5 Things to Know Before Investing in Bitcoin ( Updated)

Why Invest in Bitcoin? It seems silly to some people that one bitcoin can be worth hundreds of dollars. What makes bitcoins valuable? Bitcoins are scarce and useful. There is a limited amount of gold on earth. As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine. The same is true with Bitcoin. There are only 21 million Bitcoin, and as time goes on, they become harder and harder to mine.

In addition to being scarce, bitcoins are useful. Bitcoin provides sound and predictable monetary policy that can be verified by anyone.

Bitcoins can be sent from anywhere in the world to anywhere else in the world. No bank can block payments or close your account. Bitcoin is censorship resistant money. Bitcoin makes cross border payments possible, and also provides an easy way for people to escape failed government monetary policy.

The internet made information global and easy to access. A sound, global currency like Bitcoin will have the same impact on finance and the global economy. However, exchanges will let you buy any amount, and you can buy less than one bitcoin. When is the right time to buy? As with any market, nothing is for sure.

Throughout its history, Bitcoin has generally increased in value at a very fast pace, followed by a slow, steady downfall until it stabilizes. For example, speculation about the Chinese Yuan devaluating has, in the past, caused more demand from China, which also pulled up the exchange rate on U. How to Invest in Bitcoins and Where to Buy The difficulty of buying bitcoins depends on your country.

Developed countries have more options and more liquidity.

Why Invest in Bitcoin?

You can use our exchange finder to find a place to buy bitcoins in your country. Find a Bitcoin Exchange How to Secure Bitcoins As with anything valuable, hackers, thieves, and scammers will all be after your bitcoins, so securing your bitcoins is necessary.

Ledger Nano S — Ledger is a Bitcoin security company that offers a wide range of secure Bitcoin storage devices.