Is Bitcoin a Good Investment?
Many people have asked: is bitcoin a good investment? It’s been a popular topic on social media for the past 13 years and has a high volatility, but many investors are unsure about whether to purchase it. There are several benefits to investing in bitcoin, including privacy and fewer fees. In addition, Bitcoin transactions are completely anonymous, which reduces transaction time and expense. However, there are also several risks. Here’s a closer look at this cryptocurrency.
While it’s impossible to predict the future of this cryptocurrency, the rise and fall of its price is worth considering. Bitcoin prices rose as much as 50% during the 2017 tech bubble, but it’s unlikely that they’ll return that much again. While investors can speculate about a future rise in prices, you should focus on the short-term, and not consider investing at the peak of the bubble. Bitcoin’s price may rise dramatically, but you’ll have to keep your investment. In any case, you should focus on the long-term.
Because of the volatility of bitcoin, it’s best to start small and only invest a small amount at a time. A small percentage of your portfolio should be allocated to the digital currency. Moreover, you should place stop-losses and take-profits on your Bitcoin investments. Your broker will automatically close your trades if these orders are not met. This way, you’ll avoid losing too much money at the start.