The Best Way to Invest in Bitcoin

06/15/2018

Another way of trusted bitcoin investment sites is trading in the coins. It is done by actively buying bitcoins at a lower price and later selling them at when its price goes up. You need to trade with caution to prevent losses, which means you need enough knowledge of the bitcoin market. Another way of investing is called bitcoin holdings. This method involves buying bitcoins hoping that its value will increase in the future. You also need substantive knowledge of bitcoin trading trends and the right time to invest. Moreover, bitcoin investment websites also offer exchanges. However, you need to find a trusted bitcoin investment sites since many are fraudulent

How to Invest in Bitcion

There are several ways to make bitcoin investment with some of them being more or less complicated than others.

1) Mining bitcoins: This is the least used method used to make a BTC investment because it is very complicated and expensive. To start, you will need a very powerful computer program which will be used to solve complicated mathematical problems. You also need miners to run these programs. The logic behind it is that after solving the cryptographic puzzles, new bitcoins will be generated. You will need to show proof of how you solved the puzzle. Eventually, the miners are entitled to a profit share as per the agreement. In some cases, miners may decide to come together to easily solve the cryptographic puzzle and share the profit. Much energy is needed in this process and the results are unpredictable. Now days, mining takes place in data centers known as warehouses. It requires millions of dollars to set one if you intend to get good returns.

2) Buying holdings: This method of BTC investment involves buying of bitcoin currency with the hope of it appreciating in value in the future. It is the most popular method used since it doesn't involve any mathematics. It is also known as "holding." If you decide to go with this way to invest, make sure that it is timely, meaning, you are conversant with the bitcoin trading trends and there is a possibility of it appreciating in value. It is advisable that you do your own homework on bitcoin trading and avoid anyone's advice about the future of the bitcoin currency.

Here are a few pointers:

1. Don't invest more than you can lose, meaning you don't borrow money to invest in bitcoin because it is a very serious investment and can get risky.

2. After purchasing bitcoins, make sure you've transferred them into your own bitcoin wallet. It's a big mistake to leave them at the exchange. Use a hardware wallet to store them but if you can't afford one, get a paper wallet.

3. When buying bitcoins, it is advisable you transact from a reputable exchange with proven credibility.

4. Bitcoins should be bought though average dollar cost. Don't buy bitcoins in a single trade. Buy in bits. This means that you can decide to buy a fixed amount every day, week, or month all through the year.

3) Bitcoin trading: This is different from all the other ways of bitcoin investments. Here, you actively buy bitcoins at a low price and after a while sell them at a higher price. It requires knowledge and practice to successfully trade. Be very careful when trading because the market is full of players waiting for newbies who trade carelessly to profit from it.

Investing in bitcoin companies

It is very hard to find trusted bitcoin investment sites . This is a very risky way of investing in bitcoins. It is not recommendable and investors invest at their own risk. Many companies out there claim they can double your bitcoins. The bitcoin investment website claims to do this in complex and obscure schemes. These are categorized as high yield investment programs that aim to swindle individuals into fake investments. These sites operate by taking money from unsuspecting individuals around the Web promising them lucrative returns.

Usually, the first sign ups are paid off using new sign ups and this creates a big fuss around the bitcoin investment website. They are also cunning enough to have referral programs so that those who are in the scheme can invite others. This goes on for a couple of months and then suddenly they go offline and payment ceases. With no office to claim, your investment goes down the drains.

Is it worth it investing in bitcoin? This should not be question for you anymore, but rather, how to invest. In