Are Bitcoins A Good Investment

Christina Perez
• Thursday, 14 January, 2021
• 10 min read

It’s hard to predict whether this cryptocurrency will eventually prove to be a great investment or just a passing storm. That thrill of riches or ruin leaves some investors wary, but others want to chase the chance for profits from a bitcoin investment.

investment bitcoin value depending bitcoins likely differ questions
(Source: bitcoinmagazine.com)


Similar to any speculative investment, buying bitcoin carries some well-known risks: The price could drop precipitously and a single online hacking or crashed hard drive incident can wipe out your stash of bitcoin with no recourse. Bitcoin has seen dramatic run-ups in price followed by some painful crashes but has consistently retained a significant portion of its previous gains every time it plummets.

Since its inception, Bitcoin was the 1st digital asset to beget the current ecosystem of cryptos. For quite a while, it grew an underground following of investors who saw its future as a possible replacement to the physical monetary system.

Bitcoin (BTC) Ethereum (ETH) Bitcoin Cash (BCH) Ripple (ARP) Dash (DASH) Litecoin (LTC) Ethereum Classic (ETC) Mariano (ADA) IOTA (IOTA) Stellar Lumens (XML) EOS (EOS) NEO (NEO) TRON coin (TAX) Cash (DEC) Bezos (ATZ) Coinbase makes it safe and simple for you to buy, sell and hold bitcoin.

Pay for purchases conveniently using your debit card or by connecting your bank account. Owning bitcoin on this brokerage is as simple as creating an account, verifying your identity and buying your cryptos.

The brokerage allows you to hold onto your bitcoin, convert it into another crypto, spend it on expenses and transfer it to anyone, anywhere in the world. Account Minimum Bitcoin IRA’s proprietary platform enables you to self-trade crypto anytime, so you can take action right when the market moves.

golem investment
(Source: insidebitcoins.com)

Fund your account, access live pricing and learn more with a knowledge base. Trade digital assets inside your self-directed retirement account using our proprietary platform.

Bitcoin is arguably 1 of the most liquid investment assets due to the worldwide establishment of trading platforms, exchanges and online brokerages. You can easily trade bitcoin for cash or assets like gold instantly with incredibly low fees.

The high liquidity associated with bitcoin makes it a great investment vessel if you’re looking for short-term profit. Digital currencies may also be a long-term investment due to their high market demand.

Bitcoin may be the future of monetary exchange, but it is equally important that you are aware of the concerns surrounding cryptocurrency investing. Bitcoin exchanges let you buy and sell your cryptos using a mobile app or website.

Many companies don’t also recognize bitcoin as a legitimate exchange, making it an unfeasible investment vessel. If your hard drive crashes or virus corrupts your wallet file, you lose your bitcoins.

bitcoin founder satoshi sells bitcoins unilad nairametrics pixabay
(Source: www.unilad.co.uk)

However, it isn’t hard to sell or buy, and you can make a limited amount of purchases. Understand that bitcoin is a relatively new technology, and even futurists aren’t sure about its fate.

It includes 19 video with practical tutorials and tips that total nearly 3 hours. You’ll learn how to buy bitcoin anywhere in the world and how to set up a crypto wallet, as well as how to avoid common mistakes.

The course is offered by Lark Davis, cryptocurrency expert and host of New Zealand’s No. Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency.

Gemini Crypto Platform offers excellent account management options. We've witnessed the quickest bear market decline of at least 30% in history, as well as the most ferocious comeback of all time, with the benchmark S&P 500 taking less than five months to reach new highs.

But one investment that hasn't been phased by the coronavirus pandemic or heightened volatility is the cryptocurrency bitcoin. This could prove somewhat accurate with the pandemic highlighting the potential for physical cash to be a carrier of harmful germs.

bitcoin breaks rules investment flocking speculators continue
(Source: www.dailytelegraph.com.au)

With the rise of peer-to-peer payment platforms, bitcoin looks to become the superior digital currency. It was the first digital token to catch on with investors, and happens to be the largest on a market-cap basis by a significant amount (it's five times the size of Ethereum, the second-largest cryptocurrency by market cap).

Today, bitcoin serves as the intermediary asset on a number of crypto investment platforms if you want to purchase a less-common token (i.e., anything not named Ethereum or Ripple). It's not out of the question that programmers, with overwhelming community support, could choose to increase bitcoin's token limit at some point in the future.

To date, only 18.51 million bitcoin tokens are in circulation, with an estimated 40% of these held by small group of investors. Bitcoin may enjoy first-mover advantage at the moment, but the barrier to entry in the cryptocurrency space is especially low.

For instance, if you want to buy shares of a publicly traded company, you can scour income statements, its balance sheet, read about industry wide catalysts, and listen to management commentary from recent conference calls and presentations. There's transaction settlement times and total circulating token supply, but neither of these figures tells us anything about the value or utility of bitcoin.

A sixth issue is that blockchain is still years away from gaining real relevance. Specifically, no businesses are willing to make the costly and time-consuming switch to blockchain without the technology being broadly tested -- yet companies aren't willing to make this initial leap to test the technology and prove its scalability.

bitcoin trading money millions could too
(Source: earnbitcoinbysurfingads.blogspot.com)

By no means are cryptocurrencies the only asset to be hacked by thieves, but there are serious fraud and theft concerns that accompany bitcoin. For instance, novice bitcoin investors may not understand the need to store their tokens in a digital wallet, thereby leaving them susceptible to theft by hackers.

