Would you like to invest your wealth in bitcoins? You can! In this article we are going to discuss how cryptocurrency works
If you got there early, Bitcoin may have been the best investment you ever made. In a few years, the price of the digital currency has risen from less than a dollar to (at its highest point) more than $20,000 per Bitcoin.
What exactly does Investing in Bitcoins entail?
You are investing in a digital cryptocurrency. According to insiders, this should become a replacement for “old-fashioned” currencies like the euro and dollar. All your invested money is online in a digital wallet or an offline wallet in the form of a special USB stick when using a website like Pexcash in Finland.
In addition to purchasing the currency, you can also trade in a CFD. These are financial contracts that rely on the price of Bitcoins. You can choose to hold Bitcoins for a longer period of time or search daily for a good price to buy and/or sell the coins. Do you know enough and want to start with Bitcoins right away? Then you’ve come to the right place at eToro. Here you can easily practice with virtual money and it is extremely suitable for beginners.
Why Invest in Bitcoin?
People start investing in Bitcoin for different reasons. Tech enthusiasts often start with it to learn more about the technical side of crypto-currencies and the associated blockchain. However, a growing group of people see Bitcoin as an investment with extraordinarily high returns. In the early years of Bitcoin, around 2012, the value of one Bitcoin hovered around $2. In December 2017, Bitcoin reached a record value of $20,000.
- Because the price of Bitcoin fluctuates wildly, the time to get in is very decisive for the returns you make. Thanks to the huge increases in the fall of 2020 and early 2021, Bitcoin is worth a huge amount more than it was a year ago almost the same as Tesla osake were in 2021.
- When you compare this to the current average savings rate of 0.1%, and an average return of 6-7% on ETFs, you quickly understand why Bitcoin is such an attractive investment.
- The price of Bitcoin experienced many fluctuations as shown in the chart. Business Insider calculated how much investments would be worth in October 2018.