THE BEST TIME TO INVEST IN BITCOIN
Over the past several years, we’ve all heard about cryptocurrency and its game-changing potential for investment. Those who embraced the trend consider it as revolutionary and disruptive. But others who still remain sceptical warn against its volatility. But, if you, like many others, want to know whether it’s worth investing in cryptocurrency, here’s a breakdown of the essential things you need to know.
Debunking the mystery of blockchain
Many people hesitate to invest in Bitcoin or other digital currency types because it seems to be shrouded in mystery. Unlike traditional money transacted through banks, Bitcoin uses blockchain to circulate via the internet. According to bitcoinkeskus.com the most notable difference here is that cryptocurrency doesn’t get regulated by banks or financial authorities.
If you look at the biggest advantage of using Bitcoin, there’s nothing more prominent than the fact that it gets transacted globally at the same value – no need to worry about exchange rates. However, it’s not quite perfect yet. Many have experienced problems with the user interface and other technical glitches.
How has Bitcoin performed, and why is it riskier?
If you invested in Bitcoin a decade ago, you would have been a multi-millionaire by now. The shocking increase and decrease in the market price of Bitcoin are what make it riskier for investors. The truth is, no one can truly pinpoint the factors that cause this volatility. But, the general rule on supply and demand is perhaps the simplest way to explain it. In addition, the more competitors there are in the market, the more erratic it will perform.
Is now the best time to invest in Bitcoin?
Under the current economic circumstances, finding investment opportunities can be more challenging. Yes, Bitcoin will always remain at the riskier end of the spectrum. But, the steady reliance on the internet could prove to be the push necessary to bring cryptocurrency into the mainstream. Of course, any kind of investment should be done with extreme caution. Something as volatile as a digital currency could lead to significantly high pay-off, but it could also completely go bust.
How do you minimise risk in Bitcoin investment?
Volatility is an unfortunate reality of digital currencies. But, there’s always a way to protect your investment. For example, you can consider investing in “stable coins” which are backed by a currency. However, gains are low and, at times almost nothing.
Another strategy is to put your money into companies that use cryptocurrencies. For example, you can buy shares in Facebook as it will launch the Libra currency soon. Another option would be JP Morgan, with its digital coin with the same value as the US dollar.
The good thing is, many financial organisations are considering the benefit of using digital currency. The prevalence of the internet in almost anything we do today will continue to push forward more innovation and alternative means of transacting.
In conclusion, investing in Bitcoins is risky but can be rewarding if done right. You need to research well and employ the best strategies to minimise potential risks.