Can cryptocurrencies be considered a serious investment? Or is it just pure speculation?
Yes, cryptocurrencies can be a serious investment. However, there are some key differences between investing in cryptocurrencies and conventional investments.
Here is some of them:
- Cryptocurrencies are completely digital, so they do not exist in the form of paper money;
- Cryptocurrency exchanges are not insured at the state level, for example, as they do with banks. If someone hacks into your account or your cheapest crypto exchange closes, then the government is not obliged to refund your lost funds;
- Cryptocurrencies are decentralized. This means that they are not tied to any country or government agency, which allows cryptocurrency holders to transact without government oversight. On the one hand, this is an advantage, but on the other hand, there is no way for you to cancel unauthorized transactions
- The history of volatility (instability) in cryptocurrency prices is not that long, and therefore traditional technical analysis may not work until the market itself “matures”.
If you consider cryptocurrencies as an asset, then you are betting on the blockchain technology on which these digital currencies are built. However, fundamental analysis for cryptocurrencies will be very different from fundamental analysis of traditional assets.
What are bitcoins
Bitcoin is digital money, that is, cryptocurrency. Physically, it does not exist, but there are special registers where information is stored about how many bitcoins someone has and who transfers them where. These ledgers are called blockchains.
Any cryptocurrency is a risk. In Russia, it has not yet been legalized, so no one will protect your rights if something goes wrong. Well, if you keep money in bitcoins, follow its course: every now and then it sausages.
Trade or Invest?
When choosing assets to buy, you need to consider whether you are trading or investing. It is easy to confuse these activities, but there is a difference. Investing means choosing assets that you are confident in and that you plan to hold for a long time.
This strategy is less time consuming and usually carries less risk. In turn, trading is aimed at obtaining short-term or medium-term profits through regular purchases and sales. It takes a lot of time and experience to become a good trader.
You also need to consider the money spent on trading and transaction fees. Remember: cryptocurrency markets are sometimes more volatile than traditional ones. And despite the fact that traders need volatility to make a profit, its high level still carries significant risk.
Buying your first bitcoin on Binance
On the Binance cryptocurrency exchange, you can easily buy Bitcoin and other altcoins.
- To create an account, go to the Binance home page and click the button in the upper right corner.
- The easiest way to buy cryptocurrency is to use a credit or debit card and the conversion function.
You can also buy crypto at any of these crypto sites of your choice
5 Tips to Consider Before Investing in Bitcoin
In 2017, Bitcoin encountered a ton of development and individuals raked in tons of cash simultaneously. Indeed, even today, Bitcoin is quite possibly the most rewarding market. In case you are barely getting started, you might need to get your work done prior to placing cash in Bitcoin. Given beneath are 5 master tips that can assist you with staying away from some normal mix-ups while you exchange Bitcoins.
1. Become familiar with the Basics First
Above all else, you might need to gain proficiency with the fundamentals so you can find out about how to purchase and sell Bitcoin. Moreover, you might need to peruse audits of well known Bitcoin trades to search for the best stage.
Similarly as with different sorts of monetary speculations, you might need to discover approaches to ensure your venture. Ensure that your resources are protected against tricksters and digital assaults. All things considered, security is the main part of a speculation.
2. Consider the Market Cap
It’s anything but a smart thought to settle on this sort of choice dependent on the cost of the coin alone. Be that as it may, the cryptographic money esteem is legitimate just in the event that you think about the current inventory available for use.
Assuming you need to buy Bitcoin, don’t zero in a lot on the current worth of the money. All things considered, you might need to consider the total market cap.
3. Put resources into Bitcoin as opposed to Mining Bitcoins
The Bitcoin mining industry is ascending in notoriety at a high speed. Right away, it wasn’t so hard to procure Bitcoins by breaking the cryptographic riddles. Afterward, it was feasible to mine Bitcoin in unique server farms as it were.
These focuses are brimming with machines intended for mining Bitcoin. Today, assuming you need to assemble a locally established mining place, you might need to burn through millions. In this way, it’s smarter to put resources into Bitcoins.
4. Enhance your Investments
New Bitcoin financial backers will in general have a brief energy for digital currency. Truly, With Bitcoin, you can expand your venture. In the event that you put resources into digital money astutely, you can partake in the very rewards that you do by putting resources into Forex.
You should simply assemble a strong danger in the board system. At the end of the day, you probably shouldn’t place every one of your eggs in a similar container. Thus, you might need to put resources into other digital currencies also.
5. Set Clear Targets
Since Bitcoin is another market, you might think that it is difficult to realize the perfect opportunity to exchange your Bitcoin. Bitcoin esteem is unpredictable, which implies you ought to have clear focuses all things considered. You probably shouldn’t settle on the mix-up of settling on speculation choices dependent on your feelings. Taking shrewd actions can assist you with limiting misfortunes and gain great headway.
Individuals the whole way across the world have become very mindful of digital currency. Moreover, there are significantly additional suppositions on it from the specialists. It is very normal to track down that the cash specialists who are favorable to bitcoins hold that the money is expected to contact somewhere in the range of $250,000 and $500,000 for each coin in the following several years.
Then again, you will track down a few all around perceived monetary investigators and experts who don’t spare a moment to caution individuals about the issues that they may need to confront putting resources into Bitcoins. The specialists acknowledge the reality, that this cash called Bitcoin and other digital forms of money may have a ton to provide for general society, yet the day isn’t far when the contributing individuals will endure and get an extensive blow.