Since Satoshi Nakamoto created
Bitcoin in 2009 until today, one of the most popular ways of interacting with the world's leading cryptocurrency is Bitcoin investing, which has unlocked unprecedented levels of profitability for those that have been doing it long term.
Just by looking at the historic price movements of Bitcoin of the past 10 years it is clear to see that there has been a continual upward trajectory and while there have been periods where bear markets have been strong in the
crypto market, they have always reverted back to a another bull market which is led to even hire all-time highs then were previously set.
This guide breaks down what Bitcoin investing actually is and takes a look at how to invest in Bitcoin in 2021, starting with a look at whether Bitcoin investing is profitable and why investing in Bitcoin is specifically a good idea in 2021, before breaking down a few of the best places to invest in Bitcoin this year.
What is Bitcoin?
Bitcoin is the world's largest and leading cryptocurrency and today its value is more than 30,000,000% higher than it originally was when it was created by Satoshi Nakamoto in 2009, with this representing the largest return on investment possible over the past 10 years.
Bitcoin was created as a decentralized financial system, with that meaning that unlike the mainstream financial sector and fiat currencies such as the USD which have central banks and are controlled by a small group of people, Bitcoin was designed to be controlled in a decentralized way with no single person or group of people having control over.
Bitcoin uses a revolutionary technology known as blockchain in order to achieve this, with the basic structure of blockchains being that they are a chain of blocks of transaction data that are linked together using cryptography in order to ensure the immutability of all data in the blockchain.
How Has Bitcoin Performed in the Markets?
Bitcoin is the market leader and has been since its creation until today, without meaning that as the price of Bitcoin moves up or down so the rest of the market follows those trends.
Over the past 12 months the price have of Bitcoin has increased from its low of around $3000 during the peak of the coronavirus panic that occurred in March 2020, to today increasing in value by more than 1500% over that period of time, with this representing a strong investment opportunity that has yielded significant amounts of revenue for Bitcoin investors.
Over the past 10 years the price of Bitcoin has increased in a predictable pattern based upon a mechanism within its blockchain known as the halving process, with this meaning that every four years the supply of Bitcoin decreases by half which in turn increases the scarcity of Bitcoin and leads to a crypto bull run once every four years.
Why is Investing in Bitcoin a Good Idea in 2021?
2021 is a particularly important year in the life of Bitcoin and cryptocurrency in general because it is the most recent bull run year with it being all that certain now that we will see a crypto bull run that will last throughout 2021 and will see the price of Bitcoin increased dramatically as a result of this.
Because this event occurs only once every four years, it is an opportunity that should not be missed by investors and the potential profitability of investing Bitcoin in 2021 could be significant as a result of this.
What is for the increasing the potential profitability of investing Bitcoin this year is that institutional investors such as hedge funds and other mainstream financial institutions are heavily moving into Bitcoin as we speak which is fueling a huge amount of demand for the world's number one cryptocurrency and potentially will see its price increase into the hundreds of thousands of dollars this year.
Where are the Best Places to Invest in Bitcoin?
PrimeXBT PrimeXBT is the largest crypto margin trading platform in the world that also provides access to traditional asset margin trading as well, and because of the professional tools and services that PrimeXBT uniquely provides on his platform it has grown exponentially since its launch in 2018 to today managing up to $6 billion of global trade every day.
PrimeXBT is a Bitcoin trading platform that uses Bitcoin as the default asset to trade with, and the platform provides a number of powerful advantages compared to others such as the fact that it's fees of the lowest of any major crypto trading platform with a low flat rate of 0.05% being applied to all trades.
As well as this, PrimeXBT is a secure trading platform that has protected its uses funds successfully over the past few years of its operation and has never been hacked as a result of the implementation of a range of bank-grade security features such as mandatory Bitcoin address whitelisting and hardware security modules with rating of FIPS PUB 140-2 Level 3 or higher.
