By Ofir Beigel Last updated on January 2, at As a result I get about 2 emails a day from people around the world who are asking one very simple question: So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin. What does it mean to invest in Bitcoin? In order to answer this question the first thing you need to answer is what do you mean when you say you want to invest in Bitcoin.
Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins? If this is the case then you need to decide for yourself if you think this is a good time to buy.
So should you invest in Bitcoin?
Meaning, do you think the price will continue to rise. A few pointers for buying and holding Bitcoins: My personal recommendation is to use a hardware wallet to store your Bitcoins. Make sure to buy Bitcoins only from exchanges that have proven their reputation. This way you average the price over the course of a whole year. Trading in Bitcoins Bitcoin trading is different than buying and holding. Trading successfully requires knowledge and practice.
The trading market is occupied by very large players who are just waiting for newbies to come in and throw their money away by trading aimlessly. Investing in Bitcoin mining Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electricity.
Some of you may have heard of all sorts of sites that allow you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories: If you want to learn more about my take on cloud mining read this post.
Why Bitcoin is Gaining Traction
These sites can be categorized mostly as scams or HYIPs high yield investment programs. What these sites usually do is they take money from people around the web and promise to give them good returns. They will then start off by paying these returns through money they get from new sign ups and create a big buzz around the site.
Usually they will also have some sort of referral program so that users can bring in their friends. No more payments will be made and a lot of people will get mad that they got scammed. I have reviewed many Bitcoin investment sites in the past 3 years e.