Investing in Bitcoin

Is it safe to invest in Bitcoin? 📈

As with any investment, you must do your own research and decide whether you are in a financially stable position prior to investing in Bitcoin or any other (digital) assets and cryptocurrencies

Generally speaking, investors have a willingness to spread their money across a diverse range of asset classes. Although nothing is certain in investing, portfolio diversification is usually regarded as a safe way to achieve 'ideal' investment outcomes (double digit returns).

Many experienced investors are turning to Bitcoin and other cryptocurrencies as a way to diversify their portfolio.

Newcomers to investment are looking to crypto as the first step on their investment journey, as it offers a relatively easy / barrier free method for beginning investing.

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Is Bitcoin really like 'digital gold'?

For many years, gold has been an ideal asset for portfolio diversification and hedging against both inflation and deflation. Gold has also traditionally performed well in providing financial cover during macroeconomic uncertainty.

Moreover, to achieve portfolio diversification it is important to find investments that are not closely correlated to one another. Historically, gold has had a negative correlation to 'traditional' stocks, and so investors often choose to combine gold with their existing shares in order to reduce volatility and risk.

Bitcoin is sometimes referred to as 'digital gold', in terms of being an asset where people can store some of their wealth.

**[parallels, trends etc]**

• limited supply

• increasing demand

• relatively low barrier to access (can buy without brokerage etc)

Presently, the liquidity (how easy it is to turn crypto into cash, without affecting its market value) and tradability (a measure of how interchangeable crypto really is) of Bitcoin is limited, so we can expect prices to be volatile.

Why is my bank skeptical? Do they have the right to stop me buying or investing in crypto? 🏦

Banks are cautious of their customers investing in Bitcoin and other cryptocurrencies. Alongisde the perceived threat that cryptocurrencies pose to traditional banking and investing, banks are aware that curious but naive customers are being targeted by scammers, particularly in the digital money ecosystem. As a result, they are blocking crypto purchases for the safety of their customers, and to avoid pay outs.

If you are in a position to safely invest in crypto [...] https://invity.io/ is the best place to get started

⚠️ Take the necessary precautions ⚠️

The first thing to do before making any investment is to do your own research. In particular, you must check that you are dealing with a legitimate trading site - be wary of offers like "100% ROI per week!"

Make sure you use a safe online exchange such as https://invity.io/