Should You Invest Te Bitcoins? The Practical Saver
This &ldquo,Should You Invest Ter Bitcoins?&rdquo, postbode describes why or why not you should invest ter bitcoins. This postbode contains affiliate linksom/ads. See disclosure policy.
Ter the past duo of months, bitcoins have bot te the center of almost every major newspaper and webstek across the globe.
Why? Because the price of a bitcoin keeps on enhancing and defying the rules of investing.
Spil of this writing, bitcoin&rsquo,s price hovers around $17,000. Bitcoin began ter July 2010 at $0.02 vanaf BTC. Now, it&rsquo,s around $17,000 and keeps on climbing day after day. No wonder that a lotsbestemming of people are buying the hype and are dipping their arms into bitcoins and other crypto-currencies that followed bitcoins.
I have bot investing on bitcoins, ethereum, and litecoins (recently) since the begin of the year.
I invested $Two,000 ter bitcoins and ethereum (thanks to my blog money) and now my portfolio is overheen $Ten,000 (see very first photo to see my account). When I told my friend how much I have te my crypto-currency account and how much I commenced with, he asked mij if it&rsquo,s a good idea to leap into and begin investing.
Of course, I talent my two cents and told him to take them with a grain of salt. That leads mij to this postbode.
With so many talks, rumors, news, and what not about crypto-currencies especially bitcoins, people rush into investing ter them without considering all the angles. With bitcoin price enhancing by the minute, who has the time to analyze if bitcoin is good or bad, right?
Before wij dig into the reasons that you should and/or should not invest ter bitcoin, let&rsquo,s define what bitcoin indeed is.
Bitcoin is a digital currency that&rsquo,s created and held electronically. There&rsquo,s no middle man te bitcoin transactions and you can send bitcoin all overheen the world without having to go through so many steps (i.e. regulations and banks).
Bitcoins are not tied to any country, thus, are not subjceted to regulation.
Te addition, international payments are effortless and cheap because bitcoins are not tied to any country or subject to regulation. Some people buy bitcoins spil investments while others use them for business purposes to eliminate credit card fees.
Where do you buy bitcoins?
There are a number of companies that you can create an account for bitcoins and other crypto-currencies. I particularly like Coinbase, which is what I use for buying and selling bitcoins, ethereum, and litecoin.
I&rsquo,ve bot using Coinbase since the embark of the year and it is super effortless to use. I wasgoed able to make a trade even when I didn&rsquo,t know anything about bitcoin trading. Click here to create an account with Coinbase.
Investing is not for the faint of heart. Your investments can waterreservoir te a blink of an eye or it can skyrocket and make a ton of money. Undoubtedly, investing te bitcoins is also not for the faint of the heart since the price of a bitcoin can waterreservoir or skyrocket quicker than you can type a word on your keyboard.
Here are some reasons that you should and/or should not invest ter bitcoins.
1. Invest if you have disposable money.
Never invest your life savings, emergency funds, huis equity, and other &ldquo,essentials&rdquo, funds on bitcoin.
Lately, a loterijlot of people are taking out mortgages to buy bitcoins. On one forearm, people like to make money, which may make sense. But on the other palm, this practice is spil deadly spil it could be. Why?
Bitcoin&rsquo,s price fluctuates every single 2nd.
When I very first bought a portion of a bitcoin, the price I paid wasgoed around $1,200ish. Then, literally the next 2nd, the value went down to $900. I knew what I wasgoed getting into so I let it go. I knew the risks and prizes associated with bitcoin investing.
It&rsquo,s always necessary to safeguard your significant funds for rainy days. Where&rsquo,s the safety te your safe funds if you invest them ter risky investments like bitcoins.
That&rsquo,s why I only invested the money I am willing to lose. Since this $Two,000 I originally invested wasgoed a disposable money, I wasgoed clearly ok to gamble it ter bitcoins. If I make money through bitcoins, then, that&rsquo,s fine. If I lose money, then, that&rsquo,s fine spil well.
One lesson here is, never gamble or invest money you cannot afford to lose.
Two. Don&rsquo,t invest if your emotional investor.
Spil I said earlier, bitcoin&rsquo,s price fluctuates every single 2nd.
Investing, whether it&rsquo,s stock market or bitcoin, should be about gegevens and other technical information and should not be mixed with emotions.
It&rsquo,s lighter said that done.. that I can tell you. I&rsquo,ve bot there and done that and it didn&rsquo,t end so well for mij. But I learned and now, my crypto-currency portfolio is up 500%.
Where does this emotion come from? The response is ter your desire to keep your portfolio from bleeding money.
When your portfolio is losing money day after day and minute after minute, you want to take control of the situation (even when you can&rsquo,t) and take your money out from that investment. But by then, you would have lost money already.
If you want to invest te bitcoins, make sure you take the emotion out of investing and rely on gegevens.
If emotion were the key to success te investing, then, by now most people would be rich. But that&rsquo,s not the case.
If you can go to sleep not worried about what will toebijten to the money you invested, it&rsquo,s a good sign you&rsquo,re not an emotional investor.
Three. Set goals and expectations.
Te general, when you invest, you need to set your goals and expectations. Do you invest for long-term gains, capital appreciation, or something else?
It&rsquo,s hard to navigate through the world of investing especially ter bitcoin investing when you don&rsquo,t have a finish line on mind. It&rsquo,s like you&rsquo,re traveling on a long and winding road without a foreseeable end on glance.
Before I embarked investing ter crypto-currencies, I had setup my goals and expectations. Thesis have become my guiding principles or benchmarks. If I don&rsquo,t think I&rsquo,m going to get there based on what is happening now, then, I either tweak my goals and expectations or entirely take my money out of the crypto-currency world.
Right now, everything is going well and so, I&rsquo,m sticking with this kleintje of investing.
It&rsquo,s nice to make money but it&rsquo,s always best to have a reason why you are making money.
Four. Learn from other people&rsquo,s stories.
Spil you do more research about crypto-currencies especially bitcoins, you will read and hear about success and horror stories from people investing into them.
Take the time to read them and learn something from them. They&rsquo,ll demonstrate you the gravity of the risks and prizes when it comes to investing te crypto-currencies.
Sure, you may have understood the risks and prizes of this zuigeling of investing, but you may not necessarily figured out how impactful thesis risks and prizes truly are.
Researching thesis stories and internalizing them will help you understand if this kleuter of investing is indeed meant for you.
Investing te bitcoins or other crypto-currencies has its own risks and prizes. It is best to research and even talk to your financial advisor if this type of investing is or should be part of your portfolio. Recall, a single financial mistake could make a dramatic effect on your financial future.
Should you invest ter bitcoins? Do you think bitcoin investing is for you? Please share your comments below.
Allan Liwanag is a individual finance blogger who paid off at least $40K debt ter Trio years by adopting plain and extreme saving technologies while ensuring his family&rsquo,s needs were taken care of. An analyst by day and dedicated blogger by night, he loves to share his thoughts &ndash, based on his research, individual skill, and practice &ndash, on topics related to family, life, and money. Allan lives with his family te Maryland, USA.