Four things you need to know before investing in Bitcoin

So, it seems that cryptocurrencies are not going to disappear anywhere. Well, or if such a thing shines, then it’s definitely withfierce battle. You may remember how JPMorgan Chase CEO Jamie Dimon called Bitcoin a scam.

According to him, Bitcoin left in the fools those whoinvested in it. This, of course, angered many people, but at the same time it was funny, because right after this incident, his daughter wrote that she herself holds bitcoins and even makes money on them. For Daimon, this was definitely an awkward moment.

Around the same time, China announced that it was going totry to ban bitcoin. Because of this news, the largest cryptocurrency collapsed to $ 3.5 thousand. After that, after about a month and a half, Bitcoin shot up to $ 7.3 thousand per coin, in just a few weeks, more than doubled people's money. This is madness! On average, the stock market gives about 10% per year, and therefore it was incredibly difficult to think that Bitcoin investors were able to double their capital in just a few weeks!

With this, let's finish the background andWe will focus on four aspects of Bitcoin, which you should know more about before you decide to invest in cryptocurrencies. Almost no field of activity gives a 100% guarantee that you can earn by investing your own money. More often, people lose money on investments than they earn. Therefore, it is best to always pre-talk with industry professionals in order to better understand how local laws and regulations are structured, as well as to know about the risks associated with these investments.

Do not invest in emotions

This is, one might say, not so much an investmentAdvice is like a recommendation for life. Nothing should be done out of emotion. This also applies to the cryptocurrency sphere. Don't invest money on emotions! — Today, quite often you can come across rhetoric that if you invest $100 in cryptocurrencies now, then years later this money will turn into millions of dollars. Therefore, you should not miss this opportunity. Although we must admit that complete madness happened a couple of years ago, it is not a fact that such a scenario will repeat itself in the future. This is an emotional argument, not financial advice. — And although in traditional markets history often allows one to identify certain patterns and predict the behavior of assets in the future, this is not entirely unsuitable for the crypto market. Always remember that you are buying Bitcoin here and now, not in 2010. No one can predict whether a cryptocurrency is destined to go to the moon or fall on its face. Since the crypto world is very young, it is therefore very volatile. He can shoot very quickly and quickly, as has happened in the past, but he can also go into a dive just as quickly.

Know what you are buying

Bitcoin is a type of cryptocurrency. This is a decentralized digital currency that is used and transmitted using a distributed registry or the so-called blockchain. This means that Bitcoin is not regulated or controlled by any government. It is also not controlled by any private entities, be it the Federal Reserve System or large banks. This is great news for crypto enthusiasts, because they appreciate that these institutions cannot influence the price of cryptocurrencies, as is the case with fiat money - they simply print billions of new banknotes on their own whims. However, the bad news is that these structures, of course, will not want to lose their dominance. And they can do their best to block or ban cryptocurrency. And we are constantly observing how this happens in different countries.

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In addition, Bitcoin has been circulated throughpeer-to-peer network, that is, Bitcoin users can track all transactions and coin activity on the network. The peer-to-peer value transfer system is quite new, which makes it quite problematic to use Bitcoin as a currency. At most points of sale, bitcoins are not yet accepted. But at the same time, many people are delighted, because over the past few years at least a few giant companies have already begun to consider investing in Bitcoin. For example, in November 2017, Amazon bought three cryptocurrency-related domain names.

But what does all this mean in the end? Only time will tell. But if companies like Amazon start using Bitcoin as a means of payment in the future, it will definitely change all the rules of the game in the cryptocurrency industry.

You should also know how the assessmentBitcoin For the most part, Bitcoin costs as much as people are willing to pay for it. It is better to regard this concept as the law of supply and demand. On the one hand, the demand for Bitcoin is increasing as more people learn about cryptocurrency. Information is usually distributed through Bitcoin brokers and news portals dedicated to the crypto industry. On the other hand, the deficient component is embedded in the Bitcoin protocol. In total, there can be only 21 million BTC in history. Once these 21 million are created or "mined", no one else will be able to create new bitcoins. As we know, when demand for something that is not so much grows, the price also rises.

Learn How To Buy Bitcoin

If you decide to buy or invest inBitcoin, you need to use a cryptocurrency exchange, which allows you to buy and sell BTC, or a p2p platform. Most popular traditional exchanges do not allow cryptocurrency trading. Different countries have different rules. In addition, there are countries like China or Vietnam where cryptocurrency exchanges are generally banned. Therefore, first you need to research what exactly is legally permissible in your region.

Don't be greedy

Yes, we all know that Bitcoin once grew from $ 0.003 cents to more than $ 10 thousand per coin. But remember what was said above. Events of the past are not necessarily a factor in influencing the future.

If you are already satisfied with the profit youbrought the previous investment in Bitcoin, then just fix it and take your money. Now there are many who still doubt whether to sell bitcoins or hold them a little more. But what if Bitcoin jumps again to $ 20 thousand and more? I will lose so much money! Well, if you are concerned about this issue, then you can sell coins in stages. Thus, if Bitcoin collapses, and does not start to rise in price, then you will have at least some profit, and not lose everything without a trace. If you think that you are already ready to buy cryptocurrencies, then you can wait for a profitable moment, since Bitcoin still suffers quite strong volatility. You can buy some coins at the next collapse.

The fact is that no one can predict the future of cryptocurrencies for you. So do not believe the one who says otherwise.

In general, always remember that you can only invest in Bitcoin the amounts that you can afford to lose in an unsuccessful scenario.