What’s it all about to Invest in Bitcoin? In simple terms, it means buying some assets in the form of crypto for the future. For the future? Do I really mean that? Yes of course. How?
I know you’re thinking of investing in Bitcoin but here is how I was wrapped up 3 years ago.
I bought a certain coin at about $50 in 2016. I wasn’t even investing in bitcoin as I never knew the potential of bitcoin then. Fast forward to 2019, I was able to cash out this crypto of $50 in a fat sum of over $500.
Perhaps it’s too good to be true. Well, it might be, but the good thing is that it wasn’t a Ponzi scheme nor was I using legit bitcoin doubler sites.
Wait. Is there anything like a legit bitcoin doubler sites? Yes there is. However, they are all scammy websites.
And talking of 2019, I was scammed 2 times by some dudes, so, if you want a quick rich scheme website to invest bitcoin then I am afraid you might want to check out how to earn Bitcoin for free or use these BitcoinCash faucets.
On the other way round, if you want the basics of investing in bitcoin and everything you NEED to know before you buy Bitcoin then I present to you the top trusted bitcoin investment sites in 2020 and also the Top 10 Experts Bitcoin Investment Plan To Use.
The Value Factor of Investing in Bitcoin
Bitcoin is a digital asset so it has a value like other assets.
Quoting from the financial document called“International Journal of Arts and Commerce by Assoc.Prof. Dr.Huseyin Yilmaz, Bilecik Seyh Edebali University,
Investors buy and hold Bitcoins because they believe that the Bitcoins have value. It can be argued that if the developers control consensus about the rules and the miners control consensus about history it’s the investors who control consensus that Bitcoin has value (Narayanan and others, 2016:199).
It is logically and scientifically correct. Actually, in the primary market, the developers and miners are at the supply side and the investors are at the demand side of the trade.
Then, in the secondary market, investors sell their Bitcoins to other bitcoin investors. Hence, value is created at the result of the supply and the demand.
Some factors influence the prices of digital currencies including Bitcoin. These factors are
(Bank of England, 2014:5):
– the expected real return of holding the digital currency relative to other alternatives,
– any risks associated with holding the digital currency relative to other currencies including
risks of theft or fraud, and price volatility,
– the relative benefits of using the digital currency as a medium of exchange when compared to
traditional systems including availability, transaction fees, and degrees of anonymity,
– any time constraints or costs associated with switching wealth between the digital currency and
more traditional assets including sterling,
– any non-monetary concerns such as an ideological preference for one particular currency,
– a view on how much other people value the currency based on the above factors and how this is expected to change in the future.
The Riskiness of Investing in Bitcoin
There is a certain degree of Bitcoin price volatility because it is a new financial instrument. This should be taken into consideration by potential investors.
The volatility of Bitcoin prices is seen in the Table below.
|Date||Price of Bitcoin as a $US||% change from the prior year|
Source: The second column was calculated by the writer using data at https://en.wikipedia.org/wiki/History_of_bitcoin. The third-eight columns were calculated by the writer using data at www.bitcoin.com. The last column was calculated by the writer using data at http://bitcoinexchangerate.org
As we can see from the table, the price of Bitcoin has changed dramatically. It increased 1,474% between 2011 and 2012, and 5,406% between 2012 and 2013. Between 2013 and 2014, its price decreased by 57.80%.
Between the beginning and December 7, 2016, the price of Bitcoin increased by 9,549,275 %.
Bitcoin is approximately 8 times more volatile than the stock market (Shah,2014:3).
This type of investment does have a role in a well-balanced investment portfolio, but is not an investment for those with a low risk tolerance (Secor,2015). It is probably the riskiest investment of all financial investment family.
Speculators have seen trading virtual currency as a method to make a quick profit. This is a reason for virtual currency prices have been wildly volatile and for being impossible to forecast.
Speculative trading carries significant risk and has caused many investors to lose money. Because of how virtual currencies are created and processed, the identity of the user behind a virtual currency address remains anonymous.
This together with the current lack of regulation has made virtual currency attractive for use in illegal activity, including money laundering, drug dealing, terrorist financing and fraud (OSC Investor News, 2014:12).
Digital transactions are also subject to being hacked and computer theft (The Wall Street Journal, February 17, 2016).
So, people transferring Bitcoin must be careful while they are transferring Bitcoin – use only reputable investment platforms which leads us to the Best Bitcoin Investment Websites In 2020 for both beginners and Pro.
The Top 3 Best Bitcoin Investment Websites In 2020
Just to note, the following are not 1$ investment sites but some of the best sites I and other experts have used for a long time.
Coinbase has always been the Google of crypto and it will always be – at least for now.
As a long-standing fintech startup, I have been working and using Coinbase for a very long time now because they are secure, backed by strong investors, insured by the Lloyds of London, flexible and simple to invest in.
