To date, the question of whether it is worth investing in bitcoins is the most popular among both novice investors and experienced financial market tycoons.

Someone considers bitcoins to be the currency of the future, but for someone this asset is a soap bubble that will soon “burst” and depreciate. He has millions of fans around the world. However, there are those who have not even heard of him.

The operating principle is based on as long as people believe in bitcoin and actively use it, the system works smoothly.

bitcoin

Bitcoin (BTC, Bitcoin, asset) is not only a digital cryptocurrency, but also an investment tool. On the one hand, it has great prospects and growing popularity, and on the other hand, it has already proven itself to be a highly profitable, but very risky investment.

This term also denotes a peer-to-peer payment system that uses conventional units of the same name. Using digital currency, you can pay for goods and services on the Internet. It is possible to exchange it for a real currency, for example, the dollar, rubles, euro. They cannot be touched, received in the form of a coin or a banknote.

Anyone can create Bitcoin by running the process of mathematical calculations on their PC. It is called " mining"(from English mining). Today, you need a lot of power to mine bitcoin. The more bitcoins are created, the more difficult it is to create subsequent ones.. This is the main problem.

The number of this currency is limited: 21 million. The limited number and power of computing devices guarantee its stability, a kind of analogue of the double standard that used to apply to this currency.

Before you start investing in cryptocurrency, you must do two things:

1. Learn the process of dealing with bitcoin.
2. Understand the "pitfalls" of such investments.

Possible dangers

Investment is associated with certain risks:

• exchange rate fluctuations. Any asset is associated with a similar risk. For example, in the case of exchanging one type of currency for another. This pattern applies to absolutely all currencies (dollar, euro, etc.). Supply and demand play a crucial role in determining the price of bitcoin. There were significant drops in the cryptocurrency, but not more than 1 time in 3 years. Thus, you can invest in bitcoins throughout the year without feeling the fall in the rate.
• No central control, which can lead to abuse and intractable disputes among the participants Behind the work of real currency is a reliable regulator: for example, the Central Bank. The bitcoin system is characterized by maximum transparency: any user has the right to view your wallet or track the operation being performed. Therefore, there may be cases when your rights are infringed and it is quite difficult to protect them. There is also the possibility of cryptocurrency theft. Of course, wallets are equipped with reliable protection, the encryption mechanism will not allow an attacker to fake the operation. However, there are extremely complex loopholes. Example: the large exchange MtGox lost about 700 thousand bitcoins for this reason. Its main direction was the accumulation (storage) of funds of ordinary citizens and organizations. All currency was lost.
• Legal Status Uncertainty may significantly reduce the user's trust in an electronic asset. In Russia, bitcoin is still in “suspended state”. Since last year, the Russian government has been actively developing a bill to regulate the work with cryptocurrency. Perhaps a partial restriction of its use or full legalization. For example, Japan has recognized bitcoin as an official means of payment along with the state currency.

Anonymity

As already mentioned, each person can freely watch the conduct of any operation. Bitcoin can only be made anonymous if you register the wallet anonymously. Tor is often used. In this case, the wallet should be used for only one transaction. The more often it is used, the easier it is to calculate its owner.

Your personal danger is the loss of bitcoins. Stealing them is considered an almost impossible task. However, if you yourself transfer the electronic currency to a fraudster, it will be impossible to return it. Anonymity will become a kind of trap: you will not be able to find out who received your money as a result.

Advantages

• Quite stable exchange rate growth. 2016 was marked by a fourfold growth, which significantly outweighed the decline. In addition, over the past 5 months there has been an increase in the exchange rate by more than 2 times (in January - $ 1000, in mid-May - $ 2050, in early July - $ 2700).
• High level of trust. Bitcoins are one of the most popular types of electronic currency, because even a temporary depreciation has always led to its sharp increase. Millions of literate people trust this system. Isn't this a kind of "guarantor" of its stability?
• Reliable level of liquidity. Today, the sale of this cryptocurrency is not a problem: a large number of bitcoin ATMs are opened all over the world, and the number of bitcoin exchanges is growing every year.
• Lack of regulatory system and control. Undoubtedly, this is a rather advantageous aspect: no economic, political and social factors affect bitcoin. It is a completely independent electronic mechanism. Unless the computer system can fail. In addition, the tax authorities cannot check how much money the user has, where he keeps it and what he spends it on.
• Low commission percentage. A small fee is charged for transactions, which distinguishes them favorably from banks, where the size of the commission is steadily growing.

Investing in bitcoin

Next, consider the question of how to invest in bitcoins. The meaning of investing in any currency is absolutely identical: to buy cheaper - to sell more expensive. The use of financial instruments makes sales possible. As an example, let's take the largest and most famous Russian exchange BTC-E. Here, cryptocurrency is traded both for euros and dollars, and for rubles.

