Young people have a time horizon of 30 to 50 years of investment period toward their retirement age of 60 years old or even earlier. Having that in mind, it’s advisable to invest when you’re young. In addition to that, young people should also know where to invest their money. Should you invest in a company? Should you invest in mutual funds? Or should you invest in currency? One of the most popular investments is a cryptocurrency, specifically Bitcoins.
Should young people invest in bitcoin? If you want to invest in a company or a currency, you want to have a profit in return over a period of time. Bitcoin has been garnering much attention due to the hike in value, which allowed people to become overnight millionaires.
Quick Reminder Before Investing
Here are some factors that young people should consider before investing in general.
- Background or History of the Investment
It’s a common rule that before investing in anything, it’s important that you must check the background of the company, currency, cryptocurrency or whatever it is that you want to invest in. Does it have a history of making money? Is the instrument affected by the situation of the country or worldwide economy? Is the company managed by competent people or who are the people behind the investment instrument?
Given that, young people must do their research on the background of bitcoin. This means that they’ll have to look at the charts and check how bitcoin behaves. They should also check what kind of factors affect the value of bitcoin.
The more knowledge you have in the investment you are planning to make, the better. You can check out the Bitcoin Code Website to get the ball rolling.
- Time Horizon
Young people have the most advantage when it comes to the time horizon. They have time to see their money grow for a long period. For example, if you have a foresight invested in Apple at the time it was listed in the stock market, by now, your money would have grown by so many times.
Similar to Bitcoins, if you invested early on at an early age, you’ll already have money for retirement. Older people don’t have this advantage because they’re already competing with time. There are many people from the older crowd who regret not making investments when they were at a young age.
- Investment Amount
How much are you going to put or invest in a company, currency, or investment instrument? You must remember that the money you invested may gain something, or you must also be prepared for the possibility of getting nothing after a period of time. Preferably, the money that you invested should be money that you’re willing to lose.
With Bitcoins, since the prices are very volatile, you should work out the numbers and invest money that’s in excess of your savings. You’ll never know what will happen to Bitcoin. If ever the investment goes bad, you need to be sure that you still have savings intact.
On the brighter side, this can also go the opposite way. From the historical performance of bitcoin, it’s seen that many people have made millions already from the valuations and trading of bitcoin. It’s an investment worth taking a second look.
You must carefully study your investment prospects. In this case, Bitcoins. Remember, Bitcoin is not a currency of any country, it’s a cryptocurrency. With this, Bitcoin became a medium of exchange in the cyber world. In the last few years, we see the value of Bitcoin rise and fall. It rises very fast, and it also falls very fast. It’s very sensitive to market sentiment and market speculation.
Try to create a chart of the prices of Bitcoin over a period of time. If you can have the initial price of Bitcoin, that would be a good start. Look at the chart and observe where the price is going. In the chart, you’ll notice that there are so many ups and downs or, in other words, fluctuations. This will give you an idea about where the price of Bitcoin is going.
Advantages In Investing in Bitcoin
Now that you know the questions and factors you need to consider before investing in Bitcoin, Here are some advantages in investing in bitcoin that you might want to know:
- Protection and Security
With Bitcoins, there’s more protection and security with your assets. Bitcoin is an encrypted currency, which makes it hard for others the hack; your investments will be safe.
Moreover, Bitcoin also protects your identity. Unlike traditional and physical money, making a payment with bitcoin will not reveal your identity. If you’re concerned with privacy, Bitcoin is perfect for you.
- No Third-party Intervention
All Bitcoin transactions are publicized in a ledger called the Blockchain. Given this, one of the biggest benefits of bitcoin is that there are no financial and government institutions that can intervene with it.
For you, this means there are lesser transaction fees and trade commissions if you’re thinking of using bitcoin as an investment tool. Compared to investing in stocks where the trader gets a commission and banks charge to withdraw the amount, there are lesser charges when it comes to bitcoin.
- No Tax
Once you earn from Bitcoin, your profits will not be taxed, unlike other investment tools. Since there’s no third-party intervening, no one will be tracking, intercepting, or identifying your purchases. It’s also not governed by the government, so it only follows that it won’t be taxed.
You won’t need to factor in costs on tax for purchases made and income gained from Bitcoin, saving you a lot of money. With this excess money, you can use it to invest in other things and make more profit.
Now, ask yourself this question. Should you invest in something that’s recognized by the government or should you take a bigger risk in investing in Bitcoin? With the factors that you have to consider and the advantages it poses, Bitcoin is worth taking a chance on.