In 2008, the bankruptcy of the US bank Lehman Brothers caused a series of chain reactions and the world was hit by the economic crisis we are experiencing. Another consequence, a stranger who goes by the pseudonym of Satoshi Nakamoto invented the first virtual currency in 2009: bitcoin was born. More than ten years later, how is the historical cryptographic currency doing? Would investing in bitcoin in 2020 be more interesting than in 2019? Analysis, advice and reviews of the crypt coin market: Tacotax helps you invest in Bitcoin.
Our partner Coinhouse allows you to invest in Bitcoin and crypto currencies through its online platform.
How to invest in bitcoins?
Whether you are looking for bitcoin with an idea to invest, or are simply passionate about cryptology, there are some criteria that are essential to buying bitcoin:
- Find out about the platform where you want to buy: you can go to forums or specialized websites.
- The means of payment: some platforms only offer payment in BC, but it is possible to buy bitcoins by bank transfer or PayPal.
- The price of bitcoin, which can vary significantly from one platform to another.
- The amount of the fees in the form of commission on the purchase or resale
- The security of the buying and selling platform.
- The responsiveness of your customer service.
How to invest your money in bitcoins?
In the beginning, bitcoin was used illegally in the darknet, before being legally adopted.
If bitcoin can be used for the purchase of goods and services, payment by means of crypto-currency is not yet very democratised, which makes its use in everyday life difficult. As a result, it is more than ever considered a financial crypto asset for investment, as an investment that could well be profitable. Investing in bitcoin means betting that this innovative technology will be sustainable.
Opinions differ on investing in crypto-currencies: it is true that when buying or trading cryptographic assets, one needs to be in a situation where one can afford to lose the amounts invested.
If you want to invest money in bitcoin, you can buy tokens (the coins) or go to an online broker that offers cryptomoney trading through Contract for Difference (CFD), such as eToro for example.
In terms of investing in bitcoin on the stock exchange, the US platform Bakkt, managed by the Intercontinental Exchange, was one of the first to offer the purchase, sale and storage of cryptosystems, followed by many US banks.
Therefore, you can become the happy owner of bitcoins by selling an asset to an individual and requiring payment in cryptomoney, or by doing a conversion exercise of a classic currency (in our case, the pound), into currency. said encrypted. To do this, you will have to go through specialised platforms by registering beforehand.
The creation of a wallet is necessary before buying bitcoins: after all, you have to keep your coin somewhere! This virtual will take the form of a series of digits and a secure password called a code.
To store their bitcoins, investors use electronic portfolios that resemble a USB key, to avoid leaving their coins on the exchange platforms.
Which site to buy bitcoins?
To invest effectively in bitcoin, knowledge of the network and the financial markets is essential. Cryptcoin purchase transactions are made through platforms that charge each one: plan between 2 and 10% commission!
In addition to the platforms listed above, there are many others with different rates. In any case, take care to know the security of the site in question: scams and risks are still present, although they have been reduced for several years. For example, a billion pounds in bitcoins were stolen in 2017 and 1.1 billion in just one quarter in 2018!
Crowdfunding of crypto coins
With the introduction of different crypto-currencies, it did not take long to witness the birth of different uses of this new technology. Therefore, it is now possible to invest in a different way: the crowdfunding of crypto coins is the perfect example.
Behind this Anglicism lies in fact a simple principle: that of financing projects by raising funds from people or professionals, who can support this project through crypto-currencies. Since 2014, the latter finance the creation of companies on dedicated platforms, such as Swarm, for example.
Our advice for investing in bitcoin
The volatility of bitcoin is the result of the difference between supply and demand, which determines its value.
Funny product we have here. It’s true that investing in bitcoin is not the easy way, compared to other financial products and other stocks, but in some cases, the rewards are worth it.
Only in some cases do we repeat this, as it is estimated that ¾ of cryptomoney buyers end up losing the amount of their investment. In other words, invest only what you can afford to lose! But why is that? Simply because the price of bitcoin is very volatile.
We are talking about volatility taken to an extreme: the magnitude of variations in the price of cryptomoney reaches a maximum of 133% on average during the year. For example, this rate is only 20% for gold. To generalize, this means that you can gain a lot, but also lose a lot. Are you still optimistic?
The year 2017 saw the price of bitcoin skyrocket, causing investors to lose 80% of their bets that year. In 2017, the price of bitcoin was £20,000 per unit. Two years later it was £4,000.