Is Bitcoin A Good Investment & Should I Invest In Bitcoin?
Bitcoin Investing Explained
Should I Invest In Bitcoin? Is Bitcoin A Good Investment?
If you are new to the world of Bitcoin investing, you might be wondering if Bitcoin is a good investment or should I invest in Bitcoin?. Well, let’s break all Bitcoin-related myths circulating online before you consider investing in Bitcoin.
Here you can find answers to all your Bitcoin investing questions.
But first, what do we know about Bitcoin - one of the most popular search words ever?
Bitcoin, often seen as a safe haven, is a digital asset that has revolutionised the whole world. Created in 2009 by the mysterious figure of Satoshi Nakamoto, Bitcoin has become a luring alternative to banking and traditional payment systems.
If you are wondering if Bitcoin is a good investment and asking yourself if you should invest in Bitcoin, just think about it! Bitcoin is a decentralised digital payment platform that is not ruled by governments or financial authorities. Can you imagine having transparency and security without dodgy fees and secret intentions - just you having control over your own money?!
No surprise that the hype around Bitcoin has led to the creation of thousands of altcoins, and in over more than a decade, crypto investing has conquered the world. Though forex is still the largest financial market, we have to agree that cryptos are popular trading and investing aspects, especially in the world of crypto day trading.
But is Bitcoin just a passing storm or is it here to stay? As expert Stephen McKeon at the University of Oregon said, “The question has moved from ‘will this survive’ to ‘how big will this get?’”
So, is it worth investing in Bitcoin in the years to come? Let’s find out!
Is Bitcoin a Good Investment?
As Bitcoin is the largest Cryptocurrency market cap, many traders believe Bitcoin is a good investment compared to other cryptos. Despite all the ups and downs in Bitcoin’s history, experts believe that Bitcoin price could grow further in the long-term.
While it’s up to traders to decide if Bitcoin is a good investment, let’s explore more of its pros and cons in order to create a comprehensive and objective picture.
Bitcoin is the oldest and one of the most traded cryptocurrencies, with one BTC trading at $15,826 at the time of writing, as per CoinMarketCap.
With a 24-hour trading volume of $31,086,109,111 and a market cap of $293,388,849,631, Bitcoin is the top traded cryptocurrency across the globe.
Because of its limited supply of 21,000,000 BTC and mining constraints, Bitcoin is one of the most desired assets in the crypto world. Just like gold, investing in Bitcoin is seen as a safe haven; it is a popular financial venture with low correlation with other assets (for example, stocks) and high liquidity.
On top of that, Bitcoin is a great way to diversify one’s portfolio and reduce exposure to risks, especially in times of financial turmoil, such as the ongoing coronavirus pandemic.
At the same time, investing in Bitcoin and other cryptocurrencies can be risky due to the high volatility of the market. Believe it or not, in 2017, Bitcoin reached a record high of almost $20,000 per one BTC, but went down to $4,000 in 2018. Its value decreased significantly from February to March this year, but months later, Bitcoin managed to survive the coronavirus-related bear market and increased to over $12,000. These dramatic price fluctuations can be risky for some traders and opportunity to others.
Would you consider investing in BTC?
Should I Invest in Bitcoin?
Given the volatility of Bitcoin, many people wonder if Bitcoin is a good investment and if they should invest in it. Should I Invest in Bitcoin then? Yes and No! The truth is that even if Bitcoin is a good investment, that doesn’t mean you should start investing today. Cryptocurrency trading is not a game, but a serious financial business.
Before you get started, do your own research, invest in trading education, and choose a reputable broker like eToro. Consider potential risks and develop a crypto trading strategy that may help you increase your wealth over time. Learn from the best in the field!
If you are interested in the decentralisation of currencies and their potential to replace traditional banking, then Bitcoin is for you. After all, Bitcoin was created as an alternative to traditional payment systems and bureaucracy.
On the other hand, if you are more interested in blockchain technology and the way it can facilitate the use of smart contracts and decentralised apps, then you might prefer to invest in other cryptocurrencies, such as Ethereum or EOS.
In the end, depending on your goals and resources, you can invest short-, mid- or long-term in Bitcoin and diversify your portfolio.
Should I Invest in Bitcoin or orther coins Instead?
So should you invest in Bitcoin or should you explore other coins then?
Before we explore the potentials and risks of investing in other coins, let’s not forget that Bitcoin is the first virtual coin ever, which has led to the creation of other coins or alternatives to Bitcoin, hence called altcoins.
Some altcoins, such as Ethereum, Ripple, Tezos, and EOS, come with some impressive capabilities. Take Ethereum – one of the most popular investment options, for example! Ethereum is the second most traded coin out there that can support smart contracts and decentralised apps.
There are many more undervalued coins with great potential that might explode in the future, too. Some cryptos like BAT may be used to improve not only payments and legal processes but digital advertising and content creation.
That said, smaller cryptos can be even more volatile than Bitcoin, so one has to be cautious, especially when it comes to Initial Coin Offerings (ICOs) and potentially fraudulent activities. Some experts suggest investing only 5% of your money in cryptocurrencies just to diversify your portfolio and stay safe.
