Buying bitcoin for long term investment

Those fluctuations can be dramatic. These wallets allow for quick and easy access to bitcoin, but the drawback is they put your money in the hands of a third-party company. Your Money. According to a study by the Cambridge Centre for Alternative Finance, the number may be as many as 5. The worth of currency used to be stipulated by precious metals. Bitcoin makes cross border payments possible, and also provides an easy way for people to escape failed government monetary policy.

Bitcoin — the subject of and now, of By the end of inestment year, everyone seemed to know what Bitcoin. But, why? The price of Bitcoin has grown at a huge rate over the past few years. In fact, it has grown so much that it makes other normal investments stocks, bonds. Amazon has seen huge growth over buyijg past 5 years and has been one of the top performing companies in the world!

Why Invest in Bitcoin?

BTC has already shown its strength after the recent fork and should continue to climb until November when the next hardfork takes place. However, the biggest deciding factor for me to back bitcoin long term is its limited supply of 21 million coins. This, from the economical poi This, from the economical point of view, has to push the price higher and proportional to the growing demand. Here are some quick stats to illustrate the increasing popularity and usage of bitcoin which generates more demand:. Looking at the figures above, we can easily predict that bitcoin will reach:.

Why Bitcoin is Gaining Traction

Bitcoin — the subject of and now, of By the end of the year, everyone seemed to know what Bitcoin. But, why? The price of Bitcoin has grown at a huge rate over the past few years. In fact, it has grown so much that it makes other normal investments stocks, bonds. Amazon has seen huge growth over the past 5 years and has been one of the top performing companies in the world! You can see what I mean about it bhying other investments look pointless now, right? To know whether Bitcoin is a good investment, you need to understand a little about what Bitcoin is.

Investing in something you know nothing about is always a bad idea. So, always do plenty of research and talk to a financial advisor before investing. Put simply, Bitcoin is a digital currency — it is money that is online. Just like the money we use every day, you can use Bitcoin to buy, sell and trade with other people.

This is called a Bitcoin transaction. All transactions are stored on the Bitcoin blockchain, which is a type of technology that keeps your Bitcoins safe from hackers. The purpose of Bitcoin is to remove the need for a single company banks, PayPal.

Instead, with Bitcoin, you have full control. As I mentioned above, Bitcoin has proved to be one of the best investments in the past 10 years. Although many people have doubted Bitcoin, it has continued to rise year after year. I bet you wish you knew how to invest in Bitcoin then, right? Note: Bitcoin transactions are anonymous. This allows people to be unknown when paying in Bitcoin.

However, this was ter year that Microsoft started to accept Bitcoin payments. You could now use Bitcoin to buy Xbox games, apps, and videos from Microsoft.

This was a huge step for Bitcoin. Wall Street and large investment banks started to invest in Bitcoin. Lots and lots of people started following Bitcoin — it started to be on the news every day. So, as you can see, investing buyihg Bitcoin has made a lot of buying bitcoin for long term investment rich. Even though you may want to invest in Bitcoin now because it has made a lot of people rich, it is important that you understand the pros and cons of a Bitcoin investment.

What does this mean investmsnt you? Well, think about it. The more popular Bitcoin becomes, the more people will want to buy it. If there can be no more Bitcoins created, then the demand will continue to rise for each Bitcoin, which increases the price. Huge Returns on Investment. Easy to Invest. Bitcoin is easy to invest in.

You can buy it and sell it whenever you want to. You do not have to sign an agreement, and you can do it all by yourself! There are lots of great uses for Bitcoin. Here is a list of reasons why some people would prefer to use Bitcoin over the traditional banking system:.

When thinking about how to invest in Bitcoin, you must always consider the cons of investing. The price of Bitcoin changes all the time. Government Regulations. Bitcoin allows illegal activities to be paid for online without ID. Also, Bitcoin could be used as a way for people and businesses to avoid taxes.

Limited Scaling. Currently, Bitcoin can only handle 3 to 7 transactions per second. So, as Bitcoin becomes more popular, the time it takes for the Bitcoin network to verify a transaction becomes longer. This may have you wondering not about how to invest in Bitcoin, but should I invest in Bitcoin?

Lack of Security. So, should you invest in Bitcoin for the long term or the short term? However, when things do go your way, you can make quick money and have fun doing it.

I would only recommend short-term investing for those who are prepared to spend a lot of time analyzing charts and doing market research. The price of Bitcoin moves up and down very quickly, so you must always be watching the charts carefully and have a solid plan! I highly recommend that you do not start short-term investing without any training. Again, always talk to a financial advisor before investing.

This is a term that is used in the crypto world all the time. Put simply, it means to hold on to your investments. So, instead of sitting at your computer all day analyzing charts — you can sit back, relax and wait for the price of Bitcoin to rise. But remember: never invest an amount that you cannot afford to lose.

No investment is lonv By now, you should have a kong idea of whether or not you want to invest. I understand investnent difficult it can be to find the buying bitcoin for long term investment teerm that works for you.

First things first, you need to set up a Bitcoin wallet. A Bitcoin wallet is like the wallet you store your local currency in, the only difference is that a Bitcoin wallet is digital. There are different types of digital wallets. Here are some of the wallets that I recommend:. Online wallets should only be a temporary storage option for your Bitcoin.

You should only leave your Bitcoin in these wallets if you. Even though they are easy to use, they are the least secure.

Leaving your Bitcoin in an online wallet means that you are putting your trust in the security of the website you are using. Online wallets include: Coinbase and Xapo. Software wallets are like apps that you install on your computer or phone.

They offer you a good amount of security and give you full access to your public and private keys. Also, they are free to use and investmdnt to set up! Software wallets include: Exodus and Jaxx. Hardware wallets are the option I recommend for storing your Bitcoin. They allow you to store your Bitcoins offline on a small piece of hardware. You plug the hardware wallet into your computer with a USB and transfer your Bitcoins on to it.

When wondering how to invest in Bitcoin, I would definitely go for the most secure wallet. However, they do come at a cost. Bitcoin mining is a process that is performed using special computers. These are computers that are designed to verify transactions on the Bitcoin blockchain.

To verify transactions, computers must solve a mathematical problem. The first computer to solve the problem is rewarded with Bitcoin. The computers are miners! Sounds easy, right? There are lomg of computers trying to verify transactions. Which means one thing — there is lots of competition. However, there are other options for mining Bitcoin. The most common option for small-time miners is to join a Bitcoin mining pool.

All the computers in a mining fkr combine their computing power to help verify transactions. I recommend that if you would like to start mining, you start by joining a Bitcoin mining pool. This is the best way to invest in Bitcoin for beginners. Coinbase is one of buuing worlds largest exchanges when it comes to cryptocurrencies. The website is user-friendly, and they make it very easy for you to set up an account. One of the things people like most about Bitcoin investmment that it allows you to keep your information private!

So, for those of you who want to stay extra private, buying your Bitcoin on a peer-to-peer trading platform might be the best option for you. However, you must be careful when using these websites. The peer-to-peer trading platform that I recommend is LocalBitcoins.

Buy Bitcoins The above information should not be taken as investment advice. Bitcoins are scarce and useful. To put that number into perspective, bitccoin odds of winning the jackpot lottery are one in 13 million. For the United States, that all changed at the height of the Great Depression when America faced mounting unemployment rates and spiraling deflation. It is for general knowledge purposes. The internet made information global and easy to access. No bank can block payments or close your account. The Bitcoin mining industry has grown at a rapid pace. With bitcoin, arriving at the right answer before buing miner has almost everything to do with how fast your computer can produce hashes.