Is It Good to Invest in Bitcoin Right Now?
Deciding whether is it good to invest in Bitcoin right now might be frustrating. With constant price volatility and ups and downs in the market momentum, many investors are hesitant to put their money in the market. After the fall from the peaks of $20000 back in Jan 2018, Bitcoin has been struggling to achieve the same hallmark. The previous rally had pulled in many new market participants and profoundly influenced the Bitcoin price because of the Fear of Missing out (FOMO) factor.
However, despite the downtrend, Bitcoin is still the best performing asset in 2019. But whether is now the right time to invest in Bitcoin requires further analysis of the long-term market situation. For Cryptocurrency 2019 has been impressive. We have witnessed a growth in development, and many ICOs have launched their products. Similarly, tech giants such as Facebook have come up with Libra, and popular messaging app Telegram has launched its token with the acronym TON. So, with the positive development in the sector, should we invest in Bitcoin now? Let’s find out!
Is it good to invest in Bitcoin right now?–The Theories
There are various approaches when it comes to investing in Bitcoin. When you ask how much should I invest in Bitcoin now, it depends on the timing and the time frame you are planning to hold it. Usually, buying Bitcoin on lower time frames and selling it with a 1%-2% return is a common practice of investors in the market.
The demand for Bitcoin slowdown during the weekend and is high on Tuesday. Hence, purchasing the Crypto on Sundays and selling it after a day or two is likely a good option.
The theory suggests buying Bitcoin during the end of the month, usually after 20th. The reason for this is simple; people have less money in their pockets during the time that can keep the volatility and prices low.
Many forms of Bitcoin Investment
Although the above theories might be helpful for those looking to buy and sell Bitcoin for a profit, there are many other ways to profit from Cryptocurrencies. Trading Bitcoin is riskier than holding it if you lack good knowledge of fundamental and technical analysis. If this is not for you, then there are other ways to be a part of the ecosystem.
Buying and holding Bitcoin
The answer to is it good to invest in Bitcoin right now depends on many factors, including your strategy. Purchasing BTC and holding it till for long is a common practice among many traders. Let’s say you brought Bitcoin in 2016 at $800 and have kept it until Dec 2019. Considerably, your single Bitcoin will still be worth $7000 after falling from highs of $20000. However, if you go with this strategy, then remember to have patience if the price drops below your purchase order. Bitcoin is a deflationary currency, and its price will gradually increase for years to come.
Mining Bitcoin is expensive, but it is a good way to make additional passive income. To start, you need to invest in ASIC mining equipment and should have access to cheap electricity. If you wish to learn more about Bitcoin mining, you can read it here.
You may have come across websites that allow you to rent hash power. Bitcoin is a big industry and many companies such as Hashflare.io today offer cloud mining contracts, so you can start mining BTC without any substantial investment in hardware. However, before going for Cloud Mining to invest in Bitcoin, it is must to research different companies offering it since many turns to scam within a few months.
Remember to buy the Dip
Buying low and selling high is not a new concept. Many investors continuously look at the charts to buy Bitcoin when the price takes a downturn and sell it once it bounces. When the price nosedives and goes in the oversold territory, it is the best time to buy Bitcoin for many. However, it is essential to purchase Bitcoin in chunks and average down your price if the market takes another bearish turn.
The Future Outlook
It is a fact that many people in Cryptocurrency do not have a thorough understanding of how Bitcoin works. Many investors purchase Bitcoin due to technical analysis or market sentiments. Bitcoin and Crypto are very different from the traditional market because of the various functions it performs. Economist has long debated whether Crypto is an asset or a form of money for quite long. Bitcoin has gained considerable value over time. Starting from $0.01 back in 2010, it is now worth $7000 at the time of this post. People who brought and hold it have experienced significant Return on Investment (ROI) and today you can buy, sell or exchange it almost anywhere.
Should we invest in Bitcoin now? – FAQ
How much should I invest in Bitcoin now?
It depends on the amount of risk you are willing to take. However, it is advisable only to invest the amount that you are willing to lose. Cryptocurrencies are volatile and sudden movements in the market can cause extreme losses and physiological stress.
Is Bitcoin a good investment?
Since its inception, Bitcoin has proved to be a good investment if you have purchased and kept it for four to five years. Bitcoin is not inflationary and has a limited supply, meaning it is likely to perform better after every few years because of scarcity and increasing demand.
How can Bitcoin be used?
There are various ways to spend Bitcoin. We have a thorough list of companies accepting Bitcoin, and it adds up annually.
Will Bitcoin go up again?
Market forces determine the Bitcoin price. And yes, it is likely to go up in coming years because of the laws of economics and a gradual increase in demand.
Can Bitcoin be exchanged to cash?
It is essential to understand the fundamentals of Cryptocurrencies before making any investment in Bitcoin. When it comes to whether is it good to invest in Bitcoin, it is not a simple yes or no. There are various factors in place, and no one can give you a definite answer, but yes, there are some tips to help you make a better decision. To be honest, there are disadvantages and advantages of Bitcoin, but in the end, it is you to answer this question for yourself.