How to invest in Bitcoin correctly and safely: tips and frequently asked questions

Nowadays, when people talk about investing in Bitcoin , they are not only referring to the acquisition of a token that can generate future profits. Since cryptocurrencies in general, including BTC, have gained a lot of prominence in recent years; becoming payment methods for services, goods and products .

Since the birth of this technology, it is known that cryptocurrencies and Bitcoin, specifically, aim to replace what we know today as fiat money . Therefore, it can be said that under any circumstances it is profitable to invest in bitcoin, since it is the universal currency of the future. But, how can it be profitable if its price is more than 40,000 euros? I'll explain.

 

Is it profitable to invest in bitcoins now?

As I said before, it is the currency of the future, since the technology it uses prevents bitcoins from being counterfeited or manipulated , thus creating a single currency that is very different from the concept we have about money today.

Bitcoin is a digital currency that has a supply of 21 million units . In simple terms, there will only be 21 million bitcoins, currently there are a little more than 18 million in circulation, and every day this figure increases.

What does this mean? That its value will increase even more, let's remember that the law of supply and demand says that the higher the demand, the more the price increases .

It is what will happen in the future, therefore, if you plan if investing in bitcoin is profitable at this time, the answer to it is a resounding Yes! Since, if we wait 2 or 3 more years, it is certain that its price will have doubled its current value; Even well-known market analysts have projected that there are possibilities for bitcoin to reach a value of approximately 100,000 euros by the end of the year.

Therefore, under any circumstances it can be said that it is profitable to invest in bitcoin.

Advantages and risks of investing in bitcoin

Every investment carries a risk , and we clarify it for you, because just as money can be earned, it can also be lost. An example of this was the last sharp drop that BTC had months ago, it fell from $64,000 to $29,000. That is, if we had 1,000 euros invested, our money would have been reduced to 500 euros or a little less.

This is one of the biggest risks of investing in bitcoin or other cryptocurrencies; that in simple terms I would be referring to the high volatility that they possess. However, it seems irrelevant compared to all the advantages that are obtained by investing in bitcoin. Some are:

• Excellent return on investment in the long term.
• Easy conversion .
• Bitcoin is useful to be sent to any country in the world and in a matter of seconds.
• Possibility of making payments for goods and/or services in less than a few minutes.
• There are no third parties or intermediaries such as banks regulating or supervising your money.
• Anonymity .

Where to invest in bitcoin safely?

It is possible to invest in cryptocurrencies with many methods, there are exchanges, brokers, ATMs or others . However, there are few platforms that guarantee high levels of security when making purchases or investments. We recently made a list of the best exchanges to buy cryptocurrencies , check it out.

Even so, here we mention 2 of the best known and that we also use. These are Binance and eToro .

• Binance, for its part, is the largest and most widely used cryptocurrency exchange house globally . It has great liquidity in cryptos, multiple payment options and high security standards. So that each user can make a purchase safely and without difficulty.
• eToro is a highly trusted social trading broker that was founded in 2006, years before bitcoin and cryptocurrencies even existed. Here you can acquire CFDs of bitcoin, shares, currencies or others . Like Binance, it is totally secure and offers multiple options to fund the account.

Once the bitcoins have been purchased, it is suggested to send them to a cold wallet ; since these are a safe way to save your tokens, and this is because they are totally disconnected from the Internet .

You can also buy Bitcoin with paypal , but it is not normal and there are usually more commissions involved. Still, the option is there if you want to use it.

What should I invest in: bitcoin or cryptocurrencies?

This is a common question that is answered by defining priorities, budget, expected ROI in the short, medium and long term, or other factors. However, it is a law of every cryptocurrency investor to hold a part of his capital in bitcoins .

That is, it is not about investing only in a cryptocurrency, it is about diversifying , so that, in the event of a fall or correction in the market, the capital does not dissolve. Since, while one crypto fluctuates in an upward direction, the other may be bearish, and in this way the losses are compensated.

However, before investing in bitcoin or another cryptocurrency, it is always recommended to do DYOR, which means: Do your own research . In this sense, we mean that you should always carry out an investigation of the altcoin (alternative currency that is not bitcoin) in which you want to invest.

In this way you will be able to know its objectives, the number of tokens that will be issued, or other important aspects that define whether it is a project that will be profitable in the long term. However, if you want to avoid all these technicalities, we suggest betting on bitcoin directly, since it is the main cryptocurrency created, and the most acquired globally.