PrimeXBT is an excellent platform for investing in Bitcoin, being that as well as being able to quickly and easily by Bitcoin and other cryptocurrencies, users are able to then transition the funds into a range of asset classes that include stock indices such as S&P500 and FTSE100 forex pairs such as USD/EUR and AUD/CAD and commodities such as gold and oil, with this being unique to PrimeXBT.
Coinbase Coinbase is a long-standing cryptocurrency trading platform that has been in the market for many years and that has been dominant with regards to institutional investment and trading as a result of the high-quality tools and services that the platform provides.
The retail market has not been as warm to Coinbase however considering that the platform charges some of the most expensive trading fees of any platform in 2021 with its fees being up to 10 times more expensive than other platforms on this list, however for those traders who are happy to absorb the additional cost of using coin base it does have a professionally made platform with good tools.
Coinbase also provides its exchange, Coinbase Pro, which has grown in popularity since the rebranding of this platform from GDAX a few years ago.
Binance Binance is one of the world's most popular cryptocurrency exchanges and is a good choice for those looking to invest in Bitcoin in a professional trading environment.
Binance lists a wide range of cryptocurrencies as well as Bitcoin, and has one of the most diverse range of assets to trade against Bitcoin anywhere in the cryptocurrency space making this platform desirable for those who would like to find unique opportunities to profit with Bitcoin investing.
Binance has however been hacked two years ago for more than $50 million of its users’ funds, and therefore it is important to consider the risks of using this platform before investing in Binance and depositing your funds there.
What are the Benefits of Investing in Bitcoin?
Decentralization While there are many cryptocurrencies on the market in 2021 that provide a number of advantages, one advantage that Bitcoin provides amount above a majority of the rest is that it is a truly decentralized cryptocurrency that does not have a company or organization that owns it, and that has tens of thousands of different servers around the world that are maintaining the blockchain every day.
This is particularly advantageous if there are any regulations or legislation that is brought in to try to curtail the use of cryptocurrency, with it being almost impossible to be able to apply such logic legislation to Bitcoin being that it is a decentralized cryptocurrency that cannot be shut down by any government.
The impact of having a non-decentralized cryptocurrency can be seen in no better way than by looking at the recent problems with Ripple, where the SEC has been able to charge the project with a range of different financial offenses which saw the price of XRP drop dramatically as a result of this.
Continual Price Increase
Another advantage of investing Bitcoin is that over the long term its price continuously increases with this being a result of the in-built mechanism within the Bitcoin blockchain known as the Bitcoin halving process which continuously reduces the supply of Bitcoin whilst his demand is increasing.
This means that unlike many other investments where the value of the investment may in fact go down over time such as investing in fear currencies, when investing in Bitcoin there is almost an assurance that the price of the asset will be worth more as long as it is held for a few years.
Not only has Bitcoin been a consistently profitable investment over the past 10 years, but it has been the investment opportunity that has had the highest levels of ROI of any potential investment possible over the same period of time with more than 30,000,000% ROI over the past decade.
Safe Haven Asset During Stock Crash
With the mass production of the United States Dollar over the past 12 months in response to the coronavirus pandemic, the world's financial markets have never looked more unstable and there is certainly the potential for serious financial problems in the coming few years as a result of this.
If this was to occur then Bitcoin is considered to be a safe haven asset that will more than likely retain its value if not growing value, with this meaning that many people are likely to invest into Bitcoin if there is a severe financial trouble.
In both the Cyprus financial crisis of 2013 and the Venezuelan financial crisis over the past decade, the citizens of both countries turned to investing in Bitcoin when their own local currencies collapsed, and this is likely what will happen if there was a global financial crisis as well.
In Conclusion: How to Invest in Bitcoin in 2021
Bitcoin investing is one of the best ways to generate an income online in 2021 and there are more opportunities than ever before to be able to use Bitcoin in order to create an income and to use it to create wealth.
We've listed three of the best platforms on the market for Bitcoin investing in 2021 with PrimeXBT, Coinbase, and Binance being three of the top crypto investment platforms on the market and providing advanced tools and services for the users.
If you’d like to learn more about the three platforms that we have included, check out PrimeXBT, Coinbase, and Binance.