There are 3 ways to invest in an electronic asset:

1. Purchase. To do this, you need to create your account and replenish its account. In the absence of a cryptocurrency and a wallet, assets are purchased for real money. The wallet will be needed only if they are withdrawn. Your task is to predict the exchange rate and purchase the currency at a lower cost than it will be sold in the future. It is known that bitcoin is characterized by high volatility.
2. Bitcoin mining ("booty"). You can not purchase electronic assets. Buy a powerful PC and use its computing power to mine cryptocurrency. After receiving them, they can be exchanged for real money on the exchange.
3. Shares Bitcoin Investment Trust (BIT). Buying the assets of this company is an indirect investment in bitcoin. This method is one of the safest options from a legal point of view: you are not dealing with digital cryptocurrency, but with shares. Officially, they are on the US OTC market. 1 share is equal to 0.1 bitcoin.

Each of these options assumes your ability to understand and predict the exchange rate. Investments can bring a profit of up to 15% per month, if properly managed. Participation in some exchanges implies the presence of financial instruments: for example, a game for a decrease, “shoulders”. However, for this you need to have excellent skills and knowledge in the field of trading, so as not to lose all investments.

Where to invest bitcoins. cloud mining

​If you already have a cryptocurrency, but you do not want to replace it with a real currency at the moment, you can start investing. However, one should not rush and consider unfamiliar HYIPs and unverified fund organizations as a decent earning opportunity. The best option for investing in cloud mining.

The principle of cloud mining is based on obtaining computing potential from remote PCs. The largest service is EOBOT. By investing your assets, you can mine cryptocurrency. The resulting profit can be very low from only one bitcoin. Through this type of mining, experienced investors "mine" another type of asset - forks. Their price has been growing quite well lately, but it is always worth having fresh data on exchange rate fluctuations.

Mining requires specialized software with high-speed computing resources. In order to get the most benefit, you should first calculate the cost of equipment, its operation and computing capacity. It should also be taken into account that the process of extracting currency is becoming more complicated every day, so there is a possibility that your investments will bring less and less profit.

Investment Strategies

If there are bitcoins in the electronic wallet, the most reliable option would be to store and accumulate them. Never rush, make only informed decisions. In the future, such a step will pay off with a good profit, and the value of the digital currency may increase several times. Many experts predict that in 2018 the growth rate will reach $5,000 per coin.

Do not enter the market during the day, as system fees are quite high at this time.

If you are a professional investor, you should pay attention to new types of cryptocurrencies. Bet on these positions at the beginning of their growth. The risk is high, but this method works if a bet is made on a promising asset.

Transactions using bitcoin make it possible to opt out of intermediation. This leads to lower additional costs. Large transactions with minimal costs. There is no need to connect complex logistics. Such a mechanism significantly reduces the demand for the services of companies that specialize in transferring funds with large commissions (for example, Western Union).

To the question of whether it makes sense to invest in bitcoins, each investor must find the answer for himself. Investing in this cryptocurrency can be a good source of income if the amount of your savings is not very high. Even with a strong fall in the exchange rate, the losses will be insignificant. However, its increase will lead to very significant benefits.

It is advisable for professional investors with large amounts to apply the principle of distributing funds among several cryptocurrencies: when “shooting” only one, the profit will be much higher when working with standard investment instruments.

Investing in Bitcoin is one of the most profitable ways to earn passive income. In this article, we will analyze in detail how to invest in Bitcoin and earn money from it. Investing in Bitcoin today is very profitable, as its value is constantly growing. Feedback from investors who have invested in Bitcoin is extremely positive. This is not surprising, the vast majority of Bitcoin investors have increased their initial capital several times over in a relatively short period of time. Here you will find answers to topical questions such as “How to make money on Bitcoin investments”, “Is it worth investing in Bitcoin”, “Is it profitable to invest in Bitcoin”, “Where to invest Bitcoins” and “How much to invest in Bitcoin”. You need to start investing in Bitcoin by buying a coin at a favorable rate. On the Binance cryptocurrency exchange, you can quickly and profitably buy Bitcoin:

The most profitable way to invest in Bitcoins today is. For one successful transaction, the trader receives 80% of the profit. Binary options are a highly profitable investment method, the meaning of which is to predict whether a cryptocurrency asset will rise or fall over a certain period of time. Binomo is the best binary options broker. There are many promotions and bonuses for replenishment, plus, there is a demo account for 10 thousand rubles, with which you can learn how to trade Bitcoin options with absolutely no risks. See Binomo review. Registration on Binomo:

Another way to multiply your asset in cryptocurrency is to make an interest-bearing deposit. Yes, there is such a possibility. And if there are a couple of Bitcoins (or any other token) lying around in your wallet, this is a great opportunity to extract additional income from your investments.

