Is now a good time to invest in Bitcoin? The answer is, it’s as good as any. At the moment, bitcoin is on a strong bearish trend, and it’s probably going to drop close or even break the $7,000 support area against the USD before it can stabilize.
A report from Adamant Capital suggests that this is a great time to start buying ahead of the next bull market. So, yes. This is as good a time as any if you want to invest in Bitcoin. However, just because you have the green light and a small window to jump in on the race, it does not mean you should go in all blind and giddy. Let’s take a step back and consider these four essential factors about Bitcoin:
Bitcoin comes with a huge risk
If you think the financial markets are volatile, the Bitcoin market will leave you speechless. The market is highly volatile and generally unpredictable. This means that its price tends to fluctuate frequently and sometimes without warning.
If you are starting out, the price movement of Bitcoin may seem like it doesn’t make sense at all. However, it does, and if you take the time to learn more about the things that influence the market, you’ll feel comfortable investing despite the volatility.
Bitcoin’s scarcity makes it very valuable
There will always be a demand for Bitcoin, which drives its price, but that is not all. Bitcoin is designed to be just as good as Earth’s minerals. It’s scarce. It has a limited amount, and the more it is mined, the harder and expensive it becomes to mine what is left. It’s also a very useful digital currency as it makes transactions hassle-free and fasts with none of the limitations that plague the current financial systems.
Learn how to buy and sell Bitcoins
You should learn how to buy bitcoin correctly without falling into the grasp of scammers. The crypto world is filled with shady characters who revel in the fact that Bitcoin offers anonymity, is irreversible, and almost impossible to track. It may not always be like that as there are promising findings by researchers who believe there may be a way to track lost Bitcoins.
However, at the moment, it’s best to know where and how to buy and sell your Bitcoins safely.
Consider storing your investment offline
Learn how to keep your coins safe from cyber-attacks. The most important thing to keep in mind is never to leave your Bitcoins hanging around in an exchange platform. While an exchange platform is very convenient, it can be hacked. If you have invested a large amount of money in Bitcoins, consider a hardware wallet rather than a software one. A hardware wallet or cold storage offers the safest way possible of storing Bitcoins.
Bitcoin is profitable, very much so, but investing in it can get bumpy. The biggest favour you do yourself is to analyze the Bitcoin market and understand it the best you can. You should also only invest what you can afford to lose while setting up clear profit targets.