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Five Tips for Investing In Bitcoin and Cryptocurrency

Five Tips for Investing In Bitcoin and Cryptocurrency

Wednesday January 23, 2019,

3 min Read

Unless you have been living under a rock for the past two decades, you would have heard about the numerous digital currencies out there, i.e. bitcoin and other cryptocurrencies via bitcoin news or other channels.

The new trend in the money market (which involves some elements of mathematical theory and computer science) today is known as a cryptocurrency. It has turned many ordinary individuals into millionaires virtually overnight in the past few years, despite the volatile nature of the digital currency as indicated in crypto news from around the world. Many people engage in bitcoin trading and make a lot of money buying and selling cryptocurrency.

The primary function of a digital currency is to safeguard communication since it converts readable information into undecipherable codes. You can also track your transfers and purchases easily with cryptocurrency.

If you want to invest in cryptocurrency, you need to bear the following five tips in mind to help you make informed decisions:

Investing in bitcoin not too different from commodities

Investing in the most popular digital currency known as “bitcoin” is not too different from the way you invest in any other merchandise. Bitcoin can be used as either an investment or an asset. This implies that you can exchange and sell this digital currency at any time.

Purchase bitcoin from reputable sources

If you are interested in possessing bitcoin today, you can buy the cryptocurrency directly at renowned sites. This will enable you to avoid paying the hefty fee that – sometimes – come with investing while ensuring you do not get scammed by hackers.

There are several places where you can purchase bitcoin on the internet, a few of which include BitFinex, Poloniex, Binance etc.

Only a few individuals around the world use bitcoin today

According to crypto news, bitcoin is the most popular cryptocurrency out there, especially in the world of investment. Less than 30% of Americans know about bitcoin, but the funny thing is that only 2% make use of this digital currency.

This is good news for you, especially if you are a savvy financial investor as the low usage of bitcoin represents a profitable venture in the future.

Usage of Bitcoin is growing on a daily basis

According to bitcoin news flying around on the internet, the market cap of cryptocurrencies, when combined, amounts to over 60 billion American dollars. This includes all the existing digital currencies as well as the hundreds of unknown or small ones out there today.

There is a rising trend in real-time usage of cryptos which is easily noticed by people who engage in bitcoin trading. This trend shows that more people are becoming increasingly aware of its existence and significance as a means of building wealth.

Build your portfolio

The fact that you can exchange cryptocurrencies for hard cash gives you the opportunity to start building your portfolio. This implies that you can put away some cash by converting it into bitcoin or exchange your cryptocurrency for some money anytime you are strapped for cash.

So, there you have it; five tips to invest in digital currency. If you’d like to learn more and stay updated on bitcoin trading and cryptocurrency as a whole, Doctor Bitcoin provides you all you need to know.