Features, pros and cons of this way of earning money, as well as: links to sites and practical instructions for beginners - we will talk about all this in the current article.

The essence of earnings

The way we offer to make money on digital currency is not much different from the usual and well-known bank deposits: the investor is invited to make a deposit for a certain period (or unlimited) at a percentage of the investment amount.

On the Internet, you can find more than a dozen sites of companies and services offering to invest Bitcoin or altcoins at interest (a large proportion of which, by the way, may turn out to be frankly fraudulent resources). We, however, will only talk about those sites that we dealt with in practice (reviews of which were posted on the pages of our site). These are cryptocurrency exchanges, which, in addition to their main tool - trading, offer their users to invest free funds at interest, and automatic trading services on crypto exchanges.

Peculiarities

pros

• Additional income
  (or other cryptocurrency) generate income due to the growth of the coin rate. Profit is formed due to the difference between the purchase and sale prices. Investing cryptocurrencies at interest for a period until the moment of its sale is a great opportunity for additional income.
• Passive income
  Requires virtually no time or attention. The level of income directly depends on the amount of the deposit. Depending on the goals of the investor, the profit can be either withdrawn / cashed out and used at your discretion, or reinvested, increasing the amount of the deposit.
• Favorable percentage
  Cryptocurrency deposits will provide a much more favorable interest on the deposit than the traditional bank deposits already mentioned above. Starting with a "moderate" profit (36-48% per annum), ending with a yield of 10% per day (or more).

Flaws

• Perhaps the only, but quite significant, minus of investing cryptocurrencies at interest is non-trading risks, such as the option of closing the exchange, as a result, the loss of all invested funds. However, this equally applies to any crypto-trader trading on the site. Often, non-trading risks are simply ignored by most traders as unlikely. Yes, and banks in the vastness of our country are not particularly reliable.

Links to websites and exchanges

Bitcoin Lending at Poloniex

On the Lending page of the Poloniex exchange, you can issue a loan (that is, lend your own funds) to traders trading on the platform.

• The crypto exchange acts as a guarantor of the return of funds.
• The only currency available for lending is bitcoin.
• The user chooses the interest rate, as well as the term of the "deposit" (from 2 days), at his own discretion.

Screenshot of bitcoin deposit at interest on the Poloniex exchange

You can learn more about investing Bitcoin at interest. In the same place - detailed instructions for registering and working on the Polonix exchange for beginners.

InvestBox on Yobit

Yobit crypto exchange users have the InvestBox tool at their disposal. Provides the opportunity to make a deposit in several dozen altcoins.

• The loan is issued not to traders, but to the exchange itself.
• Altcoins available for investment are constantly changing.
• The percentage of deposits in some tokens can reach 10%, 50% and even 200% per day.

Cryptocurrency invested at interest on Yobit

Read more about investing cryptocurrencies at interest on the Yobit exchange - read on, where you will find a comprehensive guide to working with the Yobit exchange.

Is it worth investing in Bitcoin

Bitcoin is not just a digital crypto-currency, it is also an investment tool. The principle of investing can be compared to investing in any other currency, such as dollars or euros. Even if classical currencies raise many questions, then the question of whether it is worth investing in Bitcoin can lead to a dead end. On the one hand, it is a promising tool that is only gaining popularity, but on the other hand, bitcoin has already established itself as a highly profitable, but extremely risky investment.

The dangers of investing in bitcoin

Before you decide to invest in bitcoins, you definitely need to do two things. First, take a close look at what bitcoin is. Secondly, you need to know all the dangers of investing. Bitcoin combines all the dangers of classic currencies, but the risks associated with the principles of operation of the crypto-currency are added to them:

• exchange rate risks;
• Lack of centralized control;
• Uncertain legal status;
• Low prevalence;

There are always exchange rate risks when you exchange the currency in which you conduct your main business for any other currency. This applies not only to bitcoin, but also to euros, dollars and other currencies. The bitcoin exchange rate is formed due to supply and demand. In defense of a stable exchange rate, they cite the fact that the number of bitcoins is limited. This fact is undeniable, but if we look at the history of the bitcoin exchange rate, we will see that the currency has never been distinguished by a stable exchange rate or some kind of long-term predictability:

No other currency in the world has shown anything like this in recent decades. The cost of 1 bitcoin has increased from a few cents to 1000 dollars in 5 years. In times of high exchange rate and expensive bitcoin, this was explained by the fact that the amount of currency is limited, and its extraction has reached an unusually high level of difficulty. But everyone was waiting for a fall to levels in the region of $ 200 per 1 BTC.

