Is Bitcoin a Good Investment in 2022? – Benzinga
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A collective craze has sprung up around bitcoin over the last decade. it is difficult to predict whether this cryptocurrency will become the global reserve currency or a store of value as widely accepted as gold. The thrill of riches or ruin makes some investors wary, but others want to seize the opportunity to make massive profits by investing in bitcoin. bitcoin is undoubtedly a revolutionary technology, and it is much less risky in 2022 than it was in 2012. after becoming legal tender in el salvador in 2021, other countries will look to copy this move to attract innovation, while others may ban it for complete in an attempt to save your fiat currency. bitcoin has taken center stage in the global geopolitical climate, and it looks like 2022 may be the year of mass adoption. this has led investors to question whether bitcoin is a good investment.
Reading: Bitcoin its investment could be bad
start with our guide to learn more and make your own judgment if bitcoin is a good investment for you.
in a nutshell: is it risky to invest in bitcoin?
As with any speculative investment, buying bitcoin obviously carries risk. From its inception, bitcoin was the first digital asset to spawn the current crypto ecosystem. for quite some time, it grew an underground following of investors who saw its future as a potential replacement for the physical monetary system. Now, bitcoin has become a household name as institutions and governments develop ways to meet their clients’ growing demand for exposure.
Just as the internet was once a speculative investment, bitcoin has received similar criticism. in fact, the current adoption rate of bitcoin exceeds that of the internet in 1998, and millions of people now own bitcoin.
in 2021, el salvador became the first country in the world to make bitcoin a legal tender; Paraguay and other countries seek to do the same. El Salvador is also the first and only country to have Bitcoin in its treasury. at the beginning of 2022, el salvador has 1,800 bitcoin. President Nayib Bukele has not been shy about announcing his purchases on Twitter.
As the traditional financial world realizes the disruptive potential of bitcoin, it must choose between adopting cryptocurrencies or facing irrelevance. The personal decision to invest in bitcoin comes down to your appetite for risk and your perspective on the future of humanity. For example, Russia has stated that it is looking into cryptocurrencies to reduce its reliance on the US dollar. bitcoin has the potential to disrupt the US dollar massively, and it’s simply too big to ignore right now.
The main reason a traditional investor might want to be exposed to bitcoin is to hedge against inflation and potentially the collapse of the fiat-based economy. The volatility of bitcoin is a concern for many investors, however, the volatility is expected to decrease forever as institutions and governments enter the market with long-term interests.
where to invest in bitcoin
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bitcoin is available on a multitude of centralized cryptocurrency exchanges. the safest exchanges are the usa uu. based on, which also means you’ll need to comply with the “know your customer” (kyc) guidelines of sec. For tax purposes, creating an exchange account will require the input of your personal information, including your address and social security number. once you have this on hand, you’re ready to go.
these are the steps to invest in bitcoin:
- open an account with a cryptocurrency exchange.
- connect a bank account and fund your exchange wallet.
- buy bitcoin (btc).
- buy a wallet (optional).
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2. currency base
coinbase makes buying, selling, and holding bitcoin safe and easy. you can buy a portion of bitcoin with a $0 account minimum.
Pay your purchases comfortably with your debit card or by connecting your bank account. Owning bitcoin at this brokerage is as simple as creating an account, verifying your identity, and buying your cryptos. Furthermore, Coinbase has a program called Coinbase Gain that pays you to learn about cryptocurrencies. coinbase earning is a great way to add crypto to your portfolio without having to invest your own money.
Take control of your bitcoin investment wherever you go through the coinbase mobile app. brokerage allows you to keep your bitcoin, convert it to another crypto, spend it on expenses, and transfer it to anyone, anywhere in the world.
bitcoinira’s proprietary platform allows you to trade cryptocurrencies at any time so you can take action right when the market moves.
This is how it works:
- create an account. get your personalized dashboard and digital wallet after creating an account. fund your account, access live prices and learn more with a knowledge base.
- transfer funds. transfer your anger in 3 easy steps. just tell us how much you want to invest, how you want to fund your account and your profile information. most accounts will be ready to trade in just 3-5 days.
