Has The Bitcoin Bug Bitten You? 5 Things To Know Before You Invest There are risks involved which even some of the best experts cannot predict.
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Bitcoin is trending all over the world, with the cryptocurrency hitting its record high this month touching $8000. And if you too are keen to ride on this bullish currency, Bitcoin, then take these five tips from Sandeep Goenka, co-founder, Zebpay before you invest in your first trade.
Not a Quick Rich Scheme
Goenka says bitcoin is just like any other investment option, where you need to give it time and put effort before you actually start making profits. Unfortunately, many people think it is a quick rich scheme, which is a myth.
For Goenka, you don't need to be an engineer but at least one should try to understand the nuances of the cryptocurrency and the technology behind it, which is blockchain.
"Spend time and build their knowledge about it as people don't do that, are likely to make a terrible investment decision, whereas people who understand the fundamentals of the technology and believe in its long-term potential are likely to book good profits," he shared.
Since blockchain is a new technology, Goenka warns investors that there is risk involved which even some of the best experts cannot predict.One should be precautious while investing and hence starting out with a small amount is advisable.
As per existing laws in India, Bitcoin is not illegal. However, neither Reserve Bank of India and the Government of India has come out to its support and said the cryptocurrency is legal. And even though bitcoin is an interesting and innovative concept, investors should not forget the grey area it currently operates in.
Treat It Like A SIP
Lastly, Goenka advices investors to start from small amount, just like a systematic investment plan (SIP). And as your knowledge about the technology starts increasing, you can increase your exposure and inevestment.