4 Things You Absolutely Must Know Before Buying Bitcoin
Posted by : Premraj | Posted on : Tuesday, January 2, 2018
DELICIOUS
SU
REDDITThe speed at which the value of Bitcoin grew really put a lot of people in a dilemma. That fear of missing out is always a powerful emotion to experience; you want to profit from Bitcoin like everyone else, but you’re not sure whether you should enter the market. At the same time, you hear stories of people turning $1,000 into a fortune thanks to Bitcoin. So, should you buy Bitcoin and hope for the best? Before you answer that question, here are four things you absolutely need to know about Bitcoin.
It’s a Market
Like any other market, there are trends and patterns that can be observed from the way Bitcoin is traded. Sure, cryptocurrency has jumped by $1,000 – in both directions – every now and then, but you need to pay closer attention to understand the market.Bitcoin Price has a very good guide on the basics of Bitcoin and how you can start trading this cryptocurrency within minutes.
Take the dips in recent Bitcoin price as examples. After every dip, there is always a quick rebound period. This is when people start buying Bitcoin – expecting to get it at a great price – and demand goes up.
It Has Value
Experts are worried about the lack of intrinsic value of Bitcoin, but in reality, Bitcoin has a value attached to it. For starters, there is actually a production cost, which is why investment firms and markets are now considering Bitcoin as a commodity.
Bitcoin is also very limited, but the demand for Bitcoin continues to rise. This increase in demand is part of the reasonwhy we saw a substantial hike in value throughout 2017. Of course, there are also ways to calculate the network value of Bitcoin.
It’s Getting More Exciting
As we get closer to 2018, we’re seeing more investment firms and big financial players taking Bitcoin more seriously. As mentioned earlier, Bitcoin will soon be traded as a commodity in futures exchanges. There are also products based on Bitcoin.
All of these big players are pouring money into the cryptocurrency. Based on the previous points discussed in this article, more buyers mean higher demand. Higher demand means there is a big chance that the price of Bitcoin will reach new heights next year.
It’s Risky
Last but not least, it is worth noting that there are risks associated with investing in Bitcoin. It is, after all, an investment; you can’t expect big profits without preparing yourself for the potential loss as well. Every investment instrument is governed by a rule called risk-return trade-off, and Bitcoin is no exception.
On the upside, getting started with buying and selling Bitcoin is a lot easier than you think.
If you’re interested in other cryptocurrencies as a long-term investment, we have the top four alternatives to Bitcoin that are just as interesting, which we discussed in a previous article. Stop worrying about missing out on the action and explore the world of cryptocurrency today.
