Reflecting about investing in Bitcoin?
In this article you can find the list of facts, which you have to know before making a purchase. We are going to tell you about:
- The foundation of investing in bitcoin;
- Why this must be treated seriously;
- How to buy BTC (with the help of credit card or bank account);
- How properly protect security of your bitcoins, if you have decided to invest.
Notification: if don`t need all the details and you just want to buy cryptocurrency, Coinbase is the easiest way to purchase it in the USA, Canada and Europe.
The list above represents only the part of aspects, we consider in this article.
Is Investing in Bitcoins Worthwhile?
Investing in Bitcoins is one of the best alternative ways to earn money at present time, and this situation will continue – so it’s really worthwhile. Being one of the most famous cryptocurrencies in the world, Bitcoin is gaining increasing importance and investors` interest don`t stop growing.
According to experts, the value of this cryptocurrency in the future must grow up and this fact is a solid reason to invest in BTC. What is more, you can make profit even if the price is decreasing, and you have the full picture.
The convenience of investing in Bitcoins is reasoned by the fact that it`s not a single form of investment.
By this statement we understand that Bitcoin must be the part of a broader investment strategy, which includes currencies (so called Forex Trading), stocks and goods (namely raw materials such as oil, silver, gold etc). Within the framework of wider strategy we also can involve different guaranteed investment possibilities from Bitcoin shares, that will be discussed in detail.
Bitcoin Price on today
There is no formal bitcoin`s price. Its cost is determined by the sum, which people are ready to pay. CoinDesk`s price index is a reliable resource.
The value of BTC is usually indicated as the price for one bitcoin. However, stock exchanges allow users buy any sum, you can purchase less than one coin as well. Below is presented the schedule showing Bitcoin’s price history;
Why Bitcoin is Gaining Traction
The world is becoming more and more dependent on the Internet. And it’s true.
No wonder that Bitcoin – safe, global and digital currency – caused the huge interest of experienced investors. BTC is opened for everybody and successfully provides a good opportunity to enter absolutely new asset class.
Many users are afraid of investing in Bitcoin, but don`t forget that for understanding how this cryptocurrency operates you need much time and efforts.
Notification: Bitcoin with a capital “B” means Bitcoin the network or Bitcoin the payment system; bitcoin with a lowercase “b” references bitcoin as a currency or bitcoin the currency unit.
Why Invest in Bitcoin?
Some people consider it’s being silly that one bitcoin can cost hundreds of dollars. What exactly makes BTC worthy and why invest in it?
Bitcoins are scarce and useful. Let’s take gold as an example of currency. The amount of gold is limited. And the more gold is mined, the less its amount remains in nature, its search and production are becoming more difficult and expansive.
The same situation is with Bitcoin. There is only 21 billion of bitcoins, and in length of time they become harder and harder to mine. Glance at BitcoinРІР‚в„ўs inflation rate and supply rate:
Bitcoins are`t only scarce, but also useful. Bitcoin provides dependable and predictable monetary policy, that can be checked by everyone. Safe monetary policy of BTC is one the most important features. You are able to see when new bitcoins are created and how many units are in circulation.
Users can send cryptocurrency from one place of the world to absolutely another. Non bank is able to block payments or close your account. Bitcoin currency is resistant to censorship.
Bitcoin makes possible cross border payments, in addition, it gives people common way to avoid failed government monetary policy.
Thanks to the Internet, information has become global and easy to access. Reliable global currency, such as Bitcoin, will make the same influence at finances and world economy. If you realize the potential of Bitcoin`s influence, you will easily understand why investing in Bitcoin can be a nice idea.
How to Invest in Bitcoin – Where and How to Buy BTC?
In order to invest in Bitcoin, it’s enough to buy it. You can purchase bitcoins directly from other people with the help of trading platforms, cryptocurrency doesn’t differ from any other product or service. Besides, you may use digital currency exchange or broker, such as Bitstamp, Gatehub, Coinbase and Kraken. Coinbase is one of the largest cryptocurrency exchanges in the USA. Newbies should use one of presented exchanges, because they are the most convenient for beginning users.
