Cryptocurrency is the hot ticket in the investing world these days. You may want to become a crypto investor to earn a lot of money.
But here is a million-dollar question: Is the current Bitcoin (BTC) crash stopping you from investing in cryptocurrency?
Despite what everyone is saying about Bitcoin fall, you should avoid building your opinion on it.
Bitcoin is the world’s most established cryptocurrency at present. From global leaders to politicians and from key opinion leaders to celebrities, Bitcoin is labelled by many as the best alternative to fiat or traditional currency.
So, let us find out whether you should buy Bitcoin when its price is falling or not.
What is Bitcoin?
Bitcoin is a digital currency that people use as investments and for online purchases. You exchange fiat, like dollars, to buy Bitcoin through a cryptocurrency exchange.
Bitcoin exists online and its transactions are recorded on a public distributed ledger called a blockchain. The supply of Bitcoin is limited to avoid inflation.
The protocols of Bitcoin are designed in a way to control its supply in the crypto market. The Bitcoin ledger ensures enhanced safety and profitability as compared to other cryptocurrencies.
Carl Runefelt or known as “The Moon” among his acolytes is a crypto billionaire who believes in the success of Bitcoin.
He says, “Bitcoin is going up year over year and in times of uncertainty we’ve seen that people increasingly turn to Bitcoin as a form of money and store of value because Bitcoin is the only money in the world that has no political attachment.”
Benefits of Bitcoin
Although Bitcoin was created in 2009, it is considered by many a relatively new kind of currency, and there comes a lot of misinformation about it.
But many people worldwide have made millions of dollars with Bitcoin, which shows that Bitcoin has some benefits.
The following are some of the benefits of Bitcoin:
- Bitcoin is an accessible and versatile currency.
- Bitcoin transactions are transparent and anonymous.
- Bitcoin offers independence from a central authority like a bank or government.
- Bitcoin has high return potential. The value of Bitcoin has increased manyfold since its introduction.
- Bitcoin is available 24/7.
- You can send and receive Bitcoin anywhere at any time across the globe.
Things to Remember Before Investing in Bitcoin
Like any investment, Bitcoin comes with risks and potential rewards.
Bitcoin is extremely volatile, and its value can fluctuate at any time.
Here are some important things to remember before investing in Bitcoin:
- It is recommended never to invest all your life savings in Bitcoin.
- Always invest only a small amount of your disposable income that you can easily afford to lose.
- Always have money in the backup to stay safe in losses.
- Bitcoin is a long-term investment. So, you should avoid making decisions in Bitcoin trade based on short-term changes.
Carl says, “It is the only asset that has a finite supply where the supply can never be diluted, and this can only take place in the digital world that is why we have never seen it before. So, with that in mind looking at Bitcoin on a weekly basis or even monthly basis does not really make so much sense. To me, it is more about the next five to ten years, and I think that Bitcoin has a great chance to become the world reserve currency.”
Should I Buy Bitcoin?
You may want to invest in Bitcoin, but its current dip can change your decision.
But when you look at the trade chart of Bitcoin, you can see that Bitcoin bounces back strongly after its value falls. On the other hand, Bitcoin has grown immensely that it may be out of your reach.
So, why are you waiting? Is it not good to buy Bitcoin when its price is falling?
Carl on his YouTube channel, The Moon, says, “Accumulate one bitcoin to become a millionaire in the future as only multimillionaire would be able to hold bitcoin.”
You should be investing in Bitcoin when it is affordable. Soon, Bitcoin will gain value and it may become unaffordable.
You should do your due diligence when investing in Bitcoin, as you would do with any other investment.
Bitcoin has the potential to change the world financial system that is mired with the challenges of fiat such as corruption and inflation.
Remember there is nothing like a month’s wage in cryptocurrency. You should wait for some time to get what you are looking for.
So, it is up to you whether you want to increase your returns in Bitcoin when it bounces back or not.