- My first steps in investment : Bitcoin
Just now·3 min read
Welcome to my journey throught investment. As most of you, I’m interested in starting investing my money but I get lost in the ocean of possibilities. So before jumping in, I will firstly study carefully the topic and then have a go with a small amount of money. I will document and share with you all the process and answer the most important questions : What do I gain ? What do I learn ?
For few years now, Bitcoin goes hand in hand with missed opportunities. Each time I have considered buying some pieces of these digital money, I had thought it was too late and I should have done it few months ago. I always ended up being frustrating by reading testimonies of people who made a fortune some time ago with Bitcoin and I always convinced myself to not take a further step in this type of investment.
Bitcoin was so unpredictable that it had been impossible to see it as a sensible investment. All the finance newspapers were predicting the impending collapse of this market and were warming people of the risk. How did you want to put your money into a virtual asset which had no existence few years ago ?
Consequently, I have spent the last years observing the rise of the Bitcoin, without having the courage to have a try, thinking it was far too risky.
Then, progressively, more and more institutional investors were getting interest in the cryptocurrency market, making Bitcoin an investment to consider. The market for cryptocurrencies grew up and Bitcoin became a real alternative investment to stocks.
And when Elon Must started buying huge amount of Bitcoin few months ago, I finaly decided to jump in. Even if this is still a highly volatile investment, I couldn’t go wrong by following Elon Musk decision.
So, let me details how I dabbles in cryptocurrencies market :
1-Choose the platform where you will buy your first bitcoin.
After comparing the different platforms available, I finally determine that Coinbase was the most adapted tool as it allows not only to buy cryptocurrencies but also to trade or store them. Moreover, Coinbase offers an app which come in handy to follow up the market.
Firstly,you have to create your account, which is quite a tedious task as you have to submit some document to prove your identity and set up security system to protect your account. Be patient as your identity has to be verified before starting investing.
3-Buy your first bitcoin.
When you are registered on the platform, buying your first Bitcoin proves to be very easy. You have also the possibility to diversify your portfolio by buying some other cryptocurrencies like Ethereum or Ripple. For my part. I prefer to stick to Bitcoin which is a much more well-established and safe investment than most of the other alternative cryptocurrencies.
4-Hold or trade ?
You can decide to have either an active or a pasive position with your investment portfolio. It means, in the first scenario, trying to make the most of your investment by selling or buying according the market fluctuations in order to make a profit. As it requires a lot of involment and time to track the market, I would prefer to go with the second position and just consider my Bitcoin as a long term invesment.
In beginning of February 2021, I invested 1000 € and bought 0.025 BTC
Today (in April 2021), 0.025 BTC is worth 1316 €
So, I gain 316 € (31.6 %)
What an experience to dive into the cryptocurrencies world. I had never hesitated as much before jumping into this market. Nothing is reasonable in this world, the gain can be huge and we absolutely don’t know the limit. The technologies supporting the cryptocurrency is completely revolutionary and is impacting the banking and finance system.
The questions about this new asset are endless. How far can the price go ? Is it a sustainable investment ? How the market will be regulated ?
The only certainty is that Bitcoin will transforn our word in some way and being one of the early investor of this breakthrough money can be a good investment itself.
- Date of publication:
- Wed, 04/21/2021 - 15:51
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