We have tested many types of investments such as: investments in the capital market, in international ETFs, in government securities, in mutual funds to which is added the business in which they invest more time. Every year we want to test new ideas, and this year I’m tempted by the bitcoin part. Virtual currency which is the most popular and widespread is already used in many places as a payment system.
Questions and answers about investing in bitcoin
- What is bitcoin?
We’ve all heard about bitcoin (BTC) in recent years and how fast it has grown. We know that it is an electronic currency / virtual currency that are not printed and you cannot have it in its physical version. Basically, this is where the mining part comes from if you read the answers to the questions below. It is the first and most famous crypto currency in the world. The Bit coin network is not controlled by anyone or anything. (It is also heard that they are techniques for changing the trend, but nothing serious so far). The network is controlled by all users who buy or sell.
- What are the advantages and benefits of investing in bitcoin?
It can be a way to invest and make a sale – you can make money, but chances are you will lose it – it’s all about your ability to understand the system; You can buy products / services with them; They started to appear all over the world. Low fees at the level of payments; Payment processors do not have very high commissions; Merchants are more secure because at the time of payment via bitcoin, personal data is not available. Thanks to this process, payments are more secure. Cryptographically speaking, the system is transparent and neutral. The payments you make can be made 24/7 – without worrying about the banks and their schedule. To know more visit bitcoin-up.live
- Are investing in bitcoin a method of short-term enrichment without losing money?
Certainly, this answer is NO. You can lose a lot of money in the short term if you are not careful. And in the graph with more game statistics, if you notice, there are very long periods of growth, but also periods of sudden decrease. Unfortunately, bit coin has had a chaotic promotion. Many said you would make a lot of money overnight. You usually find these notions in pyramid schemes. In the case of bitcoin, the system works differently. It is not pyramidal. It’s all about your ability to analyze, understand and invest. The more you hurry, the more you risk losing money. The rules are similar to stock market investments.
- How has the price of a bitcoin fluctuated in recent years?
Investing in bitcoin is risky if you are looking for quick gains without analysis. Just a little news about 2 Chinese companies that stopped using bitcoin as a payment currency affected the market by 15-20%. The market is volatile. In 2013, a coin cost a few dollars, and immediately it increased to 900-1000 dollars, and after 1 year it decreased to 250-300 dollars, to reach 1000 dollars these days. At the moment it is over $ 15,000… it has increased by over $ 14,000 since we wrote the article in less than 1 year. At this time, his update is $ 7,000. You have to analyze very well when you want to enter the “choir”. I recommend more long-term investments, but with the start in a minimum period. However, if you are a more active type of investor, you can make monthly purchases and sales of coins on good returns. It increases from year to year depending on the interest of investors.
From 2009 to 2017 it reached approx. 17 million bitcoins and, as you can see, the trend is growing quite well. This would also be a pretty good reason why the bit coin could be a long-term and safe investment.
- If I make a profit from the sale, do I pay taxes and duties?
Investments are taxable, as are all other investments. Any gain is taxed according to the state you belong to.