Is it too late to get involved in Bitcoin? That’s the question that many would-be investors have been asking themselves over the past several months as they read about the rising value of these somewhat mysterious digital coins. On the one hand, they might feel that they’re too late to the party and that there’s no way they could possibly get more out of it than early investors did. Or perhaps they are worried by the volatility of the coins, caused in part by the somewhat rocky relationship they have with regulatory bodies and traditional financial entities. But the truth is that Bitcoin has really captured the public imagination to an extent that it seems like even now it can find more room to rise in value and do well for late-coming investors.
Of course, that means that these investors have to understand the process and how they can make money from investing in Bitcoin. If you’d like to do your Bitcoin investing in a kind of hands-off manner, you might choose to employ a so-called “trading robot” from sites like Bitcoin Code. For those who prefer to get their hands dirty and want to see how they can make their own fortune on the backs of Bitcoin, here is a simple primer.
- What It Is
Think of Bitcoin as just another form of currency, a la the foreign currencies that might be traded on the Forex market. It has an intrinsic value that fluctuates based on the number of investors who wish to buy it and the number of coins that are available, a simple question of the supply of demand. The supply of Bitcoin only rises when more of it is mined, which takes place whenever a transaction takes place using the coins.
- How It’s Different
Although it acts as a currency and can be used as such, Bitcoin as an investment acts a little bit more like stocks that you would buy. It is prone to volatility that you would normally associate with stocks, perhaps even more so at this point in history because of the regulatory battles with it. For that reason, you can expect a greater profit from buying Bitcoin than if you bought dollars or pounds, but you can also be prone to bigger losses.
- How to Do It
Since mining Bitcoin is a complicated process that isn’t guaranteed to produce results, your best bet is to simply buy an amount of Bitcoin from an exchange. You can then cash out when it rises in value or hold on it in the hopes of even bigger profits in the future. Most exchanges require you to buy in with some sort of traditional money and many will often hold the coins for you. For your own protection, you might wish instead to buy your own Bitcoin wallet, which will help you protect from hackers targeting a large exchange.
Bitcoin really isn’t all that difficult to get involved in as an investment. Making money off it, however, requires the right investing touch, which you’ll have to provide.