So, should you invest in Bitcoin? The price goes up and down, and it can be very nerve-racking for early investors.
Bitcoin is money that exists only on the internet. Some websites and countries accept this currency in exchange for goods or services, but most people buy and sell Bitcoin as an investment. Because this currency exists only in the virtual space, a network of computers around the world keep a record of every Bitcoin transaction. The network uses a high level of encryption that makes it the most secure storage system for transactions in human history. This all sounds very technical, so how do I invest in Bitcoin?
A Bitcoin can be split into a million parts, like a rand into cents.
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These parts are called satoshis. You can start investing in Bitcoins with as little as R Technically proficient people can create and manage their own wallets, but the easiest way is to buy Bitcoins is from a reputable exchange that has reputable investors, external auditors and good security measures and regulatory processes.
Lunois user friendly, has good customer support, and is well regulated. Ice3x is another reputable exchange operating in South Africa.
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You simply give these exchanges your credit card details and click the option to purchase Bitcoins and they will store them in a virtual wallet that they create for you. Bitcoin has shown enormous growth. What is the risk? Should I get involved? This blog post is not offering advice on whether to buy Bitcoins or not. The price of Bitcoin is volatile. While anyone can invest in Bitcoin, it is certainly not advisable as your only or first investment, as it is currently too volatile for anyone to call the level of risk or project returns.
As with any risky investment, only invest money you are willing to lose.