to extra funding options that deliver instantly. This is not available to people in the US.

Bisq

If you are after privacy, then Bisq is the appropriate platform. Bisq gives you the privacy you seek for your investment. In this regard, you do not need to sign up or open an account before you can use the system. It operates a decentralized P2P network. All you need to do is get the Bisq desktop app free to use and open source.

This means that with Bisq, you make any transaction, buy and sell as much as you want with almost complete privacy. You do not have to register, and your identity will not be verified. It shows the true power of blockchain technology to enable you to do this.

With Bisq, you can make payments in different ways. You may choose to make payment through bank transfer, Western Union, Popmoney, Chase QuickPay, and Zelle.

Trade fees apply. You may be required to pay within the range of 0.50% and 0.70% depending on the method of payment you choose and the kind of transaction you make.

If you have little experience in cryptocurrency trading, you can use Bisq. It will not make you feel overwhelmed, and you can do any transaction well.

BlockFi

BlockFi lets you use your Bitcoin beyond the usual investing methods. It allows you to earn interest on your deposited bitcoin. That is, if you deposit your Bitcoin into an account, you can make some amount on it as interest.

With BlockFi, you can use your Bitcoin as collateral at the rates of 4.5% to 9.75% and an original fee of 2%. This rate is better than others considering the dollar-cost averaging. You can carry out transactions with any cryptocurrency without a fee.

BlockFi has shown a level of innovation that has made traders optimistic of greater things to come. It has a rewards credit card that uses Bitcoin to pay its beneficiaries. BlockFi is one of the best cryptocurrency exchanges around.

What you should consider before buying Bitcoin

Bitcoin has become very common and is taking everyone in great stride. Over time, it becomes easier to be an investor in Bitcoin. More and more people are investing daily. Buying and selling Bitcoin is now effortless compared to how it was when this cryptocurrency was making its way into the financial market. The number of people investing in cryptocurrency is increasing daily.

Presently, you can easily buy Bitcoin with PayPal. There is even a Bitcoin ATM in several parts of the world. There are more reasons than before why Bitcoin is an excellent investment. Bitcoin traders can now send cryptocurrency and receive the same without any transaction fee.

Since the beginning of 2021, the number of people investing in cryptocurrency is increasing. This increase may be due to the level of awareness and education people have received on the currency. While these reports are enticing, they are the result of some careful consideration and thorough homework.

Before you buy Bitcoin, there are some things you have to consider. Careful consideration of these areas will enable you to have a smooth ride when you start buying and selling Bitcoin.

If ever the saying you should look before you leap is efficacious, it applies to Bitcoin. Buying Bitcoin on its own is an excellent investment that will pay the expected dividends in due time.

However, you will smile in your dealings with Bitcoin if you are conscious of the right areas to consider before making a move.

Also, a thorough consideration of these areas will determine how well you will handle the task involved in buying Bitcoin because it will prepare you to control the tasks. Here are some areas to consider;

You should get a Bitcoin wallet

Before you begin investing in Bitcoin, you should get a Bitcoin wallet. A wallet is just like the physical wallet you use for keeping your money. You will need a wallet to keep your asset. If you are a new investor or aspires to be one, there are some things you have to do before you invest, among which is creating an account.

After creating an account, you will need to have a wallet. When choosing a wallet, it is advisable to know the options you have and pick the one that suits you better. There are several kinds of wallets to pick from. You can have a digital wallet, web wallet, hardware wallet, or desktop wallet.

While all these wallets are essentially sound in their different ways, you need to be security-conscious when choosing. To ensure that you have maximum safety, you should know what kind of crypto wallet offers and know which is more secure.

It is advisable to have a hardware wallet because they are more secure. A cold wallet is better because it is secure and affords you peace of mind. A cold wallet is safe from hackers and scammers. It is safe from internet fraudsters. If you keep your details secure and use a cold wallet, you have less to worry about when it comes to the security of your asset.

Use the stop-loss plan

Several factors can get you off balance when it comes to crypto, especially if you are new to the market. You are open to several plans and options when buying and selling cryptocurrencies.

When investing in bitcoin and other digital currencies, it is advisable to use the stop-loss plan.

The stop-loss plan will keep you somewhat safe in that you will not panic into making transactions that are against your goals.

Every kind of investment comes with risks

This is perhaps the first thought in everyone’s mind when they are planning to buy Bitcoin. Like every other kind of trade, there are risks involved. It is now left for you to consider if you are ready to undertake such risks. There is the risk of losing your money. As blunt as this sounds, it is true.

Because of the risk of losing your money, it is advisable that you “do your research.” It is one common phrase in any investment advice. It is not advisable to rely on hearsay or another person’s advice, even if they are experts.

It is not advisable to take reports hook, line, and sinker. It is better to take them with a pinch of salt. This is advisable because some information about crypto investment and other crypto-related information may be biased.

Also, the market is not as predictable as is thought. A Bitcoin bull does not last forever, and it might not last as long as many think. Information today can be outdated tomorrow depending on market dynamics.

In the crypto sphere, you can make it big, and you can lose your money as well. Although Bitcoin is a trustworthy digital coin, there are other cryptocurrencies around. A stronger currency can overtake Bitcoin if the market favors it.

Partner at International assets advisory, Jeff Winn, advises investors to put what they can let go into crypto. He suggests that one or two percent of your net worth is a safe amount. Jeff Win stated that “With anything that you put into Bitcoin or the crypto space, you have to know that you’d be able to live just fine should it fall flat on its face and go to zero.”

