Chances are, you know at least one person who has made money by investing in Bitcoin and other cryptocurrencies. Perhaps this has made you wonder if you, too, should start buying bitcoin as an investment. The answer truly is "it depends." Bitcoin can be a smart investment—but like any investment, it does come with some risks, too. Here are two pros and two cons of investing in Bitcoin.
Pro: Bitcoin has made plenty of people money already.
It's not as if Botcoin is some unproven investment. There are plenty of people out there who have invested and made some serious money by doing so. Not only does this increase the likelihood that you, too, could make money, but it also means there are a lot of successful investors out there for you to learn from. Look for their books and YouTube videos to learn what they did to be successful as a Bitcoin investor, and then put their tips to good use.
Con: Bitcoin is not a physical item.
Bitcoin is not something you can physically hold. Rather, it is a computer algorithm. Some fear that if the algorithm is corrupted or data is hacked, the value of the coin could go way down or ownership of the coins could be stolen. Is this likely? Probably not—but it is possible.
Pro: Bitcoin is easy to buy and sell.
To invest in Bitcoin successfully, you need to buy it when the price is low and then sell it once the price creeps up. Some commodities are hard to sell, making it easy to miss the "high point." This can be true of physical gold and other metals, for example. It's not true of Bitcoin. You can go online and sell it within a few minutes, and there is a global market for it, so there is always some demand. Today it is even possible to buy Bitcoin with Mastercard or other credit cards.
Con: Bitcoin prices rise and fall quickly.
If you invest in Bitcoin, you will then need to watch the market very closely to determine when it's best to sell. The price can rise and fall within a day or two, so you have to act quickly and remain aware. If you are more of a hands-off investor who only likes to think about their investments once a month, this may not be the right investment for you.
So, are you ready to invest in Bitcoin? There's a lot of money to be earned if you do it the right way!Share