This easy-to-understand guide will walk you through on how to invest in bitcoin in the Philippines.
Step 1: Be Well-Informed. Mere understanding of the concept of bitcoin will not give you an assurance that a good return of profit will follow; it is better to study the flow of the trade, and this could be done through test trading in the small value. In this way, you will have a more profound knowledge as regards to how the BTC works, and not just in theory. It is also suggested to know how the bitcoin price changes over the years, which is a helpful factor in the design of your investment strategy.
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Step 2: Short Term versus Long Term Investment. Short term investment in bitcoin means that you’ll be trading actively, like stock trading, where the constant rise and fall in BTC price will be the primary consideration; while long-term investment refers to “hoarding” bitcoin for future exchanges or sale. It is suggested that the former is wise, given the price volatility of the cryptocurrency.
Step 3: Investing in Bitcoin Proper. Now that you have a good knowledge of how the bitcoin works and made a decision as regards to the period of investment, it’s time to launch the strategy you’ve engineered in your BTC investment. Below are considerations for emphasis before the action:
(a) Bitcoin price is volatile, meaning, its value changes abruptly or suddenly;
(b) Payments made for bitcoin is irreversible;
(c) The government imposes limited regulations, so better check the one registered and recognized by the law of the Philippines;
(d) Bitcoin is still at the experimental stage;
(e) Transactions made are not anonymous; and
(f) Hacking risk. On December 19, a South Korean cryptocurrency exchange said it would file for bankruptcy after it was hacked for the second time this year.