- start trading. trade digital assets within your self-directed retirement account using our proprietary platform. buy, sell or trade anytime, anywhere by visiting the auto-trade area within your dashboard.
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another great option to buy bitcoins is wunderbit. the platform allows you to buy and sell bitcoin, ethereum and altcoins at the best rates in the market. Furthermore, users can fund accounts with cryptocurrencies or purchase cryptocurrencies with a credit or debit card. Another interesting feature that wunderbit has that makes it unique is its ability to identify “dirty” bitcoins. this is bitcoin that may have been involved in hacking, money laundering, or other illegal activity that may be at risk of being seized by government officials.
advantages of investing in bitcoin
The overwhelming performance of bitcoin, as a currency and an investment, has attracted traditional and institutional investors alike. is bitcoin a good investment? To be fair, it offers you several advantages over traditional investments.
- liquidity. bitcoin is arguably one of the most liquid investment assets due to the worldwide establishment of online trading platforms, exchanges and brokerage. you can easily exchange bitcoins for cash or assets like gold instantly with incredibly low fees. The high liquidity associated with bitcoin makes it an excellent investment instrument if you are looking for short-term gains. digital currencies can also be a long-term investment due to their high market demand.
- lower risk of inflation. Unlike world currencies, which are regulated by their governments, bitcoin is immune to inflation. the blockchain system is infinite and there is no need to worry about your crypto losing its value.
- new opportunities. Bitcoin and cryptocurrency trading is relatively young – new coins are becoming mainstream on a daily basis. this novelty brings unpredictable changes in price and volatility, which can create opportunities for massive profits.
- minimalist trading. Stock trading requires that you have a certificate or license. You must also go through a broker to trade a company’s stock. But bitcoin trading is minimalist: just buy or sell bitcoins from exchanges and put them in your wallet. bitcoin transactions are also instantaneous, unlike the settlement of stock trade orders, which can take days or weeks.
disadvantages of investing in bitcoin
Bitcoin may be the future of currency exchange, but it is equally important that you are aware of the concerns surrounding investing in cryptocurrencies. Listed below are some things that could make bitcoin a bad investment. Balancing the pros and cons is often the most important thing an investor can do.
- volatility. the price of bitcoin always moves from one side to another. If you bought bitcoin on December 17, 2017, the price was $20,000. weeks later, he was unable to sell his investment for more than $7,051. while it would be doing very well now in 2021, holding for years is not a viable option for all investors.
- hacking threat. Although the bitcoin blockchain has never been hacked, people can still be hacked if they provide sensitive information such as their private keys. Furthermore, it is not uncommon for lesser-known exchanges to get hacked. For added security, use a crypto wallet like the Nano X Ledger that stores your digital assets offline on an external device.
can bitcoin be exchanged for real money?
Bitcoin can be converted into cash in two different ways. You can sell bitcoins on a cryptocurrency exchange like coinbase or crypto.com. the cash will be deposited directly into your bank account. This is an easy way to convert your bitcoin to cash, but you have to remember that the price of a bitcoin changes all the time. yes you may need cash but you may be kicking yourself a few years down the road if bitcoin price skyrockets again and again.
bitcoin ATMs are expensive, but if there is one near you, you can exchange your bitcoin for cash there. however, these ATMs often charge hefty fees, so you’re probably better off using an exchange.
Bitcoin is the future?
with institutions adding bitcoin to their balance sheets and el salvador officially making bitcoin legal tender, it looks like bitcoin will be the future of currency, or at least an accepted store of value. however, with so much volatility in the market, risk-averse investors are still hesitant to buy bitcoin, let alone any other cryptocurrency.
Because bitcoin is not controlled by a central entity, its monetary policy is much stronger than that of any government. Ark Invest CEO Cathie Wood describes bitcoin as a “rules-based monetary system” in that bitcoin’s monetary policy is set by the parameters of the code. With governments printing more money than ever in light of the pandemic, investors are looking to alternative investments to hedge against inflation. many turn to bitcoin to do so, making it easier to adopt cryptocurrencies in the long run.
is bitcoin a good investment? It can be, as long as you do your research and invest wisely. however, investors could make bitcoin a bad investment if they try to treat it like any other asset.
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