Also, you need a wallet – the place for digital currency holding. The wallet is a necessary condition, independently on what kind of exchange you`re going to use. It holds your private key (secret number) – a 256-bit string, which opens you access to your bitcoin funds. In addition, your private key allows you freely move by trading platforms. Just because you bought Bitcoin on a certain exchange doesnРІР‚в„ўt mean you have to stick with it; your private key guarantees that you have constant access to your wallet, whichever marketplace you use.
There are various types of wallets, including hardware and software wallets. In fact, software wallets represent apps, which you connect to your regular bank account. There are some variants to select from. Coinbase offers its own wallet, and this is conveniently because it’s directly connected with exchange service. Also, exists Mycelium, popular mobile wallet, as well as Electrum. In the meantime, hardware wallets keep the userРІР‚в„ўs private keys on a safe hardware gadget that looks mainly like a flash memory stick. Hardware wallets are treated by some people being more secure because they can disconnect from the Internet.
Have you already prepared your wallet and chosen trading platform? All right. Now, when you have all necessary parts, we can finish the procedure.
The first step. Create your wallet. The easiest way to do is to try services of third-parties, such as Exodus, Coinbase, MyCelium or blockchain.info. Follow the website of chosen wallet and register there. To implement this step you should enter your name, e-mail and password.
The second step. If your choice has fallen on a software wallet, you will be asked to download its app. Download it through Apple or Google Play app market, depending on whether you have the iOS or Android operating system. Some wallets work only at computers, other variants are good for mobile devices.
The third step. Visit the stock exchange, which you have already selected. This can be Poloniex, Coinbase, Kraken, CEX.io, Bitfinex, BitStamp and BitPanda. Sign up at the exchange. And again, you have to provide the service with your name, e-mail and password. Majority of stock exchanges asks you to connect your bank account for paying bitcoins purchase.
Some exchanges, like Coinbase, offer an application that works both as the exchange and the wallet. Through this app you can buy and trade BTC, and store them, of course. It’s a good advantage, but using Coinbase exchange doesn`t oblige you to use Coinbase digital wallet. There are many other digital wallets.
The fourth step. Enter the exchange`s section “Buy”. Specify the amount of bitcoins you want to purchase, also you have an opportunity to get less than one coin. Bitcoin can be divided up to eight decimal points. This means that you can receive 0,9 BTC, 0,05 BTC and even 0,00000001 BTC, buy as much as you can afford. Depending on the exchange service you can pay by bank transfer, credit card or even by cash.
Tips for Investing in Bitcoins
There are some tips concerning investing in Bitcoin:
- The best way to invest in 2019 is to buy in the long run;
- If you`re going to make short-term investments, you would better trade with CFD;
- It’s important to diversify investments, among various cryptocurrencies, and between these and other financial instruments (currencies, goods, etc.);
- Bitcoins cannot be treated as safe investment, that’s why you should understand that you risk losing your money;
- It’s vitally important to choose a safe broker for investing in CFD;
- Purchase Bitcoins from reliable exchanges such as Coinbase.
Trading with Bitcoins – Bitcoin Trading VS Investing
Before discussing this topic we want to specify what is Bitcoin trading and how it differs from Bitcoin investments.
Investing in Bitcoin consists in purchasing the cryptocurrency for a long term. In other words, investors hope that Bitcoin’s price will grow ultimately, independently on its ups and downs. Usually, people invest in BTC because they believe in ideology, technology, and the team behind the currency.
In such a way, Bitcoin investors tend to HODL the currency for the long run (HODL is a popular concept in the Bitcoin society that was actually born out of a misprint of the word “hold”in an old 2013 post on the BitcoinTalk forum).
On the other hand, Bitcoin traders buy and sell cryptocurrency in the short term, they catch the periods of high Bitcoin`s cost and then get profit. Unlike investors, traders consider Bitcoin as the instrument of making income. Some of them don’t even bother to study the technology / ideology of the product they market.
Having said that, people can trade Bitcoin and still care about it, and many people out there invest and trade at the same time.
