It’s one of the most popular questions, asked around the globe for the last few years; should you invest in Bitcoin?
Everyone has an opinion. But most people’s opinion is invalid because they don’t actually understand Bitcoin, what it is, the function it serves, and why it’s extremely valuable.
Many Bitcoin haters are simply jealous that they didn’t get on the train earlier when quadruple-digit returns were taking place. As a result, they are hoping that Bitcoin plummets.
Either way, Bitcoin is here to stay. And what was worth $29,000 at the start of 2021, was worth over $60,000 just 10 months later.
Whether you like it or not, Bitcoin is going to continue climbing. Want to get in on those returns? Then read on to learn what you need to know about the world’s greatest, decentralized, available-to-anyone investment vehicle.
Why was bitcoin created?
Bitcoin was launched in 2009 as a decentralized, peer-to-peer, trustless digital currency. Instead of being controlled by governments and central banks, Bitcoin is governed by blockchain technology and smart contracts.
It exists on the internet, free from a centralized authority. As a result, there is no government or agency that can ban Bitcoin, devalue it, or prevent others from investing in it.
It doesn’t require the use of banks or brokerages to store funds or facilitate transactions. And it can be sent to others directly, without any intermediaries. So friends and family can send funds to one another. Or you can purchase goods and services from merchants using the currency.
Bitcoin transactions are recorded on the blockchain, which is a digital, public ledger that is verified by thousands of computers across the globe. This open-source accounting provides security, prevents fraud, and removes the need for a centralized authority like a bank to process transactions.
So Bitcoin allows us to live independent of the central banking system, or at least keep a portion of our wealth independent of their control and monitoring.
Is bitcoin a safe investment?
When it comes to safety, new investors are wondering if Bitcoin is going to lose all of its value, or if it’s going to be banned or disappear.
Bitcoin has been around since 2009. Since then, it has amassed millions of investors from around the world, including governments, major corporations, and investment firms.
It currently has billions of dollars invested in it, with billions trading on the open market daily. Because Bitcoin is decentralized, no one can devalue the currency or make it go to zero. The only way it can lose all of its value is if everyone decided they didn’t want it anymore and sold it.
But millions of investors will never collectively decide Bitcoin is worthless, so the value will remain, and likely grow.
However, Bitcoin is different from traditional investments in that fluctuation in value is much more intense. Swings of more than 10% in a day aren’t uncommon, with fluctuations of more than 25% possible as well.
This is just the nature of cryptocurrency as a new asset class, and one that is available to the entire planet, 24/7.
One of the biggest benefits of investing in Bitcoin is the opportunity for outsized returns. Bitcoin started out as a valueless digital token. It was given away for free in the early days.
Eventually, people wanted to get some for themselves, so the coins went for a few cents apiece. Then, coins started selling for a dollar, then a few dollars. Each time, the gains on Bitcoin were massive.
In October 2021, Bitcoin recorded an all-time high of $67,000. Had you bought one year prior, you’d be sitting on massive returns. Had you bought five years earlier, you could retire right now.
Bitcoin, and many other cryptocurrencies, have the potential to grow much faster than traditional investment classes. And so far, no one knows if there is a ceiling.
Why is Bitcoin going to continue growing? It’s a limited asset. There is a finite number of Bitcoin available. The total circulation will never exceed 21 million.
But the number of people who want Bitcoin is increasing daily. And the number of individual investors who want as much Bitcoin as possible is also increasing daily.
The law of supply and demand says that in this scenario, demand will drive the price up for a limited asset. If you need reasons to invest in Bitcoin today, consider the fact that many reputable financial experts are expecting Bitcoin to surpass $100K in the near future.
How to invest in bitcoin today
If you have some extra money that you are looking to invest, there’s no reason not to invest some of that in Bitcoin. After all, you’ve seen that it has proven itself to the greater investing community across the globe.
