Bitcoin Info > Buying Bitcoin?
Do your Research:
Even if you are convinced that Bitcoin is valuable, none of these arguments suggest that the current price of Bitcoin makes it a good buy.
There are a significant number of people buying Bitcoin with leverage (borrowed money). Bitcoin’s volatility makes this an especially risky thing to do. Periodically, volatility in the Bitcoin market causes these people’s positions to get liquidated and prices to fall more than they otherwise would. The other potential downward pressure is that when people borrow and lose money betting on the stock market, they sometimes need to sell their Bitcoin to raise funds to cover their stock market losses. This means that losses in the stock market have contagions in the Bitcoin market.
If you do buy Bitcoin, you should be educated about FUD to avoid “panic selling” during times of volatilty. It should only be done for the long-term (at least 5-years) and only as a small portion or your portfolio that you can afford to loose (roughly 1-5% depending on your age and conviction). One way of building a position for Bitcoin is by dollar-cost-averaging – buying small, equal amounts on a regular schedule.
Places to Buy:
- Coinbase: exchange where you can buy and trade crypto
- Swan: guides you through purchasing Bitcoin — good for dollar-cost averaging
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