*This is not a recommendation to buy or trade Bitcoin. It is also not a recommendation on any products or services from any companies mentioned in this article. Invest in any Cryptocurrencies at your OWN RISK.
If you are an active investor, it is most likely that you have heard about Bitcoin in recent years. The cryptocurrency is gaining popularity at a rapid pace. Just this year alone, the price has shot up from slightly less than USD1,000 per Bitcoin to close to USD 12,000 per Bitcoin. A 1,200% return in a year is almost unheard of.
That is also why many people are rushing to join the craze surrounding Bitcoin. On top of that, with the sharp depreciation of the Ringgit in recent years, many Malaysians are seeing Bitcoin as a way to store our money instead.
If you are one of them and looking for ways to start buying some Bitcoin, here is three simple options for you.
The most direct method for you to buy some Bitcoin is just to buy it from an exchange. There are multiple exchanges that trade Bitcoin and other cryptocurrencies. However, most of them are small, unreliable and could even be fraudulent companies.
That is why you have to be extremely careful when choosing your exchanges. One of the most commonly used exchanges available in Singapore is Luno. Luno is one of the largest cryptocurrencies exchanges in the Asia. The exchange supports buyers from Malaysia, allowing you to buy and sell Bitcoin directly from your bank account or your credit/debit card.
Another way for you to gain some Bitcoin is through a process called “mining”. Mining is a process to “earn” some Bitcoin in return for providing computer processing power to the Bitcoin transaction network.
You can either buy mining equipment on your own to start mining Bitcoin on your computer or you can “lease hashing power” from large mining farm. This can be seen as cloud mining, where you are just buying a term contract from the mining farm to lease some computing power from them and you get an exposure to the mining profit in proportion.
Do note that there are many Ponzi schemes, scam and other unreliable/unethical mining farm out there. Therefore, it is important for you to do your research on who is the reliable source before rushing into the process. The most common name in the industry is Genesis Mining. However, it is unclear if you can actually profit from purchasing mining contracts as Genesis Mining does not include a breakdown on the possible return on investment by buying their mining contracts.
Brokers Or Friends
Lastly, you can even hustle and trade Bitcoin the old fashion way; through your friends or random brokers or platforms such as LocalBitcoins.com. Again, it is a rather risky endeavour as there is no reason why they can’t just take your money and disappear!
Bitcoin is the talk of the town in recent years. However, we should not be blinded on the risks involved in buying this cryptocurrency.
For one, Bitcoin is just one of the hundreds, if not thousands of cryptocurrencies out there in the world. Moreover, the actual utility of Bitcoin is still questionable, with most people buying Bitcoin as a form of speculation.
On top of that, the exchanges, mining farms and other service providers to support Bitcoins are also new to the field. That means that these companies might turn out to be frauds or fail after a few years of operations. All these could result in you losing your capital even if Bitcoin prices continue to climb.
Lastly, Bitcoin has rallied 1,200% in a single year and many are calling it the biggest financial bubble in recent years.
Buy At Your Own Risk
If all these still does not deter you, be clearly aware that buying Bitcoin at this moment is more akin to gambling than investing.
There are better and safer ways to invest your money, if you are interested to know more, find out how you can build long-term and sustainable wealth through the stock market. Click here to get 10 stocks that could help you reach your financial goals!