ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to invest in Bitcoins? Things to know before investing in bitcoins

Updated on August 11, 2017

What is Bitcoin?

Bitcoin is a cryptocurrency designed by Satoshi Nakamoto. It is completely decentralized and is not regulated by any government or central bank. You can use bitcoins to send and receive payments from any person anywhere in the world. There is no levy or charges associated with bitcoins. Bitcoin transactions can be made without revealing user identity, and they can be encrypted to ensure safety.

Once you own biocoins, they are like any asset. They can be compared to physical Gold. Often bitcoins are referred to as ‘Digital Gold’. Bitcoins are not the only Cryptocurrencies. Ethereum, Lifecoin, Namecoin, Primecoin and Ripple etc are examples of other cryptocurrencies.

Why invest in Bitcoins?

In 2014, a venture capitalist named Draper bought 30,000 bitcoins the marketprice of which was $600 at that time. Now, the value of those bit coins are estimated to be $70 million

Due to its ease of use and freedom from transaction costs, bitcoins are preferred by many people around the world. It cannot be manipulated by governments or politicians and furthermore, it cannot be inflated or deflated artificially. It is seen that despite warning from the central bank RBI, 2,500 Indians are found to be using Bitcoins daily.

At the start of 2012, there were 11 million bitcoins in existence. It is estimated that by 2140, there would be around 20 million bitcoins.

Mine your own bitcoins

This was the way most people acquired Bitcoins when the cryptocurrency initially came into existence years ago. It’s like people digging for gold. Bitcoin mining needs expensive hardware and it also consumes a lot of electricity that the cost often outweighs the value of bitcoins. More miners have entered today and hence bitcoin mining has become difficult.

Buy Bitcoins from an exchange

Like buying stocks, you could buy Bitcoins from a bitcoin exchange. But bear in mind that Bitcoin is a risky investment and hence you should not invest more than what you are willing to lose. After buying bitcoins, store them into your personal wallet

Trading your Bitcoins

Just like stock trading, you can trade using your bitcoins. You can buy bitcoins when they are low in value and sell them when they reach higher prices.

Following is the list of popular bitcoin trading platforms:

Kraken

Justcoin

Bitstamp

Bitfinex

Okcoin

Cryptsy

Gemini

Invest in Bitcoin startups

Once an industry booms, various startups associated with the industry spring up. Bitcoin is no exception

Various startups are engaged in the bitcoin business. People can invest in these startups. Bitcoin exchanges themselves are the prominent startups. Without exchanges, it would not be possible to buy and sell bitcoins.

Apart from exchanges, bitcoins startups offer other services also. Bitli.st enables startups to connect with users. Blade is a startup which offers a pre-paid card that users can top up with bitcoins and then use it anywhere. Legderwallet is a company that offer bitcoin wallets. Elliptic is a startup which is involved in secure storage of bitcoins. It also insures the bitcoins it holds

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)