The year 2017 was the year of celebration for Bitcoin enthusiast as it crossed $1000 mark and there were no chances of slowing down. So a lot of speculation started among the investors whether or not to invest in Bitcoin. But before getting into further details we should understand that Bitcoin is not a stock or a company, it is a currency.
One more thing a person should know is what exactly investing into Bitcoin means, so when a person is buying Bitcoin he is basically buying a currency with a hope that its value will appreciate. So before investing it should be clear to you whether you want to invest in a Bitcoin-related company or you want to get involved in the day to day trade.
The most common form of investing or holding Bitcoin is buying the currency with a hope that its value will increase. In that, you have to do some research on your part about the correct time to buy a biotin so that its value increases continuously. In this case, don’t rely on any others opinion it is your money so the decision should be yours.
Few instructions to be followed while buying Bitcoin:
- Invest that amount which you can afford to lose as it a very risky investment, it can double your investment and make you a millionaire or you may lose all your investment.
- After investments keep your Bitcoin safely in your wallet and never leave it in the exchange, it is always good to save it in a hardware wallet as it has fewer chances of hacking.
- Always buy Bitcoin from the exchange that has a good reputation in the market.
- Do not buy Bitcoin in one go think of buying some Bitcoin every month or every week or even every day. This way you will get an average of the price throughout the year.
Trading a Bitcoin is altogether a different concept than buying and holding. Trading means you are trying to buy the currency when its price is less and will be selling it when you are getting relatively more valuable. To be a successful trader it takes a lot of practice and knowledge of the market. Beware of the fact in a trading market lot of big players are waiting for the newbie trader to come and trade aimlessly. Trading is not a fun; after all, it is your hard earned money that you have used to invest in Bitcoin.