What are 5 things you wish you knew before you invested in Bitcoin or other cryptocurrencies?

Thinking of investing in Bitcoin?

This post will outline some things you NEED to know before you buy it.

Why Bitcoin is Gaining Traction

The world is becoming ever more reliant on the internet.

So it’s no surprise that Bitcoin, a secure, global, and digital currency has claimed the interest of investors.

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Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class.

Investing in bitcoin may seem scary, but know that it takes time and effort to understand how Bitcoin works.

Also, keep in mind that the regulatory perspectives on Bitcoin globally are varied. Keep that in mind, and do your own research based on where you live.

Why Invest in Bitcoin?

It seems silly to some people that one bitcoin can be worth thousands of dollars.

What makes bitcoins valuable?

Bitcoins Are Scarce

Let’s look at gold as an example of a currency. There is a limited amount of gold on earth.

As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine.

Bitcoins Are Useful

In addition to being scarce, bitcoins are useful.

Bitcoin provides sound and predictable monetary policy that can be verified by anyone.

Bitcoin’s monetary policy is one of its most important features. It’s possible to see when new bitcoins are created when a transaction is created, or how many bitcoins are in circulation.

Bitcoins can be sent from anywhere in the world to anywhere else in the world. No bank can block payments or close your account. Bitcoin is censorship resistant money.

Bitcoin makes cross border payments possible, and also provides an easy way for people to escape failed government monetary policy.

Bitcoin’s Price

There is no official Bitcoin price. Bitcoin’s price is set by whatever people are willing to pay. Buy Bitcoin Worldwide’s is a good resource for current and historical prices.

Bitcoin’s price is generally shown as the cost of one bitcoin. However, exchanges will let you buy any amount, and you can buy less than one bitcoin. Below is a chart showing Bitcoin’s entire price history:

When is the right time to buy?

As with any market, nothing is for sure.

Anyone’s guess is just about as good as anyone else’s when it comes to predicting near term Bitcoin prices.

Throughout its history, Bitcoin has generally increased in value at a very fast pace, followed by a slow, steady downfall until it stabilizes.

Use tools like our Bitcoin price chart to analyze charts and understand Bitcoin’s price history.

Bitcoin is global and therefore less affected by any single country’s financial situation or stability, good or bad.

For example, speculation about the Chinese Yuan devaluing has, in the past, caused more demand from China, which also pulled up the exchange rate on U.S. and Europe based exchanges.