What is investing in Bitcoin and how to do it safely?
by Rob Davis Content writerInvesting 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. Today, it is gaining an 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 the characteristics that make Bitcoin a safe and reliable system are.
First
of all, you have to talk about the underlying technology behind Bitcoin, the
blockchain. It is this technology that makes possible the operation and
operation of this entire decentralized digital payment system. One that is not
operated or controlled by any bank or central entity.
Thus,
the blockchain is what allows a single, detailed, transparent, and unalterable
record of all operations and movements carried out in addition to being
distributed among all users connected to the network. These users 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. Because of this, and many
other qualities, 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 earn bitcoin online safely through investing? 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 may be an action within a company, real estate, precious
metals, markets, or another that will increase in value over time. Therefore,
we will get the benefits.
But
it is not a simple saving. If not, rather 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 necessary to realize that this type of investment involves a high risk of
a 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 variety between
what you paid and what you receive will be the profit or loss.
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 2
possible options on how you can do it.
1. Mining
Although
this is not the most profitable option for everyone today due to the network's
difficulty and its technical complexity to do it correctly, mining can provide
you with benefits in a 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 significant investment.
Not counting the energy expenditure that these teams demand or that these
devices "expire" as they are not competitive if the network's
complexity increases.
Nevertheless,
if you investigate 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, every 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.
In
contrast, there are organizations that advertise themselves as platforms that
mine for you if you pay them, known as cloud mining, but 99.99% of them are
scams. We recommend you not to use these platforms. We invite you to learn and
mine on your own.
2. Trading
It
is one of the methods that has gained strength in recent years. Since it can
allow us to make a 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 is to follow a trend or short 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 holding 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 essential 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.
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Created on Sep 3rd 2020 09:03. Viewed 356 times.