The number of Bitcoin investors is growing every day, as well as attention to the most well-known and oldest cryptocurrency. In spite of its volatility, Bitcoin is still one of the safest and profitable investments. In this piece, we will discuss the reasons to invest in Bitcoin and when is the best time to do it.
Why Invest in Bitcoin?
First of all, Bitcoin is popular. The number of investors is growing only because the price of Bitcoin goes up as well, and they have a fear of missing out on the potential future profit. Unlike stocks, the price of Bitcoin doesn’t depend on a companies’ reports or reached milestones.
Unlike fiat currencies, Bitcoin has a limited supply, so it’s scarce. So, Bitcoin is more like gold. Growing demand for BTC will be accommodated not by higher production volume but by higher prices.
Read:- The Binomo Trading Application: Pro and Contra
Every year Bitcoin becomes more and more included in our daily life. We can use Bitcoin ATMs, store them in a wallet on our phone (just like with online banks), pay for services and goods. Many companies are integrating Bitcoin as a payment method.
The most obvious reason to invest in Bitcoin is its profitability. Those who believed in Bitcoin in the early years are now millionaires. We’re not talking about some kind of Ponzi scheme – invest $100 now and get a million in a year. Bitcoin is a complex and volatile system. However, the price chart suggests that if you invest at the right time, you can make an excellent profit.
Where to Buy Bitcoin?
There is no better cryptocurrency to start your investment journey with than Bitcoin. So, there are various ways to buy coins: on various types of exchanges, or via ATM.
The most user-friendly and easy to access option is an instant exchange. Choose those which offer a low fee Bitcoin exchange. So, you only need to choose the trading pair, fill in your wallet address, and get your crypto right in your pocket.
Read:- Is CFD Trading Worth Your Capital?
There are a lot of traditional crypto exchanges such as Binance, Coinbase, and OKEx. They offer you to buy Bitcoin, and a range of other cryptocurrencies like Ethereum (ETH), Cardano (ADA), Ripple (XRP) by placing a market order in the terminal. Your exchanged coins will be credited to your account.
Peer-to-peer exchanges are not very beginner-friendly platforms. However, they offer to buy Bitcoin at the highest level of anonymity and various payment methods.
What Is the Right Time to Invest in Bitcoin?
The rule is very simple – buy low, when the price dips. So, it’s right to buy the coin when its price is low, and the news about it getting better – that’s a silent indicator – optimistic news may drive the price up.
In order to understand the market mood, check out the Fear & Greed Index. It is a good indicator of whether to buy or sell cryptocurrencies at the moment. When the indicator shows the ‘fear’ mood, it’s time to buy the coins. When the ‘greed’ indicator is on, it means that the market is in the correction phase and the price of an asset will fall soon. So, it might tell you that it’s time to sell unprofitable assets.
Read:- All You Need To Know About Cryptocurrency Wallets
All in all, it’s very important to read and listen to analysts and advisers. And one of the essential points is to invest no more than you can afford to lose.