Why Invest in Bitcoin?
Since Bitcoin’s release in 2009, digital currency has become increasingly interesting to investors across the globe. But how exactly do you invest in something that people call a “currency”? I mean, you don’t usually “invest” in the US Dollar, right?
Well, Bitcoin is very different from other kinds of funds. And when you get into the more specific altcoins (any type of digital currency other than Bitcoin), there are even more differences from coin to coin.
The US Dollar is what the virtual currency community calls “fiat.” This basically means that the government regulates the US Dollar as America’s standard and legal form of currency. This isn’t to say that Bitcoin is illegal but rather that the US Dollar is the official and accepted medium of exchange across the nation.
Because of this, USD’s value isn’t very volatile. In other words, its value doesn’t change by great amounts over short periods of time. On the other hand, Bitcoin has had its value increase (or decrease) by insane amounts over the course of only a week or even a day.
To provide a comparison, one bitcoin was worth $0.0008 in 2010 and is worth about $54,600 as of March 2021. Alternatively, one US Dollar in 2010 is worth about $1.21 in 2021. It’s bitcoin’s ability to increase in value so incredibly over the course of a day, a year, or ten years that investors are so interested in it. With that, let’s look at how to invest in Bitcoin, or digital currency in general.
The first step to investing in Bitcoin is simply purchasing some. There are a few ways to do this. You can use an online digital currency exchange, peer-to-peer trade, or one of the more recent methods of purchasing bitcoin, like a digital currency machine (DCM). The latter is the simplest for someone who has never invested in virtual currency before. These machines allow users to trade cash for digital currency and visa versa.
Before you use any of these methods to invest in digital currency, you’re going to need a wallet. A bitcoin wallet, just like a real wallet, is a tool to store your funds. Coin Cloud provides an easy-to-use and safe digital wallet to store your funds in! Plus, it works great with Coin Cloud’s DCMs to make your first investment in Bitcoin painless and secure.
To recap, all you have to do to purchase bitcoin is download a wallet (we recommend Coin Cloud’s) and then use that wallet to purchase funds from an online exchange, someone you know, or a digital currency machine.
Once you’ve purchased your first piece of Bitcoin, the investment functions similarly to many other kinds of investments. If you watch the market and listen to the community, you can evaluate the price changes. This lets you estimate when to take out or put more money in by purchasing or selling digital currency with the tools mentioned above.
Remember, the general rule of thumb is always “buy low, sell high!” But even the best traders guess wrong sometimes, so never invest more than you’re willing to lose.
Good luck and happy investing!
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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