Ever since Bitcoin started to cost quite a bit of money in 2017, a lot of people started investing in this cryptocurrency to varied degrees of success. In the past few years in particular, the Bitcoin value has skyrocketed and even companies like Tesla or major investors, even billionaires started to invest a fraction of their money in Bitcoin and crypto in general. But the question is, should you invest in Bitcoin now? Let’s find out.
Is there any risk?
Bitcoin, just like any other cryptocurrency, is known to be very volatile. It doesn’t have a fixed value, which is why it can be great but also very bad for investors. There were great price increases, but there were also major Bitcoin crashes. Even in 2021 alone, Bitcoin crashed $10000 in value in a matter of just a few days. Yes, it did go back up, but it also went down quite a bit. While you can invest in Bitcoin, you need to realize that this is a very volatile cryptocurrency. If you do invest in it, you have to account for a certain degree of risk. Sometimes it can be very high risk, other times less so, depending on when you choose to invest in it.
Reasons to wait before investing in Bitcoin
As we mentioned above, Bitcoin is volatile, so unless you want to risk it, it might not be a good idea to invest in it. Then there’s also the threat for potential online hacking and having someone steal all your crypto from your online wallet. On top of that, Bitcoin doesn’t have a whole lot of regulation. While things have changed a bit in recent years, there’s no denying that we still need proper regulation when it comes to Bitcoin. If you do buy some Bitcoin, you have limited use, since most if not all of the major merchants won’t accept it. And yes, you can lose your wallet, and all your investment will be gone forever.
Why should you invest in Bitcoin?
Bitcoin is the most liquid investment asset, you can buy and sell without a problem. It’s also coming with a very good ROI, and the trading fees are low to non-existent in most cases. There’s also a really low risk of inflation, which is extremely important to keep in mind. The blockchain and Bitcoin in particular bring great opportunities. Plus, you don’t need any licenses or trading like stock trading would require, instead with Bitcoin you can trade it right away without any worries.
Investing in Bitcoin or trading it does have a certain degree of risk. As we saw in recent years, Bitcoin had an upward trajectory and its price has continued to go up quite a bit. With that being said, you still need to study the Bitcoin price trends and assess a potential investment. Since Bitcoin trading and investing are new for our society, there’s always some risk. But in the end, this also comes with a lot of great potential, so you definitely have to keep that in mind. Yes, investing in Bitcoin is a great idea, but there are many other cryptocurrencies on the rise too, so check them out as well!