Over the years, the popularity of investing in cryptocurrencies has been constantly growing. Although only a few years ago it experienced an expansion in the market, this digital money is a favorite way of investing for many investors who want to provide a better opportunity for themselves and their families. Moreover, the great powers of the world gladly enter into this money. Just think of Elon Musk, the creator of Tesla, who also got involved in the Bitcoin trade. After that, the value of this cryptocurrency rose sharply!
Well, let’s start from the beginning.
What is Bitcoin?
Bitcoin is the oldest cryptocurrency created in 2008. Its creators remained anonymous, hiding behind the pseudonym Satoshi Nakamoto. At the time it was released, in 2009, the value of Bitcoin was insignificant – $ 0.03. It was then considered that it would be successful if it managed to equalize with the dollar, which at the same time was considered by its maximum. However, the value of this cryptocurrency has grown almost constantly and is very quickly recognized as a currency worth investing in. Let’s remember that earlier this year it surpassed the $ 50,000 value! Today’s value is somewhat lower – $ 36,000. In any case, many still dare and decide to invest their money in this currency in the hope that it will pay off. Probably will.
How can I buy Bitcoin?
Before you buy any cryptocurrency, you need to provide a place where you will keep money, and in this case, a crypto wallet, or digital wallet. There are several types of wallets, and they are divided into hot and cold. While hot wallets require an internet connection, a cold wallet involves storing money on hardware, which is considered very secure, but also a large investment. On the other hand, a hot wallet is more affordable, ie free, so many people like to use it. It is up to the user to judge which wallet is better, but know that investing in a cold wallet is a smart investment.
Now that you have a place to store your cryptocurrencies, you can start buying them. Although there are many ways to do this, buying on Bitcoin ATM is the most popular and easiest. All you have to do is swipe your bank card and transfer the money to your digital wallet.
Is it worth investing in Bitcoin?
Cryptocurrencies are subject to extreme price changes and this is something that every potential investor should know. We have already mentioned that the Bitcoin path is also full of ups and downs. Lately, we can hear more and more speculations that this cryptocurrency is approaching doom. Why is it like that? You may have heard by now that Bitcoin is a “dirty” product. This refers to the mining of cryptocurrencies that negatively affects the environment, consuming too much electricity. If an appropriate tax were introduced on digital money, many believe that the bubble would surely burst.
In addition, some say that Bitcoin is a victim of its own success because if this product enables the transfer of a huge amount of money between completely anonymous individuals, it is against a whole generation of regulations. This makes it suitable for many criminal acts as well.
Then why is its price still rising?
Very simple – the price is rising because the demand is growing. The moment everyone sells out, the value will start to fall. However, until then, there are still opportunities to make money on this cryptocurrency.
How can I make money on cryptocurrencies?
The two most common ways to make money on Bitcoin are mining and trading. Mining is considered a bit more complex and is recommended for more experienced investors who know how to wait. In addition, mining requires a certain type of investment in equipment and consumes a lot of electricity. The opposite is trading, where it is enough to find a reliable platform and the game can begin! You can click here to learn more about it.
There are also mobile apps that facilitate trading using artificial intelligence. In this way, the trader does not have to spend his free time following changes in the market, but the application does it for him.
Is cryptocurrency trading legal?
It is difficult to give an answer to this question, considering that it is decentralized money, ie. there is no central authority. Therefore, neither the Government nor the banks have any control over the flow of this money, and for that reason, it is accepted differently from country to country. Still, people love it because it protects privacy, all transactions take place without the mediation of a third party.
The future is in any case very difficult to predict, and the future of financial markets is very young and still an under-explored market even more difficult. It remains to be seen whether cryptocurrencies manage to replace money and on which these two markets will interdependent and whether depend at all. Cryptocurrencies still do not meet some of the basic properties of currencies, yet they have not become a generally accepted medium of exchange, and also due to excessive volatility they have not an effective repository of values.
Usually, in times of recession, new ideas and innovations emerge to bring about a recession as soon as possible could stop, so it was in a time of recession in 2008 as a possible substitute for money and money inflation created Bitcoin. It turned out that in a very short time it became not only possible replacing money already a certain competitor to capital markets and even gold. Since 2008, more than 4,500 cryptocurrencies are active in the world today, and when and whether they will successfully replace money remains to be seen. In any case, Bitcoin is a specific currency, very different from its predecessor in its characteristics. Although some countries have begun to regulate transactions, little is still done about it, so one needs to be very careful, as there are many cases of abuse such as the Ponzi scheme or computer Trojans used to steal crypto wallets.