Bitcoin and What You Should Know Before Investing In This Unpredictable Market

Bitcoin has surged in popularity and is a headline nearly every day. Surging in price, many wonder if they should purchase Bitcoin themselves. In the investment world, if you’ve missed the train it’s best to wait for the next one. However, if you still find yourself wanting to add some Bitcoin to your portfolio, here are a few points you should familiarize yourself with.

Published over a year ago
View all stories for Macroaxis | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Ellen Johnson

Bitcoin and What You Should Know Before Investing In This Unpredictable Market

First, you should understand the technology behind Bitcoin. The blockchain is a public ledger that allows transactions to be posted in order as well as publicly posted. Transactions are encrypted so you are unable to see whom they belong too, maintaining a level of privacy.



The blockchain is essentially unhackable because of how many people are processing the transactions to the blockchain. Also, they way it is structured would make it extremely difficult for anyone to take control of the blockchain. Understanding this technology will be useful as it is becoming more mainstream.  

Now that you have a brief understanding of the blockchain, understanding how to invest is next. Currently there various exchanges you purchase Bitcoin, with one of the most popular being Coinbase. Buying and selling is all you can do, compared to short selling and option trading with other securities.  

Soon, traders and investors can utilize future contracts through the CME. Recenlty approved, this will give traders and investors the ability to buy the market as well as go short the market. However, these are derivatives and will be derived from the underlying Bitcoin price sources. This is a big in step in adding legitimacy to the cryptocurrency.     

The point of Bitcoin is to use it as a way of transacting. Sending money between two people without a middleman. As the cryptocurrency evolves, people are using it as a store of value more than a purchasing tool. When you weigh the pros and cons of Bitcoin, keep in mind it is gaining in popularity as a spending vehicle.  

Beyond that, many are using it as a store of value and trading vehicle. When you invest, keep in mind what your primary goals are. As it increases in popularity, Bitcoin will become widely accepted and uses will grow.  

There are many different types of cryptocurrencies beside Bitcoin, but be aware of issues such as liquidity and dependability. This new wave of finance that will change the way we transact. It is only the beginning with many years of growth to go.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Did you try this?

Run Portfolio Manager Now

   

Portfolio Manager

State of the art Portfolio Manager to monitor and improve performance of your invested capital
All  Next Launch Module
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any private could be tightly coupled with the direction of predictive economic indicators such as signals in persons.
You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.

Other Consideration for investing

Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Commodity Directory
Find actively traded commodities issued by global exchanges
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope