Making Money with Bitcoin: Should you join the bandwagon?

Hear the word bitcoin and how do you react? Do you groan at another conversation you don’t really get? Become fearful of this unknown technology? Shrug your shoulders – or do your eyes light up with pound signs? Well, this post is for all of those people because anyone can try to make money through Bitcoin – but does that mean you should?

After hearing the facts, you may be more inclined to register for a Luno Bitcoin Wallet – or it may even help you decide that Bitcoin is not for you.

The Rise of Bitcoin and Important Lessons

Bitcoin is now over a decade old and the rise of this digital asset is nothing short of impressive. It started off with a value of pretty much nothing, which continued for the first four years. In April 2013, Bitcoin shot up in value from a couple of dollars to over $200. So, you missed our, right?

Nope. By September 2016 the value of bitcoin had tripled. Now you really missed out, right. Actually no, just one year and a couple of months later, bitcoin was worth over $19,000. Since then it has dropped and risen and dropped again. There are three important points to note from these events:

1)     Bitcoin is volatile

2)     Bitcoin has been a once-in-a-lifetime investment for many

3)     People have missed out by thinking they are too late to invest

If you think the moment to make money from bitcoin has already passed, you have joined a group of people who have thought the same throughout its ten-year existence. Many of them were wrong – and there is also the possibility that you are as well.  

Look Further than Bitcoin

With bitcoin and many other cryptocurrencies being volatile, significantly investing in one crypto can be risky. Most newcomers to crypto investing decide to invest in Bitcoin because it is the most known, and thus, the most trusted. The truth is that there are many other cryptocurrencies around that are worth considering. Diversify your crypto investments are recommended to counter any big swings in value.

Why Investing in Bitcoin Can be Risky?

The biggest risk of investing in bitcoin is its volatility. You could go to sleep one evening in London completely content and satisfied with how your investment is going, only to wake up and realise that China has imposed crypto restrictions and hundreds took the next exit in Australia, leaving you with damaging repercussions.

The other concern when investing in bitcoin is in the security of your holdings. To make sure you are not a victim of hackers, you must choose a secure wallet and use the wallet with extreme caution and recommended practices.

If you are someone who can accept the volatility and bitcoin as a long-term investment, there is no reason why crypto investments cannot be smart investments.