Bitcoin is widely considered by many as one of the biggest cryptocurrencies in the world. In fact, it was the first cryptocurrency that actually led the charge. The value of bitcoin when it was first introduced was virtually zero. It was regarded as a method of conducting transactions without exposing the information of the buyer and the seller; as a result, it was completely unregulated. Needless to say, interest in bitcoin rose very quickly and many people wanted to know just what the currency could be used for.
Slowly and gradually, bitcoin became mainstream until eventually in 2017, one bitcoin was available for upward of $20,000. That is a significant figure by all margins and many financial investors turned their heads. It was very much in the limelight, along with many other currencies. However, the very next year, bitcoin suffered a sharp fall, coming down to the $2000 mark by the end of the year. It’s still in the recovery phase right now and that is one of the main reasons why so many people are interested in buying it.
The rule of making any investment is that you should get in when the price is low and then get out once the price increases. That’s the same for bitcoin. Because it’s at a competitive rate right now, buying early makes a lot of sense. Many financial analysts are of the opinion that the currency is going to hit upwards of $100,000 in a couple of years. If you are interested in buying the currency, there are several bitcoin sellers that you can check out online. Here are a few important things that you should keep in mind if you want to buy bitcoin, however.
What’s Your Liquidity Status?
One of the most important things that you need to take into account before putting your money in any such currency is your liquidity status. Moreover, your exposure level plays an important role as well. Bitcoin isn’t exactly liquid so a considerable amount of your savings will be tied up online. Moreover, there’s a risk that the currency might fall sharply and you might incur a loss. Therefore, you have to take into account your liquidity margins and the amount of money that you can afford to lose for a little while.
This is a digital currency and you can only buy it through an online exchange. Make sure that you do your homework about different exchanges that offer bitcoin before you make a purchase. It’s incredibly important that you buy from a reliable place that offers maximum security for online transactions. You can exchange the currency for your local dollars and then buy other cryptocurrencies as well.