With Coinbase you can simply own a bitcoin Portfolio from $25+.
To invest in Bitcoin using Coinbase all you will need to do is #1. Transfer your local currency or USD to Coinbase #2. Convert it to Bitcoin. That is all.
Without being biased, I can only say that Luno is like Coinbase in its little way. Although not as big as Coinbase yet, they are strong and secure as well.
I have used Luno and still do, and should I say, they are like Coinbase when it has to do with an intuitive platform for users/beginners? Sure.
The cool thing, kind of a focused factor about Luno is that you get to work with just 2 cryptos. If it’s not Bitcoin then it’s Ethereum.
And to the advantage of many, if your country is not enlisted to invest using Coinbase then your next BEST PLATFORM to use is Luno – super flexible as Coinbase.
From experience, using Luno to invest in Bitcoin will literally take you 10- 15 minutes maximum.
Ever seen a startup that blew up everywhere just in 2 years?
The growth or authority Binance stamped in just about 800 days is the kind many startups struggle with for 10 years, yet, they came in, took over, sidelined others, and today, Binance remains one of the leading crypto investments platforms.
Okay, so, Binance is popularly known for advanced investment options – trading, lending, marginally and etc. How to go about it.
First, you will need to buy Bitcoin from Coinbase or Luno. When done, transfer the Bitcoin to Binance exchange. And finally, start trading with it.
So, those are the MOST focused investment places to get a portfolio/digital assets in crypto.
Let’s go over to see the best bitcoin investment plan you want to adopt.
Common Red Flags of Fraud To Look out for Before Investing in Bitcoin
For both the new investors and many that have been beaten over and again by some scammy crypto investment websites/individuals here are Top 10+ Experts Bitcoin Investment Plans, AKA, Common Red Flags of Fraud you want to look out for.
1. High Investment Returns with Little or No Risk
Every investment carries some degree of risk, and investments yielding higher returns typically involve more risk. “Guaranteed” investment returns or promises of high returns for little risk should be viewed skeptically.
2. Overly Consistent Returns
Investments tend to go up and down over time, especially those seeking high returns. Be suspect of an investment that generates consistent returns regardless of overall market conditions.
3. Unregistered Investments
Ponzi schemes typically involve investments that have not been registered with the SEC or with state securities regulators.
4. Unlicensed Sellers
Federal and state securities laws require certain investment professionals and their firms to be licensed or registered. Many Ponzi schemes involve unlicensed individuals or unregistered firms.
5. Issues with Paperwork
Be skeptical of excuses regarding why you can’t review information about the investment in writing. Always read and carefully consider an investment’s prospectus or disclosure statement before investing. Be on the lookout for errors in account statements which may be a sign of fraudulent activity.
6. Difficulty Receiving Payments
Be suspicious if you don’t receive a payment or have difficulty cashing out your investment. Ponzi scheme organizers sometimes encourage participants to “roll over” promised payments by offering higher investment returns.
Let’s go over to the winning strategies.
7. The Right Time to Invest in Bitcoin
If I consider the question, what is the right time to Invest Bitcoin? The answer would be ridiculous because anything aside of this – no time is right! – is a wrong answer. How do I mean?
For instance, some years ago, a certain speculation about the Chinese currency devaluation caused a somersaulting of the crypto market.
Another factor. If the SEC – Security and Exchange Commission – chooses to jump in and question the efficacy of Bitcoin proceedings, this also can make its ecosystem shrivel.
And lastly, any funny event like the recent Iran and USA tussle can pump or dump the crypto ecosystem. So, there is no SURE time to invest.
In essence, if you are patient enough to wait for the next deep – before you jump in – which you might be wrong, then that is good, else, RIGHT NOW is the BEST TIME.
What you want to do is to cast your bread upon the waters – both in the morning and in the evening.
8. Crypto Automation Tools to Autopilot your Investment
One of the sure ways not to puzzle with the right time to invest in Bitcoin is using the available automation tools to auto-manage your crypto assets.
For example, if you are a beginner, the friendliest tool to use and automate your trading progress is the hopper tool.
As a side note,
I’m currently working with hopper. What you see when you sign up is a simple user platform to use and automate your investment.
The sure thing is that you can start with hopper for free.
9. Withdraw When You Have a Rounded Figure or Your Target Match
There is no need to tell me as I KNOW this too well. If you are not disciplined in crypto you will lose. Yes, you will lose big time. So, what you want to do is set a withdrawal benchmark for your investments.
For instance, if you want to cash out when Bitcoin increases 10%, cash it out ASAP. If it’s at 20%, do it as well. Anything out of this is indiscipline and you will lose in the long run.
