Bitcoin As An Investment: Things To Know

Bitcoin has been thriving of late, and as a result there seems to be more talk about its status as an investment commodity. This is not necessarily new, as some experts have been advocating for the idea of bitcoin as an investment for a few years now. But given that it’s technically a “cryptocurrency” and was designed as an alternative method of wealth transfer, it’s an idea a lot of us are still just getting used to. To many, bitcoin is becoming more analogous to precious metals and resources than to, say, the dollar or euro.

If you’re starting to think this way, and you’re considering the idea of treating bitcoin like an investment, here are a few things you’ll want to know.

Bitcoin Is Near An All-Time High

It’s hard to put this in writing with any degree of certainty, because bitcoin has proven to be very volatile, even as it trends upward overall. But to date the statement a little bit, consider that near the end of October, 2017, the bitcoin price hit a new all-time high and broke the $6,000 barrier for the first time. It climbed even higher shortly thereafter, and at the time of this writing it’s essentially at a new high. This is certainly something to keep in mind if you’re considering entering the market. One mode of thinking is that you could be catching it in the middle of a sensational rise; another is that you might want to wait until it dips a little bit before buying in.

There Are Different Modes Of Storage

As you may know, bitcoin users can choose from a wide range of wallets, including paper, hardware, and software options. Each type of wallet comes with distinct pros and cons relating to convenience, security, and extra features. But when you think about which kind of wallet to trust, your thinking should be influenced by how you plan to use that bitcoin. For instance, a paper wallet has strong security benefits, but is also easy to lose. Thus, it might be more appealing for short-term holdings when using bitcoin as a currency, but less so if you plan to hold onto your bitcoin for a long time.