Bitcoin was the first cryptocurrency developed in the world and appeared in October 2008. Cryptocurrencies are fully digital currencies (there is no banknote or physical currency), free of interference from private or governmental institutions. This allows transactions to be secure, irreversible, global and private. It is traded on its own network – the blockchain, which is a database where records of all transactions are made. These records are made reliably and immutably. Due to its security, until today it has not been possible to defraud bitcoin.
Since its inception, bitcoin has gone through huge valuations, causing several people to multiply their money with the purchase of this asset. Thus, what emerged as a means of payment on the internet also became a promising type of investment. However, it can be seen as a double-edged sword: as it is not regulated by any financial institution, it guarantees privacy and transactions can be made anonymously. On the other hand, the fact that there is no regulation leaves the investor susceptible to some risks. If you suffer fraud or are hacked, for example, there is no way to get your bitcoins back (the operations are irreversible).
Despite this risk, bitcoin is considered a safe currency because it has cryptography and other security devices, reducing the chances of fraud.
However, the fact that it is considered safe does not mean that it is not a high-risk investment. It has high volatility, just like the stock exchange. The investor can have a lot of gains or suffer a lot of losses. Therefore, it is not indicated that all the money is invested in this single investment.
If you have the most aggressive investment profile and don’t mind taking risks, bitcoin could be a good investment for you. There are two ways to acquire bitcoins: buying directly from someone who is selling or through an exchange. If you are a beginner investor, it is best to buy through a brokerage, even if a fee is charged.
When choosing to buy with a broker, first research all the bitcoin brokers available on the market. See what they are, her history, the news about her. If possible, talk to other people who also have an account with this broker.
Generally, brokerages establish a minimum amount for buying bitcoin, and this amount varies from brokerage to brokerage. It is worth noting that you do not need to buy an entire unit of bitcoin, you can only buy fractions.
Once you choose your broker, open an account. It’s a simple process and everything can be done online. After that, make a cash deposit to your chosen brokerage account. Once the transaction is complete, enter the amount in bitcoins you want to buy. That’s it, you already own part of the most promising cryptocurrency of the moment!
After the purchase, the investor can choose to keep his cryptocurrency in the brokerage, transfer it to a digital wallet or print a kind of QRcode. In all options, great care should be taken with security, choosing unique and strong passwords. After all, once you lose your bitcoin, there is no way to get it back.
It is recommended that investors frequently monitor their investments, market news, what the experts’ expectations and forecasts are, in addition to the bitcoin price and how it has been changing. In this way, you will be able to make decisions, such as, for example, investing more in that asset or selling it, according to what you deem necessary.
Bitcoin, like any other investment, has advantages and disadvantages. One of the main advantages, as we have already seen, is security and non-interference from third parties (such as banks or the government, for example) and the main disadvantage is volatility. It is up to the investor to analyze whether this type of investment is in accordance with his investment profile, in addition to always seeking to diversify his investments so that all his money is not allocated in the same asset and is totally dependent on the volatility of the asset in question.
