Should You Invest In Bitcoin

Bitcoin is a very risky asset type.

Should you invest in bitcoin. It is extremely volatile and even the most solid bitcoin investment should be treated as a high risk investment. The bitcoin mining industry has grown at a rapid pace. Essentially a cfd is a financial product that allows you to speculate on the future value of an asset without actually owning or holding that asset. It should also be noted that you can also invest in bitcoin through a cfd contract for difference platform.

The reason why is that it s not an investment. For example in the past bitcoin s price fell over 80 in the course of several months this happened a few times throughout its existence. Know that if you do use an exchange just like transferring to any currency you will be charged a transaction fee for example coinbase s averages 1 5 for bitcoin says dan romero vice. Investing in bitcoin is no joke and securing your investment should be your top priority.

If the belief in bitcoin evaporates it will free fall and should be avoided as an investment tool. Go into bitcoin if you can bear the downside but do not buy looking to strike gold. Mining which could once be done on the average home computer is now only done profitably using specialized data centers and hardware known as asic s. Just as gold tulip bulbs beanie babies and rare baseball cards are also not investments.