Things to Know Before Investing in Bitcoin

With a market cap of over $580 billion, you can see why Bitcoin has become the shiny new investment toy that people with different portfolios look to as a potential money grabber. However, while there is money to be had when investing in Bitcoin, it is a purely speculative investment, given that it’s not a traditional asset. 

Going fully into a Bitcoin investment depends on various factors, with your financial goals chief among them. However, another factor you should consider is that Bitcoin has a relatively short history, with most trading involving the digital currency taking place within a small market. While it has been promoted as an effective inflation hedge, similar to gold. However, there is no clear evidence that it can operate as a larger asset class like gold. 

What is arguably the most attractive trait of Bitcoin investment is also its biggest drawback, its volatility. Bitcoin has been a winning investment for many people due to its price history, with high five-figure values constantly attracting would-be investors. However, the volatility can lead to violent price swings, causing the value of investments to fluctuate randomly. Contrary to traditional stock markets, the Bitcoin market doesn’t include closing bells to stop trades. Bitcoin, like most cryptocurrencies, is fully decentralized, with no middleman involved. While the non-involvement of third parties offer investor more control, it also forces investors to exercise greater caution. 

Ready To Spend Your Bitcoin, Ethereum, Ripple, Litecoin, and Other Cryptocurrencies?
Within minutes you can register for a Unbanked account, add funds, pass KYC, get a virtual card and make purchases anywhere major credit cards are accepted. Register at no cost to you.
  Register Now

How Investing in Bitcoins Differs From Investing in Currency 

Traditional currency prices are derived from open markets and the wishes of the governments that regularly issue the currencies. 

Meanwhile, Bitcoin’s value depends solely on the investment amount that Bitcoin investors want to pay. The Bitcoin market is somewhat driven by sentiment, with no limits to how high or low the value can go. As mentioned above, Bitcoin price volatility can equally be a gift and a curse. 

Also, Bitcoin is not insured as neither the FDIC nor the SIPC insures cryptocurrency assets, meaning there is no federal protection for digital currency. One advisable investment route for Bitcoin investors to get the most out of their money is to put some of it in a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA) alongside your Bitcoin investment so you further diversify your portfolio and improve your risk management. 

Bitcoin Has No Intrinsic Value 

All Bitcoin transactions are recorded in ledgers that are visible to anyone, known as the blockchain. 

The technology is trustworthy due to its ability to prevent hacking and counterfeit information. The Bitcoin database has remained intact since the digital currency was introduced in the late 2000s. 

Given that Bitcoin is basically digits in a computer program rather than an actually physical dollar, it doesn’t have any intrinsic value. As mentioned earlier, the price is only determined by what someone is willing to pay for it. 

You Need An Effective Way to Cash Out Your Bitcoin 

Things to Know Before Investing in Bitcoin, AM7EiKgp9FnHHixZ7iksq1HB0hRpvSklys5aokFzD-glcZyRQnR9d0EJIurwjQeruHyatIeusDCGppQUVgXfyqciWzDiKuDSKY61c4z1Ps_mWdogwlp5UZ1-FOxNGQVYUAyKacEtg6Fw5pzv5w, Bitcoin , Unbanked, Unbanked Card, Crypto Card, Unbanked Debit Card, Crypto Debit Card, BlockCard

Bitcoin and other cryptocurrencies are kept in a digital wallet which is protected by a set of private keys. You can’t purchase Bitcoin and then use it to shop anywhere you want. You will have to cash out your digital currency into a form of cash that most establishments accept. 

With that said, more retailers and e-commerce outlets are accepting Bitcoin and cryptocurrency in general as a form of payment. These entities use payment gateways like BitPay to accept payment and more companies are considering adopting Bitcoin as a payment method or donation as they continue to educate themselves about how digital currencies work. 

Learn About Exchanges, the Regulated and Unregulated Ones

There are several valid cryptocurrency exchanges that Bitcoin investors can identify to purchase digital currency. 

There are well-regulated crypto exchanges like Coinbase in the United States, Kraken in Europe, and BitFlyer in Japan. It’s easy to sign up for accounts on these crypto exchanges, only requiring you to provide proof of identity to validate that it’s you who’s investing. Additionally, mainstream services allow Bitcoin trading with services such as PayPal and the Cash App from Square Inc., allowing investors to buy or sell Bitcoin directly in their accounts. 

There are also unregulated exchanges that you can try if you want to maintain a greater level of anonymity. However, these exchanges are controversial because they put investors at greater risk of having their investments compromised. And these exchanges allow ransomware payments. With exchanges, investors must be mindful of hackers, even with Bitcoin having its share of modern developments and prominent trade stages. 

As a result, you should remain vigilant when using crypto exchanges for your Bitcoin transactions. Don’t put too much of your money into exchanges, and don’t leave your crypto in there for long stretches. 

Look for the simplest and most secure methods of buying and selling Bitcoin before involving yourself with exchanges or any other investment vehicle. 

Buy Bitcoin With Your Unbanked Bank Account
Buy Bitcoin and other cryptocurrencies with your crypto friendly bank account from Unbanked. Purchase Bitcoin and other crypto instantly and settle to your crypto wallet.
  Register Now

Want to know more about Bitcoin and other cryptocurrency investment opportunities? Check out our resources to learn more about the best practices of crypto investing. 

The Latest

Unbanked launches cryptocurrency card program in the UK and other European countries

Unbanked Card Program Available in the UK and Other European Countries

Today we’re announcing some big news – The Unbanked Card program has reached Europe. Residents of the United Kingdom and other European countries can register their interest for a user account, deposit their cryptocurrency and, subject to approval, get a card for spending their digital assets. Unbanked card holders can use 15 different cryptocurrencies to… Read Article

What is Dash Crypto

What is Dash Crypto? Dash Coin Highlight

Bear markets are the best time to invest in stocks and cryptocurrencies. If you have money to invest, you can pick up top-tier cryptocurrencies for bargain prices during a bear market. A digital currency hot on many investors’ radar is Dash, a DeFi cryptocurrency with massive potential. We’ll highlight what Dash is, how it works, and whether it’s… Read Article

How to Value Cryptocurrency

How to Value Cryptocurrency to Know What to Buy

When investing in cryptocurrencies, investors need to vet the projects before they invest. Because the cryptocurrency market is largely unregulated, it is often compared to the Wild West, where you can strike gold and be robbed blind. In 2021, investors lost $2.6 billion in pump-and-dump coins or other junk tokens. To avoid scams, rug pulls, and weaker projects,… Read Article

Why is Cryptocurrency Valuable

Why is Cryptocurrency Valuable? A New Investor Guide

It’s hard to look at any financial website and not see some mention of cryptocurrency. However, with all the hype around cryptocurrency, it’s tough to filter through what’s true and what’s not. One common question is, what are the factors that make cryptocurrency valuable? We put together this investment guide for new investors to explain… Read Article


6.38%

Crypto Rewards
on Spend

You also have access to:

BANK ACCOUNTS
DEBIT CARDS
BUYING, SELLING, & SPENDING CRYPTO


ARE YOU READY TO GET UNBANKED?


Nah, I enjoy high fees...

x