Knowing how to invest in Bitcoin safely is not difficult at all if you have some basic recommendations in mind to do so. That is why we have dedicated this article to explain some of them and what you should do to fully enjoy your investment in Bitcoin and other cryptocurrencies.
Investing in Bitcoin can be a great alternative to diversify a varied portfolio of investments that guarantees a more prosperous future. This is due to the potential profitability that we can obtain in the medium or long term as Bitcoin is a totally disruptive new type of money with traditional money and that today is gaining enormous speed of adoption. Perhaps for this reason, at some point we have asked ourselves how to invest in Bitcoin safely? Well, to answer this question it is necessary to know what is behind this wonderful technology. And also, know what are the characteristics that make Bitcoin a safe and reliable system.
First of all, you have to talk about the underlying technology behind Bitcoin, the blockchain. It is this technology, which makes possible the operation and operability of this entire digital and decentralized payment system. One that is not operated or controlled by any bank or central entity.
Thus, the blockchain is what allows to keep a single, detailed, transparent and unalterable record of all the operations and movements carried out. In addition to being distributed among all users connected to the network. These users are the ones who keep an exact and updated copy of it every time new information is added. Amazing, right?
This technology has allowed Bitcoin to become the digital currency that it is today. In addition, of course, to its software design and consensus protocol. This is what allows Bitcoin to be used from anywhere in the world if you have an internet connection. So carrying out cross-border transactions is no longer a problem. Besides that they only take a few minutes and their commissions are very cheap.
But what else does Bitcoin offer us?
In addition to all the above, this cryptocurrency also allows us to carry out transactions without having to reveal our private data. Which increases the level of security when conducting our operations. Thus, to make or receive a transfer you only need to have a public address that anyone can know without risk. We are certainly not talking about complete anonymity, but Bitcoin is capable of protecting our privacy in a unique way.
For its part, today there are many exchange houses or exchanges where we can exchange our bitcoins for fiat money. Likewise, the number of companies and businesses that accept payments in this cryptocurrency has also grown. A situation that ends up making things easier for us. It is because of this, and many other qualities, that Bitcoin is considered the digital gold of our age. And because of this, it is revolutionizing our current way of seeing finances and money.
This cryptocurrency has given us absolute power over our own funds and assets. Since they cannot be devalued or frozen by any entity or person. So, after knowing its incredible qualities, you would like to know How to invest in Bitcoin safely? Know if it is really worth investing? If it is profitable? Well, all that and more we will examine below.
¿What is investing in Bitcoin and how to do it safely?
Investing consists of putting part of our money in a project in order to obtain future profits. This project can be about some action within a company, real estate, precious metals, markets or another that over time will increase its value. Therefore, we will get benefits.
But this is not a simple saving. If not rather to buy an asset when its price is low and sell it when it has appreciated. That is, when it has increased in value. You can buy assets that are simply sold when they appreciate, or assets that also generate dividends.
In this sense, investments in Bitcoin are very similar to investments in other currencies, or precious metals. That is, they are sold when they appreciate, but they do not generate dividends as if the shares of a company could.
But it is important to understand that these types of investments involve a high risk of partial or total loss, as well as large gains, since the value of these assets can change radically at any given time.
In essence, investing in Bitcoin is very simple: you buy bitcoins and sell them whenever you want. The difference between what you paid and what you receive will be the profit or loss.
Advantages of investing in Bitcoin and other cryptocurrencies
One of the greatest advantages that we can see in this type of investment is the enormous profitability that we can have. Bitcoin continues to be the leader in the cryptocurrency market and the one with the largest capitalization. Likewise, its value as a project, despite the price rises and falls, has been increasing significantly over the years. In addition to new protocol improvements, tens of millions of new users, tens of thousands of companies that accept it as a means of payment, hundreds of companies developing services around it.
In addition, the boom it has had among important figures and companies in the world gives greater confidence to this system. The markets around cryptocurrencies continue to grow constantly. So these assets are seen as an important investment alternative.
Although investing in Bitcoin and other cryptocurrencies also involves its risks. For example, its exponential revaluation in a few years is not a guarantee that the value will continue to grow in the future. We have witnessed the high volatility of this cryptocurrency in its development, significantly changing its value from one moment to the next, which can cause us certain doubts and some fear. So for short-term investments it is not recommended.
Many experts agree that this volatility is typical of a growing asset, which will stabilize and mature over the years.
¿Where and how can we invest in Bitcoin today safely?
If you have already made the decision to invest in Bitcoin, here we show you 3 possible options on how you can do it.
Mining
Although this is not the most profitable option for everyone today due to the difficulty of the network and its technical complexity to do it correctly, mining can provide you with benefits in few situations. This is perhaps one of the best known ways to safely invest your money in bitcoin.
Buying powerful mining devices and equipment means making a big investment. Not counting the energy expenditure that these devices demand, or that these devices "expire" as they are not competitive if the complexity of the network increases.
