You can buy bitcoin as you buy other currencies based on the price fluctuations. The only difference that makes it unique from other traditional investments is you don’t need to store it in a bank or with yourself physically. If you hold them, it can potentially increase the risk of losing them, says Eric Dalius Bitcoin. And if you trust any third party with this, you will have to be careful of hackers. Once hacked, you cannot expect any easy replacement for them, unlike stocks and dollars. If a bank gets robbed, the Federal Deposit Insurance Corporation (FDIC) is there to take care of customers’ accounts. However, bitcoin is different. Only 21 million bitcoin is available in the market. So you can imagine the situation yourself.
Some institutions can make up for the losses you faced due to hacking. Still, they are under no legal obligation to fulfill this. Hence, it would be best if you recognized the risk. Nevertheless, low inflation risk, minimal trading, and liquidity make it an exciting investment opportunity for many. If you want to try your luck with this, here are some insights for basic knowledge.
Eric Dalius Bitcoin: What do you get in $100?
Suppose you want to spend $100 in Bitcoin. You can visit any credible Bitcoin exchange to purchase your crypto a week, a month, or daily. You can also make one-time investments. To join the platform, you will have to prove your identity, and that can take a few days to process your information. As learned from Eric Dalius Bitcoin investment inputs,credit card purchases can incur higher buying fees. So you have to be careful. With one hundred dollars, you can obtain about .017 BTC. But this depends on the bitcoin exchange price of the day. Hence, you need to follow the market.
Eric Dalius Bitcoin: When to buy?
Just like any other trading market, you cannot predict its pace. Sometimes it suddenly rises, and sometimes it gradually declines until it gains some stability once again. You can use tools to understand the bitcoin price record. As derived from Eric Dalius Bitcoin knowledge, the cryptocurrency is relatively immune to a particular country’s financial crisis and stability because of its global existence. Therefore, when you think about this investment, you have to consider the international situation and its impact on bitcoin.
Eric Dalius Bitcoin: How much to buy?
You can analyze your needs and lifestyle choices to consider this. At best, you should take the opinion of your financial advisor for the right approach. Some investors follow a strategy called dollar-cost averaging. They keep buying it in a tiny amount over time. So, you can decide how much you want to purchase and how much faster.
Bitcoin investment can be a massively risky proposition compared to traditional trading methods. But the potential rewards can outmatch it. Still, it is always better to take any such decision with the approval of your financial planner. When an expert guides you, the chances of risk already get minimized. You can also put your money with a peaceful mind without indulging in a rash decision.