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Are you looking for a way to diversify your investment portfolio? Have you ever considered Bitcoin as an investment option? Learn why Bitcoin is actually a great investment option and how to start investing today.
Should You Diversify Your Investment Portfolio with Bitcoin?
Even after a decade, the world’s traditional and Bitcoin investors remain completely separate. On one side, you have crypto investors who don’t pay much attention to anything else. On the other, you have traditional investors who believe that crypto is nothing but a passing fad.
We believe that both parties could benefit from more awareness and knowledge about the other. That’s why today, we’re going to talk about why you should consider Bitcoin as an investment option, how to know when’s the right time to start investing, and how to diversify your portfolio by investing in Bitcoin.
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Is Investing in Bitcoin Worth It?
Are cryptocurrencies just a fad? Not at all. Entire countries like Senegal, Singapore, and China have issued their own cryptocurrencies. And although not successful, huge companies like Facebook have tried their hand at it. There’s also a chance cryptocurrencies will be floated on The Nasdaq Stock Market.
How much credibility does Bitcoin need to prove its staying power? Of course, credibility alone doesn’t make it a good investment. Why else should you consider diversifying your portfolio with Bitcoin? Here are a few reasons:
- Depending on where you live, you might not have to pay taxes on Bitcoin
- The transaction fees are much lower than they are for other assets
- No matter what you heard before, Bitcoin investments are 100% legal in the US and many other countries
- With so many platforms, investing in Bitcoin is now easier than ever
- The number of merchants and brands accepting Bitcoin grows every day
When Is the Right Time to Invest in Bitcoin?
You now know that Bitcoin is a valid investment option. However, when is the right time to start diversifying your portfolio with Bitcoin? Should you wait until Bitcoin is at its lowest to start purchasing? Is there a certain period when the price of Bitcoin hits the bottom?
First off, you need to understand that the price of Bitcoin can go up and down considerably in a single day. Why is Bitcoin so volatile? That’s because real-life events—like the 2020 COVID-19 outbreak—have a large effect on its price. Whenever a big thing like that happens, the price reflects it.
That’s why you don’t have to wait for anything to start investing. You can do it right now and see the results for yourself. People who’ve bought Bitcoin when the epidemic started and the price bottomed have made a healthy profit just after two or three months. But that’s not all.
Another reason to invest in Bitcoin now is because of what experts are predicting. Researchers feel that despite the pandemic, the price of Bitcoin could hit $20,000 by the end of the year. This would set a new record and could double your investment.
How to Diversify Your Investment Portfolio with Bitcoin
Now that you know why investing in Bitcoin is well worth your time and why now’s the right time to purchase Bitcoin, we should explain how to actually start investing. Here’s how to make your first Bitcoin investment in four simple steps.
1. Select the Right Platform
When it comes to picking an exchange, it mainly depends on your experience with the crypto world. If you’re a new investor, with little to no experience in the Bitcoin market, you don’t want to select a platform that will overwhelm you and leave you confused.
You need something user-friendly. That’s why you should opt for a platform like NordikCoin. This particular exchange allows users to create an account, put in their personal and bank information, and start buying Bitcoin in less than five minutes. In short, with NordikCoin, it couldn’t be easier to begin diversifying your investment portfolio with Bitcoin.
2. Download a Bitcoin Wallet
When it comes to picking a wallet, surprisingly, you have more than a few options. For starters, you need to pick between buying a software-based wallet and a hardware-based wallet. Let’s explain:
- Software Wallets: These apps can be installed on your computer or smartphone. They connect to your bank account and allow you to access your coins on the go. However, they are less secure than hardware wallets.
- Hardware Wallets: Hardware wallets are flash drives that are used to store coins. These wallets are extremely safe since they are kept offline most of the time. The biggest drawback is that they are not as accessible as wallet apps.
Again, your choice depends on your experience level. Experienced investors with dozens of Bitcoin to their name would benefit more from hardware wallets, while software ones better suit novices.
3. Connect Your Bank Account
Before you can start diversifying your investments with Bitcoin, you need to connect your exchange account and wallet to your bank. If you connect your exchange account directly to your bank account, you’ll have to wait for a couple of days every time you want to transfer money.
On the other hand, you can connect your exchange account to your debit or credit card, and purchase Bitcoin in a matter of minutes. The drawback here is that you can use your card only to buy Bitcoin in small amounts. Once you start making larger investments, you’ll need to use your bank account.
4. Buy/Sell Your Bitcoin
Even if you have never done any Bitcoin research, you know that a single coin costs a few thousand dollars. At the moment, Bitcoin is valued at around $9,200. But what some people may not know is that you can divide a Bitcoin into eight decimal points.
That means, if you don’t want to spend tens of thousands of dollars, you don’t have to. The smallest Bitcoin unit is a Satoshi. One dollar is worth more than 12,000 Satoshi. So no matter how much the price goes up, you can always buy a good amount of Satoshi.
Now Is the Time to Diversify Your Investment Portfolio with Bitcoin
To conclude, whatever you may feel about Bitcoin, one thing is certain: Cryptocurrencies are not just a fad. They are here to stay, which makes them a valid investment option. Furthermore, seeing how experts think that Bitcoin’s price could hit an all-time high this year, the time is right for investors.