Should I Invest in Bitcoin in 2018? Here are 4 Things You Have to Know

Last updated on November 30th, 2017 at 11:26 am

2017 started with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about 2 emails a day from people around the world who are asking one very simple question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, watch this video. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

In order to answer this question the first thing you need to answer is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to decide for yourself if you think this is a good time to buy. Meaning, do you think the price will continue to rise.

hodling Bitcoin

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just starting, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to move them into your own personal wallet and never leave them at the exchange. My personal recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, try a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a fixed amount every month, week or even day throughout the year. This way you average the price over the course of a whole year. Here’s a short video to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively trying to buy Bitcoins at a low price and sell them back at a higher price in relatively short time interval. Trading successfully requires knowledge and practice. The trading market is occupied by very large players who are just waiting for newbies to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electricity. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that allow you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are complete scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will probably get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Finally, every other day I get a question about a site or company that claims to double your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of complex and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good returns. They will then start off by paying these returns through money they get from new sign ups and create a big buzz around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past 3 years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is probably just a facade for scammers trying to steal your coins.

How can you find out if a site is a scam for yourself? Easy, use our Bitcoin scam test tool. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL DOUBLE YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can probably see that the answer isn’t that simple. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, start by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to answer this question. REMEMBER – only you can answer this. You can consult others and read online but never follow someone’s advice blindly.

Good luck!

Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

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170 Comments on "Should I Invest in Bitcoin in 2018? Here are 4 Things You Have to Know"

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CryptoInvestor
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CryptoInvestor

Guys check out the profitability of the BTC contracts on Hashflare, with the enormous rise of btc the returns are very high!
Hashflare had to do maintenance due to the increasing traffic on Hashflare, a lot of people are buying these contracts now so get in before they’re sold out.
Hasflare website: **affiliate link removed**

Roger Kalter
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Roger Kalter

hi there,
anybody have experience with E-toro?

Steven Hay
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Steven Hay

Hi Roger,

Yes indeed. Check out our full article on eToro here:

eToro Bitcoin Trading Review

Francis
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Francis

Good day Admin. Nobody seems to mention Remitano exchange platform. Am a newbie in the Crypto industry and two weeks ago I bought .0053 bitcoin. Everything was left in Remitano account I created. Kindly give advice on what you know about this platform so I don’t fall victim. Am also thinking of investing in Litecoin but my fear is will I get to sell it easily when it raises? Thanks

Steven Hay
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Steven Hay
Hi Francis, Yes, Remitano isn’t very well-known. I think it’s only worth using in countries where it’s popular. I believe it’s primarily used in Asia. I checked out the version for my country and the spreads were huge – like several $1000 between the buy and ask price. I certainly won’t be using it until liquidity improves. Generally speaking, more than $10 difference between the buy and sell price is expensive to the active trader. That said, I haven’t heard anything about this service being fraudulent in any way. Provided you’re comfortable with using it and the prices in your… Read more »
Dnice
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Dnice

Is it better to buy bitcoins when it is in the negative or positive? I would like to make my first purchase and I am not sure when to buy. I know on Wednesday it was really high and some ppl gained money.

Steven Hay
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Steven Hay

Hi Dnice,

Markets are too complex and unpredictable for me to give you a simple answer as to when you should buy.

This article might help you out:

The Complete Newbie’s Guide to Trading Bitcoins

matches
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matches

Okay guys some genius please help me out here. I’m 13 and i currently own 0.00287 BTC.
Wil this be worth much come the end of 2018? I’m asking because some older dude keeps pushing me to sell it to him for 12 bucks and i really suck at math. Some financial advise will be appreciated.

Joe
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Joe

Don’t sell your BTC to that older person. Save it and you’ll learn he’s trying to rip you off.

Miss Cohea
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Miss Cohea

Kid, do not sell your .00287
Tell that older dude to get lost.

Zsofia Elek
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Zsofia Elek

You can use our calculator here to calculate the current value: https://99bitcoins.com/satoshi-usd-converter/

OAL
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OAL

It’s currently worth 50 bucks so don’t sell it to him. I recommend you keep them, it’s a pretty scarce amount and if you wait, not only can it get higher but you can also learn more about bitcoin during that time

COL
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COL
Bitcoin Ethersum and litecoin still doing well, i would not put all my savings in to it, but buying just $100 would be the cost of a night out and possibly get the return of enough for a holiday. One good way to play it, buy $100 then in few weeks if it doubles – take out your original $100 leaving your $100 profit and leave it as a free run. I use Coinbase which allows you to buy small amounts like $100 and gives you an extra 10% with this link. *affiliate link removed** Never play with money you… Read more »
TokoMiiyaa
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TokoMiiyaa

there are lots of scamers out there, so beware where you invest your cash… I recommend you Miss MagdoNeh **email removed** she offers a good price, i.e. 1.2% discount

Sam
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Sam

My friends are all getting involved with USI-Tech and im unsure. They look like they are a true company but they are offering daily interest. Does anyone know of them to be true and legit or in the scammers basket?

Scam
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Scam

If you have to ask if its a scam then it probably is. One quick google search and most everything i find is links to them being a scam or asking if they are a scam. This should shoot redflags. Screw your friends, if you want to invest, do research yourself. Your friends sound like idiots who dont know much about anything.

Steven Hay
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Steven Hay
Hi Sam, You’re wise to be skeptical. USI-Tech is a total scam! Try using our Bitcoin Scam Test tool. I answered Keith on this topic of USI-Tech a couple days ago, allow me to repaste my answer to him: I haven’t investigated the domain with the tools linked there but the referral structure and mentions of 150% profit certainly raise some red flags. 1% daily gains are mentioned, which become unfeasibly large over an annual timeframe. The question I always ask with these type of offers is this: if their trading system is so profitable, what do they have to… Read more »
Ajay
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Ajay

am using ZEBPAY for bitcoin investing, is it good ?

Steven Hay
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Steven Hay

Hi Ajay,

As far as I know, ZebPay are a good and reliable Indian Bitcoin exchange. Nevertheless, we suggest that you don’t keep your bitcoins on any exchange unless you need them there for a specific reason, such as trading. Check out our Wallet Review section for help on choosing and using a good personal wallet:

Who is the Best Bitcoin Wallet for 2018? (23 wallets compared & Reviewed)

william
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william

i wondered if anyone could help me. i would like to purchase 100.00 GBP of bitcoin and save 50.oo GBP per month after. my sister said she felt it was a better saving option than traditional banks but in the UK it is very hard to find information as to where to buy the bitcoin currency and or even start investing in them. i am hoping someone will be able to advise me on here. kind regards, william

Steven Hay
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Member
Steven Hay

Hi William,

There are many, many options for buying Bitcoin in the UK. Check out our Buy Bitcoin section. Here’s a good article of ours on buying BTC in the UK:

Three ways to easily buy Bitcoins in the UK and a new British exchange

Aelx
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Aelx

You can buy bitcoin online on websites like paxful and localbitcoin. However, for investment, I will recommend BTCx3

Steven Hay
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Member
Steven Hay

Hi William,

Sure, it’s fairly easy to buy Bitcoin in the UK. Some well-known exchanges you can use are Bitstamp, Coinfloor, CEX.io, QuickBitcoin, Bittylicious, Coinbase, BitPanda and so on. Try inputting your location into our Buy Butcoin feature for more:

Buy Bitcoin with a Credit / Debit Card

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