Bitcoin had quite the year in 2017. We saw its price increase well over 1000% from the beginning of 2017 going from around $1000 all the way up to $19,000 in mid December that same year. That meteoric rise attracted people from all over the globe to start investing. That all said, is Bitcoin still a good investment in 2018?
Why Are You Looking to Invest?
Generally there are two types of people investing in cryptocurrency. Those who believe it represents the future of money. The others are those who are simply looking to make money. You don’t have to be one or the other, but more often than not the investor is leaning towards one.
If you believe in the future of money then you are investing into Bitcoin in hopes to one day use it to make purchases. That said, in order for Bitcoin to ever be used as an ever-day currency it simply cannot fluctuate thousands of dollars a day – which it does. But ask yourself whether or not it’s going to settle at it’s current price. If you believe it’s going to rise in the long term, then you should make the investment knowing you’re going to potentially need to ride through a ton of fluctuation.
If you’re simply looking to make money, Bitcoin is very volatile. Bitcoin hit close to $20,000 in December 2017 a month later it has dropped to about $11,000. There are opportunities to make money, a lot of it, when the market fluctuation is like that. The volatility won’t end anytime soon. That being said, if you’re looking to trade on the short game there’s definitely an opportunity there for you.
But Where Do You Start?
If you’re a first timer in the crypto world, always do your research. Never invest solely because it’s what everyone else is doing it and making money, and always get informed before investing into anything. For beginners, start by learning about blockchain and how it’s revolutionizing the finance world.
Coinbase
So you’re ready to invest, start by opening up an account on Coinbase. It will give you a much cleaner interface and is great for first time investors. Once you’ve created your Coinbase account, you can make all your trades using Coinbase’s exchange tool called GDAX. GDAX will give you access to real-time data, graphs and lower fees.
Security
You need to make sure that you secure your Bitcoins. You can keep them on Coinbase, but you can also move them offline or into a cold storage wallet. Exchanges have been known to get hacked in the past and those who kept their coins on those exchanges have lost everything. That being said, it’s better to be safe than sorry and move your bitcoins offline when you can.
Don’t forget to be prepared. Like any investment you need to be prepared to potentially lose everything. Always stay up to date with current trends and continue to do your research. Following the news, Bitcoin still remains to be a good investment in 2018 regardless if you are investing short or long. But the choice is yours!
Be sure to visit the Bullfrog Blog often for more tips on small business insurance, productivity, marketing and risk mitigation. While you’re here, click below to get a quote!