“Should I invest in bitcoins?”
This is probably the most common question people are asking on the internet, these days. A majority of them are young enthusiasts who want to earn quick money. Here, I’d like to give my opinion on bitcoins and other cryptocurrencies. But I’m not an expert, so don’t follow my words blindly. For more information, you could try and research on it and look up about it from some genuine and trusted sources. My article is just my opinion based on what I read for myself.
It’s one among the various cryptocurrencies, and is first of its kind in the market. There are many other kinds of cryptocurrencies as well. This is complex and needs much explanation and I will try to brief it out in a few sentences.
Bitcoin is the first decentralised digital currency, and the transactions take place directly between the users without an intermediary. Bitcoins are derived through mining, in which complex algorithms and mathematical problems. These are solved which give out blockchains, where Bitcoins are created or allotted in a discrete fashion which depend on the number of attempts to solve those problems. These transactions are stored in public ledgers.
This is a quite skeptical question to answer, as it varies from person to person because some might expect immediate returns, while others look forward to future results that are long-run returns.
Before you invest here, please do note that the risk factor is high, and prices are highly volatile, which means there might be a rapid rise or fall in the price which is unpredictable and there is no guarantee of your investment.
My sincere advice would be to invest only if you can afford losing the money. Never think of borrowing and investing and assuming that you can return it when the price goes up. This is a very bad idea because the probability of prices going up or down is the same. Also, there is no point in putting all your hard-earned money into it. Instead, plan accordingly, and invest in small amounts as you can buy a hundred-millionith part of a bitcoin too.
First of all, don’t be greedy when the price goes up. Look into the price chart, watch the pattern of rise and drop, study well and then think of investing. Don’t get excited about investing in it when the price goes up – and in the same way, don’t panic when it drops.
My way of investing is a safe game play, where I invest in very small amounts that are below $20 as I can afford losing it. Start with small amounts that you can afford to lose, and do it at regular intervals if you can. Check the price regularly to try to understand the pattern, even though there isn’t any specific pattern.
Another important factor that you have to keep in your mind is bitcoin or any cryptocurrency is not legal everywhere, and there are countries which have banned its citizens from using the cryptocurrency as well.
There are many bitcoin wallets that are available in the market. Look for a wallet that has a good rating and reviews to ensure many people are using it. These wallets are pretty simple to use. Just install their application, submit the required documents which will fill their KYC – and once you have been verified, you can start your transactions
You must note that these are third party apps, and they act as mediators between you and the traders. So keep in mind that there are wallet fees, tax and other hidden charges, which would always keep the price of bitcoin higher in their wallet than the original price of bitcoin in the market.
My personal choice of wallets are Zebpay and Unocoin, which are India-based bitcoin wallets.
These predictions are just wild guesses that I’m making, and I don’t have any source to prove them.
I believe that if these cryptocurrencies are allowed to be a legal tender, then the market will shatter and the initial investors would get benefited a lot because the price would surge up. Moreover, there will be regularities, volatility of prices, and the way trade happens would completely change.
Since bitcoin mining consumes a large amount of electricity to generate bitcoins, there may be a backward step taken in terms of usage, which might lead to a complete shutdown as well.