The decentralization of bitcoin and the lack of a regulator - all this is positioned with a plus sign. Yes, the absence of a regulator that could significantly affect or even worsen the position of the currency is a plus, but only on the one hand. Lack of control breeds abuse or even unresolvable disputes between participants.

It is not in vain that there are regulators to work with real currency, for example, Central Banks. The bitcoin system itself is as transparent as possible - all users can look into any wallet or track any transaction. The absence of a gendarme in the currency market, and bitcoin is a currency, is fraught with situations where one of the parties is infringed and is unable to defend itself.

Fraudsters can steal your bitcoins. You will not be able to find protection and return the stolen goods, even if you have all the evidence in your hands. Wallets are securely protected, and the encryption system does not allow fake transactions. But there are less obvious schemes. For example, one of the largest exchanges, MtGox, “lost” almost 700 thousand bitcoins due to a hole in the system. The exchange accumulated the money of ordinary people and companies, and as a result, all clients lost their bitcoins.

The legal status of electronic currencies, therefore, is under a big question, and bitcoin in Russia has not yet been able to find its place at all. Since March 2016, the Russian government has actively taken up the regulation of bitcoins and is still developing a bill. For a long time there were rumors about the ban on bitcoins in Russia, but they never came true. On November 7, 2016, the Central Bank again returned to the issue of crypto-currencies and called on Rosfinmonitoring and the Ministry of Finance to jointly develop a bitcoin regulation system in Russia.

Investing in something that does not actually have a stable legal status is a big risk. Tomorrow, the exchange of bitcoins for rubles can be made an administrative or even criminal offense. They can introduce only partial restrictions on the use of bitcoin, or they can completely legalize its use. Experts disagree, but you can watch the following video for a better understanding of the situation:

The low prevalence of bitcoins is another possible nail in the coffin of the crypto-currency. Any currency “works” exactly as long as it is “believed in”. Bitcoin for 7 years of its active development has not been able to develop from an electronic currency into a full-fledged means of payment. A surprising fact, but bitcoin is more popular as a speculative financial instrument, and not as a means of payment for goods and services.

The situation may end up turning bitcoin from a currency into numbers on screens. The numbers that only investors (or speculators) work with, and the real buyers of the currency, who use the currency to exchange for goods and services, will become so small that the BTC price bubble will burst. Some experts predict that the technology will not be able to gain the necessary popularity and will collapse to the same place where it all started - to near zero marks against the dollar.

How to invest in bitcoin

Investing in bitcoin is like investing in any other currency: buy low and then sell high. Using financial instruments on the bitcoin exchange, you can also perform the reverse “sell” operation. To do this, you need to use one of the exchanges. In Russia, the BTC-E exchange was popular. However, it is now closed, but there are other popular Bitcoin exchanges.

You need to create an account on the exchange. If you already have bitcoins in your wallet, then you can transfer them to the exchange account for sale. If you do not have any bitcoins or a wallet, then you can buy bitcoins with real money. To do this, you need to deposit money into your account on the exchange. Buying bitcoins on the exchange does not require you to have a wallet. You will only need a wallet if you want to withdraw bitcoins.

The meaning of the investment is simple - you must predict the exchange rate and buy the currency cheaper than you will sell it in the future. Bitcoin differs from most real currencies in that it is highly volatile.

You have another option - to “mine” bitcoins, this is called mining. Instead of buying currency, you can buy powerful computers and use their computing power to "create" bitcoins. When you get bitcoins, you can exchange them for real money on the exchange. For an investment, you need to calculate how much the equipment costs, how much it costs to maintain, and evaluate the computing potential. Keep in mind that the difficulty of mining is growing every day, so every day your investment will bring less and less.

There is a third possibility - an indirect investment in bitcoin, this is available when buying shares of the Bitcoin Investment Trust. This option is one of the safest in legal terms, since you do not work with crypto-currency, but with company shares. The fund's shares are officially traded on the OTC market in America. 1 share of the company = 0.1 BTC. At the time of writing, the share price exceeded the real value of BTC by 35%.

Any of the above options for investing in bitcoin assumes that you must understand and anticipate the exchange rate. Investments can provide you with both a 10-15% monthly income and a similar loss. Some exchanges offer the use of financial instruments, including the game for a fall, as well as "shoulders". This is available, for example, in Alpari. All this requires an even greater understanding of the crypto-currency, otherwise there is a risk of losing the entire amount of the investment.