The criptodivisas or criptomonedas is a means of payment decentralized , which means it is not subject to the same financial restrictions as the currencies of the countries. They are not issued by a bank, or a government, so it is not possible to speculate on their value.
They work on what is known as blockchain technology ; that is, a group of computers that is responsible for recording all the transactions that have happened, that are happening, or that are happening.
The Bitcoin is one of the most interesting criptomonedas, but has some important limitations. Therefore, there are so many other cryptocurrencies that start from the same system, but covering the limitations, as is the case with Ethereum.
A few years ago, Bitcoin started to skyrocket. All those who had invested in the cryptocurrency saw their investment pay off. Some even became millionaires.
Now some time has passed and although the value of Bitcoin is far from what it was, this does not mean that it will not rise again.
So… is it a good time to invest in Bitcoin?
Cryptocurrencies are a reliable means of payment because they cannot be forged or manipulated in any way. You will be able to control the money both through your computer and your mobile phone, carrying out transactions from anywhere. It also allows quick operations: while a banking operation can be completed in 2-3 days, a Bitcoin operation can be completed in just a few seconds.
The changes in value refer to it being a limited cryptocurrency ; that is, there is a maximum amount of Bitcoins that can be created. Once that limit is exhausted, the only way to get them will be to Buy Bitcoin or exchange them for goods or services.
Unlike conventional currencies, with which governments only have to press a button to print more, there is no such button to create bitcoins. The less amount of this cryptocurrency, the more valuable it is considered.
What is the problem, then? Its volatility . The fact that Bitcoin is not subject to any type of index or bank can cause the value of the cryptocurrency to go up a lot at any given time, to go down again in the same period of time. This means that anyone who invests in Bitcoin will take big risks , but will also have the possibility of high profits . Everything will depend on the risk capacity that we are capable of assuming.
How much money should you invest in Bitcoin?
If you are reading this section it is because you have already decided to invest in Bitcoin and you are going to assume the risk that this entails.
The first thing you will ask yourself is what you need to invest in cryptocurrencies, and the truth is that only a computer / mobile phone and a minimum amount.
You do not have to buy the unit bitcoins, but you can buy a percentage or chunk of them. That is, as much as if you decide to invest € 1 , or invest € 1000 , you can buy a certain amount of bitcoins.
At the time of writing this article, the value of bitcoin was 1 bitcoin = € 9,525.77 . That is, with about € 19,000 we could have little more than 2 bitcoins. If we want to make an investment of € 100 , we would have 0.010 bitcoins .
Although although it is true that there are no limitations, you should impose yourself that of not using those savings that you cannot afford to lose. If you have € 100-200 a month left over, and you think Bitcoin is a good option , you can set this amount aside and buy little by little. But if you need that money or, worse still, you have to go into debt to get it, then it is not worth moving forward.
Tips for Investing in Bitcoin Safely
Without further ado, we are going to see some tips that will allow you to invest safely with Bitcoin .
1. Hunches will get you nowhere
Investing large amounts of money cannot be an overnight decision, even a small amount. Keep in mind that this money has been the result of your effort and, as much as they may sell you otherwise, the truth is that a Bitcoin investment cannot be 100%.
Escape from those miracle pages that offer you safe benefits, since it is most likely a scam.
2. The importance of being well informed
To invest in Bitcoin it will be of crucial importance to seek as much information as possible. It is time to do some research on the different platforms or on the exchange pages. Remember that forums can also be an interesting resource to consult any questions or problems you have in this regard.
All this information, added to the experience that you will gain, will help you design a solid investment strategy. This one won’t be designed overnight, but it won’t take long to shape it.
3. Find a secure wallet
A wallet is something like a virtual wallet in which the bitcoins will accumulate. In recent years there has been talk of hacks to this type of resources, so we will have to look for a secure platform, which allows you to buy and sell assets without worries.
If you lose your wallet, you lose everything. Therefore, make backup copies and make sure they are stored in a safe place. A good idea could be to use an offline wallet , as this way you will be protected against computer attacks.
4. Look beyond Bitcoin
The Bitcoin can make money … but as I mentioned, has some limitations. Among the most prominent, we have that there is a limited number of bitcoins.
Therefore, you may be interested in contemplating the idea of operating with other cryptocurrencies, such as Ethereum or Litecoin . It is a matter of taking a look at other alternatives, to determine if they may interest you more.
It is a good time to invest in Bitcoin , but you must do it wisely.