Bitcoin has hit the headlines a lot in 2021, reaching incredible new highs before plummeting to shocking lows. Critiqued for its impact on the environment by Elon Musk before being banned by China, it’s been a hell of a ride, to say the least.
Despite the chaos, many investors are keen as ever, reeling out the age-old mantra to buy at the dip.
For new investors, we’ve got everything you need to know in our quick Bitcoin investing guide.
Bitcoin: An Overview
Before you invest, know what you’re dealing with.
Bitcoin is the most popular cryptocurrency available. In fact, as far as cryptocurrencies go, it’s one of the safest options available compared to newer coins.
As it’s grown in popularity for investors, Bitcoin has become far more mainstream. A huge number of retailers now accept the coin as currency. It’s a long list but includes huge corporations like Microsoft, Starbucks, and Whole Foods.
How Bitcoin Works
Bitcoin isn’t a physical coin. In fact, it has no intrinsic value. It’s all driven by speculative interest.
Many long-term investors in Bitcoin believe that cryptocurrency is the future. In a sense, they’re getting in early before prices rise.
Much of this belief stems from the blockchain technology behind Bitcoin. Blockchain is one of the most secure technologies available, so your investment is protected. It’s also decentralized, which means no central banks or governments can control it.
Bitcoin Investing Guide: Is Investing a Good Idea?
When it comes to cryptocurrency, your guess is as good as ours. Nobody can predict the market.
This said a Bitcoin investment strategy is helpful to avoid disaster.
Much of this revolves around long-term investments vs. short-term investments.
If you’re looking to make a quick buck, chances are Bitcoin isn’t a good investment. This isn’t a reflection on the currency so much as the wider cryptocurrency market.
The market is volatile, even on good days. Some investors love this. It’s one of the many reasons Dogecoin has a cult-like following.
But for investors who expect to “pump and dump,” there is a good chance this strategy won’t pay off.
However, for long-term investments, Bitcoin represents a significant opportunity. When Bitcoin launched in 2009, it was worth nothing. A year later, one Bitcoin was worth a fraction of a single cent.
At the time of writing, one Bitcoin is worth $31,853. So, for those around Bitcoin’s early days, you can see the incredible gains made. This is actually a low price as earlier in the year, one Bitcoin was worth more than $60,000.
This is why so many investors are saying to buy why prices are low. For long-term investors, this represents a great opportunity with many benefits. You can learn more about buying at the dip here: https://www.bytefederal.com/buy-the-dip-the-advantages-of-bitcoin-outway-the-risks/
Buy and Hold
Our Bitcoin investing guide has hopefully given you some great advice on Bitcoin as an investment. While it is a…