You are Here > YouTube Channel > Video: Investing in bitcoin

Video: Investing in bitcoin

Apr 6, 2021

Whenever we see a surge in the price of bitcoin, I get a lot of queries from people asking how they can invest.

The problem is that people are lured by the prospect of high returns rather than actually understanding what they are investing in.

A sure way of telling that you are about to make an investment mistake is when you are being spurred on by a strong fear of missing out.

This according to Imran Lorgat, who is an actuary and has invested in bitcoin over the last five years. I invited him to give us some advice about whether or not to invest in bitcoin and if so, how.

Watch the video to get answers to the following questions:

  • What are people buying when they buy bitcoin?
  • One of the challenges of bitcoin is the immense volatility – the price moves hugely and people can make really big losses. Does this not make it a very high-risk investment?
  • Another concern is around the number of scams out there. So many people have been defrauded by ponzi schemes claiming to invest in bitcoin or cryptocurrencies generally. What is the safest way to invest in bitcoin?
  • If you wanted to start investing in bitcoin, what would be the best approach? How should someone start?

Remember, the same rules apply to bitcoin as to any other investment. This is a high-risk, long-term investment. Ask yourself whether you can afford to lose that money and whether you can hold onto your investment in bitcoin for the long term.

1 Comment

  1. I agree that BTC is high risk but the price is always going up so if you hang into your BTC then you are not going to loose. I started in 2016 when the price was $463/BTC and over the years I have been adding to this amount as you don’t need to buy a full Bitcoin you can buy bits of Bitcoin. The price is expected to rise to about $100k by year end of 2021. If you want to buy an ETF, then easy equities has a cryptocurrency EC10 but I feel having my own btc Is far more beneficial than only having an etf and you don’t get dividends from this ETF.

    Reply

Submit a Comment

Your email address will not be published. Required fields are marked *

Maya Fisher-French author of Money Questions Answered

Previous Articles

Video: Use your tax deductions before 28 Feb

 28 February is a very important date for your finances as it marks the end of the financial year. All information up to this date will be included in your 2020/2021 tax return. This includes all tax deductions. Make sure you have made the most of those tax...

Listen: How to select the right ETF in this crazy market

In this podcast, @Satrix_SA Chief Investment Officer, Kingsley Williams joins Maya Fisher-French (@mayaonmoney) to provide some guidelines around selecting the right ETF for your needs. He also gives us some perspective on the investment landscape for 2021. How do we...

Video: The 12-month financial plan

If you've decided that 2021 is the year to get your finances under control, try this month-by-month plan so that your finances and admin are all up to date by the end of the year. In January: Update your budget and plan for expenses Write up a budget. Pull out your...

Video: GEPF: Who receives your pension benefits?

One of the questions I receive most often from retirement fund members is about who has a claim to their retirement funds if they die in service. This video, as part of a member education series for the Government Employees Pension Fund (GEPF), explains who is...

Video: Why it pays to be a member of the GEPF

As a financial journalist I am increasingly concerned about misinformation provided to members of the Government Employees Pension Fund (GEPF) by unscrupulous financial advisers. Some advisers use fear tactics, telling members that their funds will be stolen or...

How to pay less tax using Section 12J

By Zane De Decker, MD Flyt Property Investment. Did you know that an investment made into a Section 12J registered fund qualifies for a 100% tax refund? What that means, in simple terms, is that 100% of what you invest is deducted from your taxable income by SARS via...

What is the tax benefit of an RA?

A reader asked: “I am 38 years old and I am not happy with the returns on my Retirement Annuity (RA). I am considering scaling down my monthly contributions and rather investing the money offshore myself through a stockbroker. What are the tax differences once I reach...

FSCA to regulate crypto-assets

Globally there has been an increase in the number of retail investors wanting to purchase crypto-assets. Unfortunately this has seen an exponential increase in the number “crypto-scams”. This is where unregulated entities and individuals promise unrealistic returns...

Hindsight, foresight and change at the speed of light

By Izak Odendaal and Dave Mohr, Old Mutual Wealth Investment Strategists. Hindsight, they say, is 20/20 vision. This being the year 2020, it turned out to be truer than ever before. For investors, and all of us really, there was so much about this year that was...

Pin It on Pinterest

Share This