Investing in Bitcoin 2021: Where to buy BTC and how to start investing
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The investment in Bitcoin in 2021 is again in the center of attention not only of investors, but also of ordinary people who are looking for ways to value money. The price of Bitcoin rose to almost $ 30,000 at the end of 2020, and during the first months of 2021 Bitcoin reached an all-time high and exceeded the price of $ 60,000, which is more than 1 million crowns. Many are considering whether it is worth buying Bitcoin now or whether it is too expensive and prefer to wait for a correction. When to buy bitcoin is a more common question than whether to buy bitcoin at all. I share my views on investing in bitcoin and how to buy cryptocurrencies. The article will advise you on how to buy bitcoin and where to trade other cryptocurrencies.
In May 2021, we experienced a major correction in the entire cryptocurrency market, the price of bitcoin fell by more than 50%, on some stock exchanges, the price of BTC was slightly below $ 30,000 for a while. Instead of smiles on the faces of investors who could use this price to buy, I see more fear, fear, uncertainty and other speculations as to whether to wait. My thoughts and opinions on this topic can be found below.
In October 2021, we have an increase in the price of Bitcoin to a new maximum of 66-67 thousand USD. It doesn’t pay to keep waiting, timing is extremely difficult, if not impossible in the long run. And if the price of $ 60,000 is a lot again and it’s not worth buying now? You may already feel the answer, anyway below you will find my whole journey with bitcoin and my opinions.
When to buy Bitcoin
It was best to buy bitcoin at any time in the past. We are currently at the highest possible prices. But that doesn’t mean we can’t go with the price higher. On the contrary, it seems that the price of Bitcoin will rise even higher in the future.
One of the most apt proverbs says: “If you don’t have a bitcoin yet, then the best time to buy was yesterday. If you didn’t buy yesterday, buy today. “
I agree very much with that content and I resonate. I wouldn’t say better. We would all like to buy bitcoin at lower prices, but we must accept what it is.
Below I share my thoughts and opinions on bitcoin as an investment.
Bitcoin price history
Let’s remember the year 2016, when the price of Bitcoin rose sharply to $ 1,000, in September 2017 the price was already $ 4,000 for 1 BTC. And at the end of 2017, the price was almost $ 20,000. The following year there is a huge price correction.
In 2017, there was talk of a cryptocurrency bubble that burst. The correction of the entire cryptocurrency market lasted throughout 2018 and 2019. Bitcoin gradually reached the lowest price of $ 3,000 in 2020. Almost no one believed him. In the media, bitcoin and cryptocurrencies were first written negatively and derogatory, then it was not talked about at all. Nobody cared about Bitcoin.
Until its price soared. The price of bitcoin rose to $ 10,000 in the second half of 2020. The first news appeared. But this was just the beginning…
Update: The price of Bitcoin reached over $ 40,000 in early 2021, over $ 50,000 in February and $ 63,000 in April. This is Bitcoin’s historical price maximum. Although I wrote this article in 2017, a lot of content is still current. At the end of the article you will find the latest information on the price of bitcoin and its future. I retain the content of the article to get the context of the investor’s psyche and price distortions in the mind of “man”.
I recommend the Binance exchange for the purchase of Bitcoin and other cryptocurrencies. Low fees, fair rates and very liquid. Binance is considered by cryptocurrency investors to be the best stock market. Register via this special link , which will save you 10% on fees.
Bitcoin investment
In connection with the great volatility of the Bitcoin price, large ups and downs, I would like to devote a few paragraphs to the topic and bring my own view of cryptocurrencies and, in particular, Bitcoin cryptocurrency .
Investing in Bitcoin is risky and we should carefully plan our investment plan before the actual investment. We should definitely only invest the funds that we can afford to lose. Don’t invest money that if you don’t have it the next day, you’ll be sorry. It is useful to clarify how long you want to keep the purchased cryptocurrency and, if so, at what amount, at what price you would like to sell the purchased cryptocurrency. I recommend writing this down on paper, ideally keep an investment diary.
You can invest in Bitcoin in different ways, with different strategies.
- One time
- Irregularly in times when we have more money
- Regularly, eg DCA strategies
If you have a lump sum of money, then it is worth considering to divide it into several parts and invest them gradually. If you decide to make irregular and sudden investments several times a year, then know that this will tempt you to market timing. You will want to buy when the price of bitcoin is down. Set a deadline when you simply have to buy.
For those who want to try regular investing, a monthly amount can be recommended, although it will be smaller. This is a strategy that averages the price of bitcoin. You do not time the market, which is a very effective and efficient strategy for long-term investments and ordinary investors. I use this strategy too. You buy bitcoin once a month. Either set the exact day, the range of the week or give yourself a free hand to choose a shopping day. In any case, do not delay and follow the strategy, whatever the price of bitcoin.
Bitcoin bubble
For the first time, there was talk of a bitcoin bubble in the Czech Republic in 2018, when Bitcoin fell from a price of almost $ 20,000 to $ 6,000. This is a drop of approximately 75%. However, the bitcoin bubble has been talked about in the world before, for example at the turn of 2013 and 2014. The price of Bitcoin at that time was just over $ 1,000. In February 2014, the Mt. Gox (after the hacker attack and the theft of 850 Bitcoins) and the price of BTC dropped to $ 600, a drop of almost 50%.
