If you’re highly interested in taking the plunge and investing a small portion of your long-term savings into Bitcoin, it’s well worth learning how to invest in Bitcoin, the smart way. After all, as a new investor, there are a wide variety of traps to look out for, in order to make a decent profit on your investment!
How to invest in Bitcoin: The smart way
1. Choose to make your investments through an online broker, rather than visiting a Bitcoin marketplace
If you’re relatively new to investing, you may find that it’s a far wiser move to purchase your Bitcoin through an accredited online broker, rather than trying your luck at a Bitcoin marketplace. As if you purchase Bitcoin through a website which specializes in buying and selling Bitcoin, you’re almost guaranteed to purchase Bitcoin at a fair rate.
Whereas if you try to negotiate your own deal, directly with a Bitcoin seller, whom you find through a Bitcoin marketplace, you may end up paying a price which is far higher than you’d pay through a Bitcoin broker. Worse yet, there are a lot of cowboy sellers who prey on new investors, who browse Bitcoin marketplaces in the hopes of scoring an incredible deal.
2. Choose to purchase Bitcoin on a regular basis
Contrary to popular belief you don’t have to invest thousands of dollars into Bitcoin, in one go. Instead, if you’re looking to decrease your perceived level of risk you may want to invest a small amount of a few hundred dollars into Bitcoin on a bimonthly basis. If you set yourself a goal of investing in Bitcoin on a bi-monthly basis, you’ll also be surprised at just how quickly your investment will grow.
3. Don’t be put off or alarmed if Bitcoin’s share price drops
If you’re going to invest in Bitcoin, you have to be comfortable with seeing the share price of your Bitcoins drop slightly, from time to time. While you may be tempted to cut your losses and sell all of your Bitcoin as fast as you can, you’ll only sell yourself short and disappoint yourself as in 9 years Bitcoin’s share price has always recovered after taking a slight dip. After all, in order to make money as an investor, it’s crucial to be able to sit tight and wait out a slight drop in market price.
In fact, investment experts predict that Bitcoin will continue to rise in price for a minimum period of two years.
4. If you choose to purchase Bitcoin through a broker, make sure that you’re comfortable with their fees
Most online websites which specialize in brokering Bitcoin feature fees, which you’ll need to factor into the price of your Bitcoin. If possible, try to opt for an accredited, well-established site which offers minimal fees and will allow you to make regular Bitcoin investments on a monthly basis, without having to pay an exorbitant amount in fees.
So if you’re ready to invest in Bitcoin, the smart way, simply remember to keep the 4 tips listed above in mind!
2018 · 