Bitcoin is seeing ever-increasing adoption by the masses. With all this attention, more people are looking for the best ways to enter the market and make a profit.
But is it too late to get started? It’s a valid concern that a lot of newcomers are facing, and we’re here to tell you: no, it’s not too late to get started on Bitcoin. If you’re just now considering investing in BTC, we’ll be laying out the qualities that make it a good investment.
Why Bitcoin is a Good Investment
So what makes a good investment? The basic goal of any investment is to make sure that you gain more than you initially invest. How well an investment does is generally measured by the risk of losses compared to the possible gains. A great investment then is something that minimizes your risk while making sure you get your money’s worth.
So what makes Bitcoin the perfect candidate?
It’s an excellent store of value
A good store of value will ensure that it retains the value of whatever you’ve invested. Anything attempting to be a great store of value will need to be resilient to change, even going so far as to even net a profit.
Let’s take the U.S. as an example. The country saw an inflation rate of 8.5% in March 2022. Unless you invested your cash in something that beat the inflation rate, then you essentially lost money.
If you had invested in BTC instead, you would have seen a 3.27% return on your investment year-over-year by March 2022. Putting things into perspective, the DOW, and NASDAQ would be down by 5% and 10% respectively.
The potential to make money
It’s no surprise as well that traditional investment techniques have found their way into Bitcoin trading, helping users make money from their investments.
From HODLing to dollar-cost averaging, Bitcoin investors have found that in either case there is the potential for income. It all depends on how the trader does their research and what they do with that information. Each trader will have their own way of doing things, as there are more than a few ways to make money with Bitcoin.
How to start investing in Bitcoin
Getting started with Bitcoin is a lot easier than it used to be, especially here on Paxful. With Bitcoin traders all over the world, you’re sure to find the perfect deal to get your hands on your first BTC.
Before you actually start, though, the most important piece of advice that any newcomer should listen to is that you should do your own research. It’s the surest way to be confident with your decisions and the best way to avoid having your trades disrupted by FUD and FOMO.
Of course, the platform you choose for your trading is a big factor. As a peer-to-peer platform, Paxful aims to provide users with as many options as possible, making sure that they get the offer that they need. It’s perfect for beginners as well, thanks to the fact that new users get a free Bitcoin wallet upon registration.
A basic guide on how to buy Bitcoin on Paxful
To get started with Paxful, head over to the home page and make sure you’re logged in. For new users, sign up and get your free Bitcoin wallet. Remember to verify your account as well to unlock more perks!
Once you’re ready, set Bitcoin (BTC) as the coin you want to buy. Select how you want to pay—you’ll have more than 350 options for this, so you can choose the most convenient. You can set a budget in the bottom row to fine-tune your search even further.
On the Offers Page, you’ll be presented with all the relevant offers of users selling their BTC—read through these carefully. You can view the offer in more detail if you click on Buy. If you’re feeling a little overwhelmed with all the results, you can narrow the results even further with the available filters on the sidebar.
Once you’ve found an offer to your liking, click on Buy Now. This will open up a chat window right there on the page. Discuss the payment details with the seller and make sure to get all the important information. Transfer the required funds through the appropriate channels and mark your transaction as Paid.
The vendor will first need to verify that payment has been received on their end. Once they do, the BTC held in Paxful’s escrow account will be instantly transferred to your wallet. Leave a review for your trade partner to help them out with future offers.
What you can do with your Bitcoin
So now that you have your Bitcoin, what can you do with it? Some might think that the only thing we can do with Bitcoin is to hold on to it, selling at a later time when we’ve made a profit. That may have been true in the past, but current technologies and offerings allow anyone to utilize Bitcoin practically in their day-to-day lives.
One common use is for Bitcoin is remittance. Thanks to the lower fees we see with DeFi (decentralized finance), users can transfer money instantly and securely. This has made Bitcoin perfect for anyone looking for a way to skip long and expensive money transfers altogether.
Another recent development is the release of the Lightning Network. The network is a whole new layer that sits on top of Bitcoin’s network that helps users use Bitcoin for faster and even cheaper money transfers. This has made it possible for people to pay for transportation, buy groceries, pizza, and even coffee with Bitcoin.
Alternatively, you could participate in the market by trading actively. This will entail the need to keep yourself updated on news and market changes, but it’s well worth the effort if you play your cards right.
Should I invest in Bitcoin in 2022?
Is Bitcoin a good investment? We daresay, it is. While bear markets still exist, it helps when you can take a different perspective. Looking at Bitcoin’s growth over the years, there has only ever been a gradual increase in its average value. This can only grow as blockchain technology becomes more widely accepted.
It’s easy for anyone to get started with Bitcoin. People don’t need to invest a lot of money unlike traditional investments and the coin itself is as accessible as ever. You don’t even need a bank account to get started anymore.
All this is to say that Bitcoin is ready for investors. Of course, fear will always be around to cause a few hesitations. The trick is to learn as much as you can about the coin, the market, and the community. This helps remove the uncertainty and can give you a clearer picture of what you’re getting into.
*The content of this article is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. You should do your own research and may want to seek professional advice before making any decisions.