But in the end, you don’t need to invest in Bitcoin or other cryptos to diversify your portfolio at all. With hundreds of trading markets such as: equities and commodities to invest in, it’s all up to you to decide if investing in Bitcoin is worth it.
Is Investing in Bitcoin Risky?
Given the uncertainty around Bitcoin and its prices in the future, investing in Bitcoin, like any asset, can be risky. Though some believe in its positive growth in the long-term, it’s almost impossible to predict if investing in Bitcoin can be profitable.
Without an in-depth understanding of the crypto world and the factors that affect Bitcoin investing, investing in Bitcoin can be risky. That’s why, if you decide to buy and sell Bitcoin or trade Contracts for Difference (CFDs), always invest in adequate education, practice, risk management, and self-discipline. If done properly, your high-risk ventures can lead to high rewards.
Do not forget that crypto investing is not gambling, so never invest more than you can lose. It’s recommended to start small with minor BTC increments. The good news is that you can start trading cryptocurrency with as little as $100.
It’s worth noting that one of the main risks in trading is falling victim to intense emotions, overconfidence, stress, and greed. That’s why emotional self-control and self-discipline are two of the key factors to success in the world of Bitcoin investing.
Who Should Include Bitcoin in Their Portfolios?
If Bitcoin’s future seems bright, who can exactly benefit from investing in Bitcoin? you may ask.
Well, investing in Bitcoin can be a wonderful trading option for day traders who want to benefit from price swings and multiple small trades during a single day.
Bitcoin can be also suitable for mid- and long-term investors who want to hold cryptocurrency. Interestingly enough, according to CoinTelegraph, hodling is one of the most profitable strategies and those who buy and hold Bitcoin usually profit in 95.4% of time.
Of course, investing in Bitcoin can benefit more traditional traders who simply seek portfolio diversification, as well as blockchain enthusiasts who believe in the future of Bitcoin and cryptocurrency technologies.
Let’s not forget that blockchain technology has potential far beyond the financial sectors and can improve areas, such as gaming, voting, and medicine.
Getting Started With Bitcoin Investing
So now when you already have enough information about Bitcoin investing, you can tell us what you reckon. Should you invest in Bitcoin or not?
If you’ve made up your mind and decided to invest in Bitcoin, then you’re lucky to have today’s online tools and multiple resources at your disposal.
While investing in Bitcoin early was hard and reserved mainly for miners, now you can easily buy and sell cryptocurrency and trade CFDs. All you need is to find a reliable exchange like eToro, open and fund your account, and start your crypto journey.
Here we should mention that there are different methods to dive into the world of Bitcoin investing. One can buy and hold Bitcoin or trade it. It’s not a secret that a popular trading method is to trade CFDs; CFDs allow people to open long and short positions and use leverage.
Just remember to choose a safe and reliable platform! As Bitcoin hacks, such as the notorious Mt. Gox attack, are still happening, make sure to keep your assets secure and learn how to recognise scams. With eToro, for example, one can safely invest in Bitcoin and over 90 crypto pairs to trade.
eToro – The Best Cryptocurrency Platform For Both Traders and Investors
eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.
Should You Invest In Bitcoin?
Invest in Bitcoin or any kind of investing can be very risky if you don’t know what you’re doing, especially during uncertain times. You may be asking yourself, “should I buy Bitcoin right now?” So here’s a tidbit, investing your money doesn’t have to be complicated.
While no investment is risk-free, investing in Bitcoin has genereated about 40% return over the last two years. Whether you’re new to Bitcoin investing or just curious about how to make the most of your investment, understanding what to know before investing in Bitcoin is critical.
In the end, the final decision comes down to you. What kind of investor do you want to be? Figure out the answer to that question, you’ll definitely know if Bitcoin is a good investment!
Would you invest in Bitcoin or other digital assets?
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Bitcoin Investment - FAQ
Is It Worth It To Invest In Bitcoin?
Considering the Bitcoin’s 100,000,000% ROI and the fact it beats out all other assets, including gold, stocks, and oil in the last 10 years return, yes, Bitcoin is definitely worth considering. Just remember never to invest more than you can afford to lose and only buy Bitcoin from a safe, reliable trading platform like eToro.
Is it safe to invest in Bitcoin?
Investing in Bitcoin is a risky and, at the same time, potentially high-reward financial venture. Though nobody can guarantee that Bitcoin is a safe investment, you can invest in trading education, practice, and self-discipline to increase your chances of success.
Is it smart to invest in Bitcoin?
Investing in Bitcoin and cryptocurrency is a smart way to diversify your portfolio, hedge against inflation, and support the decentralisation of payments. Investing in Bitcoin has always proven smart. Bitcoin is also an extremely smart investment for those that are looking to hedge against inflation in the dollar and other fiat currencies. One of the smartest ways to start investing in Bitcoin is to choose a safe platform like eToro that allows you to buy and sell assets and trade CFDs of over 90 pairs.
Is Bitcoin going to crash?
Even though nobody can predict the future of cryptocurrency, historical data shows that Bitcoin has gone through many ups and downs but has always managed to overcome financial and social turmoil, such as the ongoing coronavirus pandemic. Interestingly, many experts are positive about the future of Bitcoin and believe it may outperform gold.
Disclaimer: Cryptocurrencies are highly volatile. Your capital is at risk and Past performance is not an indication of future results.