There’s a huge demand for this question, and it must be answered. The price of bitcoin has shown a stable growth, as seen on the all-time chart. Although there had been lengthy periods of decline (like over the course of 2018), every time it regained 700%-1000% growth back.
There are many ways to earn money with this digital currency: not just mining or day trading. The peculiar quality of bitcoin’s price to crawl up, although its value is backed up exclusively by computational power, math, and faith, has attracted all kinds of investors already.
So how to invest money in bitcoin?
The whole process is as simple as 1-2-3.
There are plenty of online exchanges (some of them decentralized) that list offers in bitcoin. Select the one that appeals to you. Exchanges are the most popular go-to option among traders worldwide; as for the alternatives, we’ve a great article to help you choose.
Trustee wallet is a tool to store, buy, sell and exchange the crypto currencies.
As soon as your bank card is linked to the personal account, you can move funds in and out, trade in all available pairs, and use the account for storage.
It is always recommended to protect the account properly and to distribute the assets between backup wallets, including cold ones: your PC hard disk, flash drives, and specialized Ledger / Trezor wallets.
How to invest in bitcoin most profitably.
The periods of accumulation are approximately between the dates of halving. Bitcoin halving reduces the block reward by 50% every four years. Initially, the reward used to be 50 BTC; now it’s 6.25.
BeinCrypto did a great analysis of this and the key takeaways are that:
April 2021 is not the perfect time to invest in bitcoin, but theprice is expected to grow long-term anyway ($100,000 at the end of 2021, according to most popular traders).
The next possible accumulation period should start in about a year before the next halving.
And when is the next halving? Let’s take a look at the clock! Keep an open eye for the next historical low in March 2023. If the prediction is true, it should be the best time to make an investment that will generously pay off at the end of the bull run.
How much to invest in bitcoin?
The decision to stake a specific sum is only partially driven by facts. It is about a healthy attitude to no lesser degree. Invest only as much as you can afford to lose. This cliché rule will spare you from all the bitter frustrations of an investor’s life.
How to safely invest in bitcoin?
If the professional predictions fail, your own knowledge of the market becomes your only guide. The rules of a thumb:
- Diversify the portfolio.
- Store inactive assets in cold wallets.
- Improve the investment skill daily. That includes reading the news or chatting with fellow investors at least an hour a day if you indeed intend to be proficient.
Also, add your own rules and keep an open eye for emerging market trends.
How to invest in bitcoin stock
When it comes to deciding how to invest in bitcoin stock, there is just no right digital market for the investment. The cause for this is that bitcoin cannot be compared to stocks in the traditional meaning of the word.
Stocks are issued by companies. Companies are run by individuals (or legal entities). Bitcoin is not a company, it is a piece of open-source software, a public ledger. Its developer, Satoshi Nakamoto, did not claim ownership over it and therefore does not represent it as their “company”.
For this reason, when you ask, how to invest in bitcoin stocks, there is just no right answer.
Although, from a buyer’s perspective, if they deem that the value of bitcoin will rise, they see it as an investment opportunity. And they could consider the whole body of bitcoin cryptocurrency assets as “bitcoin stock”, so that the fractions of it would be viewed as “bitcoin shares”. From such a point of view, the simplest advice to the buyer wondering how to invest in bitcoin stock, is: just buy bitcoin on any of the available exchanges.
How to invest in bitcoin futures
As we have discussed above, Bitcoin blockchain is an open-source technology, not owned by anyone and not functioning as a company.
It is possible nonetheless, with some adjustments to interpretation, to talk about bitcoin “stock” and “shares”; so is it possible to talk about bitcoin futures? How to invest in bitcoin futures?
Futures allow a buyer to invest in crypto without the need of buying it at the moment of a deal. The future contract binds the two parties—the buyer and the seller—to make a transaction at a certain point in future and at agreed price.
Sellers guess that their price will be higher than the market price at the moment of transaction (when the contract expires). This way, they can save some money if they believe the price of a commodity will drop drastically soon. Buyers guess the opposite, hoping to resell the commodity they bought cheaper than the market price and thus make money. This is the point of future contracts, and it works out in case with bitcoin, too.
How to safely invest in bitcoin
For a first-timer, it will take a lot of initial research before they grasp the basics of cryptocurrency investments. Moreover, the learning process should never stop if they want to stay on top of things. But as soon as they learn how to invest in BTC, picking any other digital asset won’t be a problem.
If bitcoin does become too old to be actively traded one day, they’ll move on with confidence.
Are you still doubting yourself?