How to invest in Bitcoins. Everything you need to know

The list of people who have lost large amounts of money by investing in Bitcoins increases with each of the shakes that this cryptocurrency gives , which encourages news of the style "I lost € 9,000 investing in Bitcoin thinking that tomorrow they would be worth € 50,000 ...". However, knowing the situation that led that person to speculate with Bitcoin , it can be concluded that he is another gullible who got carried away by the advice of someone inexperienced, to end up acting like the typical brother-in-law who is believed to knows it all. Bitcoin and cryptocurrencies in general are becoming very fashionable and, despite this news, they can be a great investment . For this, it is recommended that you take into account some important points that you will see below, but let's start with the concept.

What are Bitcoins?

Bitcoin is a virtual currency based on blockchain technology that was born in 2009 with the clear intention of being the alternative to traditional currencies. Unlike these, Bitcoin is a completely independent and intangible virtual currency, which does not belong to any government or financial institution, making its control rest entirely with its own users. Despite the fact that it was created to be an alternative to traditional currencies and to be the basis of the economy of the future, currently the vast majority of people consider investing in Bitcoin with the sole intention of making quick money, rather than to use it in your digital purchases. Therefore, if your intention is to invest in this currency to earn money and without looking like a brother-in-law, it is essential that you keep one of the following tips in mind.

What comes quickly ... quickly goes

There are many who are attracted to the idea of ​​earning a lot of money, investing little and only in a few weeks, days or hours. This is how the vast majority of people view Bitcoin, and they are partly right. With Bitcoin you can earn a lot of money even in a matter of minutes. However, as with any coin, the flip side of the coin is that, just like you can win, you can lose a lot of money . All cryptocurrencies, including Bitcoin, have a very high risk component , but this is something that many investors ignore , remaining only with the remote possibility of kicking in a matter of minutes. Lack of knowledge of the risks involved in investing in Bitcoin is the main reason why the news of "I lost in Bitcoin ..." increases. However, a person who would have invested € 1,000 in 2010 today could be a millionaire. Of course, past bull it is very easy to make predictions. Although the one who invested between 2016 and 2017 today would have multiplied their investment by 10. As Warren Buffett said well : “Some things need time. Nine moms don't make a baby in a month. "

These are the risks of investing in Bitcoins

Investing in Bitcoin is investing in an asset with a very high risk . Contrary to what happens in traditional currency markets, which change their value with controlled movements, Bitcoin and the rest of cryptocurrencies are moved simply by the sentiment of users who speculate with their value. This has caused Bitcoin to acquire a highly volatile component that causes this cryptocurrency to lose more than 90% of its value on several occasions since its existence. Bitcoin has no regulation in this regard , which causes prices to be easily manipulated by groups of speculators with large capitals. It is something that has already happened on different occasions with the massive sale of Bitcoins, causing its value to drop by 25% in a matter of hours. Who assures you that tomorrow they cannot end up being worth 0? The lack of regulation by the National Securities Market Commission (CNMV) means that protection for the user who invests in cryptocurrencies is practically nil. For this reason, Bitcoin is the favorite target of online hackers and scammers , who take advantage of these loopholes to make their own.

Invest in Bitcoin ... but do it in small doses

In periods of time of several years, Bitcoin has so far shown that it has been profitable , even with the extreme drops in its value that it has been experiencing year after year. This is the reason that pushes some investors to invest with the objective set in the long term. If, despite the risks, you still have an interest in investing in Bitcoin, it is highly recommended to do it with caution and investing an amount of money that you will not need and that you are willing to lose . It is very important that you keep this in mind, since as you have seen, Bitcoin is very volatile and there are not many investors who endure the extreme fluctuations of its value. For this, it is recommended to buy your Bitcoins in a reliable exchange house, since there are many beach bars trying to scam unsuspecting investors. Once you have your Bitcoins in your account, it would be highly advisable to have your cryptocurrencies in your possession with a hardware wallet , which is an electronic (physical) device that allows you to store your Bitcoin safely . Since then, he allows time to act as judge and to remove or reason those who support that Bitcoin will be the currency of the future.