Investing in bitcoin

Bitcoin. You’ve probably read about it in the news, heard about it from a friend, or maybe you Googled it yourself. But what is it exactly? And how do you start investing? In this article, we’ll explain all the ins and outs so you can get started quickly. Let’s go!

Investing in bitcoin starts with BLOX

Just started out with bitcoin? Then BLOX is the way to go! BLOX is an all-in-one cryptocurrency app. Without any technical foreknowledge you can trade in bitcoin and other cryptocurrencies. Buy or sell your coins in just a few clicks. You can start for as little as 1 euro, so anyone can join!

A lot of love went into creating the BLOX app, and it shows. The app is so easy to use, we bet that even your grandma can use it! The app is completely free to download on Android and iOS.

But we're drifting off. You want to know how to invest in bitcoin. You can simply make a purchase, but you can also create a strategy. What do we recommend?

What is bitcoin?

Before you invest, it’s good to understand what you’re investing in. Bitcoin is a digital currency that was launched in 2009 by an anonymous person or group under the name Satoshi Nakamoto. What makes bitcoin unique is that there is no bank, government, or company behind it. The network is maintained by millions of computers worldwide.

Why invest in bitcoin?

To answer that question, we need to go back to the beginning of Bitcoin. During the economic crisis of 2008, trust in the banking system dropped to an all-time low. In that turbulent time, an anonymous person published the plan for Bitcoin.

In a whitepaper of fewer than 8 pages, the entire concept was outlined. The core idea? A digital currency that doesn’t require trust in a bank.

These are the key characteristics of Bitcoin:

• Bitcoin is decentralized. Anyone can participate—by processing transactions, verifying them, or simply sending and receiving.
• Bitcoin is global. A transaction to your brother in Amsterdam or your grandmother in Argentina? Both cost the same and take the same amount of time (or rather, very little time!).
• Bitcoin is scarce. Banks can print unlimited euros or dollars. Bitcoin has a limited supply. In the future, there will only ever be 21 million coins.

Approximately every four years, something special happens: the reward for miners (the people processing transactions) is cut in half. This is called the halving. As a result, fewer new bitcoins enter circulation.

Historically, after such a halving, the price of Bitcoin often rises in the period that follows. This is because supply decreases while demand often remains the same or increases. This pattern is known as the halving cycle and helps explain why the price sometimes rises sharply in phases.

These three characteristics are more important than ever. Over time, everything becomes more expensive. Or at least, it seems that way. What’s actually happening? Your money is losing value.

With Bitcoin, you can protect yourself against inflation. Bitcoin has a limited supply, and anyone can participate.

More and more groups see value in Bitcoin. Public companies like MicroStrategy and Tesla have added Bitcoin to their balance sheets, and El Salvador has even adopted it as legal tender. The coming years will be interesting!

💡 Tip: Besides bitcoin, you can also invest in the most popular cryptocurrencies with BLOX!

How much money do you need to start?

This is one of the most frequently asked questions, and the answer might surprise you. You don’t need to buy a whole bitcoin. You can buy a fraction: investing in bitcoin is possible from just €1 via platforms like BLOX.

When should you start investing?

This might be the most common question: when is the right time to start?

The honest answer: no one knows for sure. The price of Bitcoin moves constantly and is difficult to predict, even for experienced investors.

What you can do is make it easier for yourself by not waiting for the “perfect moment.” Many people delay investing because they’re afraid of buying at the top. In practice, this often means they never start at all.

That’s why many beginners choose a spread-out approach, such as periodic investing (DCA). For example, you invest a fixed amount every month. This way, you gradually enter the market and reduce the risk of investing everything at an unfavorable moment.

Important to remember: investing involves risks. The value of Bitcoin can rise, but also fall. Only invest money you can afford to lose and think about your plan in advance.

The psychology of investing in Bitcoin

Successfully investing in Bitcoin isn’t just about knowledge—it’s mainly about behavior. Many beginners lose money not because they don’t understand it, but because they let emotions guide them.

That’s why it’s smart to create a simple investment plan beforehand.

