As in 2009, Bitcoin was designed to compete with flat currencies of government and to influence the process of trade. People who are restricted by higher authorities in investing in digital currencies like cryptocurrency, now freely allowed investing and trading with a cryptocurrency like Bitcoin. They are several ways to invest in Bitcoin. If someone is interested to invest in Bitcoin, firstly have a look at the types of investment in Bitcoin. Because over the past decade, there are lot of methods emerged for investing in Bitcoin. These methods are:
- GREYSCALE’S BITCOIN INVESTMENT TRUST (GBTC): Greyscale’s Bitcoin Investment Trust is a platform for those investors who are willing to invest in Bitcoin through the capital market. GBTC provides profitable share for all level of investors. Investors are provided with a one-tenth value of Bitcoin. For instance; If a Bitcoin costs $2,000 then, the net asset worth of each share of GBTC should be $200. GBTC also cost additional with a 2% ratio of the original cost. Additional charges include; security fee, account maintaining fee, cash conversion fee and many more charges.
- STANDALONE BITCOIN: Buying Standalone Bitcoin is one of the most used methods to invest in Bitcoin. You have to purchase some coins from coin purchasing apps like Coinbase. Set up your account, it will require some personal information. Deposit purchased coins in your account and maintains balance for further purchasing of Bitcoin. Access any stock or ETF to know the price and performance of Bitcoin. If the price is high and seems profitable, then invest in them and save the future.
- BITWISE 10 PRIVATE INDEX FUND: Bitwise 10 private index fund is a company that provides the necessary security for traders and investors. It also provides ease in use of ETF. This company is grounded on Bitwise 10 Large crypto Index, which contains a huge quantity of coins. The policy of investment in Bitwise 10 is that it requires a 2.5% fee ratio which is more than GBTC. It also requires a rock bottom investment of almost $25,000. So, it concluded that Bitwise 10 needs large investments for its working.
- PROS OF INVESTING IN BITCOIN
One of the prime benefits of investing in Bitcoin is that it offers a lot of profit if you buy and sell assets at the perfect time. The profit ratio is almost 200% or more than that. This seems difficult to assume but it is feasible. Bitcoin investment is a risk but it gives you more than double the benefits.
Another benefit of Bitcoin is that if you buy a large quantity of Bitcoin and store them for the proper time. When the buyers in the market are more than sellers and there is a low quantity of Bitcoin in the market, then you can put your Bitcoin on market at a high price than before. People will buy it because of the shortage and it will benefit you in excess.
Time Strategy is also much important in Bitcoin trading and investing. For Example; if you buy some coins at a low price and store them and wait for the price of the coins to rise and then you again take them to market for sale. This is a risky method because Bitcoin price may fall instead of increase. Wealthy investors use this method of investment in Bitcoin.
CONS OF INVESTING IN BITCOIN
Be aware of the market performance and price of Bitcoin otherwise, you may get lost of coins and investment. Bitcoin and other cryptocurrency are also riskier than flat currencies. Some investors pour a lot of money at once into the market, which rapidly causes an increase in Bitcoin price and it may prove risky for inexperienced and low-level investors.
The price of coins may slump in just a matter of hours because it is not predicted whether the price is going to be high or low. It may collapse to 50% at once. That’s why it is considered a risky investment.
Some schemes and methods in Bitcoin investment are illegal like pump-and-dump schemes. You may become a target of agencies and put under criminal investigation.
CONSLUSION
As we know, Bitcoin is a cryptocurrency which stores asset by connecting computers at the digital level. Bitcoin price swings vary in the vast range. If you are interested in safe and fast Bitcoin investment, CLICK HERE and sign in to make an account and start your trade and investment on the Bitcoin Era trading platform which provides proper security and ease for its users. Bitcoin Era is a way to put money on market either by investing or trading Bitcoin