You may not gain a hundred times returns on your investment

It is excellent to invest in good spirits, but you should know what is feasible. You may not get 100 times the amount you invested. Looking at the story of Bitcoin from its entrance into the scene to its present status, it was evident that the currency has made tremendous progress.

People who got in way earlier have made a good fortune from Bitcoin. Those who got in later and those getting in now can still make a fortune from it. However, there is no guarantee for this. The market is unpredictable, and the volatility of cryptocurrency makes for no surety.

Bitcoin might go up. It might not. This reason is why it is not advisable to put your financial future at risk. Moreover, it is better to get some gains than to lose everything.

You really cannot tell the worth of your Bitcoin

Cryptocurrency is highly volatile. The market is unstable and cannot be predicted – accurately. There is no accuracy in prediction when it comes to crypto because what is today may not be tomorrow. It explains why the predictions on the same Bitcoin can change drastically with hours.

While some analyses show that the currency will be worth more than it is today, others may predict it to fall and lose every single value it has. It could be a Bitcoin boom or nothing at all. Whatever value it has today could be the highest it can get to or the lowest. There is even the possibility of the currency remaining in that position for a while longer.

The thing is that the predictions on Bitcoin and other cryptocurrencies are more of speculations. The traditional valuation models cannot apply to Bitcoin. Its volatility means that you cannot make specific statements on it.

You should be conscious of tax implication

One thing that is essential in the Bitcoin trade is the tax involved. Selling a cryptocurrency involves some tax, just as is the case when you sell stock. It is also a legal tender, after all. Before you start buying cryptocurrency, ensure that you are ready to stay clean when it comes to tax.

It may come off as an aspect that does not require much consideration, but it is essential. However, with the federal government’s level of attention on crypto traders, you should endeavor to do the needful. It is safe and easier to maintain a clean slate in terms of tax.

You should consider your time

Bitcoin requires time and attention. It is not enough to have the money. You should be ready to devote the attention and commitment needed to get the best from your endeavors.

The cryptocurrency trade requires an apt knowledge of market dynamics, crypto platforms, market cap, and so on. You need to do some market research to understand Bitcoin’s price and its movements, digital assets, and values, and all of these require consistent monitoring.

You may use a broker and get yourself some rest. The thing is, with or without a broker, you still need to devote your time to the trade. Of course, where your treasure is, your heart will be. Are you working several jobs? Do you have time for yourself and other considerations? Your answers to these questions matter.

It is not to say that you have to neglect every other thing because of your commitment to crypto trading. However, you have to manage your time well so that the crypto affairs will have the necessary amount of attention.

Giving enough time to cryptocurrency trading is essential because it will determine how well you go about trading. When it comes to doing your research, you need time and commitment. You need to devote an ample amount of time to learn the market dynamics.

The market may be highly volatile, but with the proper attention, you can grasp some vital information to set you off on the right foot.

If you are aware of the market, you may be able to prevent FOMO. It is one area where some investors, especially those new to the crypto space, make mistakes. They are carried away with several pieces of information such that they rush into making uninformed transactions.

Always stay informed

When it comes to cryptocurrency trading, you want to get all the information you need. If the information is correct, it cannot be too much. There is lots of information speculating on Bitcoin trading, and you want the right guide.

You don’t have to take every information you come across hook, line, and sinker. However, you need to stay up to date on vital communication. One place to get vital information is social media. There you can join groups and visit platforms that have updated information on Bitcoin.

The apparent importance of these social media platforms in delivering information is the information you get will enhance your trading ability and improve your chances of making the right move and making a profit. There, you can get the correct information on market conditions, demands, and the state of things.

Since Bitcoin is volatile, you need to be updated on the correct information. You need to know the current state of things. Before you buy or sell Bitcoin, you have to be informed.

One thing to consider while getting all the information is that the final decision lies with you. You should not be pressured into making transactions that you will regret. Make your decision with the correct information, and always keep your eyes and ears open.

You should have self-control

If you are going into cryptocurrency trading, you need a good deal of self-control. Several things in the market can keep you on your feet running around in a bid to avoid the “wrong” transactions while not missing out.

Spiraling and wandering emotions can lead to FOMO and emotional reactions that can land you in the wrong deal. There are waves of information blowing from every corner. Some people intentionally spread false information to spur people into making deals that will profit them (the news spreaders) at the expense of the traders.

Sometimes, Bitcoin mining may take time, and the entire Bitcoin network may seem to be slow. You have to be patient and not panic. Bitcoin price may go up or down, but you have to be calm.

Sometimes, some kind of information may spread about a coin or a company that will make naïve investors buy or sell unguardedly. The result of this is profit on the side of the news spreaders. These are calculated moves geared towards making huge profits. It is advisable to be wary of unconfirmed information.

Some traders make transactions based on predictions by experts. While this is a smart move, you also need to do your research and make your decisions independently. If you are not sure, you may want to let such transactions slide and wait for the perfect time.

When it comes to striking a deal, do not be in haste. It is not advisable to deal with a partner based on the information from the partner’s side. You should ensure that you calculate the risks involved and the benefits involved as well. Then, make your decision based on what works for you.

Final thoughts

Investing in a virtual currency is always a smart move. So, you can make Bitcoin purchases and expect to make profits. There are several crypto exchanges you can use, including Coinbase, CoinMama, and so on. All cryptocurrency exchanges have areas where they draw customers’ attention. Purchasing Bitcoin on any platform listed here is a smart move any time and day if you know how to go about it.

There are several reasons why buying this digital gold is an excellent investment. Aside from the fact that you will make profits, the Bitcoin blockchain is accessible and transparent. As an investor, you should know that crypto investors need to have a level of self-control to make intelligent decisions and not be carried away with the wind of fake news.

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