Bitcoin has become a popular phenomenon since its multiple bull runs in the past decade. It is not just a new digital currency that makes our transactions faster and more efficient but is also widely recognized now as a store of value. Like gold and other precious metals, cryptocurrencies have good return rates on investments.
The crypto market is expanding every day providing new scopes for investments to traders as well as big financial institutions or multinational corporations either as a store of value, or to protect their assets from inflation, or to simply harvest the potential of crypto transfer which are faster and more secure than transaction through existing financial infrastructures such as banks, that uses the traditional ledger system.
In this article, we will learn about the scopes of crypto investment, and also ways in which you can invest in Bitcoin and other cryptocurrencies in order to maximize return on your assets. Let us move ahead!
Prospects of investing in cryptocurrency
If you have considered investing in crypto then you may be already aware of the famous bull run crypto has made in the last few years. In the year 2017, the value of a single Bitcoin rose to a staggering value of 20,000 USD. We got to hear about so many rags to riches stories after this incident.
Since this incident, new traders took interest in the proliferating crypto-market. An abundance of trading applications and trading platforms were made available. Platforms such as crypto mining have a user-friendly interface that makes crypto investment easier for new traders.
In 2021, Bitcoin went through another bull run after the investment of 1.5 billion US dollars made by Elon Musk on behalf of his company Tesla. After this, the value of Bitcoin for the first time crossed the 50,000 US dollar mark. Other cryptocurrencies such as Ethereum also registered positive growth during this period.
It is known that circulation increase the value of Bitcoin and other cryptocurrencies. With so many prospects and new investments by financial institutions such as PayPal, JP Morgan, it can be assumed that the crypto market may go through periods of exponential growth. Analysts have studied the current market trends and have predicted that the price of Bitcoin may touch the 100,000 USD mark by the end of 2021.
It can be assumed that now is probably the best time to invest in cryptocurrency.
Ways in which you can invest in Bitcoin
These are the ways in which you can invest in Bitcoin.
- Buying bitcoin through trading applications- One way of buying bItcoin is through trading applications, which requires you to register an account by sharing your personal data. This allows you to invest money that can be used to create your own cryptocurrency portfolio. You can buy coins or shares of coins that you can store in your crypto wallet (that will be provided in the trading application). The coins that you have bought can be stored for trading or making transactions in the future.
- Direct purchase- this form of investment does not require you to share your personal information. However, you will require a crypto wallet and a private passkey through which you can buy cryptos directly from a trader. It is advisable that you trade with people you are acquainted with, in order to ensure security.
- Through intermediate brokers- in this form of investment you can buy bitcoin or other cryptocurrencies from a broker who obtains currencies from Bitcoin miners (the people who manage the blockchain and earn coins as a reward). The miners usually also provide you with a wallet in which you can store bitcoins and other currencies.
the crypto market is highly speculative, and the prices of cryptocurrencies fluctuate. There is no guarantee of return as the prices are also subjected to negative market trends. So it is advisable that you conduct preliminary research to understand not just the pros but also the cons before you decide to make investments.
Is a freelance tech writer based in the East Continent, is quite fascinated by modern-day gadgets, smartphones, and all the hype and buzz about modern technology on the Internet. Besides this a part-time photographer and love to travel and explore. Follow me on. Twitter, Facebook Or Simply Contact Here. Or Email: [email protected]