Best Bitcoin Investment Sites 2021

Choosing which investments to jump on and which to avoid can be a very confusing decision. Your choice will decide whether you enjoy great returns for years to come, or you lose it all. It is impossible to turn on the TV or read an investment blog without hearing about Bitcoin. It is one of the hottest topics in the world right now, but it’s not the only way to invest your money, which begs the question: How does Bitcoin stack up against other wealth-building vehicles?

While Bitcoin is its own investment vehicle, it’s important to note that it can actually transcend investing borders. In fact, Bitcoin can be used concurrently with some of today’s greatest assets. Real estate, in particular, could benefit immensely from what’s known as “tokenization”. According to Tom Winter, CRO & co-founder of DevSkiller, “tokenization is the process of creating a virtual token representing ownership of an interest in real estate that exists on a blockchain (The core technology behind Bitcoin).” Winter suggests “tokenization has the potential of revolutionizing the global real estate market. It offers investors many advantages over existing investment options.”

The unique convergence of real estate and Bitcoin may award investors with attractive profits, but how do the two investment vehicles compare to each other by themselves?

Bitcoin:

• Many experts believe that Bitcoin is a bubble, meaning it is overvalued and could crash at any moment.
• Bitcoin’s value is volatile; it is equally prone to massive spikes and drops in price.
• Bitcoin is entirely digital, meaning it is more vulnerable to security breaches than a tangible asset.

Real Estate:

• Real estate is an investment that is backed by a strong historical record and the security of a tangible asset.
• Rising home values and rents are an excellent hedge against inflation.
• Depreciation, utilities, insurance, and repairs all allow real estate investors to qualify for valuable tax benefits.
• Rental properties provide the consistent monthly cash flow you can rely on.

Here at Bitcoininvestmentrex, we implement a multi-strategy of portfolio diversification across asset classes like Bitcoin, Volatility, and Real Estate to achieve the goal of capital appreciation, the strategy captures different sources of alpha embedded in the long-term investment horizon. To reach the objective of capital preservation, it uses a robust and sophisticated risk management framework that targets a constant portfolio volatility level independent of market conditions.

The Pros of Bitcoin Investing

• The main benefit to Bitcoin investing is that you may be able to generate a huge return on profit, perhaps as high as 200% or more. Of course, that’s an extremely difficult thing to accomplish, but it’s possible.
• If you purchase a large amount of Bitcoin, you may be able to capitalize on a market surge and sell your coins for a much higher value when there are lots of buyers. There’s also a slight possibility that Bitcoin will truly become the currency of the future or a more popularly traded asset, and you could hopefully generate returns from long-term holdings. It should be noted, however, that Bitcoin values are generally decreasing every year.
• Your success may depend on properly “timing the market.” In other words, you’ll buy coins when they’re at a low price and sell them when they’re at the highest possible price. High-risk investors who pay close attention to the market may be able to generate massive returns when employing that strategy. They might even generate returns that are highly improbable in the world of corporate stocks or government bonds.

The Cons of Bitcoin Investing

• Unfortunately, the high volatility of Bitcoin makes it a hazardous investment, and you could lose money if you’re not careful.
• Bitcoin and other types of cryptocurrency are at high risk of “pump-and-dump” schemes. Predatory investors will reach out to amateur or unassuming investors and convince them to pour a lot of money into Bitcoin. The resulting surge causes Bitcoin prices to increase rapidly.
• The predatory investors are smart, and they sell all of their holdings before the buying surge ends, making a huge profit. But when investors stop buying, the value of the coins falls to extremely low prices. A coin bought for $200 could wind up having a valuation of just $30. The unknowing investors would be throwing their money away.
• You could always make a profit by selling your coins before the price collapses, but it’s impossible to predict when the buying surge is going to stop—prices could fall 50% in only a matter of hours. That’s why any volatile asset, like cryptocurrency and penny stocks, are considered high-risk investments.
• You should also know that pump-and-dump schemes and pyramid schemes are illegal. While it’s not necessarily illegal to capitalize on a market surge—whether it’s natural or artificially created—you might not want to be associated with such practices. You could be the target of an IRS audit or a criminal investigation, even if you’ve done nothing wrong.