Bitcoin isn’t the only Cryptocurrency in the world. There are hundreds of other digital currencies also called altcoins. While Bitcoin is the most recognized and traded, other Cryptocurrencies are increasingly common as well. If you’ve never heard of altcoins before, that’s probably because most people don’t actively trade them. But what if you aren’t trading? Maybe you aren’t even interested in trading but just want to hold some as an investment. Or maybe you aren’t interested in digital currency at all and just see value in having your savings protected from inflation or government regulation? Whatever your reason, this article will give you insights on whether buying Bitcoins is right for you if you aren’t planning to ever use them for trading purposes.
Is Buying Bitcoins a Good Idea?
With Cryptocurrencies soaring in popularity, more and more people are purchasing digital coins. This has led to a jump in demand, driving up the price of Bitcoin substantially over the past few years. With the price of Bitcoin shooting to $15,000 in January, more and more people are exploring the idea of buying some. But is now the right time? Bitcoin is a highly speculative investment and the price of Bitcoin can fluctuate dramatically. It’s also highly risky, and you can easily lose money if you’re not careful. While it’s not advisable for most people, some might find value in buying some as a long-term investment.
Should you buy Bitcoins if you aren’t trading them?
While Bitcoin is extremely popular and the most recognized Cryptocurrency, it is not the only one. There are hundreds of other Cryptocurrencies in existence today and many more that are yet to pop up. Many of these Cryptocurrencies are less expensive than Bitcoin and offer a wide range of benefits. Some of these include better privacy, lower transaction costs, and faster confirmation times.
One of the key reasons to buy Cryptocurrencies is to hedge against the volatility of the US dollar. As the US dollar becomes more volatile, so do the prices of goods and services that are priced in dollars. This could result in higher prices for consumers.
Cryptocurrencies offer a cheaper alternative to goods and services priced in dollars. This means that even if the dollar becomes more volatile, you’ll still have the power of buying goods and services with cheaper dollars.
Benefits of Holding Bitcoins
The biggest benefit of buying and holding Bitcoins is price appreciation. Many believe that the price of Bitcoin will continue to increase greatly due to the lack of supply. With a limited number of Bitcoins that have been created so far, the price is expected to rise substantially over the years. This means that if you buy Bitcoins today, they could be worth much more in the future.
Another benefit of holding Bitcoins is the protection against inflation. Governments around the world have expressed strong interest in implementing strict economic controls. This could include implementing price controls on certain goods and services. Citizens could find themselves subject to financial penalties for making certain purchases like fresh fruit. Holding Bitcoins allows you to purchase goods and services that are exempt from such penalties.
How to sell your Bitcoins
Now that you have some Bitcoins, you’ll need a way to sell them. You can choose to sell them yourself on an exchange like BitLQ. You can also choose to cash them out to a bank account or sell them in person. If you choose to sell them, you can freely trade them between different Crypto-to-Crypto or Crypto-to-USD pairs. To sell your Bitcoins on a Cryptocurrency exchange, you’ll need to either deposit them or withdraw them from your account. You can then select “withdraw” to withdraw Bitcoins from your account.
Additionally, you can sell them in person. Many people will trade Bitcoins for cash. This can be done with face-to-face trades or with online groups. Online groups are usually populated by investors who are looking to sell large amounts of Bitcoins.
Wrapping Up
Buying Bitcoins isn’t the right choice for everyone. It’s an extremely high-risk investment, and the price can swing dramatically. Many people aren’t interested in trading digital coins. If you decide to buy some Bitcoins, you’ll need to store them safely and make sure they’re accessible. You can store them on a trading exchange or your computer. Make sure you have good antivirus software and two-factor authentication enabled on your computer to protect against hackers. As with any investment, it’s important to hold them only if you’re willing to accept the risks. If you decide to buy some Bitcoins, make sure you read our article to learn more about how to buy them and hold them safely.