Are you thinking about investing in Bitcoin? You’re on the right track since that’s the best thought you can have today. But wait, how do you even start? That can be simple, provided you spend some time reading the numerous articles online. The question that worries many is, how much should one invest in Bitcoin? If that’s so with you, take courage because you’ve landed on the right page. In particular, Singaporeans have been banged by that question, given the recent favorable adjustments to the crypto industry. Let’s discuss more below.
Bitcoin Investment Basics
Before we consider how much you need to invest in the crypto, let’s first discuss what it entails and how to go about it. If you’re new to the business, here are things to consider when investing in Bitcoin.
Where to Buy Bitcoin
Undoubtedly, you’ll only invest in what you have, and that’s why it’s appropriate to know where you can purchase Bitcoin. There are several ways or places to do so, including exchanges, brokers, and ATMs. Below are some of the ways you can use:
- Cryptocurrency exchanges. These are platforms that connect buyers and sellers to transact. Since they’re numerous, it would be proper to research and find the perfect one for you. Some of them are international, while others are Singapore-based. The most popular ones are Coinbase, Binance, CoinHako, itBit, and LocalBitcoin.
- Peer-to-peer Bitcoin owners. These are individuals you can buy from Bitcoins directly with cash.
- Bitcoin ATMs. You can use any of the ATMs available in Singapore to obtain BTC. All you need to do is deposit cash and get it converted to the cryptos. What if you don’t have the money to purchase them?
What’s the minimum amount you should buy?
A set limit doesn’t restrict your purchase ability. You can buy any amount of choice, depending on how much you want to spend. But, some platforms like Coinbase set the minimum amount, for example, from $2. I would advise that you don’t use too small an amount since the fees charged might affect your transaction. Try using at least SGD 50 for the initial BTC acquisition.
How to Store Bitcoin
What would happen if you have coins but risk losing them to fraudsters or hackers? To secure your investment, you need a proper storage system. Cryptocurrencies are stored in digital wallets that act as a regular bank account, though with some differences. Several wallets are available, thus the need to decide on which one is the choicest and safest. There are hardware wallets like TREZOR, which are the most secure and preferred. Others include; – desktop wallets, mobile, paper, and web wallets.
What to Know Before Investing In Bitcoin
Even before attempting to buy this crypto and trade with it, stop and think about some significant points. Know the deal you’re getting into and what expectations lie ahead. Here are some vital things that are a must-know before deciding on Bitcoin investment.
- It’s a decentralized currency. This means that no government or financial institution controls it. Though the Singapore-based exchanges must conform to MAS (Monetary Authority of Singapore) regulations and requirements, you don’t need a license to participate in the trade. This has a drawback in that if something happens, you can’t get the authority’s assistance.
- It’s highly volatile. The price valuations may change from time to time. This makes it very unstable and unpredictable, something that increases the risk of investment. Thus, it’s necessary to be careful about the amount you’ll want to cash in to the trade; only use what you can bear to lose.
- Security is important. One reason why you need to choose a proper wallet is that it’s a determinant to progress. With advanced technology, the exchanges can be vulnerable to hacking, making you lose assets and a sense of direction instantly. Try not to leave plenty of funds on platforms, use a secure and confidential internet connection, especially when accessing public networks, and better still use paper or hardware wallets.
- You can always diversify. You’ll not be restricted from trading with Bitcoin. It’s just among the thousands of other cryptocurrencies available, make sure you diversify the portfolio. Yes, it’s very popular globally and easy to invest in it, but diversification is a fantastic option if you’ve already invested in BTC as what https://www.gmcreditz.com.sg mentioned It lowers the risks of losing much when Bitcoin fails.
How Much Do People Invest in Bitcoin on Average?
There are several BTC holders worldwide, but determining the accurate number is difficult because the wallet addresses aren’t publicly linked to a user’s personal information, and people normally use more than one wallet. This makes it hard to determine the average investment size in Bitcoin. Just like in the non-digital world, a few people possess the greatest Bitcoin share, whereas most hold only little amounts.
One data analysis in 2015 showed that the highest 1% of BTC wallets held 99% of the coin’s supply, while the remaining percentage had little or no Bitcoin. That’s still true even in 2020. There are a few very large investors in the top 1% space, the bulk of users hold only small quantities as a tentative investment, and the average BTC investment per wallet is below SGD 100. So, to make it to the top 10%, you’ll need more than the US $300. Further, according to data suggestions, reaching the top 1% requires an average of ten Bitcoins, which is slightly over the US $25,000.
How Much Should You Invest in Bitcoin?
Now you’re probably asking that question. Well, there’s no ground rule on how much you should invest in BTC, whether in Singapore or another place. Some experts feel that beginning with 10% of your capital is fine, others 5% or 15%. Can you work with between 5%-30% or 15%-50%? The decision will be yours, and market factors or situations can also play a role. Nevertheless, it’s very unsafe to trade with 50% or more. Don’t put in more than you can afford to lose!
The Bottom Line
Bitcoin investment can be a very fun and profitable thing, but as we’ve seen, most of its investors hold only a small amount as a speculative investment. Of course, the choice of the investable capital percentage to dish into Bitcoin is yours. Remember, though, the riskiness of this new currency. Again, I repeat, should never invest in more than you can afford to lose!