With the recent spike in Bitcoin price, more and more investors are looking at Bitcoin as a viable, long term option. In this comprehensive guide we’re going to cover everything you need to know about investing in Bitcoin, from what it is to how to store it. With almost 8,000 cryptocurrencies in existence, Bitcoin dominates the market with over 60% market share and is still very much a viable investment.
What Is Bitcoin?
Before investing in anything, it is always worth knowing what the commodity represents. Bitcoin is the pioneer cryptocurrency launched in 2009 by the anonymous entity, Satoshi Nakamoto. The cryptocurrency not only brought the world a digital cash alternative to the traditional monetary system, but blockchain technology too. You can read a more in depth synopsis here.
Why Bitcoin Is Still A Viable Investment
2020 saw some incredible gains for the cryptocurrency, and helped to position it as a valuable investment as opposed to a speculative one. Following the market crashes in March due to the international pandemic, Bitcoin saw an initial loss and then built itself up to reach a new all time high. As global economies slumped and inflation rates increased, Bitcoin’s strong bounce back caught the attention of many traditional investors and large corporations. A number of companies put their reserves in Bitcoin, while several others incorporated the cryptocurrency into their payment platforms. Nine years down the line and Bitcoin continues to be a viable investment.
Power of Bitcoin
Aside from the obvious financial implications of investing in Bitcoin, there are several other reasons why Bitcoin is a solid option:
Decentralized
As the cryptocurrency is entirely decentralized the value of Bitcoin does not depend on the company’s success. Unlike stocks, the Bitcoin price is determined by supply and demand rather than the people behind it.
Deflationary
Bitcoin was designed to have a limited supply so as to avoid inflation rates. Unlike fiat currencies, there will only ever be 21 million BTC in circulation. With scarcity on its side, according to the foundations of economics this will increase the price, as opposed to production rates.
Versatile
Each year, more and more merchants start accepting the cryptocurrency as a payment option. As Bitcoin continues immersing itself in our daily lives, the versatility of using the digital asset increases.
Here To Stay
Big payment companies like PayPal onboarding the cryptocurrency provides evidence that Bitcoin is going nowhere and not a fad that is going to die down any time soon.
Profitable
The cryptocurrency has proven to be a valuable investment over the years with many traders and investors making a lot of money from buying and selling. This year Bitcoin saw gains of 150%, increasing by $13,000 in just a few months.
Bitcoin Price
Cryptocurrencies are notoriously known to be volatile in nature. While this isn’t necessarily a bad thing, it is worth being aware of. Keep your eye on the Bitcoin price by using a reputable site, like CoinMarketCap or one of these top 10 Bitcoin price trackers.
Where To Store Bitcoin
Before you can buy Bitcoin, you’ll need to set up a place to store Bitcoin. Bitcoin wallets are essentially digital wallets that are made up of two components: public and private keys. These keys allow people to send and receive crypto, and govern their access. There are several different types of wallets:
Hot Wallets
These are connected to the internet and allow for quick access to your BTC funds. They are also more prone to hacking.
Cold Wallets
These wallets store your BTC offline to ensure that they are out of reach from prying hands. These are great for investors looking to keep their crypto long term.
Here is a great guide on finding the right crypto wallet to suit your needs.
Where To Buy Bitcoin
Now that you’ve equipped yourself with the Bitcoin price information, it’s time to dive in and actually buy the cryptocurrency. Here you have several options:
Peer To Peer Marketplace
Buying Bitcoin P2P can be a cheaper alternative, should you hit the market at the right time. Buying peer to peer simply means that you are buying from a user, as opposed to a company. Oftentimes these trades incur less fees, but ensure that you are using a reliable platform where the parties are trusted.
Buy Bitcoin With A Credit or Debit Card
By far the simplest and most reliable method, buying Bitcoin with a credit or debit card is as easy as 1,2,3 with Oobit. Our fully integrated service allows you to conveniently buy BTC while completing your KYC in a matter of minutes.
Everything You Need To Know About Investing In Bitcoin
In this guide we’ve covered what is Bitcoin, why it’s so powerful, where to buy it and how to store it. Concluding everything you need to know about investing in Bitcoin, the last piece of advice we will give you is to always DYOR (do your own research). If you’re still not sure, here are 10 reasons to buy Bitcoin that you might like to be aware of.
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