If you are looking for a way to diversify your investments, then you may have heard people discuss something called Bitcoin. Bitcoin is a specific type of cryptocurrency that can be purchased and sold in a manner that is similar to traditional stock markets. Of note, unlike traditional stock markets, which are usually only open for several hours on weekdays, cryptocurrency markets, such as the Bitcoin exchange, never close.
Therefore, there may be a lower barrier of entry when it comes to trading certain types of cryptocurrency. At the same time, does this mean that Bitcoin is a smart investment for you? What do you need to know about this training opportunity before you get involved?
What Is Bitcoin?
First, it is important for you to understand exactly what Bitcoin is. Bitcoin is a specific type of digital currency. This means that you do not physically hold Bitcoin in your hand, unlike a dollar or coin, but instead, you will trade virtual Bitcoins out of your digital wallet on the exchange. Similar to traditional stocks, the price of Bitcoin is going to rise and fall over time. If you are able to purchase several Bitcoins at a relatively low price and sell them at a higher price down the road, you will generate capital gains, similar to capital gains that you may generate in a traditional stock market. On the other hand, it is important to note that Bitcoin markets do tend to be more volatile than the traditional stock market.
Gone are the days of going to the bank to stand in the queue just to withdraw some cash so we can go stand in other queues just to perform the traditional exchange of goods ceremony. Other ways have taken over the world.
Now that Bitcoin is a major player on the international investment stage, you really want to get in on the action. So how do you do that? Well, it starts with finding a reputable Bitcoin marketplace.
Do a little research and once you have settled on the right one you can go ahead and register. Usually, this entails creating a Bitcoin wallet for transactions between yourself and other users without involving banks and corporations.
Cryptocurrencies are confusing on a lot of levels. But crypto taxes are now!
Ask people on the street how they work and you’ll be surprised at the answers.
There is a lot of talk going on today about how Bitcoin and other cryptocurrencies are an option for investing or not. Those who have invested in Bitcoin a year ago have seen the value of their BTC soar beyond expectations late in the last year, then fall to a much lower level a few weeks later – the increase is still massive (today, one BTC trades as about $8,000 compared to just above $1,000 one year ago).
I have been writing about cryptocurrencies lately. I think I need to post something very basic about them, here. Let’s not think of Bitcoin, or any other currencies as investment options right now, but as a payment system, and look at the way it works compared to banks.