What about abrupt growth of Bitcoin trading popularity (and some altcoins trading) – there are several reasons for this. First of all, Bitcoin is very changeable. In other words, you will get good profit, if you manage to predict the market correctly. In the second place, unlike traditional markets, Bitcoin trading is unblocked around the clock and seven days a week.
Most traditional markets, such as goods and stocks, have their time of opening and closing. Bitcoin you can buy and sell in any convenient time. Finally, BitcoinРІР‚в„ўs unregulated landscape allows easy begin tradingwithout the need for long identity-verification processes.
When is the Right Time to Buy Bitcoin
There is no exact data about perfect time for buying Bitcoin, as well as on any other market. During whole its history Bitcoin, as a rule, has increased in value very rapidly and then slow sustained downfall has happened until BTC stabilizes.
For analysing graphics and understanding Bitcoin`s price history you should use such instruments as Cryptowatch and Bitcoin Wisdom.
Bitcoin is global and doesn’t depend on financial stability or difficulty of any single country. Speculation about the Chinese Yuan devaluation, for instance, has caused in the past greater demand from China, which also pulled up the exchange rate on U.S. and Europe based exchanges.
Total chaos is generally considered being advantageous for Bitcoin`s price, because this cryptocurrency is unpolitical and stays beyond the control or influence of any particular state.
Thinking about political and economical effect on Bitcoin`s price, it’s necessary to suppose globally, but not within the framework of one country.
Are Bitcoins Safe?
We are happy to say that Bitcoin is safe…basically. Today Bitcoin is the most known type among all digital coins – cryptocurrencies. One of the most important its aspects is security, and from this point of view we can claim that BTC is decidedly safe. We offer you to look through the reasons for this statement.
The reason РІћ“1: Bitcoin is encrypted and secure
And not just normal, run-of-the-mill encrypted. Bitcoin is encrypted and supported by the special system, named blockchain. Blockchain involves great amount of volunteers for cooperative work on transactions` encryption, which happen in the Bitcoin system. Together with this they control that all personal information has been closed from spying eyes, and even if hackers manage to get into the system, they won’t steal anything.
The reason РІћ“2: Bitcoin is opened
“But this claim doesn`t sound safer”, – you can suppose. However, under “publicityРІР‚в„ў we understand that all transactions are transparent and open for public, even if involved members are anonymous. This mean that nobody can cheat, scam, or in another way fraud the system. In addition, theyРІР‚в„ўre irreversible, so as soon as you get your Bitcoins, or sell them, no one can demand their money back. In Bitcoin network thousands of people follow your wallet to make sure that nobody tries to steal anything.
The reason РІћ“3: Bitcoin is decentralized
Bitcoin has its servers all over the world and more than ten thousand nodes tracking all the transactions which happen in the network. And this factor is vitally important because when one server or node falls, all other can replace it. This also means that there is no sense to hack one of servers: it contains nothing hackers could get and servers & nodes couldn’t prevent. The exception is when a malefactor controls 51% of nodes. In theory this situation is possible, but practically it’s unlikely.
And itРІР‚в„ўs much better than the alternative, because when you store all your important things in one location, it provokes trouble: just ask people at Equifax.
How to Store Purchased Bitcoins – Wallets
Before buying bitcoins you should care about the place, where to keep them. This place calls “wallet”.  Instead of actual holding your bitcoins, the wallet has a private key that allows you get access to your Bitcoin address (which, at the same time, is a public key). If wallet`s software is well-developed, this will look like you actually have BTC and this makes the usage more convenient and intuitive understandable.
In fact, the wallet contains several private keys and many Bitcoin investors own several wallets.
Wallets may locate at your PC or mobile device, on a physical storage gadget or even at a sheet of paper. Below we will briefly consider various types of wallets.
Electronic wallets
Electronic wallets can be downloaded as software or hosted in the cloud. The first variant is just formatted file that stays on your PC or another gadget and makes a transaction easier. Hosted (cloud-based) wallets generally have user-friendly interface, but you trust your personal keys to the third party!
Software wallets
Wallet`s installation directly on your PC provides your keys security. Most of such wallets have relatively easy configuration, and are free. There is one disadvantage: they demand more backup services. Be aware, if your computer with the software wallet is stolen or crashed, and your private keys aren’t kept in additional place, you will lose your Bitcoins forever.
