I love Quora, but EVERY day I get someone asking a question like “Should I Invest in Bitcoin?”, meaning should I buy Bitcoin and wait for it to go up and sell it.
This, is not, in fact, investment at all, this is currency trading, you are assuming that currencies ALWAYS go up in value. But any trader will tell you that everything, stocks, shares, currencies move both up and down in value.
If you are buying Bitcoin to hold, you are essentially waiting for the currency to move up, sadly a lot of people get really disappointed when it moves down and make statements like “I lost all my money on Bitcoin”. This is not actually true, you have the same amount of Bitcoin, it’s just you bought when it was high, you were spurned on by hype.
How do you invest in Bitcoin?
Firstly, you need to spend time looking at charts, understand how currencies move and that you are taking a huge risk, investing in ANY currency is a high risk business, you are not just buying currency you are, in effect, trading in a volatile market that may blow up (or down) at any minute.
Buy purchasing Bitcoin on exchange it’s like putting a stake in the ground, let me explain it like this:-
Let’s say you are going on holiday, and you live in the UK, you purchase $100 with £100 worth of Sterling. – in the markets you are flat. While you are in the USA, you manage not to spend any of the money, but while you are there the US$ goes up in value, so you come back home and go to exchange your $100 to find that you can sell it back for £130, you’ve made £30 profit simply by holding on to dollars. (Don’t forget it can work the other way as well).
So don’t say “I’m going to invest in Bitcoin”, say “I’m going to trade Bitcoin”, because that’s what you are doing.
You may win or lose. But it’s up to you to be wise about your investments. Whatever they may be. Don’t be fooled by the hype.
If you still want to buy Bitcoin check out Coinbase. They are offering a nice basket of currencies you can buy into. But remember your investment may go up up up as well as down down down.
Your blog may helps a lot to investors and I am one of them. I agree with your statement that the investor may win or lose, it’s up to you how wise you invest. Valuable content. Thanks for sharing it. Hope you will update more blogs soon.
Thanks Cory.