This question is running through the minds of many newbies today. As the price of the most popular cryptocurrency increases, so does its popularity. More and more people talks about this cryptocurrency - but is it worth putting money into it now?
The best time to buy BTC - you can't feel it perfectly
Of course, you can speculate on how the entire economic or political landscape will affect Bitcoin's rate. Some people stubbornly observe and analyze the behavior of investors - after all, we have seen more than once how during local crises, people turned to the most popular crypto asset. They saw in it primarily a lifebuoy that could prevent them from going down with a sinking ship. However, it is important to realize that measuring the ideal moment to buy and sell BTC is not an easy task (it is practically impossible). It is certainly not enough just technical analysis. Baa, I dare say that even combining it with fundamental analysis is not able to bring results aimed at the point. People dealing with short-term traders need to get a lot of attention, but they do not always achieve the desired profits, because one unexpected external impulse is enough to make something go wrong ... Let's say the whales (big investors), will decide to sell some of their BTC coins. Of course, experienced traders are aware that every investment involves risk, so they should make a conscious decision, taking into account the consequences (good and bad). While trading Bitcoin can bring some people a quick return on investment, it requires much more time and commitment from them - it can also turn into a quick loss, e.g. if, as a result of growing emotions, a novice investor panics and decides to leave the market with a lot with a smaller balance than when entering it.
Moving on to the merits of the first thread, at the beginning I would like to point out that trading BTC is not a simple activity. Of course, I do not intend to discourage you from it in any way, but warn against mistakes often made by novice users - because this entry is mainly addressed to them. So if money does not just fall from the sky, and you cannot earn coconuts on the cryptocurrency market without a bit of luck - is it worth investing in Bitcoin? Sure you can, but you should do it wisely!
How to Invest and Avoid Depression?
Although the market quite often shows some optimistic forecast of a well-known analyst, indicating that the BTC rate will hit a sharp rally in the coming days, months or years - remember that no one has the gift of predicting the future. Of course, an unwavering belief in this cryptocurrency may turn out to be so optimistic that some people will follow the blow and decide to invest in it eventually, but it should be remembered that there can always be a decline along the way. Strong fluctuations in the chart are typical for cryptocurrency assets - keep this in mind. If we do not mentally prepare for the possibility of lowering the BTC value, then we can quickly fall into a trap that we have set for ourselves - sell out in a panic that our coins when such an unforeseen situation occurs. I guess you'd rather avoid it - wouldn't you?
The moment you come to terms with the fact that the Bitcoin price is not only rising but also falling, you are more likely to invest only as much as you can afford to lose. They must always be free resources - that is, those you do not need to survive. Unfortunately, some people do the opposite, looking for confirmation that cryptocurrencies can only provide them with passive income, without the risk of loss - BUT IT CANNOT WORK! There have been many investors on the Bitcoin market who were so desperate that they put all the money they had in their wallets into BTC in order to quickly make a profit, or borrowed horribly for this purpose. This is extremely imprudent behavior! When making such irrational decisions, the emotions that accompany such users are much greater. For this reason, in a situation where the rate suddenly drops, they can quickly panic and withdraw their funds at a large loss, forgetting that it might be worth waiting for a rebound.
In such cases, people who have allocated only free money for the investment goal are in a more comfortable position - this allows them to think much more soberly and calmly analyze the whole situation without taking impulsive steps.
Is it worth investing in Bitcoin? - All the pros and cons
Once you realize that the guaranteed passive income from BTC does not exist, because there can always be some random event along the way, it is worth considering what benefits will we get from storing some part of the savings in this cryptocurrency? I am assuming that this is a better way to secure your capital than to keep it in an inflated fiat currency or to use bank deposits. In my opinion, it is also a more effective choice than investments on the traditional market - e.g. in stocks. People who have never had contact with the markets before do not know what, when and why to invest. That is why such questions are often posted on social media investment groups. The worst thing about it is that some people tend to put their money into the stocks of Company X, guided solely by the opinions of "people on the Internet". It can be compared to buying a pig in a poke.
With Bitcoin, everything seems much simpler (although not everyone thinks so). We know that this cryptocurrency has a limited supply - so there is potential for its value to grow over time - of course, we are not talking about climbing to the top without falling. In addition, it is often referred to as digital gold due to the fact that it can be treated as a store of value. Although Bitcoin is less stable, in many respects it is ahead of the most popular metal. First of all, you can quickly transfer large amounts from one cryptocurrency wallet address to another. Physical gold transport takes much more time.
There are more and more places on the market where you can buy and sell BTC, and even make payments in it. This cryptocurrency can therefore be both a speculative object, a store of value, and a virtual medium of exchange. It is also money that no centralized entity can lay a hand on. While governments could pass laws against cryptocurrencies, they are unable to stop people from using them.
When investing in BTC, it should be remembered that most people still see it only as a way to quickly and high earnings. Such users do not know much about the foundations of the most popular cryptocurrency, perhaps they have heard about its increases and want to take advantage of the opportunity, jump on the speeding train. Is it worth entering this crypto asset at a price of $ 13,000 per coin? The answer is simple: it's always worth it if we're aware of the risks. Bitcoin has a great potential for growth, but this does not mean that participants in this market will not decide to take profits - then a domino effect may arise. A drop in value by up to 10% can cause panic among people who were completely unprepared for such a situation mentally, which in turn will only deepen it - until more experienced users start buying Bitcoin "at a discount".
A good way to minimize (but not eliminate) risk is to buy BTC coins on a regular basis and keep them in the long term. You don't need to be an experienced trader to deal with this - however, you should follow the cautions above.
Bitcoin is a cryptocurrency that has been appreciated by many institutional investors such as MicroStrategy and Square. Large companies are more and more willing to buy BTC as a form of investment portfolio diversification.
This cryptocurrency certainly has the potential for growth in the future - one of the key reasons is the fact that the young generations brought up in the era of computers and smartphones, for whom technology is not scary, will be much more likely to enter its market. If you thought that $ 13,000 per coin is too high a price and the train has already left, you are wrong. When more and more people start to be interested in Bitcoin and enter its market, the price will increase (remember to always take into account potential drops, which should not be a bolt from the blue, if we are really prepared for such an eventuality) .
An important aspect to recall here is the fact that BTC is divided up to 8 decimal places. So it is not difficult to invest in it as much as our budget actually allows - even if it is only PLN 100. This is certainly a much better way than keeping your money in the proverbial sock.
What do you think about all this? Why did you decide to invest in Bitcoin or are you going to do so? Share your own experience in the comments!