However, if you study hard enough, you can put a moderate miner to work correctly and join a mining pool. So you can join the power of hundreds of miners to carry out the intense task of mining Bitcoin.
As a result, being part of the pool, each time that pool mines a block you will receive a reward in BTC for the proportion of work you have contributed. Similar to a cooperative.
Remember that mining pools were created to unite the computing power of several teams and facilitate the work of mining, distributing the profits equally according to the power contributed by all its participants. Including the little ones.
However, this option should be studied in depth so as not to lose your money. Since mining pools are centralized organizations that can keep all the money from the profits.
On the other hand, there are companies that advertise themselves as platforms that mine for you if you pay them, known as cloud mining, but 99.99% of them are scams. From Bit2Me we recommend you not to use these platforms. We invite you to learn and mine on your own.
Trading
It is one of the methods that has gained strength in recent years. Since it can allow us to make profit in a very short time. Trading is a speculative market where you must buy at low prices and sell at high prices. There are several ways to trade, but the most common are to follow a trend or perform short operations during the day. Trading is another well-known way to safely invest your bitcoins.
Among its advantages is that we can start trading with any amount of money that we have. Literally from 1 euro, and we only need to have a computer and an internet connection.
However, you must beware of many fraudulent platforms that only hope to scam people. Giving false trading signals or withholding the coins that you have generated with your operations. They will also call you so-called expert advisors to manage your money in cryptocurrency investments, HANG UP THE PHONE! They are going to fool you in some creative way and you won't even realize it until you've lost everything.
Therefore, it is very important to choose well the platform that you are going to use to carry out operations. If you want to make money from trading, trade yourself. Learn and do it. Don't give your money to anyone.
We offer the possibility that you create your investments in cryptocurrencies, click here to know more.
Tips to invest in Bitcoin safely
With the popularity that cryptocurrencies have gained in recent years, it is not surprising that we receive hundreds of messages every day inviting us to enter the world of Bitcoin or another altcoin. These messages or advertisements constantly urge us to invest our money immediately in these cryptocurrencies. Promising us big profits in a short time.
But will it be safe to do so? What must we know to invest in Bitcoin without greater risk of losing our money? Well, let's see some useful tips to know how to invest your bitcoins safely.
Don't act impulsively
Investing our money in an asset is a decision that we should not take lightly. It does not matter if they are a few euros or thousands of them. Our money, the product of effort and work, is valuable, no matter the amount. So we cannot get carried away by those miraculous pages that promise us endless wonders without effort. These, in most cases, end in scam and our money disappears.
Use a secure wallet
There are few cases that we have heard of hacks and robberies of platforms or wallets where users have lost fortunes. Therefore, you must make sure you operate with a reliable wallet that allows you to make purchases and sales of bitcoins with total security.
Make backup copies and keep them in a safe place. Also, if you opted for a long-term investment, use an offline wallet. This will provide you with greater security and you will be protected against cyber attacks.
If you use Bit2Me Wallet, apply the second factor of security from the Security section in your profile settings.
Diversify your investment portfolio
While the most famous cryptocurrency is Bitcoin, we cannot just bet everything on it. Its high volatility and large movements can return in juicy profits. But they can also turn into big losses.
Therefore, having a diversified investment portfolio is essential when it comes to investing safely.
Remember that Bit2Me Wallet allows you to create a varied investment portfolio in cryptocurrencies.
Be aware and realistic
Not for nothing is the saying that you invest only what you can lose. Never use money from family savings that can get you out of trouble. Or money you need to live and pay your expenses. Also, don't aspire to become a millionaire overnight.
Be realistic, the key to success in this world is investing amounts that you can lose and setting goals for the medium and long term.
Don't believe in miracle courses
Although if we want to enter the world of investments and operations with Bitcoin, we must educate ourselves and study. It is not necessary to pay large sums of money for courses that promise in a few hours to reveal the most infallible tricks to carry out successful operations.
The popularity of cryptocurrencies has led many ill-intentioned people to "design" miracle curricula claiming to make you rich overnight. Do not be scammed. Better get ready and study with educational content that you have available for free on the net.
Never apply for loans to make investments
I think this is one of the recommendations that stands out the most when considering any investment. And in the case of cryptocurrencies, this rule must be kept in mind more than ever. Due to the high volatility suffered by Bitcoin and other altcoins, you can lose your entire investment. So never go into debt to make investments.
Beware of derivatives
Platforms like eToro and the like do not sell Bitcoins. If you cannot make a withdrawal of the bitcoins from the platform, it is most likely that they are derivatives. This means that you are totally tied to the platform, and there are many derivatives platforms that are scams. The bitcoins must be able to get them to the wallet that you prefer, if you cannot do that, do not use that platform.
Beware of scams
Many people are going to want to take your money. Be careful who you give your cryptocurrencies to, it is best to always have them under your control, or if you temporarily leave your cryptocurrencies in the hands of a platform, it is assuming that if you have not investigated in depth you could lose that money / cryptocurrencies that you give them.