Top 10 Reasons to Invest in BTC now!

Top 10 Reasons to Invest in BTC now!

Bitcoin’s History

Bitcoin is one of the major digital currencies today; you might have heard of it as a currency for the dark internet. Bitcoin isn’t just used for illicit activity online. It’s a pretty helpful tool for people working and trading online to avoid the complexity and time-consuming nature of banks.

The whole idea behind bitcoin was to eliminate a central governing authority which would have enough influence to carry out fraudulent transactions. The concept has stayed the same, although the technology is advancing day by day.

The Technology

The tech used in Bitcoins is called block-chain. It’s pretty tough to explain in a few words but blockchain is to bitcoin much like the internet is to email. You can use Ethereum to develop applications who in turn can use the Ethereum blockchain to function.

Here’s Ethereum’s founder, Vitalik Buterin’s explanation of a blockchain.

A blockchain is a magic computer that anyone can upload programs to and leave the programs to self-execute, where the current and all previous states of every program are always publicly visible, and which carries a very strong crypto economically secured guarantee that programs running on the chain will continue to execute in exactly the way that the blockchain protocol specifies.

Vitalik Buterin

Co-Founder of Ethereum and Bitcoin Magazine

Exchanges

Bitcoin exchanges are one of the means through which you can receive bitcoins online. You finally pay a specific price, determined at the time of sale. The BTC Exchanges are great tools for both day traders and long term investors. Either of them are interested in either making profit by buying low and selling high or investing for the long term. The increasing number of exchanges make it easier and easier for people to log into a simple account and invest in BTC.

The idea behind investing in Bitcoin is sort of like investing in land. You purchase the bitcoins over a period of time and then you wait. The Bitcoin market can be very volatile, so it’s best not to worry too much every time the price goes down. Over time, the average prices of bitcoin will increase; if you’re satisfied by the growth at any point, you can sell your bitcoins and liquidate your investment. You will be able to make a profit proportional to the time that you kept your bitcoins depending on the price of the sale. This way, you can invest in BTC quite easily by purchasing them.

Low barriers to entry

The industry has very low barriers to entry since you can purchase a minimum of $100 worth of bitcoin. Anybody who might be interested in holding their $100 in bitcoins, it’s a great choice. The bitcoin would grow much faster than regular cash!

You too can become an investor in Bitcoin for much less than what one Apple share costs. Since it’s quite accessible to the market, you can be confident that the price of Bitcoin will rise. This is primarily due to the demand of Bitcoins that is slowly rising with the number of people who are now getting introduced to the market. With the increased accessibility, there will be fewer bitcoins for everybody, which will drive up the price.

Growth potential if you invest in BTC

Although many industry tycoons have called bitcoin a bubble, it’s quite unlikely that it will follow the path of an early death. There are mainstream media who constantly acknowledge Bitcoin as a bubble, which would ‘burst’ soon. This is unlikely since the success of bitcoin depends on the technology that is applicable in other industries. Therefore these large banks and companies such as Microsoft can’t afford to support a project that will turn into a bubble soon enough. Microsoft’s showed support for Bitcoin as the company started to accept bitcoin as a means of payment.

Ease of use

Since there’s an increasing number of companies that offer exchange services online or who sell bitcoins, it’s pretty easy to buy bitcoins. On one of the most efficient exchanges, CEX.IO, there’s no need for an account, you can just sign up and trade your existing online currency for bitcoins.

The efficiency of most of the exchanges and bitcoin brokers is only increasing and therefore Bitcoins have become more accessible than ever. Here are the simple things you need to do in order to invest in BTC.

  1. Sign up to a bitcoin broker or exchange
  2. Look for good sellers or a good price on an exchange.
  3. Create an online wallet, it’s a software that helps you send and receive bitcoins as well as helps you keep them safe
  4. Purchase bitcoins.

It’s a 4 step process that almost everybody can do. Sometimes, a bitcoin exchange or broker might ask for identification for a simple verification procedure. Not to worry, it’s a formality that some countries require brokers or exchanges to complete. Therefore, you can invest in BTC quite simply since the exchanges or platforms are pretty easy to use.

What’s the best way to invest in BTC?

Bitcoin is one of the most attractive financial instruments to trade today and it’s easy to see why. The people working as independent traders of bitcoin have had large success and even more CFD traders.

A coin is any online currency, so major digital currencies such as Bitcoin or Ethereum are all coins. A coin trading website is essentially a CFD trading website, which also offers CFDs on cryptocurrencies.

CFD, contracts for difference, simply allow you speculate or ‘bet’ on the future movement of the price of the financial instruments, such as gold or Bitcoin, regardless of whether current prices are rising or falling.

CFD trading is the ‘bet’ in which you think the gold price will rise. So, you would buy 1000 share CFDs to show that position.

Now, if the price of gold increases over the spread you will make a proportional profit. However if it decreases, you would make a proportional loss.

However, these platforms don’t have any real-world market access. That means you won’t actually own a bitcoin, you’ll be betting on the possibility that the price rises. That means you can’t technically use a ‘bitcoin’ that you buy on the website for much other than selling it later on. 

There are many benefits to using CFD trading over trading BTC on an exchange. A CFD trading website offers leverage trading, which is impossible on an exchange. In Leverage trading, you can bet as a percentage of a larger trade. But, you would get profits or losses based on the large trade. So, you could make a much larger profit from much lesser funds in your account. Be careful, however, this brings on many risks for beginner traders and one should always be very careful with trading in leverage.

Another advantage that coin trading websites offer is diversification. Most of these websites have CFDs of some basic digital currencies. They usually also offer other assets such as share CFDs of major companies, commodities, and even indices. This way, you can invest in BTC without actually buying BTC.

Go Trade!

I hope you have now realized the great potential that Bitcoin holds and understand the reason why people are so eager to invest. Now, you can invest in bitcoin using regular exchanges or you can try your hand at CFD trading. Here’s a more in-depth view of Coin CFD trading and how it works.

If you’re interested in Bitcoin trading, check out our guide to the optimal bitcoin investment here.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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