Is It Wise To Invest Most Of my Money As A Beginner In Cryptocurrency?

[sulphur007]

Yes please it is especially in cryptocurrency.

Why Bitcoin is Gaining Traction

The world is becoming ever more reliant on the internet.

So, really:

It is no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors.

Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class.

Investing in bitcoin may seem scary, but know that it takes time and effort to understand how Bitcoin works.

Why Invest in Bitcoin?

It seems silly to some people that one bitcoin can be worth hundreds of dollars.

What makes bitcoins valuable?

Bitcoins are scarce and useful.

Let’s look to gold as an example currency. There is a limited amount of gold on earth.

As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine.

The same is true with Bitcoin.

There are only 21 million Bitcoin, and as time goes on, they become harder and harder to mine. Take a look at Bitcoin’s inflation rate and supply rate:


In addition to being scarce, bitcoins are useful.

Bitcoin provide sounds and predictable monetary policy that can be verified by anyone.

Bitcoin’s sound monetary policy is one of its most important features. It’s possible to see when new bitcoins are created or how many bitcoins are in circulation.

Bitcoins can be sent from anywhere in the world to anywhere else in the world. No bank can block payments or close your account. Bitcoin is censorship resistant money.

Bitcoin makes cross border payments possible, and also provides an easy way for people to escape failed government monetary policy.

The internet made information global and easy to access. A sound, global currency like Bitcoin will have the same impact on finance and the global economy.

If you understand the potential impact of Bitcoin, it won’t be hard to hard to understand why investing in bitcoin may be a good idea.

Bitcoin’s Price

There is no official Bitcoin price. Bitcoin’s price is set by whatever people are willing to pay. coindesk price index is a good resource.

Bitcoin’s price is generally shown as the cost of one bitcoin. However, exchanges will let you buy any amount, and you can buy less than one bitcoin. Below is a chart showing Bitcoin’s entire price history:


When is the right time to buy?

As with any market, nothing is for sure.

Throughout its history, Bitcoin has generally increased in value at a very fast pace, followed by a slow, steady downfall until it stabilizes.

Use tools like bitcoin wisdon or cryptowach to analyze charts and understand Bitcoin’s price history.

Bitcoin is global and not affected by any single country’s financial situation or stability.

For example, speculation about the Chinese Yuan devaluating has, in the past, caused more demand from China, which also pulled up the exchange rate on U.S. and Europe based exchanges.

Global chaos is generally seen as beneficial to Bitcoin’s price since Bitcoin is apolitical and sits outside the control or influence of any particulate government.

When thinking about how economics and politics will affect Bitcoin’s price, it’s important to think on a global scale and not just about what’s happening in a single country.

How to Invest in Bitcoins and Where to Buy

The difficulty of buying bitcoins depends on your country. Developed countries have more options and more liquidity.

coinbase is the world’s largest bitcoin broker and available in the United States, UK, Canada, Singapore, and most of Europe.

Bitcoins should only be kept in wallets that you control.

If you leave $5,000 worth of gold coins with a friend, your friend could easily run off with your coins and you might not see them again.

Because Bitcoin is on the internet, they are even easier to steal and much harder to return and trace. Bitcoin itself is secure, but bitcoins are only as secure as the wallet storing them.

Investing in bitcoin is no joke, and securing your investment should be your top priority.

Should you Invest in Bitcoin Mining?

The bitcoin mining indsuty has grown at a rapid pace.

Mining, which could once be done on the average home computer is now only done profitably in specialized data centers.

These datacenters and warehouses, filled with computers built for the sole purpose of mining Bitcoin. Today, it costs millions of dollars to even start a profitable mining operation.

Bitcoin miners are no longer a profitable investment for new Bitcoin users.

If you want a small miner to play around with mining, go for it. But don’t treat your home mining operation as an investment or expect to get a return.

Final Thoughts

It’s important to understand how Bitcoin works before investing any money.

Bitcoin is still new and it can take months to understand the true impact Bitcoin can have on the world.

Take some time to understand Bitcoin, how it works, how to secure bitcoins, and about how Bitcoin differs from fiat money.

[Beverly_jenngs]

Yes it is wise to invest in crypto but you have to be careful so you don't lose money to fraudulent broker or fall victim of fraud

[greatones]

No, it is not wise to invest "most" of your money. As a beginner, you will need to research thoroughly and choose the right broker and then you can decide where and whom to invest with.

[Real2dream]

Great post, specially with the statement about mining. Is not profitable anymore mining BTC, that market is saturated by now. But investing most of your money is not the alternative either, since it's better to have at least some months of waiting to see a good increase

(But price has come from 8800 to 9200 in a week tho...(

[Positive]

Invest most of your money in cryptocurrency (even in bitcoin despite it potential) is not a wise decision and people are advised to only invest the amount they can afford to loose.

[edmundo]

My advice will be to learn the ropes involved in cryptocurrency and crypto trading before any form of investment. If you have no knowledge of crypto trading, quickly head over to koinpro and get started with the demo trading system and simulate real trading before using your real funds. Also, it's never a great idea to invest more than you can afford to lose on any investment. Always know that crypto investment carry a certain form of risk and you should be careful. Koinpro exchange platform will equip you with all the tools you need.

[pulpy]

Yes it is wise to invest in crypto but you have to be careful so you don't lose money to fraudulent broker or fall victim of fraud

Are you normal to advise something like that?
NEVER invest nearly all money

[marplen]

all the money? better thik twice before making it happen especially when you're a freshman in a field. you need to search for classic option like staking on some exchanges like cex or binance and mix it for good with gekkoin cryptodeposit where you can opt your risk - profit correlation, good luck you you and one day you may become a pro

[Michael.sol]

No, it is not wise to invest "most" of your money. As a beginner, you will need to research thoroughly and choose the right broker and then you can decide where and whom to invest with.

Exactly I also never recommend to invest a huge amount of money , this is better if newbie learn how Trading and investing work . After some time when newbies got experience then they can spent mobey in whatever they want .

[gunhell16]

I agreed on what you said, dude, Just look for the altcoins that are low value in the market.
Because with this there is a high chance for you to earn in the future. But of course, you need to
make a research first, in short, do it at your own risk.

[hair]

You have to learn which coins are good first? You must understand the characteristics of these coins before investing. because it is too risky for beginners without basic trading knowledge

[wawan96]

Invest most of your money in cryptocurrency (even in bitcoin despite it potential) is not a wise decision and people are advised to only invest the amount they can afford to loose.

yes right, cryptocurrency very high risk to invest cause unstable prices tend to fall and rise gradually plumpness of people affected by the lure of big profits and they are affected without knowing the risk that they get after they make an investment and incur losses they think crypto is a fraud this is certainly not true.