With so many options available for Bitcoin investing, how do you decide where to put your hard earned Bitcoin?
Bitcoin is gaining notoriety just as fast as it’s gaining a solid reputation. Now is becoming the perfect time to invest Bitcoin across a myriad of services. With many new services utilizing Bitcoin, it is important to set ground rules before exploring further. We don’t want any horror stories of life savings disintegrating. (please don’t invest your life savings)
Rules of thumb:
Don’t Trust Just One Source of Information
Doing due-diligence is the best way to qualify a bitcoin service. Doing a whois search provides valuable insight to the owner. We google the address, and search social media for the owner. A site owned in a strange location, or a person who doesn’t exist is probably a scam. Whois also determines to the age of the site, which may or may not be a factor. Searching for other users opinions help qualify a site too. Searching Reddit, Bitcointalk, etc. for reviews or scam alerts provides an extra level of detail.
Start small, slowly invest over time
Don’t put all the eggs in one basket. IE I wouldn’t invest my entire BTCJAM balance on one loan. This one loan would assume all responsibility for losses incurred. It’s important to spread investments across different risks, just like traditional financial securities. The risk should coorespond to the amount invested. 50% low-risk (bonds), 2x 20% medium, 10% high-risk (ETFs).This is no longer separate from Bitcoin.
Know Investing Goals
When I first bought Bitcoin, I thought I would just sell it when it went higher, but it didn’t go higher. Today it is higher than when I bought, but after getting so involved in the Bitcoin community I recognize the potential. My initial goals were to buy some Bitcoin and spread it across various services. Over time I have added to all sorts of investments with Bitcoin, some bad, most good. It’s important to have reasonable goals when investing Bitcoin.
Techniques for Investing
Now that we’ve covered the basics of investing Bitcoin, it’s important to show our personally used services. It’s not enough to follow the rules, but to be careful of certain exceptions. This is especially important for higher risks. Hint: Bitcoin multiplers are almost certainly scams. These websites have developed our trust, not only through social media, but by actually using their service. Only time will tell. This is Bitcoin, and nothing is certain, forever.
Anything claiming to be a bank is almost certainly a scam, but maybe it’s just a European translation that doesn’t carry over so well. Regardless, this site has wonderful support, a strong community and a variety of investments. A chat room allows with users to speak with each other about loans, IPOs, and other securities offered. It’s worth a look around and a sign-up. This is one of the most exciting Bitcoin services to date. Many others like this have failed, but these people are responsive and accountable.
Bitfinex is one of the most trusted exchanges available. With margin funding feature, users can make low-risk returns by lending money (btc or usd) to people trading on margin. It sounds risky, but it isn’t. We personally have auto-renewing loans every 2 days.
Bitcoin Investments are Flourishing
With the Bitcoin community growing larger every day, trading volumes setting records, and more transactions than ever, Bitcoin (and its community) is becoming strong by the minute. A strong community means that (scam) services are being prosecuted and trust-worthy services growing stronger.
Now is the best time to Invest Bitcoin
Bitcoin’s increasing reputation is a further example of how important it is to get started now, buy some Bitcoin. Move it around and see how it goes. Getting involved in the Bitcoin community is the first step towards buying Bitcoin. Sign on to forums, use social media, research, and most importantly, share your experiences. This is the most important thing to do, and s a reason the Bitcoin community is so strong.
Our strategies are not to be taken for granted. Use common sense. Get out at the first sign of trouble. Never put in more than you’re comfortable loosing. But also, don’t freak out. Bitcoin is young, get in early and you won’t regret it. This is a guest post, any views or opinions are solely of CryptoCrooks.
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