First, determine why you are investing. Is it for the long term? Do you see Bitcoin as protection against inflation? Write this down. It helps you stay calm when the market moves.

Also decide how and when you will invest. For example, a fixed amount per week or month. This prevents impulsive decisions.

Try not to check the price all day. Bitcoin can fluctuate significantly in the short term, sometimes by 20–30%. That’s part of it. By checking less often, you avoid acting out of panic or greed.

A useful tip is to set price alerts. This way, you stay informed of major movements without constantly watching.

Those who stick to a plan often feel more at ease and make better decisions than those reacting to daily market movements.

Dollar cost averaging

Periodic investing, also known as Dollar Cost Averaging (DCA), means investing a fixed amount at regular intervals. For example, €50 in Bitcoin every week or month.

The idea is simple: you don’t need to time the market. Sometimes you buy when prices are high, sometimes when they are low. Over time, this averages out.

This reduces the risk of entering at the wrong moment.

DCA can be especially useful in a volatile market. You don’t have to constantly decide when to buy—you build your position step by step.

Note: periodic investing reduces risks, but does not eliminate them. The value of your investment can still rise and fall.

💡 With BLOX, you can set up automatic recurring investments.

What can you expect from the price?

The price of bitcoin is determined by supply and demand, just like stocks or gold. There is no central party setting the price. The price you see on a platform like BLOX is the market price at that moment, based on what buyers are willing to pay and what sellers are willing to accept. See for yourself how Bitcoin has risen or fallen over the years.

When do you take profit or sell?

In addition to when to start, many people ask: when should I sell Bitcoin?

Again, there is no perfect moment that works for everyone. The right choice depends on your goals and plan.

Some people invest for the long term and hold their Bitcoin for years. Others take profits along the way by selling part of their holdings when prices rise.

It helps to think about scenarios in advance:

• At what price would you sell (part of) your investment?
• Do you want to take profits in steps instead of all at once?

By deciding this beforehand, you avoid emotional decisions.

Good to know: with BLOX, you can sell your Bitcoin at any time. The proceeds are converted into euros in your account.

Keep in mind: the market is volatile. Prices can change quickly, and there is no guarantee of profit. Fees may also apply.

Tips

What should you keep in mind when starting with Bitcoin? Below, we’ve listed some important tips to help you get started quickly!

Do your research
Have you read everything up to this point? Then you understand the “why” of Bitcoin. But there’s more—much more to discover! If you plan to invest larger amounts, make sure you understand Bitcoin a bit better.

We can help you with that. Take a look at our extensive cryptopedia for more information about Bitcoin and other cryptocurrencies. Or follow us on Instagram!

Only invest what you can afford to lose
You’ve probably heard this cliché in ads before. Still, it’s very important: only invest amounts you can afford to lose. Make sure you always have a buffer in your savings account for unexpected expenses. Invest wisely!

Be patient
Of course, you’d love to see your investment shoot to the moon immediately. But is that realistic? There are periods of weeks or even months when the Bitcoin price declines. Stay calm and try to hold onto your crypto for the longer term.

What are the risks?

Investing in Bitcoin can be interesting, but it’s not a straight line upward. It helps to understand what you might encounter, so you’re not caught off guard.

Price fluctuations
Bitcoin is known for its volatility. Some days little happens, while on others the price can suddenly rise or fall significantly.

This can create opportunities, but it can also feel unsettling if you’re just starting out. It helps to keep this in mind beforehand, so you’re not surprised by movements that are actually normal in this market.

Rules and developments are constantly changing
Because Bitcoin is still relatively young, governments and institutions are still figuring out how to deal with it. New regulations or developments can influence how people invest and how the market behaves.

That’s not necessarily good or bad, but it’s something to keep in mind.

You are responsible for your own decisions
Unlike a bank account, there is no central party that steps in if you make a mistake. That’s why it’s important to be mindful of where you invest and who you trust.

Be critical of offers or messages that promise quick profits. In most cases, if it sounds too good to be true, it probably is.

Disclaimer

The information in this article is not intended as investment advice. Cryptocurrency is an interesting investment, but the price is very volatile. Never invest more than you are willing to lose, and keep a cool head.