The value of bitcoins fluctuates, but anyone who invested in this cryptocurrency in the early years would make a lot of money now. What if you didn’t see it coming and sold it too soon? And what should you pay attention to if you want to invest in bitcoins now? What are the risks?
Jip Buurman (31) was what you call a ‘early adapter: Back in 2010 I was already collecting bitcoins. ,,During my ICT studies, I was only drinking bitcoins during class mine. At first they were worth a few cents, it was easy to get on a laptop. By the end I had collected around 927, mining got harder so I stopped.
I didn’t touch them for a long time, until I once met someone on a forum who was willing to pay €2.50 each. Checkout!, I thought and sold them. With my girlfriend, now my wife, we had a wonderful vacation, very luxurious for a student.”
Quite a few times, when they were worth 5, 10, 100 and then 1000 euros each, I realized that I could have been a billionaire
Unexpected increase in value
Had he acted too soon? “In quite a few moments, when they were worth 5, 10, 100 and then 1,000 euros each, I realized that he could have been a billionaire. But I probably would have made the decision to sell everything sooner because I never expected them to be worth this much. I just look back positively on what was a good decision at the time. After all, it could have gone the other way around. And those vacations with my beloved are a priceless memory.”
The current value of bitcoin is approximately $42,000. In hindsight, of course, it’s easy to talk; no one can look into the future and know how high Bitcoin will go,” says Bitcoin expert Peter Slagter. ,,You can hold it for ten years, but return is always tied to risk; you can have a higher profit but also get into the boat harder.”
But come on, I was a student and 250 euros was really a lot of money for me. Putting that into something he didn’t understand seemed like a bad idea.
‘I thought it was a bad idea’
Soraya Dirnbal (35) did not dare to do it ten years ago for that reason. ,,My boyfriend at the time had seen the light and predicted that it would only increase in value in the future. Not only that: he saw it as the future of money. Now I hear that more and more, but then everyone thought: what is that guy talking about?! I also. To be honest, I didn’t get the whole bitcoin story from him either.
He begged me to invest 250 euros and put it in a wallet, I didn’t have to fix anything. “You’re going to regret it so much,” was his response when I decided not to. But come on, I was a student and 250 euros was really a lot of money for me. Putting that into something I didn’t understand seemed like a bad idea.”
Because the price of bitcoin fluctuates more than, say, gold, it’s good to have a clear idea of what to expect.
Only with money left over
Slagter: Money matters are rational and require planning. How much money you have left? Do you have enough buffer? What products do you want to invest in? Bitcoin is one of many options. You have to think carefully before you enter.”
“A TV ad is not a good basis for acting,” says Slagter. “My advice to people considering investing: Sit down and, if necessary, hire a financial advisor to come up with a financial plan together. Because the price of bitcoin fluctuates more than, say, gold, it’s good to have a clear idea of what to expect, so you don’t get overwhelmed by emotions during big price moves and act accordingly.”
Invest in bitcoin? you have to pay attention to this
Slagter: The first step is to decide if you want to bet or invest. In the first case, you can skip the second step, because that is it – reading about bitcoins. Make agreements with yourself about how much you are going to invest, when you are going to enter and leave, and then decide where you will make your purchase. It is best to check with the Dutch bank which companies are under their supervision. Think of Bitvavo, BTC Direct or AMDAX. You can safely buy bitcoins there.”
,,After that, you could create a ‘wallet’ yourself. A wallet is a program that you can download on your phone or computer and with which you can manage your own bitcoins. At bitcoin.org you can follow a step-by-step plan and find out which wallet is the most suitable for you. Many people skip this step and let the company they bought from manage their bitcoins, but a growing number choose to do it themselves; they do not want to depend on a third party to access their money.”
There are always risks associated with investing or investing. You have no guarantee that your money is well spent. Your investment may increase in value or stay the same, but you may also lose money or lose the amount invested entirely. Always keep this in mind when investing your money.
Want to stay informed on helpful money management tips and be inspired by how others manage their finances? Then follow us on Facebook and Twitter†
Free unlimited access to Showbytes? which can!
Sign in or create an account and never miss a thing from the stars.