Bitcoin is popular as a potent electronic currency that has the potential to positively impact the world. There are various merchants who are now accepting bitcoins from traders expecting to make money on highs and lows in its value. In this article, we will learn about ways in which a user can invest in Bitcoin currency.
Using Fiat currency
Among the various methods to invest in Bitcoin, one of the simplest ways is to purchase the asset in bulk amounts by registering with exchange and buying bitcoins via fiat currency. Exchanges are often found as unreliable, and tricky especially in the initial days of the introduction of bitcoin in the market.
If you are looking to buy Bitcoin Australia, then consider Bitcoin dealers. They are the ideal platform to buy and sell Bitcoins in a secure, convenient, and quick manner. With branches in Sydney, Melbourne, and Adelaide, they are a popular name in Bitcoin trading in Australia.
Coinbase offers an online bitcoin wallet. It has its own controlled exchange since January 2015 that targets US users. Coinfloor is another bitcoin exchange that allows users to trade in bitcoin with the help of sterling, Polish zlotys, euros, and US dollars.
Buy and Hold
There is another way to invest in Bitcoin currency and it is done by buying and holding this cryptocurrency. A majority of people believe in the long-term prosperity of Bitcoin, and get less affected by its volatile nature.
There are bitcoin trading sites like Magnr that provide leveraged trading where the trading site lends you money with expectations to increase your return.
A bitcoin bubble is a method wherein people bet on the value of bitcoin when it is going down. Short selling of an asset involves lending an asset at a specific price so that you can sell the Bitcoin to people at the same price.
Then, when the value of the asset reduces, you can purchase it again at the low price to give it again to the lender. The profit is made by the price difference between the buying, and selling of the bitcoins.
There is always a possibility that the market can go against you, and you lose all your money. So, learn about margin calls, and leverage prior to investing in Bitcoins using shorting strategy.
Bitcoin is considered to be a risky investment. That is the reason many governments have banned the use of this currency and transactions made via it. When liquidity is less, then volatility is high. Bitcoins are relatively irrational.
To trade in such irrational markets is risky as they can go against your speculations for reasons that are difficult to understand, or anticipate.
When there are highs and lows registered in any currency, there are immense possibilities of money to be generated or lost. So, users need to be aware of the volatility of Bitcoin currency before they apply for it. Depending on your needs, and preferences, you can the available means to invest in Bitcoins.