In this reign of cryptocurrency, bitcoin is considered a new asset class investment like gold. Despite its volatile nature, it is gaining the popularity of being the number one investment vessel. But, risk factors are always associated with bitcoin from 2009 to till date. The main risk factor is that the buy waves highly volatile.
Volatility is the nature of the market when it is unpredictable. It can climb up, or it can fall, however, you cannot predict it. Volatility depends on the supply and demand policy of the market. When there is a good supply of a commodity, the demand will be less. So, the price will also be less.
But, if there is less supply, it will create high demand in the market. So, the price will also be high. Just like that, the bitcoin source is limited. In such cases, the value of Bitcoins become quite difficult to predict. That makes it highly volatile.
Now, the main question comes why we should invest in bitcoin is hiding behind its volatile nature. You just have to know the correct investment strategies depending on your choice whether it’s a short-term investment or a long-term investment. Read on to know more.
Short-term Investment Strategy In Bitcoins
If you are thinking that high volatility means high risk, this is not completely true. Yes, the risk goes parallel to volatility but both depend on different factors. Volatility is not a risk factor for you when you make a profit from buying and selling. For a short-term investment, investors suggest buying bitcoin when the market is low. For that, you have to research well and know the recent price structure of the market.
Follow the previous records and also get to know about the market predictions for the near future. When you get a chance to buy at a low price and the market is thought to rise soon, buy your bitcoins. There, you must remind that you should invest that amount of money in bitcoin that you can afford to lose, which is nearly 5% according to experts’ suggestions. After that, follow the market and when you find the value of bitcoin is going up, you are ready to sell them to make a good amount of profit.
Short-term Investment Strategy In Bitcoins
The strategy that is at the top of most of the investors’ favorite lists is ignoring the short-term fluctuation of the market and enlarging the visualization. Here, you need the patience that the Winkles twins had shown in their case and became the first billionaire by bitcoin investment. Investors suggest purchasing bitcoins when the price is relatively lower and forget about it for 2-3 years.
Be patient even if the price ups and downs frequently. When the market will rise, you get the chance to earn an ample amount of profit by selling them. Some important factors are there that are influencing the value of bitcoin to go high in the future.
- Its limited source is creating high demand. At the time of its release, the bitcoin protocol set the maximum number of Bitcoins that can ever be in existence in the world and that is 21 million. Out of them, around 19 million bitcoins are already in the market. As per the financial research reports,only 2 million bitcoins are left to trade.
- Bitcoin is not controlled by any governing authority. So, the supply and demand only depend on the market. As per today’s market scenario, the demand will be higher in near future.
- Bitcoin’s wide acceptability as a payment method makes experts think that it has the potential to be the future currency of the world.
- Some studies and results make this prediction even more strong. Bitcoin market studies say that at the end of 2024 the value of bitcoin is going to kiss the sky and that can be $100,000.
Final Words
So, if you are still thing king whether to invest in bitcoin or not, we would say, this is indeed the high time to invest in bitcoin. With effective Bitcoin trading strategies, you can convert the possible risk factors intoprofits.If you are willing to invest in Bitcoins using a reliable crypto investment platform, choose Bitcoin Era.