Many well-known financial experts, bankers, and CEOs have lauded Bitcoin, and other cryptocurrencies, as worthy investment vehicles. Some have even become Bitcoin fanatics, once they realized that Bitcoin is a much better asset class than traditional investments.
So how does Bitcoin investing work? It works much like investing in stocks. But the big benefit of cryptocurrency, versus traditional currency, is complete ownership.
It’s best to send your crypto to your own personal, digital wallet. When stored in your wallet, you own and control your crypto completely. You aren’t trusting a bank or investment firm to manage it on your behalf.
Software wallets are free to download and use. If you want something a bit more secure for larger investments, opt for a hardware wallet to store your crypto in cold storage, away from the internet and the possibility of a hack.
If you’re ready, here’s how you can get your hands on some of it right now.
Buy bitcoin online
Most people buy cryptocurrency, Bitcoin included, through an online crypto exchange. Many of the popular exchanges have millions of users, high liquidity, and numerous coins to invest in.
You’ll need to create an account and verify your identity in order to begin using a reputable platform. Upon successful verification, you can deposit funds from your bank or buy crypto using a debit or credit card.
Buy bitcoin with cash
Want to use up that suitcase full of benjamins under your bed? Inflation is destroying its value by the minute.
You can use a Bitcoin ATM to deposit cash in exchange for Bitcoin in a matter of seconds. Byte Federal operates more than a thousand Bitcoin ATMs across the country.
Fees are low and transparent, and you can buy as much as $21,000 worth of Bitcoin in a single day. If you ever need to access cash, you can do so by selling Bitcoin and withdrawing cash from the ATM as well.
Head to www.bytefederal.com to find the nearest ATM location.
Get free bitcoin
It never hurts to get some free money, right? There are a handful of ways to earn some free Bitcoin and jumpstart your crypto investing journey.
Some exchanges offer you a signup bonus, paid out in Bitcoin, for joining the platform and making your first deposit. Rewards can range from $5 to $250 depending on the platform and the time of year.
You can also sign up for the BlockFi Bitcoin credit card. Rather than earning cashback or travel rewards, this sexy credit card rewards you in Bitcoin. That way, you can make purchases as normal and grow your wealth while doing so.
Bitcoin rewards are paid out in your BlockFi account. Other companies are working on similar crypto-rewards credit cards.
Other cryptocurrencies to consider
When it comes to investing in cryptocurrency, Bitcoin is the original, the most valuable, and the most reliable. But it’s just the tip of the iceberg when it comes to growing your wealth with digital assets.
Thousands of altcoins (alternative coins) are also available, many of which have seen gains as impressive as Bitcoin, or even more impressive given their short timespan so far.
But just because there are thousands of cryptocurrencies available doesn’t mean you should try investing in them all. Choose just a handful, study up on their use case and tokenomics (economics of a particular token), and get to know the development team. These are the factors that are going to determine the long-term trajectory of the coins.
As a safety measure, investing in any of the top 20 tokens by market capitalization is a safe bet. Many investors will say that anything in the top 50 is a good investment as well.
Anything outside of the top 100 tokens has the opportunity to provide outsized returns but comes with much higher risk. It may be worth it to experiment with these niche altcoins, but only with money, you are willing to lose.
The first altcoins you should consider are Ethereum, Solana, and Polkadot. These are likely going to see insane growth, as these platforms are powering many decentralized finance projects.
Meme coins can experience insane growth as well, such as DogeCoin and Shiba Inu. And game tokens, used in online metaverse games powered by blockchain technology are going to see huge growth in the near future as well. This includes tokens like Axie Infinity and The Sandbox.
Should You Invest in Bitcoin?
The question still remains; should you invest in Bitcoin? If you want to get in before Bitcoin heads to the moon, now is the second-best time to do so. The best time was last year. Or the year before that.
But it’s never too late. Bitcoin has proved itself as an asset class in high demand that is going to stand the test of time. Quit being a no-coiner and get some for yourself.
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