2017 was a great year for Bitcoin investors and we witness the increase of 1300% in the value of Bitcoin in last 12 months. Bitcoin has a lot of potential and Bitcoin investors are positive about the future of Bitcoin. In this post, I will explain whether Bitcoin is a good investment or not.
Different types of Bitcoin Investments
Following are the different types of Bitcoin investments.
Bitcoin – Buy & Hold
The most common and effective way of investing in Bitcoin is buying and holding. In this way you buy the Bitcoin with the hope that it value will increase over the time and you will enjoy good profit. Now this type of investment could go wrong in multiple ways as there are chances that may be the value of thing your investment may decrease or maybe it appreciate over the time. Bitcoin value has increased steadily since its inception. According to Bitcoin Blockchain, approx. 4 million Bitcoins are off the grid since 2010 and many experts believe that these 4 million Bitcoins are held by long-term investors and Satoshi Nakamoto. If you want to invest your money in Bitcoin then you can take guidance from our website where we have discussed different aspects of Bitcoin investment. Following are the tips if you want to buy and hold Bitcoin.
- “Don’t put all your eggs in one basket” as the famous saying suggest we would also recommend you to not put all your money in Bitcoin. Bitcoin has a lot of potentials and I personally believe that it will value more in next couple of years but this is just me.
- Start from the small investment, try to learn about the Bitcoin, its history and then make the big investment in it.
- Move all your Bitcoins to your personal Bitcoin wallet after buying them, don’t leave them on Exchange as Exchanges are prone to cyber-attacks and you can lose your investment. In 2014, Mt Gox was hacked and Bitcoin investors suffered the loss of more than 450 million USD.
- Make sure to buy Bitcoins from the trusted Exchanges. Also, make sure to read reviews about them. You can read reviews of Top exchanges on our website.
Bitcoin Trading is another most common method of Bitcoin investment. In Bitcoin trading, you don’t hold the Bitcoin for a longer period. In this investment method, you will try to buy the Bitcoin for a lower price and will sell it for a higher price. Bitcoin trading is more efficient if you have knowledge about the Bitcoin market and ability to predict the market trends.
Bitcoin Mining is a good option for large-scale investment. For low-scale investment, we will recommend you to use the first two methods. Bitcoin Mining is an expensive process and you can make a profit if you do it at large scale or with mining pools. For solo mining, you will need expensive equipment with the high computational power to validate blocks and earn block rewards.
Should you invest in Bitcoin?
The answer to this question is pretty simple as well as complex at the same time. If you are ready to take the risk then we will recommend you to invest your money in it but we will also recommend you to educate yourself about the Bitcoin and its value trends. You can find sufficient information about the Bitcoin on our website. In my opinion, the best option for Bitcoin investment is to buy and hold as Bitcoin have shown its potential in 2017 and I think this is just the beginning. If you think that you are ready for Bitcoin investment then make sure to read reviews of top Bitcoin exchanges on our website.