Additionally, it's been hypothesized by numerous blogs and publications that North Korea has turned to bitcoin mining and theft to funnel money into its isolated economy. Though this lack of regulation is actually a selling point for today's crypto investors given that it provides some degree of anonymity, it's bad news if something ever goes wrong.

Since the majority of cryptocurrency trading and transactions occur outside the borders of the United States, the Securities and Exchange Commission is very limited in what it can do if your digital tokens are ever stolen. Extreme volatility is a given with digital currencies like bitcoin, and history would suggest that significant downside from its current price is a near certainty as well.

The one of a kind financial asset has been compared to gold and said to have the potential to unseat the dollar as the global reserve currency one day. Unlike gold that exists physically or shares of a company, Bitcoin acts as a sort of digital commodity or collectible that also works as a currency.

But because this new asset was launched publicly yet in the shadows, its price began at under a fraction of a penny. A surge of similar magnitude would take Bitcoin to $500,000 per BTC in the future.

fail bitcoin tests financial forever why services won england bank
(Source: topicotelegraph.com)

These seemingly unrealistic targets line up with expert price predictions from the likes of billionaire investor Tim Draper or Max Laser. After touching its bear market bottom at $3,200 in late 2018, retests in 2019 holding strong led to a bounce all the way to $14,000 at the high.

The cryptocurrency saw over 300% ROI in three months in mid-2019, but the asset eventually retraced almost entirely in the following year. As ROI of 100,000,000% over the last decade shows, investing in Bitcoin is always a good idea.

Timing when to buy and sell is the tricky part of maximizing returns and profit from the cryptocurrency market’s high volatility. Cryptocurrencies are built on blockchain networks and have unique attributes like digital scarcity and are powered by miners.

These unique and unfamiliar terms to traditional finance make fundamental analysis vastly different in Bitcoin. Most fundamental analysis looks at blockchain metrics, such as how much BTC is kept on crypto exchanges and cryptocurrency trading platforms.

This metric dropped to the lowest level since the last bull run, suggesting that no one wants to sell their Bitcoin. The last time the signal triggered before the 2017 bull run, a rise of 5,000% followed.

bitcoin investment trust prognosticate slide log stratospheric proponents rise fire slashgear insider business
(Source: www.businessinsider.com)

Technical analysis looks just as good for Bitcoin, with the asset breaking up out of a multi-year symmetrical triangle formation. The last time the cryptocurrency broke up out of this pattern, a 5,000% rally took place.

The leading cryptocurrency by market cap has also enjoyed a resurgence in interest surrounding its use as a safe haven asset and hedge against inflation. Billionaire hedge fund manager Paul Tudor Jones thinks that Bitcoin will be the fastest racehorse in the race against inflation, comparing it to gold in the 70s.

If every major hedge fund, firm, or institution tried to buy that many Bitcoin suddenly, there wouldn’t be enough to go around, and it would send prices skyrocketing from supply and demand. Billionaire investor Tim Draper, an early angel investor in Facebook and nearly every other major investment success story, believes that Bitcoin will reach $250,000 by 2023, and thinks that could be a modest target.

Laser first called for the cryptocurrency to reach $100,00 back when it was trading at just $1 per BTC. Buying and holding a cryptocurrency like Bitcoin involves first purchasing the asset on a spot exchange or other cryptocurrency trading platform and storing it in a wallet, either on the exchange or in cold storage for the long-term.

Rather than buying and holding an asset, inventors can also trade their Bitcoin at each high or low. Spot trading involves buying and selling an underlying asset high or low, trying to profit based on the price changes in between.

hash rate bitcoin quintillion surpasses reaching stars
(Source: freebitco.in)

More profit is possible, but when markets are crashing, the only option is staying in cash while asset prices fall. Derivatives trading opens up the door to profit no matter which direction the market turns.

Bitcoin is extremely volatile, so price swings can be violent due to the low overall liquidity compared to other asset classes. It may be worth getting started small with just tiny BTC increments before jumping in with a more considerable investment.

Those who take advantage of CDs, long and short positions, and leverage turned those profits into even larger margins. Enormous profits have been generated from trading these assets and the price swings in between.

Just remember never to invest more than you can afford to lose and only buy Bitcoin from a safe, reliable trading platform. Bitcoin is also an extremely smart investment for those that are looking to hedge against inflation in the dollar and other fiat currencies thanks to central banks’ mismanagement of monetary policy.

Bitcoin is a good investment for those willing to take the chance on an emerging financial technology with the potential to change the world. The scarce digital asset could one day replace the dollar as the global reserve currency.

bitcoin purse
(Source: cryptorials.io)

Investing starts at similar minimums but involves holding the asset for the long term. The award-winning Bitcoin margin trading platform offers CFD son crypto, commodities, stock indices, and forex all under one roof, complete with leverage and long and short positions, so traders can maximize profit no matter which way the price moves.

Prime offers both the ability to buy Bitcoin for investing or move it to a trading account for even more profits. Trading accounts are completely free and take just a few clicks to get started.

Prime also offers all the trading tools required for success, including built-in technical analysis software and a peer to peer copy trading platform called Coveting, where traders connect to profit together. The foreign exchange market and derivatives such as CDs (Contracts for Difference), Non-Deliverable Bitcoin Settled Products and Short-Term Bitcoin Settled Contracts involve a high degree of risk.

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