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.