Also, they need more stringent security measures. If your PC is hacked and a thief takes possession of your wallet and private keys, he will also lay hold of your BTC funds.
The original software wallet – is Bitcoin Core protocol, the program that launches the bitcoin network. You can download it here (this doesnРІР‚в„ўt mean that you must become a fully operational node), you also have to download the ledger of all transactions since the dawn of Bitcoin time (2009). As you can guess, this function occupies a lot of memory.
Majority of currently used wallets are, so called, “light” wallets or SPV wallets (Simplified Payment Verification), which don`t download whole ledger, but they are synchronized to the real thing. Electrum.org is well-known SPV bitcoin wallet for desktop computers, which also offers “cold storage” (completely autonomous variant for extra security). Exodus.io is able to track some assets with the help of complicated user`s interface. Some wallets (like Jaxx) can contain wide range of digital assets, and another examples (like Copay) offer an opportunity of shared accounts.
Online wallets
Online (or cloud-based) wallets offer increased convenience – you can get access to your Bitcoins from any device, if you have correct public and private keys. All wallets of this type are common in setting, they provide desktop and mobile applications, which allow easily spend and receive cryptocurrency. Most of these wallets are free.
The disadvantage is low safety. Your private keys are stored on the cloud, and you should trust to security measures of the host, believe that it won’t disappear with your money, or close down and leave you without access.
Some leading online wallets are attached to exchanges (for instance, Coinbase and Blockchain). Some representatives propose additional security functions, such as offline storage (Xapo and Coinbase).
Mobile wallets
Mobile wallets are available in the view of an app for your smartphone. This opportunity is especially useful if you`re going to pay things in stores by bitcoins, or if you want to purchase, sell and send BTC being on the way. All online wallets and most mentioned desktop types have mobile versions, while other, such as Airbitz, Abra and Bread, were created exactly for mobile devices.
Hardware wallets
Hardware wallets represent a small device, which sometimes is connected to the Internet for making bitcoin transactions. This variant of wallet is extremely secure, because it Р’В isn’t usually connected to the World Wide Web and that’s why it cannot be hacked. However, there is a chance that hardware wallet can be stolen or lost together with your bitcoins. Some large investors hold their hardware wallets in safe places, such as bank vaults. Trezor, Ledger, Keepkey, and Case are bright representatives.
Paper wallets
Very likely, the easiest of all existing wallets is paper wallet – the sheet of paper with printed on it public and private keys of a bitcoin address. These wallets are perfect for long-term BTC keeping (keep it far from water and fire, of course) or for presenting bitcoins as a gift, because they aren’t connected to the network. On the other hand, paper bitcoin wallet is easy to be lost.
With such services, as “WalletGenerator”, you can without difficulties create new address and print your wallet on your printer. Fold, seal and it’s OK. Send some bitcoin to that address, and then store it safely or give it away.
Are bitcoin wallets secure?
Safety depends on the wallet`s version and format, that you have chosen, and on the way you use this.
The safest type is a hardware wallet, which you hold offline in a protected place. In such a way, there is no risk for your account to be hacked, your keys won’t be stolen and bitcoin will always be yours. But if you lose your wallet, your BTC will disappear, if you haven’t cared about a clone or haven’t prepared safe copies of keys.
The least safe variant is online wallet, because keys are stored by the third party. Anyway, it’s the most convenient type in setting and usage. Online wallet offers constant choice: comfort VS security.
Many serious Bitcoin investors practice hybrid approach: they store major part of long-term BTC offline, while keeping a “spending balance” for liquidity in a mobile account. Your choice will depend on your Bitcoin strategy and your readiness to become “technical”.
Whatever variant you have selected, be careful. Make a backup copy of necessary info and provide with it a couple of people you trust.
How to Secure Bitcoins
As with anything valuable, thieves, hackers and scammers will hunt down your bitcoins. That’s why it’s necessary enough to ensure security of your money (BTC).
