Is Investing in Bitcoin Still a Good Idea? - Baltimore Post-ExaminerBaltimore Post-Examiner

Is Investing in Bitcoin Still a Good Idea?

The last few years have seen a massive jump in the price of Bitcoin, and the cryptocurrency has reached a level that very few could have imagined at its outset. The digital currency has already touched upward of $9K and is going strong at the moment. Due to the recent halving event, its price appreciated further, and investors enjoyed a field day due to the event. However, apart from Bitcoin halving that takes place every four years, there is no other reason to imagine that its price will rise further. So, the million-dollar question remains – whether investing in Bitcoin still a good idea?

Because it already stands at a point where buying a single cryptocurrency can be worth a decent investment, does it still make sense to buy the digital currency at this point? To get an answer to this question, some pertinent points need to be asked regarding the virtual currency. Hence we take a look at these points one-by-one to arrive at an answer.

The mood is upbeat

As of now, the Bitcoin market mood is quite upbeat. That is partially due to the recent halving, as well as the considerable price appreciation that it received after the event. Moreover, despite its volatile nature, the prices have stayed constant for a fair period that has helped in assuring investors that the upswing will continue. Some credible sites have further helped the cause by offering trading options in the virtual currency that can be accessed by people globally. Thus, the overall environment seems to favor BTC, and it looks like the run can well continue for still some time to come. However, being cautious as always is always desirable while dealing in Bitcoin.  Keep reading if you want to know how to trade bitcoins

Depends on an investor

Bitcoin investment can depend to a large extent on the type of investor that handles the cryptocurrency. While some investors may need short-term gains, others like to play the waiting game so that there is more profit after a long period. In this case, intuition can also play a very big role in the whole process as seasoned investors will have adequate data with them that can help in making an informed decision. For short-term trading also, it can be considered because the returns can be highly lucrative, and no smart investor may like to lose out on them.

The market cap is important

The market capitalization of Bitcoin is not just based on a few coins; rather, the whole ecosystem determines its market cap. At the same time, it is also important to remember that there can be only 21 million BTC available, whereas other cryptos can offer significantly more numbers. It is an area that can only be speculated at the moment because there is no clear number as on date. Going through the white papers of different digital currencies can help in arriving at a consensus so that a call on BTC investment can be taken based on this factor.

Understanding volatility

Volatility has been and will always be a hallmark of Bitcoin. So, rather than shying away, it can be a good idea to live harmoniously with it and stay aware and informed at all times. One more aspect is the security that should also be mentioned here. The security features of most exchanges have been made robust compared to the earlier period, but still, there is enough room for improvement. Therefore, considering its volatility and security aspects, an investor may think twice before investing in BTC at the present rate.

Long term investment

There is hardly any doubt that Bitcoin can be a fantastic long-term instrument of investment. Its current prices are a testimony to this fact, and some observers feel that it is only the tip of the iceberg! As the cryptocurrency gets rarer, the price will increase exponentially. Some of them have even pegged it to touch a million marks within two to five years.

Considering all the points discussed above, it can be safely be concluded that investing in Bitcoin can be a very good proposition as there are sufficient hints available that point towards its further ascent. Additionally, most cryptocurrency industry insider and observers have always believed that it is a long-term asset that can provide substantial profit after a while. Hence, investing in the digital currency can be worth thinking even at the current rates because one can always expect good returns from it.

 

Feature Image by MichaelWuensch from Pixabay


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