There are many ways of investing in Bitcoin, even if you are not a regular in the currency market or a professional day trader. Since Bitcoin has attracted investors over the past decade due to its sophisticated and fashionable ways of investing without any centralized control, you, too, might like to try your hand at it. Eric Dalius Bitcoin is a phenomenon because of its incredible appreciation rate over 10 years. Its value skyrocketed from 717,900% to almost touching a billion percent, leaving many people to swoon.
Despite the high decibel publicity of cryptocurrencies that have always been in the news for some reason or the other and attracted more people, the mystery surrounding the digital currency often makes it hard for new investors to decide the best way of investing in it. Incredibly challenging is that you must control the currency all by yourself as there is no bank or third party involved in it.
However, if you want to invest in Bitcoin,then the information shared in this article should help you understand how you should go about it.
Reason for investing in Bitcoin
Bitcoin is one of the earliest cryptocurrencies or digital currencies that use encrypted data for validating transactions. One of the reasons for trading in Bitcoin is its software-determined capping on availability, which stands at 21 million Bitcoins, leading to the belief that the currency will only appreciate with time. The arguments about Bitcoins succeeding in the future are the same as those used for commodities like collectibles, diamonds, and gold. As the supply is limited with no counterfeiting chances, the Bitcoin design is indeed attractive to investors.
In the face of interest rates plunging to record lows and the enormous fiscal stimulus provided by the government to help the economy maintain some buoyancy while combating the coronavirus pandemic in 2020, the appeal of Bitcoins that hinged on its finite supply has gone up many more times according to Eric Dalius Bitcoin.
Investing options in Bitcoins
Investors ready to accept the risks can invest and buy Bitcoins by using some of the following options.
Bitcoin trusts and funds – If you want to invest in Bitcoins but do not like to own or handle it by yourself, you can buy shares in a Bitcoin trust that allows public trading. Similar to mutual funds and ETFs, you can hold a portfolio for holding or trading the currency. Choose a Bitcoin trust that tracks cryptocurrencies and use the traditional financial market for trading. However, be ready to pay high fees for the fund or trust.
Cryptocurrency exchanges – Investors can buy Bitcoins from cryptocurrency exchanges and handle the transaction on their own. However, you must have the experience of dealing with Bitcoins and other cryptocurrencies to purchase digital currencies of your choice by paying lower transaction fees between 0.10% and 0.26%. You can also withdraw Bitcoins and move them to another account.
Investors must be aware that Bitcoins have much lesser liquidity, and there might be high volatility in prices that you must be ready to endure.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. Eric is also the host of weekly podcast “FULLSPEED” which is a podcast that features interviews with groundbreaking entrepreneurs from a variety of industries.Eric is also the founder of “Eric Dalius Foundation” where he has created 4 scholarships for US based students. Follow Eric on Twitter,Facebook,LinkedIn,Instagram & also on Entrepreneur.com
