Buying a Bitcoin is a form of investment. Buying Bitcoins also works almost like a foreign currency trade. We “sell” our national currency - USD, Euro, GBP, INR, Yen, etc., and “buy” Bitcoins at the same instant. The huge difference between foreign currency investing and Bitcoin, is that there is almost no friction cost to the trade.
Fees for buying and selling currency can be steep. Buying Bitcoins or selling Bitcoins for a national currency is almost completely free of any fees. The big cost is the Bid and Ask spread, or the difference between what people will pay versus what people are asking for a Bitcoin.
Opening a foreign currency, commodity, stock, or any investing and trading account can be a hassle. We often have to prove income, net worth, years of experience trading, credit score, and other private details. Bitcoin investing offers a smoother, easier, and simpler way to invest.
Buying and selling Bitcoins offers foreign currency investing profit and loss opportunities. Already the early adopters of Bitcoins have multiplied their net worth many thousand fold. Those who bought Bitcoins around $5/btc around early to mid 2012, are now sitting on almost 20 fold profits in less that a year.
More sophisticated investors can buy derivatives (similar to options in the stock and commodities world) from two new exchanges: iCBIT and with the IG Group. Neither of these markets are being heavily traded thus far.
There is also a Bitcoin mutual fund of sorts, based out of Malta. Primarily for institutions and high net-worth investors that want Bitcoin portfolio exposure. At the moment, this is not a recommended approach for buying.
While admittedly risky, the upside for investing in Bitcoins is life-changing gains.
The “How to Trade Bitcoins” section of this book explains techniques for extracting the most profit out of Bitcoin investing. Bitcoins are not yet accepted for buying shares on national stock markets. This situation is unlikely to change anytime soon. Banks and governments controlling commodity, stock, bond and currency trading exchanges will not want to cede credibility to Bitcoin.
No matter, even without access to any conventional investing markets, Bitcoin has the potential for vastly outperforming other investment classes over time.
Fees for buying and selling currency can be steep. Buying Bitcoins or selling Bitcoins for a national currency is almost completely free of any fees. The big cost is the Bid and Ask spread, or the difference between what people will pay versus what people are asking for a Bitcoin.
Opening a foreign currency, commodity, stock, or any investing and trading account can be a hassle. We often have to prove income, net worth, years of experience trading, credit score, and other private details. Bitcoin investing offers a smoother, easier, and simpler way to invest.
Buying and selling Bitcoins offers foreign currency investing profit and loss opportunities. Already the early adopters of Bitcoins have multiplied their net worth many thousand fold. Those who bought Bitcoins around $5/btc around early to mid 2012, are now sitting on almost 20 fold profits in less that a year.
More sophisticated investors can buy derivatives (similar to options in the stock and commodities world) from two new exchanges: iCBIT and with the IG Group. Neither of these markets are being heavily traded thus far.
There is also a Bitcoin mutual fund of sorts, based out of Malta. Primarily for institutions and high net-worth investors that want Bitcoin portfolio exposure. At the moment, this is not a recommended approach for buying.
While admittedly risky, the upside for investing in Bitcoins is life-changing gains.
The “How to Trade Bitcoins” section of this book explains techniques for extracting the most profit out of Bitcoin investing. Bitcoins are not yet accepted for buying shares on national stock markets. This situation is unlikely to change anytime soon. Banks and governments controlling commodity, stock, bond and currency trading exchanges will not want to cede credibility to Bitcoin.
No matter, even without access to any conventional investing markets, Bitcoin has the potential for vastly outperforming other investment classes over time.
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