If you treat seriously Bitcoin investment and want to purchase significant sum, we advise you to use bitcoin-wallets that were created with safety in mind.
- Ledger Nano S – is a Bitcoin security company, which offers wide range of safe BTC storage gadgets. Today Ledger Nano S is considered as the safest type of wallet;
- TREZOR – is a hardware wallet, created for Bitcoin security. It generates your Bitcoin private keys offline.
You have to store BTC only on the wallets you personally control.
If you entrust coins in the amount of $5000 to your friend, he can easily escape with your money and you`ll never see it again.
Since Bitcoins locate on the Internet, it’s not difficult to steal them, but much harder to track down and return. Bitcoin itself is safe, but bitcoins are only as secure as the wallet storing them.
Should you Invest in Bitcoin Mining?
The Bitcoin mining industry has grown rapidly. Mining, which has recently been conducted on a regular home computer, at the current moment is effective only in specialized data-centers.
These data centers are storehouses, filled with computers, which are equipped especially for bitcoin mining. Today even the start of mining costs millions of dollars.
Bitcoin mining is no longer profitable investment for newbies in cryptocurrency sphere.
If you want a small miner to play around with mining, go for it. But donРІР‚в„ўt treat your home mining operation as an investment or expect to get a return.
Reasons Why it is Not Too Late to Invest in Bitcoin and Other Cryptocurrencies
There are many reasons why to invest money in BTC or other cryptocurrencies. We are going to consider basic reasons, which are worth your attention.
1) The Current Value of the Entire Cryptocurrency Market is Just a Fraction of the Worth of Some Companies
Satoshi NakamotoРІР‚в„ўs seeing consisted in the cryptocurrency`s future as the new form of money. The industry has come a long way since BitcoinРІР‚в„ўs visionary white paper, however, it’s still too small in comparison with the money and financial value in circulation.
The current aggregate market capitalization of crypto-industry makes up just under 200 billion dollars.
This is a tiny mark in comparison with current appraisal of such companies as Apple and Amazon. Evaluations of these companies are what they are now, although they don’t serve up to half of world’s population. Meanwhile, if cryptocurrency reaches long-term seeing of becoming the new form of money, the significant percent of the world (or even the whole world) will use it.
Simply put, just fancy, what would happen, if two mentioned companies decided to enable cryptocurrencies in their systems. Today many crypto-project set partnership relations that increase their practicality and help to accelerate real-world applications of blockchain and cryptocurrency.
What is more, when you look at the graphic above, you will realize that the cryptocurrency must overcome a long way to consolidate in the total value of money in the world.
Also, we could presume that digital currency will appear at the same level as gold. But considering cryptoРІР‚в„ўs seeing of replacing fiat money, the potential is substantial.
2)Institutional Money is Yet to Be Priced in
Cryptocurrencies still don’t submit to regular rules. In fact, most authorities are still arguing what is the “cryptocurrency”. Some people say it is the currency, some claim that it is the commodity, another are agree with both variants. There is the dread that the securities law could be applied to some types of cryptocurrencies.
These doubts and concerns, and many additional factors haven`t let institutional investors risk with cryptocurrencies.
Large part of the value priced into cryptocurrencies goes from tech enthusiasts and separate capitalists.
Institutional capital, which is often essential and is governed by large investment companies, has not yet ventured in the crypto industry. Morgan Stanley has already expressed intense interest, and Fidelity has already gone one step ahead. Others are expected to pick up to avoid being left behind.
3)The Crypto Industry Still Has a Lot of Room of Growth
Although cryptocurrencies today solve the problems of money transfer, the use of blockchain still has a number of problems, which demand solutions.
Blockchain platforms make developers work hard to optimize them well for implementing daily functions. For example, Ethereum is still working at scaling solution. And Bitcoin demands that Lightning network copes better with high transactional loads.
We can say that current market capitalization of crypto industry reflects current status of crypto projects. Today just 36 of 100 the largest cryptocurrencies offer working products, and this fact shows that this sphere stays in germ.
Another sphere of growth is connected to current nature of crypto market, which is evidently driven by speculations and moods, rather than actual progress. The market needs time to mature and to become less affected by moods, it should become largely moved by practical progress.
