Cryptocurrencies are very risky and not like conventional investments in the stock market. Cryptocurrency is a good investment if you want to gain direct exposure to demand for digital currency. A safer but potentially less lucrative alternative is to buy shares in companies with exposure to cryptocurrencies. There never seems to be a bad time to invest in Bitcoin, which implies that no matter how you look at it, Bitcoin is a good investment.
Investors should have a clear objective to buy cryptocurrencies instead of being dragged just because the price went down, he said. Reasons include viewing the asset as a store of value, seeing it as not correlated with stocks, or wanting to own due to the increasing adoption rate. Unlike buying bitcoin cryptocurrencies directly, bitcoin options allow you to take a speculative position (up or down) in the future direction of a market price. Ark Invest CEO Cathie Wood describes Bitcoin as a rules-based monetary system, since Bitcoin's monetary policy is set by code parameters.
This is a simple way to convert your Bitcoin into cash, but you should remember that the price of a Bitcoin changes all the time. While Bitcoin futures follow the general trends of the real cryptocurrency, experts say it may not track the price of Bitcoin directly. Bitcoin, as the best-known cryptocurrency, benefits from the network effect: more people want to own Bitcoin because Bitcoin is owned by most people. Bitcoin ATMs are expensive, but if there is one near you, you can exchange your bitcoins for cash there.