The bitcoin bubble was also talked about at the end of 2020, and the debate continues in the first half of 2021. In fact, the bitcoin bubble is talked about in the media when the price of bitcoin rises enormously or falls enormously. These are media headlines that drive news portals traffic.
According to the media, Bitcoin has died more than 400 times. Take a look at the registered media headlines (in English), which claim from 2011 to 2021 that Bitcoin has died and will be worthless.
Today, it is more than obvious that investing in Bitcoin years ago was in fact a very good decision that brought huge benefits to investors. Many investment funds and even banks are rethinking their views on Bitcoin and starting to work with it, allowing their clients to invest as well. Some large companies (such as Tesla) have thus purchased Bitcoin as a reserve asset. Gold used to be bought, today and in the future it will be Bitcoin.
Is it worth investing in bitcoin?
Question and answer for a million. Everyone would like to hear a clear answer as to whether it pays to invest in bitcoin. Honestly, he never has a crystal ball. Bitcoin is a highly volatile financial asset that offers great appreciation but also carries significant risks.
For 2021, some analysts estimate that the price of Bitcoin will reach $ 100,000. At the current price of $ 50-60 thousand (April 2021), that would mean almost 50% appreciation.
However, some see much greater opportunities in the cryptocurrency market. Bitcoin does not always grow as fast as altcoins (other cryptocurrencies). Many have engaged in altcoin speculation (e.g., Cardano, VeChain, Dogecoin, Shiba, Chilliz, Uniswap, Klaytn, Filecoin, Chainlink, Polkadot, Solana, Avalanche, Chainlink, Polygon, etc.). I shared my view on the best cryptocurrencies , but especially newcomers would like to point out that the entire cryptocurrency market is very volatile and the price of altcoins jumps up in hundreds of dollars in one day. Such cryptocurrency trading is speculation rather than investment.
What is cryptocurrency
Cryptocurrency is a type of digital currency that operates on the principle of P2P networks and decentralization. Bitcoin (BTC) is currently the best known and most common cryptocurrency.
The video will explain how it all works. The basis of cryptocurrencies is their functionality, on a decentralized basis. There is no single central authority, as with normal money (referred to as fiat money, ie CZK, USD, EUR, etc.), it is a central bank, such as the Fed, the European Central Bank or the CNB. Central banks can decide at any time to print money and simply issue the papers. We know very well that this is not a good solution, yet politicians and the lobby are constantly dragging us into this abyss.
What is Bitcoin (BTC)
Bitcoin is the first decentralized cryptocurrency to operate on an open-source P2P payment network, is based on blockchain technology and uses cryptographic encryption. It is a digital currency that has been designed so that no one can influence it, counterfeit it or be prone to inflation. Bitcoin was founded in 2009 and the founder is known as Satoshi Nakamoto.
Bitcoin is mined, which is a process in which new bitcoins are created and at the same time it is a process of transaction verification. However, the number of all bitcoins is limited and the final number is approximately 21,000,000 (exactly 20,999,999.9769).
Decentralization and freedom
The main uniqueness of Bitcoin (and many other cryptocurrencies) is their principle of decentralization . In practice, this means that its acquisition and distribution is designed so that it cannot be influenced by the author or any other individual (provided by blockchain technology and cryptographic encryption). There is no central point for controlling and controlling the digital currency bitcoin. This is the problem of the Fed, the European Central Bank (ECB), the Czech National Bank (CNB) and other institutions – they decide to print the money, so they print it and put it into circulation. And inflation is in the world.
Digital property belongs to the Flag Theory. This is the last added seventh flag. The goal of flag theory is to give individuals more freedom. With our strategic approach, we are able to set up our citizenship, passports and visas, bank accounts, taxes, expenses, currency conversion and other factors so that we can take advantage of all the benefits that different countries offer us.
We are not a tree to stay in one place all our lives (let’s understand one country). I am a supporter of a strategic approach to life and business. That’s also why I really like the direction of bitcoin and some other cryptocurrencies.
How to buy Bitcoin
Interest in cryptocurrency is rising, and with it issues related to the purchase of bitcoin. Cryptocurrency and bitcoin trading (purchase and sale) take place mainly through stock exchanges or exchange offices. An alternative are bitcoin machines (so-called bitcoinmata), which have advantages in increased anonymity or the purchase of bitcoin through CFD investments, which I do not recommend (easy to operate, but you do not actually own cryptocurrencies).
If you are discouraged that the price of bitcoin is approximately 1 million crowns, the good news is that you do not have to buy bitcoin in units. The minimum amount for the purchase of bitcoin is often on individual stock exchanges in the equivalent of $ 10, ie approximately 230 crowns. So you buy a fraction of bitcoin. But even that can be of great value in the future.
Where to buy Bitcoin
The most recommended way to buy the bitcoin you want to have as an investment is directly through the stock exchange. The stock exchange is a place where you register, create an account, verify your identity (usually by uploading a photo of your ID card) and buy bitcoin for CZK, EUR, USD or another currency.
Where to buy the cheapest bitcoin
According to my research, Binance is currently the best cryptocurrency exchange for bitcoin. The exchange rate is fair (a higher exchange rate may be set on other exchanges, so you would buy de facto less bitcoin for the same amount of money). Trading fees are really minimal. Register via this special link and save another 10% on fees.
Binance Exchange is in the Czech language, this is great news for the less technically proficient. Everyone can register and purchase bitcoin.
