10 Things To Know Before investing in Bitcoin | 2018 Beginners Guide
To date, investors such as Warren Buffett as well as bankers like Jamie Dimon of JPMorgan or Nobel laureates such as Robert Shiller believe that bitcoin has created a speculative bubble that will eventually deflate.
The Bitcoin virtual currency is one of the most striking phenomena of recent years. Most people on the internet consider Bitcoin to be a positive investment because it apparently represents a new decentralized version of currency that is beyond the control of any government.
Is it safe to invest in Bitcoin in 2018 or is it just a bubble?
Bitcoin beats a new record and reaches $19,000 Credits: www.dailymail.co.uk
It is claimed that the government can no longer manipulate inflation with the savings of citizens and so citizens become freer. Due to the anonymity of the transactions, the collection of taxes is almost impossible.
The only possibility of financing the State should be crowdfunding, when the people themselves decide which government project they support. The States together will no longer be able to fight in wars, because by disabling the "printing of money" they will no longer have the resources to finance wars.
It is claimed that Bitcoin is a revolution in remittances, that could not be simpler. What most important is that Bitcoin seriously threatens financial intermediation as we know it.
Obvious this is in an ideal and theoretical world, in reality for sure it remains a mystery what happens with cryptocurrencies or if it is only a social experiment because not knowing the origin of resources, is a tool that can be used to create fraud, money laundering or financial bubbles.
It's a bubble that sooner or later will burst because this actual price, which is not based on the real economy, is not the first bubble that was created in the world, but it can have important consequences for Bitcoin investors.
There is no guarantee or regulation that ensures that consumers or businesses that acquire this type of asset can recover their money.
Moreover, in the absence of an identifiable organization that issues these assets or a third party that assumes obligations for these assets, it would be difficult to proceed with a legal action in case of losses.
If you still want to invest in bitcoin here are a few things to keep in mind in 2018:
1. Check if Bitcoin is still legal in your country. Some countries have already imposed strict regulation and even banned cryptocurrencies trading.
2. It's never a good idea to invest what you can't afford to lose – Never forget that Bitcoin is not sustained by real economy and right now its value could be overestimated.
3. Always keep your Bitcoins safe - our personal advice is to use a personal wallet and keep them offline. Online wallets are in hand but recently hackers made a lot of bitcoins.
4. Never trust one source before buying Bitcoins. It's full of speculators always do your own research and use an exchange that has great reputation and long history.
5. Dollar Cost Averaging - Limit your risk - Never buy all at once - Bellow is a video:
6. Investing in Bitcoin mining is a practice that we do not encourage and there are ton's of fake advertisers out there - WATCH OUT! PS: Over 90% are scams
7. If you get past Bitcoins / HYIPs that will promise to double your Bitcoins in 2 weeks - RUN AS FAST AS YOU CAN
8. Trading Bitcoins for profit - sound simple right? buy cheap and sell high but it requires a lot of practice and knowledge. Always remember that sharks are there waiting for you to sign in! Here is something to start with
9. We suggest using tools such as Cryptowatch or Bitcoin Wisdom to analyze charts, check Bitcoin's price history and determine the right time to invest.
10. Create a portfolio and minimize risk - Altcoins become more and more popular and having a portfolio of 5 or 6 altcoins can help you minimize loses or have a great profit. It is a good idea to avoid ICO's that have already boomed but we suggest picking altcoin's from the top.
Remember that it is very important to understand how Bitcoin and blockchain technology really works and it can take up to 1 year to fully understand the market
Patience, Safety and knowledge are the main advantages in this game . Proceed With caution, invest only what you can afford to lose and don't get greedy.
We would really appreciate to hear more tips from you in the comments.
