Is Investing In Bitcoins A Good Idea?

The concept of bitcoins has evolved over the years. Its value hit about 1,300% in the past years and when we talk about the year 2018, its value actually declined. Whenever a commodity that you invested so much in loses its value, your heart sinks. Well, when it comes to the market of bitcoins, you need to be strong here and professional enough to learn the market trends and then make sure you have devised the right strategy to move forward. 

The best part about bitcoins is that you can do whatever you want, meaning, you are free in this world. If you want to listen to what experts have to say, sure. You can also try out different exchange platforms. Like this trading software where you exchange safely. Start with investing a low amount first and then increasing your portfolio with bigger investments. 

It’s all a matter of time and you learn how to survive or even better, grow in this world. However, you can never fully predict the value of bitcoins. Where you may think that it will absolutely increase and then you will sell it off, there are chances that it may fall. 

With that being said, investing in cryptocurrencies like bitcoins is a risky business. But is it worth that risk? You decide.

Since you can’t foretell what’s going to happen in the cryptocurrency market, the value of cryptocurrencies is uncertain. This is the reason why we always see it fluctuating. Another point to note is that cryptos are not like traditional stocks that you can buy or sell on stock exchanges. 

Also, in mutual funds or stocks, you don’t have to take care of certain essentials such as profits, assets, cash flows, etc. that support your stock valuation. When the value cannot be predicted and is not known, this is exactly where volatility takes place in cryptos like bitcoins, litecoin, ethereum, etc. 

In a nutshell, cryptos are uncertain, speculative, and you cannot hold them. The rule to do your own thing in the cryptocurrency market also stands firm. Don’t let the “oh, so you are not gonna sell it now?” people get to you. 

You are not missing out on anything. You are just going with your gut and doing what you think is in your best interest. So do learn from your and other people’s experiences. But don’t let them fool you. 

What To Know When You Convert BTC To Cash? 

Whenever you think of converting your BTC to cash, there are some pointers that you must note. 

1) Taxes: If you think you can enter the world of cryptos and avoid taxes then you are wrong. Even investors have to pay their taxes. There are some authorities who believe it’s mandatory to pay tax whenever you earn a profit from selling bitcoins. 

Where you may think that you can save yourself from these procedures and find an easy way out, know that crypto exchanges give a full-fledged report to the person in charge of taxes whenever you cash out your bitcoins.

2) Exchange Fees: Another point to note is that when you change bitcoins into cash or send them to your bank account, all the methods involve a certain fee that you must pay. Nothing comes for free and in the crypto world if you follow the rules correctly, only then can you move forward swiftly. 

Moreover, if there’s a friend who is willing to purchase bitcoins from you, then that is an exceptional case where exchange fees may not be required. This is also only possible in such cases where your friends free you from this charge. If not, you will have to incur the fee amount.

Bottom Line

Investing in cryptos is a good idea when you have everything you need to get started. Moreover, when you think “let’s convert some bitcoins!”, always think about the cost that will be incurred. 

In addition to that, think about the method that you will have to use, which bank account you would like to use, what is the currency it will be transferred to, and more. You can find a method based on your requirements. There are a lot of things in the pool and you can easily find what works best for you.

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