How much to invest in bitcoin?

The amount with which you can start investing in bitcoin can range from 15 to 100 or even more than 1,000 euros. Everything will depend on the platform, your budget and the return on investment you hope to achieve.

In some portals, such as Binance , you can invest from 15 euros or a little more . However, if you really plan to invest in cryptos, we suggest making an investment plan, so that long-term results can be noticed.

It should be noted that it is recommended to create a monthly investment plan , in which a small amount of bitcoins is acquired every 7 or 10 days; It can be 30 euros a week or every 10 days. This answer is only defined by your budget.

Important: We suggest investing money that is not needed for a month or perhaps longer. Since, since cryptocurrencies are an investment with high volatility, it is possible to lose money in the short term.

What should you avoid when investing in bitcoin?

Cryptocurrencies are an emerging market in which many people have lost money due to ignorance. For this reason, before investing in bitcoin or other cryptos, we suggest taking into account some of the following tips :

1. Do not invest for FOMO

FOMO is a form of compulsive investment that plays with the individual's thoughts, making them believe that they are missing out on a unique and unrepeatable opportunity. Investing by FOMO means that you will be buying a crypto believing that you are missing an opportunity . And this is the first mistake you should avoid making.

When there is a lot of FOMO, a group of investors is always harmed by manipulations from the largest. An example of this was when Dogecoin , a cryptomeme, reached an ATH above 0.70 US cents.

Days ago there was a lot of FOMO in the market. It was speculated at such a level that the cryptocurrency went from trading $0.37 to 0.74 cents in less than 10 days ; We are talking about a 100% increase.

However, that last day that reached 0.74 it began to fall for 3 consecutive days. Leaving big losses to those who bought by FOMO at prices of $0.50 or more .

2. Avoid peddlers

This is one of the most common mistakes made by those who want to invest in bitcoin and are just starting out. The sellers are those people who suggest you enter a Telegram channel, make a payment so that they give you trading signals and earn money . Although not everyone who is dedicated to giving trading signals is a scammer, a large part will have no intention of helping you .

However, in this group you can also find many "opportunists" who seek to take advantage of the lack of knowledge of the most naive. Some will give you suggestions on which crypto to buy, they refer you to an exchange of dubious origin, they will tell you that a crypto will rise 1,000% , among other actions. The fact is, it's always important to avoid them and do your own research.

3. Avoid investing without researching first

DYOR, means do your own research ; as we mentioned before. It is very important to do DYOR in the crypto world, since due to a lack of knowledge it is possible to make mistakes and end up losing money in one way or another.

For this reason, before registering on a platform, do research on it and verify its trajectory over time. The same applies if you want to invest in bitcoin or another cryptocurrency, although in this sense we always suggest reading the whitepaper, checking your social networks, exchanges where it is listed , among other aspects.

4. Do not go into debt to buy bitcoin and only use money that you can lose

It's common to fear missing out on a good investment if you're just starting out, but as multiple experts have mentioned before: "The market always creates new opportunities . "

Therefore, if at this moment you have little capital to invest in a crypto, you have not received your salary or monthly salary, you do not have to worry, invest only when you have the ability to lose money .
In no case is it recommended to invest in bitcoin or another cryptocurrency with borrowed money. Since, due to the high volatility of the market, this could become a problem.

How to invest in bitcoin step by step

To invest in bitcoin or another cryptocurrency we suggest using Binance . It offers multiple functions and qualities that can be used over time, whether you are an expert or not. In principle, to buy digital coins here you must register and you can do it by clicking here.

Once registered, we suggest carrying out the identity verifications, and activating the 2-step authentication with the smartphone; so that your account is more secure.

Now, you can decide if you want to buy cryptos using a credit/debit card, through Peer-to-peer (P2P), deposits or through third parties .

On this occasion we explain how to do it with your credit or debit card, since the process is faster and easier. First of all you should look in the top menu of the official website for the area: Buy Crypto .

Multiple options will be displayed there and you must choose the one that says: Buy cryptocurrencies with a card .

The page will reload and show you 3 boxes . The first establishes the amount of euros that will be spent to buy bitcoin. The second shows the amount of tokens or fractions of BTC to receive.

And the last one will only be the confirm button; which must be clearly marked to continue.

After selecting continue, you will be asked to add a new card .

Once all the requested data has been loaded, it will allow you to make the purchase, and the funds or fractions of bitcoins will be reflected in your wallet; exactly in the spot area.

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