It depends on who you ask. Warren Buffett would never buy bitcoin, not a chance. The Oracle does not take part in speculations of this kind. He is smart to only invest in what he believes and understands. Elon Musk, on the other hand, is a completely different guy. He converted 1.5$ billion dollars to Bitcoin through his company Tesla earlier this year. He is pro-crypto and sees a great future for it.
But then again, Buffet said he would never invest in Tesla (which rose from a hundred dollars to seven hundred in just a year). These are just completely different people, they are wired differently, and they operate vastly unalike. The Oracle is one of the greatest Hedge Fund managers in the world, holding some of the world’s most prestigious stock. Musk is an out-of-this-world (maybe even literally, as the internet jokes go around) entrepreneur, who is heavily focused on innovation. Should you imitate either one? The answer is no.
What Exactly Is Bitcoin?
Bitcoin is a type of cryptocurrency, one that is stored in a decentralized public technology of blockchain. It would take many posts to delve into the technology and reasoning behind it, thus we can simply define it as a proxy for digital currency. In the year of 2021, there are many types of assets. However, cryptocurrency is different from your regular fiat money, in a way that decentralizes the governing over it. Just as the US dollar, it is not backed by gold resources.
If your goal is an investment, other than understanding what Bitcoin is on a technical level, think of it as a resource that represents value. Exactly as Gold, bitcoin goes up and down in price, and just as your regular money, they have no real money outside of the ability to buy things with it. Physical assets such as precious metals or real estate are there for you to touch, and are rather easy to understand. Digital currency, a bit more complicated.
Nobody really knows what’s coming. Cryptocurrency is still in the pivotal moments of its development, and that’s why it’s seen as a lucrative investment option. Is it risky? Oh yeah. Can you lose all of your Bitcoins one day? Definitely. But can you also become a very wealthy person, the moment it skyrockets in value? Yes.
How Do I Invest In Bitcoin?
Just as there are a variety of brokers to choose from in your country, so are your options to purchase bitcoin. There are many legitimate and safe trading exchanges where you can buy and sell bitcoin. Also, there are quite a few wallets to choose from where to save your bitcoin. You can even print a Paper-QR code in physical form to store your assets. The key here is not to lose access to your wallet. Many people have because they take improper caution when preserving their digital currency.
When you have settled on the amount you want to purchase, research the methods that are the most convenient and cost-efficient for you to purchase them. Just as brokers have various fees, buying bitcoin costs you a little money. Investing in bitcoin is rather simple, as it pays no dividends and issues no annual reports to study. However, you have to immerse yourself in the world of cryptocurrency to stay in the know of potential changes in the market.
Evaluating If It Fits Your Profile
If you treat Bitcoin as a regular part of your portfolio, things become more clear. Just as a stock, it can go up and down in value. Perhaps no other asset in the world has such volatility, but that’s the beauty of it, isn’t it? What has the tendency to rise greatly, can fall at any moment. That’s why you must understand the potential risks of investing in it. It’s a kind of gamble, and it’s not subject to change at the casino. It’s subject to the chances of life.
Rather than ignoring cryptocurrency, we suggest carefully playing with it, getting to know it, and seeing what it grows into. You may put substantial money into it, but just as any other investment, choose carefully. You have only so many shots in your life, to make the proper choice.
A traditionally safer way to invest in an ETF. Instead of buying a single stock, you buy a share of the market that’s less affected by the swings of a single or a few companies. The opinions on the arising Bitcoin ETFs are as different as the thoughts on the crypto itself. Japanese hedge funds have always been focused on the latest trends in technology. If you’d like to know what they think about the upcoming opportunities, read this post by kasotukanavi.com.
This article by no means facilitates direct financial advice on how to manage your money. Instead, it is a nudge to provide you with the ability to see the opportunities in front of you. You are the one who is going to live with the consequences of your actions, so act accordingly. We suggest delving into the subject on a deeper level before many conclusions