Bitcoin keeps breaking barriers and writes history with each passing day. After breaking the 2017 record in value, the investment that Tesla recently made in this cryptocurrency managed to spike its price and for the first time in history, break the $50,000 barrier. Thanks to this achievement, thousands of new traders are looking to join the network each day and start investing in Bitcoin.
The reason why they are so keen is that Bitcoin has the potential to turn average people into overnight millionaires. With that being said, we wanted to name a few things to consider when investing in this cryptocurrency.
Mining or Buying Bitcoins
When we speak of earning Bitcoins, there are two ways to do that. If you are into computers and tech, then mining is the best option for you. This is the harder way to earn Bitcoins, but the good thing is that it is free. Mining is a crucial part of Bitcoin as it enables the blockchain (the technology that powers Bitcoin) to be updated daily. As a process, mining requires people to record and verify transactions by solving various puzzles. The reward for doing this is Bitcoins.
The second way to earn Bitcoins is to buy them from a trading site, then re-sell them. But since Bitcoin’s price fluctuates often and it has a chance of dropping in value, you may end up losing money.
Speaking of trading sites, these platforms are a crucial part of the trading process because a reputable and trustworthy site can help you generate the maximum revenue. Here’s how.
A reputable site, visit this link uses an advanced AI system that can collect all the data about Bitcoin from the market and analyze it. The purpose of this analysis is to gather all factors that may or may not influence the future price of Bitcoin. The AI at the aforementioned site is very accurate and the platform has a huge daily profitability rate. The results are shared with traders and in doing so, they know when is the best time to sell their assets and maximize their profits.
So, make sure you research trading sites well before making your pick. You should also consider using Bitcoin Compass because of the daily profitability rate and the fact that it has thousands of registered users from around the world.
Beware of Scams
Bitcoin is a very secure network, but it does happen rarely for scammers to somehow join its network and try to rob people of their money. There are three popular schemes that they use on novices – the Ponzi Scheme, The Exit Scheme, and Stop Drive. All of these schemes are well explained here, but since the Ponzi Scheme is the most popular, we are going to take a quick look at it.
The Ponzi Scheme is very simple – scammers promise you insane amounts of profits; profits that are just too good to be true. As novice traders are run by the idea of making money as fast as possible, they are likely to fall for this scam. So, when they decide to invest money with the scammers, they just take the money and disappear. Offers that are too good to be true are probably scams, which is why you should stay away from them.
Halving events take place every 4 years and the beauty in them is that they lead to surges in Bitcoin’s value. During these events, the flow of Bitcoins is cut drastically and it becomes hard to mine them. Hence, Bitcoins become far more valuable. So far, there have been 3 halving events – 2012, 2016, and 2020. An upcoming halving event will indicate that a surge is going to happen.