Last year Bitcoin shot up to over seventy three hundred dollars a coin. This more than doubling people's money in just a few weeks. That is crazy I mean the average stock market return is something like 10% a year and to think that people more than doubled their money in cryptocurrency in just a few weeks. That is insane! I'm gonna go over four things you need to know about Bitcoin before you invest your money in it and as always you are never guaranteed to make money when you invest, you might even lose money when you invest so you should always speak to a professional in your area so you understand all the local laws and regulations and risks that govern investing.
First this is more on general investing advice, it doesn't just apply to Bitcoin, but please don't invest on emotion. I think the most common argument I hear as to why people should invest in Bitcoin today is because if you invested $100 in Bitcoin in 2010, it would be worth more than two hundred million dollars today, so you don't want to miss out on this opportunity. That's absolutely nuts, that has already happened. We can't go back in time. That is an emotional argument. The past performance of something does not predict its future performance so just remember that you buy Bitcoin for today and not back in 2010. Nobody could predict if Bitcoin is going to the moon or was gonna come back crashing to earth and because Bitcoin and cryptocurrency is so new, it's very volatile meaning it can go up very quickly like we just saw and it can come down just as quickly.
Buying bitcoin is a type of cryptocurrency meaning it's the decentralized worldwide digital currency that means bitcoin is not controlled or regulated by the government. It's not controlled or regulated by private entities like the Federal Reserve and it's not controlled or regulated by big banks. This is great news for some people because that means that these entities cannot manipulate the value of Bitcoin like they can with money by just printing more of it, but this is also bad news for other people because these entities are not gonna want to lose their power, so you can imagine that they're gonna do what they can to block the use of Bitcoin, like we've seen happen in different countries.
Bitcoin is a peer-to-peer network meaning that the owners and the users of Bitcoin are the ones that are monitoring it and this peer-to-peer system it's pretty new. The problem with using Bitcoin as a currency is that a lot of places don't accept Bitcoin yet. If Amazon ever started to use Bitcoin in the future as a means of payment, now that would definitely change the game for cryptocurrency. You should also be aware of how Bitcoin is valued, the price of Bitcoin is based on what somebody else is willing to pay for it. It goes back to supply and demand on one hand as more and more people hear about Bitcoin. With all of International publicity you have this huge influx of buyers making the demand for Bitcoin go up and right now, bitcoin is scheduled to split on November 16th and historically lots of people like to buy bitcoin right before a fork happens and on the supply side Bitcoin was created with a cap the way bitcoin was originally created you can only have 21 million bitcoins in existence at one time. Once those 21 million bitcoins are created or mind which is a technical term you cannot create any more bitcoins so if the demand for something goes up when you only have a limited supply of it the price will naturally rise.
Third you have to know how to buy Bitcoin. If we decide to buy or invest in Bitcoin you have to use the cryptocurrency exchange that allows you to buy and sell Bitcoin because most regular exchanges don't allow you to do that. Different countries have different regulations and we've seen China and more recently Vietnam trying to ban certain exchanges so you need to know what's allowed in your area. The exchange that I'm most familiar with is called coin base. It's super simple to use and it's one of the most popular exchanges out there. All you have to do is fund your account and then enter it how much Bitcoin you wanna buy and you're done.
Bitcoin has gone up from point zero zero three cents to over seven thousand dollars. But remember what I said before the past performance of something does not predict its future performance. A lot of times people might be thinking something like oh man I don't know if I should sell it right now, I mean what if Bitcoin jumps up to $20,000. I'm gonna miss out on so much money! Well if that's what you're worried about then you can sell in phases. This way if Bitcoin does go down you've already sold. You've already captured some of your profits and if you think it's a good buying opportunity, now I can go in and buy during this dip and if Bitcoin does end up going higher, you've already captured some of your profits and you can still benefit from the continued gain. Look I can't predict the future and neither can anybody else in the world so don't believe somebody that tells you otherwise.
http://net.video297.com/warning-beginners-dont-buy-bitcoins-until-you-read-this/