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Guest Article- Bitcoin Investment: Opportunities and Threats

Have you ever dreamt of becoming a millionaire one day? Probably, the answer is “yes”.

 Pursuing the aim of material well-being, people actively seek ways to bet on a sure income-generating investment asset, be it traditional gold and silver or one that is more innovative and advanced like cryptocurrencies. So before or after you purchase bitcoin, what should be next?
Being on the safe side

Before jumping into the deep end of investment pool, even the least experienced investors think carefully through different practices to find the most appropriate asset allocation strategy, which will meet the investment goals and substantially multiply the capital. Any capitalist reckons upon low-risk and high-yielding investment, whereas this scenario is very unlikely and close to utopian.

To make your investing experience positive and force your money to work for stable earnings, look no further than a conservative investment strategy, where priority is given to the preservation of capital and risk minimization. These are so called “safe bets”, aiming at maintaining sound value of the investment portfolio. Conservative investors keep their portfolio balanced and diversified with low-risk securities like government bonds and shares of reputable companies with a sustainable growth rate. Such investment options promise fixed and long-term returns, but won’t probably lead you to the Forbes list. 

Nothing ventured, nothing gained

Each business has its own unwritten laws and unspoken rules. Investment activities are no different, and if you want to strike it rich, you need to take risks. The higher the risk of investments, the greater the potential returns. 
So, you are committed to increasing the earning potential dramatically, but still hesitate, which assets to put your money into. The best way to diversify your investment portfolio and make it lucrative is to enter upon cryptocurrency market. The very concept of digital money is relatively new and thereby more attractive for investors. By far the absolute preference has been granted to Bitcoin, which overpassed other cryptocurrencies by all odds: value, market circulation and worldwide acceptance. 
However, Bitcoin investment may become either a blessing or a curse due to its immaturity. Bitcoin-related market is yet at the early stages of its development, and thuswise difficult to predict. Bitcoin price fluctuations serve as immediate evidence of that: within an annual period only Bitcoin has surged in value, demonstrating more than 100% increase. Certainly, this positive dynamics is good news for potential investors and those, who are already holding Bitcoin funds, but the underlying 

principle of decentralization involves greater risks and less guarantees. So, when deciding upon Bitcoin as an asset, be sure to establish the investment budget, which you are prepared to lose under the worst-case scenario. 

Knowledge is power

Comprehensive research is a part of any investment-related activity. Never invest money in something that you don’t examine in great detail, otherwise you will be left high and dry. In the context of Bitcoin this statement takes on even greater importance. Aside from investment potential, Bitcoin is a matter of scrutiny in terms of its operational concept. 
Bitcoin is a form of currency, existing in a digital environment only. It is based on the blockchain technology, which has made a huge breakthrough in the world of business. The uniqueness that differentiates blockchain from other technologies lies in its decentralized nature and advanced cryptography, due to which all transactions, taking place within blockchain, are safe and reliable. 
Bitcoin environment is growing very fast. Initially, Bitcoin was used by a small group of people as a digital asset within a peer-to-peer electronic transaction system and had an extremely low value. But year by year the number of users, willing to come to grips with the innovation, was increasing and soon Bitcoin gained international clout. Nowadays, Bitcoin is considered the most valuable asset for financial and investment activities, overshadowing even some precious metals and stones. At the date of 24.02.2017 one Bitcoin amounts to 1193 USD, 1126 EUR or 958 GBP, therefore completely justifying its alias name, which is, by the way, “digital gold”. 

Such-like value suggests Bitcoin can be used both for long-term and short-term investments. It sounds as trivial as it actually is, but everything depends on your investment goals and experience. If you are after fast and easy money, the choice is clear – go short-term, wait until Bitcoin reaches your anticipated peak point and sell your bitcoin holdings right away. The inherent volatility of Bitcoin will certainly give you this opportunity. However, Bitcoin value is not by far a problem of great concern in the long-term perspective as well. Bitcoin development is experiencing an upward trend from its very infancy. Some experts do believe that Bitcoin will keep up the pace and upvalue significantly, owing mostly to its limited supply and therefore high demand. 

Plunge into adventure

Despite undeniable strength, demonstrated by Bitcoin as an investment asset, it is unreasonable to hold all your investment funds in the form of cryptocurrency. The highest-yielding portfolio is one that is well-diversified. As an investor, you would, probably, like obtaining some dividends or fixed income rate, which is not characteristic of Bitcoin investments. Top it off, a well-planned diversification strategy will ensure the safety of your investment capital and protect against heavy losses. 
Acting as a venturer is a good Bitcoin investment approach, but acting as a venturer, who follows the investment pattern of experienced capitalists, is a way better. Stay tuned for more Bitcoin investment news and defer to expert opinion. It provides deep insight into interaction mechanisms for Bitcoin market and investment business, thus allowing you to adjust the investment strategy to ever-changing market conditions.

Clearly, comprehensive knowledge and excessive money reserves won’t make you a successful Bitcoin investor, if not having a trusted platform to deal with cryptocurrency. Bitcoins cannot be bought in an online store or a nearby bank. Bitcoin trading is accomplished within a specially dedicated environment, which includes cryptocurrency exchanges, trading platforms and Bitcoin-related service websites. The most reliable and well-tried platform for Bitcoin activities is a cryptocurrency exchange. By now only bitcoin exchanges implement advanced security measures and comply with necessary regulation policies, pursuing high customer confidence and solid reputation. 
As you can see, the investment devil called Bitcoin is not so risky and demanding as it seemed at first sight. Successful Bitcoin investment is a common thing among people, who are looking ahead of time and not afraid of taking chances. If you are one, then, maybe, we will soon meet another millionaire, who knocked up a fortune through Bitcoin investments…


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