5 Important Questions To Ask Before Investing In Bitcoins
Investing in Bitcoins is not for the faint hearted. The digital cryptocurrency is volatile, unstable and has a fluctuating value. Not being regulated by governments and institutions has its perks as well as its problems.
Thousands of people are aggressively investing in Bitcoins. With the rise Bitcoin Trading Platforms, investing in Bitcoins has become very easy. Pay the registration fee, sign up, listen to the software, make some trades, and credit hundreds of dollars to your account.
Yes, it is as easy as that!
However, if you are still doubtful as to whether you should invest or not, this article might help you clear your doubts. In this article, we will raise five important questions, which you can ask yourself before investing.
5 Important Questions to ask yourself before investing in Bitcoins: The List
1.Is Bitcoin Legal in the country of your residence?
Even before you start investing, you need to find out whether what you are doing is legal or not. While most national governments have maintained an ambivalent stance, not banning or completely legalizing, others like China and India have banned them altogether.
It is important that you find out about the existing rules, regulations and laws about Bitcoin in your country. Check whether you can convert into normal currency or not, and whether the currency can be used as a medium of exchange.
2.Are you looking for Short Term Gains or Long Term Investments?
Most people who start investing in Bitcoins do so for either of the two reasons stated above. They either, want to earn heavily at the start, or they want to stay in it for the long run, bearing all the risks.
The most successful traders who operate in the Bitcoin ecosystem are the ones who stay in it for the long run. Real experts feed on the insecurity of people looking for short-term gains. Short-term investors sell their shares as soon as the market starts to wobble.
3.Is the Bitcoin Trading Platform Genuine and Credible?
It is important to select the perfect Bitcoin Trading Platform before you start investing in cryptocurrency. The best platforms like bitcoin superstar offer the most advanced software to help in making informed trades.
They also prioritize safety and security on the platform at all times. In addition, credible platforms help you with 24×7 assistance. If your platform is unable to provide such features, it is time you look at other platforms.
4.Should I invest in Bitcoins or other Cryptocurrencies like Ethereum?
There are many cryptocurrencies on the market right now. Investors have an array to choose from. You can go for Ethereum, Ripple, Litecoin, Facebook’ Libra or Bitcoin. Most experts who want to invest in cryptocurrency go for Bitcoins.
Being the first one to give birth to the digital cryptocurrency ecosystem, Bitcoin is probably the most mainstream of them all. While investors are looking at other options, Bitcoin continues to dominate.
5.Is Bitcoin a good investment or am I going to lose it all?
2020 is probably one of the right years to start investing in Bitcoins. More and more governments are relaxing norms on Bitcoin. This means that Bitcoin is becoming more acceptable even to critical regulators.
Very recently, the Supreme Court of India struck down the laws of the Reserve Bank of India, which prohibited buying, selling and trading of Bitcoins. Likewise, China’s Xi Jinping spoke favourably about Bitcoins and the technology it represents some months back.
This makes two of the biggest countries in the world open to the possibility of Bitcoins. Which means, more valuations, higher trades and bigger profits.
While Bitcoin continues to be volatile as a financial entity, there is some form of stability slowly creeping in. This is good to secure investor confidence and build a serious reputation in front of governments and international financial institutions.
With the corporate world going gaga over Bitcoin’s Blockchain technology, investments in Bitcoins are seeing a steady rise. Facebook too, has thrown its hat in the world of cryptocurrency with Libra.
If you had been having doubts regarding Bitcoin investing, this article will help you clear many of your doubts.