If you are a keen crypto enthusiast thinking of dabbling in Bitcoins, you are likely to question whether or not this is a solid investment option. Bitcoin was the first of the digital currencies to have made its appearance a decade ago. Only recently it has crossed the $20,000 mark in spite of a debacle in 2017 when Bitcoin prices had come crashing down. However, the coin’s value has been hovering around $30,000 in 2021 showing that this digital currency is possibly here to stay. Many stakeholders have also been actively making an effort to legitimize the Bitcoin. These are some factors that you should consider when investing in Bitcoins:
- To start with, one cannot be sure about Bitcoin’s origin. It was supposedly created by a Satoshi Nakamoto who can be a group of people or an individual. Satoshi launched a white paper on the Bitcoin declaring it as a peer-to-peer payment system. The idea was to facilitate huge money-transfers across borders seamlessly. But Bitcoin’s mainstream adoption has been slow. It has been called “digital gold” and even considered superior to this precious metal in many ways. It remains a high-return high-risk investment option. Have a look at this trending Bitcoin Bank App review which would guide you on getting into autonomous trading.
- While Bitcoin prices were only around 5 lakhs in January 2020, it went up to 30 lakhs in January, 2021. This indicates a rise of 445%, surpassing and outperforming other investments like gold that has also witnessed a rise in value during the same period. So, there is no reason to worry about investing in a digital currency like the Bitcoin at a time when it is peaking. According to Citibank reports, Bitcoins are likely to hit almost 2.19 crores in 2021.
- A reason for the price increase of the Bitcoin has been because of interest shown by the institutional investors. Jack Dorsey, Twitter founder is a strong advocate for the Bitcoin and PayPal and MasterCard are financial entities slowing opening up their own networks to embrace this coin. Nations like South Korea, Switzerland, and Japan, have expressed their interest to institutionalize this digital currency that runs on the blockchain technology.
- At the same time, it is advised by financial experts that you should follow a cautious approach when trading Bitcoins; your investments in Bitcoin must be lower than 20% of your entire portfolio. This is because Bitcoin prices are known to be notoriously volatile. If, however, you have an appetite for risks, nothing should hold you back from investing in Bitcoins. Read through the crypto bank bewertung which facilitates you knowing more about automated trading options.
- Another advantage of investing in this crypto coin is that you do not require buying a whole coin; you can invest in its units called Satoshis. Bitcoin can be divided into 8 decimal digits, where the value for the smallest satoshi is comes for a very less price.
- What you must however be wary of are fly-by-night crypto traders and scammers. This is important because Bitcoins are still not properly regulated. According to Danny Cox from Hargreaves Lansdown, crypto coins can remain niche or become mainstream. They can disappear without any trace and must be viewed as high risk. This is why you must carry out due diligence when you invest in any coin and never pin your hopes on only a single currency.