As blockchain technology develops further and crypto investors mature, we could see exponential growth in the area from the point of view of both actual usage and market capitalization.
4)Crypto`s Potential as a Store-Of-Value in Times of Crises
One of the problems of today`s financial system consists in the fact that people have to use the currency of the country they live. While certain part of people are lucky to live in states with sustainable financial system, others stay in the countries, whose authorities don`t carry a financial responsibility. Governments can afford to make a mess in financial industry, and citizens have no choice other than use their national currency.
Cryptocurrencies are not state-owned or government-directed. They have no physical body, and that’s why they don’t carry any physical activity. Cryptocurrency can become a wealth repository with the help of a wallet address and a public key or a hardware wallet, this is especially actual in times of crises.
Bitcoin is not rarely considered in this light, and its total amount makes 21 billion. The good idea is to store funds in the top cryptocurrency. If Bitcoin one day was recognized all over the world as the means of wealth storing, this would stimulate demand for it. The demand will increase because people will be ready to buy and keep BTC, and will reluctantly sell it.
5)More and More Companies are Working to Apply Blockchain Technology in Their Industry
In July 2018, Forbes presented the list of 50 public companies researching the use of blockchain technology. The list includes IBM, American Express, Facebook, Oracle, Comcast and many others.
The significant efforts these companies invest in blockchain development are a positive sign for the industry’s future. Although these developments don’t directly influence on the price of current cryptocurrencies, on the other hand, successful blockchain usage for another goals may have a by-effect and stimulate the adoption of crypto entirely.
Since most companies already consider the opportunity of blockchain integration into their options, no wonder if we watch massive growth in corporate adoption of cryptocurrencies over the following 5-10 years. Projects oriented towards enterprises as well as those, which provide Blockchain-as-a-Service will only serve for acceleration of enterprise adoption.
6)Better Security
Surely, when you have money, you want to keep it safe. Cryptocurrencies are able to propose the best systems of security thanks to cryptography usage. The difference between cryptography and traditional money protection is that in the first case you trust your money to the math, and in the second case – to an IT department of a bank.
However, the blockchain technology cannot be hacked, it is still close to the possibility of hacking, which may happen right now. On the blockchain your money stay much safer, as anywhere else. What is more, you are the only person, who has access to it and can manage it.
7)Privacy and Anonymity
Privacy and anonymity are the most important features of crypto system. They keep your activity, purchases and investments invisible for third sides, banks and even governments. Cryptocurrency society agrees that it’s user’s personal business, and privacy & anonymity features were developed primarily.
Some sceptics claim that these features let criminals finance their illegal activities without supervision. But frankly speaking, these advantages were developed, first of all, for protection of common people and for providing them freedom of speech. Criminals managed to finance their crimes by fiat currencies, but nobody say that these currencies are bad. And finally, everybody may spend his own money at his discretion, and only crypto allows implement this right without control.
8)Low Transaction Fees
Point is that cryptocurrencies take much lower transactions fees, than any other way of sending payments. No matter, you compare them with traditional banks and financial institutions or with their online counterparts. The commission for making a crypto-transaction can even be a part of a dollar. Sometimes it can be absent at all. This factor often motivates new investors to participate in trading.
9)They are Easy to Access and Manage
The access to cryptocurrencies is not complicated – permissionless and immediate. You don’t need anybody’s permission to do any act or for access in any convenient time and from any gadget. You have an opportunity to buy, sell and manage cryptocurrency by any convenient method for you. Besides, you don’t have to purchase expansive software or hardware, also you don’t need licences and special tuition. All you should have is a laptop or smartphone, and you can instantly get access to your digital wealth.
10)Convenience
If you travel a lot or live “on the road”, this will be a trouble for you to cross the border with large sum of money in your baggage. For a long time it has been a huge problem, especially when we talk about the legality of this process. With cryptocurrencies you have the convenience to travel around the world, owning even billions on your account. Cryptos are legally transferable and you can get access to them in every possible location. This factor makes digital currencies much more convenient than regular money.
