You may have heard stories of investments of a few hundred euros in Bitcoin, which turned into tens, if not hundreds of thousands, in a few years. This is all true. Compared to the time of its birth, the value of this cryptocurrency has grown a lot, and many people, who were willing to buy bitcoin when few were betting on it, became very wealthy. Now, is it possible to predict whether the value of Bitcoin will rise? Is investing in bitcoin still worth it? In this article we will try to answer these questions.
Especially the first time you invest in cryptocurrency, uncertainty and skepticism can be a lot and it is normal for you to feel intimidated. On the other hand, in the world of investments, there are aspects that you can only learn about after going through many market cycles and Bitcoin trading is one of those aspects.
Also for this reason, it is very difficult to definitively answer the question of whether it is worthwhile to invest in Bitcoin. As it happens with any type of investment, and even more so for one with such high volatility, it wouldn’t be honest to say much, because no one can know for sure which direction bitcoins will go in the short term.
Just think about what happened in 2017, when the value of Bitcoin dropped from a maximum of $20,000 in a very short time to $3,500.
However, what most analysts agree on is that if you want to invest in Bitcoin, and above all make money with Bitcoin, you must have a long time horizon, because in the long run the price will go up. Cryptocurrencies are a highly speculative asset and still have room for growth. So, if you have patience and time, the results will come. However, the main thing to do if you want to invest in Bitcoin successfully is to have a plan.
How to invest in bitcoin in 2021
Is there anyone in the world who manages to remain passive as all their earnings (and most of their invested capital) disappear in a few weeks? Mostly not. However, if you want to ride on the roller coaster of cryptocurrency and understand how to invest in Bitcoin in the best way, you need to do two things:
- Forget the money you invested, pretend you don’t have it anymore and stop checking the price all the time;
- Prepare yourself with a strategic investment plan.
Regarding the second point, it is important to specify in your plan:
- Investment amount
- reaching the bottom line at which it is time to sell;
- The amount to be stripped when this limit is reached;
- An exit strategy, if things go wrong.
All this because investing in Bitcoin today means knowing how to respond to market fluctuations and only by having a strategic plan, which lists the different actions that need to be taken depending on the scenarios that emerge, will it be possible to resist the crashes and spikes that will come (because they will).
Where to trade and buy bitcoins
But let’s get to the heart of the matter, i.e. where to buy Bitcoin. There are two ways: using the exchange or trading online.
Through exchanges you can buy and sell cryptocurrencies directly. If you choose to trade bitcoins on trading platforms instead, you are not buying it directly, but using so-called Contracts for Difference (CFDs) that you speculate on the direction of the price.
Coinbase is a well known and trusted trading platform where you can deposit your money to buy cryptocurrencies. Its fees are below average and easy to use, even for beginners. Among the trading platforms, on the other hand, Binance is among the most reliable and secure platforms where you can trade Bitcoin and buy Bitcoin with a credit card.
Regardless of the cryptocurrency, to manage transactions, you will need an electronic wallet that is protected by cryptography. There are dozens of electronic wallets, but since we are talking about Bitcoin, the best way to choose the wallet that best suits your needs is to use the practical service that you find on the official cryptocurrency website.
Why invest in Bitcoin now
As you’ve also noticed, bitcoin and cryptocurrencies follow cycles through which they rise, then collapse, and then rise. We are now on a cycle where there is still plenty of room to climb. If you are ready to invest in Bitcoin now, a good strategy can be to buy Bitcoin with a value equal to 50% of your capital and monitor the progress of the investment. When you are comfortable and satisfied with the results achieved, you can invest the remaining part of the funds in Bitcoin, always setting the target price, after which you can withdraw part of the capital or the whole amount.
One last tip we want to give you, is to read the news and stay informed, it’s the only way to keep up with such a highly volatile market.