But what if you left the Bitcoin in your wallet and it grew 50% more? Answer? You’ve won still because you stuck to the plans. If you were disciplined enough to withdraw on every 5% you will win further.
On the other way round, what if it went 50% down? You lose horribly and horror-ly. So, determine from DAY 1 – the percentage growth you want to be withdrawing your earnings/profits to fiat – your local bank account.
10. Invest Only What You Can Afford To Lose or Wait For
This is a tip I came to see in crypto and I will like to gladly pass it on to you. Whether you are sure or not you will make profits, you want to only invest what you can afford to lose, AKA, use a miscellaneous amount to invest in crypto.
On the reverse side, if you’d be willing to wait for your investment to yield increase, then good as you can invest whatever amount feels good to you – that is, whether you get immediate or later profits.
11. Don’t FOMO
There are over 300 short terms in crypto you might want to check out.
FOMO here means, “Fear of Missing Out”. By explanation, it means, at a certain bitcoin price pump – an increase from point A to B, you fear that you will miss the trends of profits, so you jump right in and invest – without careful consideration.
The repercussion of this is that just immediately you jump in and invest, the Bitcoin Ecosystem might be affected which means, the prices immediately dumps – where you end up in losses.
So, just as we’ve established above, self-discipline is so important in crypto. Just be patient and you will make it in the long run.
12. Get the Advice of a Financial Expert.
It is always advised that we seek the insights of an expert in the field of investments.
Hmm, but I am aware that some can be so naive or biased on crypto, but yet, what you want to do is the right thing which is seeking their counsel;
Get to hear what they have to say – they may advise you on the strategies and certain percentages to give in – before you consider the next steps – forward or backward.
11. Approach Virtual currency with Caution
Virtual currencies should be approached with extra caution. Software glitches, hackings, and exchange shutdowns, and cases of outright fraud show the speculative and risky nature of the virtual International Journal of Arts and Commerce ISSN 1929-7106 www.ijac.org.uk.
As with any financial product, investors need to do their research, understand the hazards and know who they’re dealing with when it comes to owning and trading these electronic assets.
Virtual currency isn’t subject to traditional financial sector regulation. This may change as regulators consider and make new rules to oversee its use and activities related to it (OSC Investor News,
2014:11). When Bitcoin is regulated by the Authorities or Countries, it will probably less risky than that of today.
How To Buy Bitcoin From Any Country You Are
To buy Bitcoin all you need is a 2 step process. How do I mean? Transfer Fiat – cash – USD or local currency to exchange and #2. Buy the Bitcoin.
How to Buy Bitcoin on Coinbase
1. Visit www.coinbase.com and create an account
2. Transfer your cash – USD /local currency and hit “Buy Bitcoin”.
How to Buy Bitcoin on Luno
1. Visit www.Luno.com and create an account
2. Transfer your cash – USD/local currency and hit “Buy Bitcoin”.
How to Buy Cryptocurrencies on Binance
Step 1. Use Coinbase or Luno (if you’re not allowed to use Coinbase)
Step 2. Transfer the Bitcoin from Coinbase or Luno to Binance.com
Step 3. Select the Crypto you want to Buy and Click “Buy”
The Crypto Wallet To Use And Secure Your Bitcoin/Crypto Investment
One of the easiest ways to lose your Bitcoin or crypto is NOT owning the keys. Meaning, if you do not have the keys the wallet is not yours.
Just as one guy lost over $150,000+ worth of Bitcoins, what you want to do to secure your crypto is using a dedicated Offline wallet – hardware wallet – one you can see, feel, touch and keep in a safer environment.
A recommended Bitcoin wallet to use is the “Ledger Nano X” or “the new Nano S”.
There is no doubt that Bitcoin has made many millionaires, billionaires, and influencers. But that is not all.
Bitcoin could be though as a financial investment instrument. It is bought and sold in digital form.
It is a pretty risky investment because of its limited use and not having regulations by countries. However, there are some regulation preparations in some countries such as the U.S and China newbies need to watch out for. (The later pulling a little or no effect).
Just as using the best or legit bitcoin investment sites is important, it is equally important we know how to protect and properly secure our bitcoins if you do decide to invest right away.
And talking about the later, they are they HODL crew. They want to buy Bitcoin and hold for a season and cash out when it rises.
All in all, I know that you can get rich overnight with bitcoin. How? If you invest $1,000 today and by next week it jumps to $5,000+ that is $4,000 in profit.
As enticing as it is, let’s not hope for the quick wins but the long term. And when the profits start coming together remember to fall back to self-discipline.
All right. The above are the trusted bitcoin investment sites I have used which are safe for you, and mostly beginners.
Disclosure: The above information should not be taken as investment advice. In a lighter term, it is for educational purchase which means you should do your research before buying any bitcoins/cryptocurrencies.