3 things to know before investing in Bitcoin in 2019
2017 was a crazy year for crypto investors. Bitcoin went from $1,000 to over $20,000, and other cryptocurrencies went way up in value as well. Since then, things have changed and prices have gone up and down – but one thing has stayed constant.
Bitcoin are still an exciting asset to invest in. To wit, they’ve gone from $3,000 to over $7,000 this year to date. As far as anyone can tell, the coin is still a good way to increase your capital in the short, medium, and long term (provided you know what to do with it).
Having said, there are several things you may want to know before making an investment. The first is…
1. There are different ways to invest in Bitcoin
You can buy Bitcoin outright or indirectly. You can also store it yourself or via a third party. Here’s what both choices mean for you.
Buying Bitcoin directly means buying the actual cryptocurrency and storing it in a wallet you control. This process comes with a learning curve and takes a little effort the first time you do it.
Alternatively, you can choose to buy shares in a Bitcoin fund or invest in an alternative instrument that lets you own Bitcoin without holding it digitally.
If you do choose to go the direct route, you can use a self-controlled digital wallet, a cold wallet (e.g. a usb drive, a printout, a written code), or a 3rd-party wallet. In the latter case, you’ll register with a platform like CoinCola and get a Bitcoin wallet that way.
The main benefits of going through CoinCola are recovering your password, storing and depositing/withdrawing crypto without any technical knowledge, and enjoying a convenient user interface.
2. Holding vs active investing
Holding, also known as “hodling”, is the process of buying some amount of Bitcoin or another cryptocurrency and holding it indefinitely, without taking any action. It’s a passive strategy that helps minimize the number of decisions you need to make – but can also diminish your results.
Alternatively, you may want to be a more active investor who controls their asset by selling it when prices hit lows, converting Bitcoin into altcoins and vice versa to maximize earnings, etc. This requires you to make more decisions and can lead to losses, but also has the potential to be significantly more profitable.
3. Mining bitcoin
Instead of buying Bitcoin directly, you can choose to mine it. If you do, you can either use your own equipment – or pay money to have someone else mine it for you.
Depending on your interests, goals, and gear, this can be a better or worse option than buying crypto outright. Just keeep in miind that these days, using yoru home computer to mine eis unlikely to work – at least not to any significant degree.
Now you know a little about the nuances of investing in bitcoin. Why not start (or continue) building your porttfolio now? Just go to coincola.com and follow the instructions on your screen; you’ll be buying bitcoin from the most trusted crypto marketplace on the web in no time.
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Founded in 2016, CoinCola is a Hong Kong based company offering both over-the-counter cryptocurrency trading and crypto-to-crypto pair trading exchange. CoinCola now serves millions of users from over 150 countries with our fast, secure, and reliable trading services. We support BTC, ETH, BCH, LTC, USDT, DASH, and XRP. Visit www.coincola.com to invest in digital assets.
Disclaimer: Trading and investing in cryptocurrencies, also called digital currencies, crypto assets, and so on) involves substantial risk of loss. All informations are used at your own risk, and any content on this site should not be relied upon as advice or construed as providing recommendation of any kind.