Why You Should Invest in Bitcoin (BTC) Now
01 Aug, 2022
Why You Should Invest in Bitcoin
If you’re interested in investing in Bitcoin, now may be the perfect time to do so. As of the time of writing, Bitcoins have already increased 2.92% in the last 24 hours, making it a great time to buy up some coins before their value rises even higher.
In this article, we’ll explain exactly why you should invest in Bitcoin now and how you can best take advantage of this once-in-a-lifetime opportunity.
What Is Bitcoin?
Satoshi Nakamoto created the digital currency and payment system known as Bitcoin. Bitcoin transactions are cryptographically validated by network nodes and recorded in a publicly distributed ledger called a blockchain.
Because there may only ever be up to 21 million of them, Bitcoin is unique. Bitcoins are produced as a reward for the mining process. They may be exchanged for goods, services, or other currencies.
As a result, Bitcoin is more resilient against rogue banks and uncontrolled inflation. Now may well be a great time to invest because, with the passage of time, the value of this cryptocurrency may rise significantly!
There are many advantages to using Bitcoin, but how much should you invest? The value of one Bitcoin grew from less than $1,000 at the beginning of 2017 to more than $22,000 in July 2022.
Thus, looking at the long-term price changes, it is definitely a good time to buy Bitcoin.
Why Is Bitcoin Valuable?
Bitcoin is valuable for a number of reasons, including:
It is scarce. There will never be more than 21 million Bitcoins created. This makes it similar to gold, which is also scarce. As a result, the price of the coin continues to increase.
Bitcoin is decentralized. This means that it is not controlled by any one government or financial institution. In other words, no authority can manipulate its price.
Bitcoin is easy to transport. You don’t have to send it through banks and wait a couple of business days for the transfer to go through; there is no additional charge for making an overseas transaction and no restrictions in place for the maximum amount you can send.
Bitcoin can be divided into small fractions, so you don't have to buy an entire Bitcoin to get started. For example, you can buy Bitcoin worth $100 and own 0.00441 BTC.
It's important to only ever invest as much as you're comfortable with and to remember that this isn't just another investment class. It's new technology!
The world has changed, but the way we use money hasn't. It's time to embrace change and start investing in Bitcoins today.
Does Investing $100 in Bitcoin Make You Rich?
In 2017, investing $100 in Bitcoin would have net you around $750 today. Had you invested early on, say in 2010, you would be a millionaire today. So, is it good to invest in Bitcoin? Absolutely!
Bitcoins are one of the best-performing assets of the past decade. If you're thinking about investing, consider the following factors:
First, don't invest more than you can afford to lose. It's not uncommon for new investors to buy high and sell low because they become too attached to their investments.
Second, research before investing. Just like any other investment, if you know what you're getting into, the risk decreases.
Lastly, be patient with your investment. It may take some time for your investment to show returns, but once it does and hits its peak value, that's when you should cash out so that you don't lose everything if it crashes.
Can You Lose Money on Bitcoin?
It's important to know that you can lose money on Bitcoin. It's also important to know how much you can lose. If you're thinking about investing, you should do your research and figure out how much you're willing to risk.
For most people, a good rule of thumb is to invest no more than 5% of your portfolio in any one stock or asset. So, if you have $100 to invest, you should only invest $5 in Bitcoin.
That way, even if the price falls by 50%, you’ll only have lost 2.5% of your portfolio. However, if the price increases by 100%, then you'll end up with twice the dollar value in Bitcoin you started with (now $10).
A 150% increase means you'll end up with three times as many coins ($15).
Keep in mind that this calculation does not account for transaction fees, which may be high depending on how much you trade. It's always smart to put aside some money before buying any asset, so you don't need to sell everything after a price drop.
As mentioned above, it is not wise to invest more than 5-10% of your portfolio into Bitcoin, given its volatility - but at the same time, high risk can also lead to high rewards!
How Can a Beginner Invest in Bitcoin?
The majority of peer-to-peer Bitcoin exchanges have a reputation system, which means they keep track of and publish their members' trading histories.
If you want to purchase something through a P2P exchange, you should pick sellers that have a solid reputation, which means they have successfully completed a number of exchanges without receiving any negative feedback.
Typically, the procedure for purchasing Bitcoin through a peer-to-peer exchange goes like this:
Visit the website of a cryptocurrency exchange.
Create an account and complete any necessary identity checks.
To purchase your digital asset, such as Bitcoin (BTC), simply follow the website's instructions.
You will see your Bitcoin in your exchange account.
5 Send your Bitcoin from the exchange to your own wallet if you want to be in complete control of it.
You may be charged a small transaction fee whenever you buy and sell BTC depending upon the platform you choose. Moreover, storing your BTC in a hardware wallet is the most secure option of all.
If you're thinking about investing in Bitcoin, there are a few things you should consider and ask yourself before you take the next step:
Is the price of Bitcoin going up? Or is the price of Bitcoin going down?
What's my risk tolerance? Can I afford to lose this money?
How can I buy and sell Bitcoin?
Are my funds secure if something happens to the exchange? Does my country have capital controls? Does my country have laws around foreign currency trading?
Is it easy for me to access international markets?
Am I willing to take on more risk because I believe Bitcoin will be worth more in the future?
Do I trust myself enough not to panic-sell when prices drop dramatically or am I worried that it might affect my future self, and I’ll regret not selling at an opportune time?
Have I considered that even if the value goes down so far, there's still a chance it could go back up again?
Have I talked to someone who has done this before?
These questions will help you decide whether you should invest in BTC and if you are willing to take the risk of investing your money. You should make future plans for all scenarios.
Should You Buy Bitcoin Today?
Despite what you may have heard, Bitcoin is not dead. In fact, it's still one of the hottest investments around. And if you're thinking about buying Bitcoin, now is the time. Here's why:
The recent price drop means you can buy more coins for your money.
According to some financial experts, Bitcoin is going to grow threefold in the next decade, now that COVID-19 is over, and markets are expected to stabilize.
Some experts predict that cryptocurrency is not just here to stay, but by 2030, it will be used as a mainstream form of currency.
<u>How to Make Profit with Bitcoin </u>
There are three basic strategies to make a profit with Bitcoin:
- Buying low and selling high;
- Short-selling Bitcoin;
- Mining Bitcoins.
Buying now is your best bet because the overall cryptocurrency market has crashed and is expected to stabilize post-COVID-19.
Buying low and selling high involves monitoring the market closely and using prediction tools to make profitable investments.
Short-selling is a risky business. It involves borrowing an asset, usually stocks, from someone else while betting on its decline. If successful, then the trader makes a profit off the difference between what they sold it for and what they paid to borrow it.
On the other hand, if the price goes up instead of down, then you end up owing money on the loaned asset plus interest.
Mining is also risky because it involves a large financial outlay in purchasing equipment and energy, with no guarantee that you will actually gain any Bitcoins.
But, if you are successful, you’ll end up earning BTC and keeping all the profit all to yourself.
So, What Is Going to Happen If I Invest $100 in Bitcoin Today?
If you're asking yourself whether or not you should invest in Bitcoin, you're not alone. The digital currency has been a hot topic of debate among investors and financial experts alike.
And with good reason. For example, the value of Bitcoin has seen its ups and downs over the years. But as I write this blog post on 24th July 2022, Bitcoin is currently valued at $22,718.4 per coin (view Bitcoin price history here).
That's more than double what it was valued at just three years ago! But if you ask me - it's still not too late to buy Bitcoin- because we don't know how high they'll go next!