11)No Obligations
You might have never thought about this, but traditional banking systems, in fact. are created due to debts. This is radically different from cryptocurrency, and when you enter a wallet, you are going to see what you get. There are no obligations or hidden payments. Everything is clear and honest.
12)Cryptos are the Future
All listed factors point that cryptocurrency is much more perfect variant than all fiat money. It is money of the future, and many experts consider that we stay just a few years from mass implementation of cryptography. When this time comes, this will be very useful for you to be acquainted with this sphere and know how the system works. Besides, you can use crypto for making significant profit right now. Prices are still changeable enough, but an experienced investor can use this feature in his own interests.
Should I Invest in Bitcoin – Experts` Opinion
During its way of reaching the top point in $20 000 in December 2017, BTC has attracted the society’s attention. Since that times the largest cryptocurrency in world has lost more than 70% of its value – many experts, however, claim that Bitcoin is still very attractive investment. Please, pay attention to four experts` opinion, who are sure that Bitcoin is worth to be invested.
Tom Lee: Current Price Gives a “Huge Bull Signal”
Tom Lee, the leading analyst of Fundstrat Global Advisors, has noted that Bitcoin now is trading around 30% below its 200-day moving average this is a “pretty positive signal.” The analyst has also stressed that “probability of making money is over 90 percent within six months”, if you manage to purchase Bitcoins, when it’s trading 30% below its 200-day moving average.
Lee has also confirmed the fact that technical analysis is beginning to look much more auspicious and that the wave of positive news plays its important part.
Barry Silbert: Important Infrastructure For Institutional Money is Being Constructed
According to Barry Silbert from Digital Currency Group, who is one of the first Bitcoin investors, 2019 is going to be very important period for BTC, because institutional investments will be involved insofar as infrastructure for them is close to being prepared. He has also noted that we can watch such a trend now, seeing institutional investors accounted for 56% of Grayscale InvestmentsРІР‚в„ў $250 million raised YTD.
Silbert supposes that the price has already reached its bottom and “bears just kind of ran out of energy, ran out of Bitcoin to sell” – in fact he claims that bear market is over.
Patrick Gray: The Potential For Growth is Massive
Bitcoin, despite its loss about 70% of its record-high cost in January, is still demonstrating significant growth in comparison with the situation, which was in the beginning of 2017. Moreover, the largest cryptocurrency has significantly surpassed some leading traditional companies like JD.Com, Amazon and iQiyi.
The HashChain Technology`s G.M. Patrick Gray mentioned: “Cryptocurrency adoption today makes 0,2% and has been doubling by 100% every year. At this pace, the potential and opportunity during next ten years is vast. Despite some recessions, such a potential of growth and rates of growth should be carefully followed”.
Boris Schlossberg: Bitcoin Could be a “Legitimate Store of Value”
Boris Schlossberg, the Managing Director of FX Strategy at BK Asset Management, who for a long time has been Bitcoin Bear, has provided the society with the substantial estimate of the first and most important cryptocurrency`s recent rally. He even stressed that further increase doesn’t go beyond, stating: “Insofar as bitcoin appears to rally mostly on technical drivers, for the moment, it could easily squeeze above $8,000. That level is where much more serious resistance lies on the charts.”
Schlossberg also claimed that BTC “may be considered as legal means for storing of funds in the future”, because the blockchain technology “is becoming more and more entrenched in the basic financial industry.”
Conclusion
Investing in cryptocurrencies doesn`t simply consist in purchasing coins and waiting for a jump or prices increasing. The usage of skills for creating or developing something in the sphere is investing. Creating useful products and services, which supplement cryptocurrency, also can be treated as an investment. However, investments are often linked to coins buying, it isn`t the end of the list.
The value of most cryptocurrencies fell more than 70% in 2018. Many people wished in January (during those ups) that they had bought Bitcoin at $6000. Now, at $6000, they are quite skeptical. This statement in no way motivates you to buy Bitcoin or any other cryptocurrency at current price – we just give you the picture of real investing process.
Whether we like it or not, the financial system will completely change in the future. This looks like the proverb ““change is the only constant.” The bankers have spent their time, and crypto seems to be the next era in the financial sphere.