Is it too late to invest in Bitcoin? This is the question interested newcomers in cryptocurrency usually ask. You are probably tempted to invest in Bitcoin as it continues to develop and grow. Who shouldn’t be? As of January 2, 2021, the conversion rate of 1 Bitcoin to US dollars is $33,000.
Bitcoin will potentially hit high this 2021. According to the 2021 predictions published in an article in Forbes, “2021 is shaping up to be the year that, across the board, Blockchain moves into the mainstream and a much wider range of economic sectors. Healthcare, transportation, and logistics are just a few of the areas that may benefit from wider blockchain adoption and implementation.”
Over the past year, Bitcoin price continues to skyrocket and has added over 300% surpassing its 2017 high at around $20,000.
So if you are asking, “is it too late to invest in Bitcoin?” the answer is it is not too late to invest. As long as you believe in the long-term future of Bitcoin and you know what you are getting involved in, then you should buy Bitcoin.
What is Bitcoin?
Bitcoin uses Blockchain to safeguard the Bitcoin network. This cryptocurrency was created in 2009 and is currently the largest cryptocurrency or digital currency. Unlike a dollar bill or coin, Bitcoin is not tangible and purely in electronic form. However, you can still convert this digital currency into physical cash. This is by transferring your cryptocurrency to a bank account or ATM and then withdrawing it into cash.
Cryptocurrencies can also be used as payment for products and services. In fact, there are about 15,174 businesses in the world that accepts Bitcoin.
Because of Bitcoin’s growing popularity, hundreds of other cryptocurrencies or alternatives to Bitcoins, also known as Altcoins, were launched. These Altcoins were launched to follow the success of Bitcoin.
Investing in Bitcoins
The reason why there are growing Bitcoin supporters is that they believe that cryptocurrencies are the future of money and could replace cash one day. The growth and value of Bitcoin continue to rise as more businesses accept this as a payment method.
Bitcoin is not backed by any banks or governments and was intentionally designed to become the international currency. Many also consider that the reason for Bitcoin’s sudden growth is that it can act as an alternative to traditional commodities like gold, and the supply is limited as only 21 million Bitcoin can be mined.
Since Bitcoin has a high demand and scarcity, like gold, many see it as a good investment. Just like any other investment, buying Bitcoins carries some risks. You can potentially gain huge returns on your investments but it also comes with great volatility.
Pros of Investing in Bitcoin
- Huge returns in just a short amount of time.
- Have more clear direction as you can evaluate the market clearly to determine your investment.
- Bitcoin is the first cryptocurrency that leads to the creation of other Altcoins, making Bitcoin high-valued and the desired asset.
- Have much more liquidity compared to other investment assets. Investors and hold Bitcoins for long periods or trade for other assets in the short-term.
- Bitcoin investing offers the opportunity to diversify portfolios. Investors can reduce exposure risks by spreading their investments
Cons of Investing in Bitcoin
- Bitcoin is highly unpredictable and volatile, hence risky.
- Hacking is a major threat, and it can cause investors to lose all of their investment quickly.
- Bitcoin is a scarce asset; it can run out of resources and be unable to continue operations.
- It is an unregulated investment leaving you legally unprotected. Lack of regulations can lead to fraud and scams.
Should you invest in Bitcoin?
Whether or not you should invest in Bitcoin depends on your investment goal and the risk you are willing to take. Before you decide to buy and start investing in Bitcoin, you must calculate the risk-reward ratio. This will help you decide if the potential reward of Bitcoin outweighs the possible risk.
There is no doubt that Bitcoin is one of the most popular and valued currencies, which helps give investors a chance to make a profit. If you want to invest in Bitcoin, then you should. Avoid trying to time the market because you can never buy Bitcoin at a good price. Bitcoin is the best-performing asset each year, and its value keeps growing.
So, forget the price and just focus on the opportunity. As long as you do your research and understand Bitcoin and see its value, it is never too late to invest in Bitcoin. You should also know about the crypto tax to become more financially aware.
To learn more about Bitcoin and how to invest in it, taking these online courses from Skill Success helps you understand the booming market and how to get the maximum benefit from investing in Bitcoin.
This is the ultimate beginner’s guide to cryptocurrency to help you get started right away. You will get an overview of the entire cryptocurrency world and how you can start to build your own portfolio. You will learn how to purchase, invest, and trade cryptocurrency and get free cryptocurrency by blogging.
This online course will walk you through the fundamentals and then present advanced information. It will also answer all the important questions about Bitcoin.
- What is Bitcoin?
- Why is it here?
- What is its purpose?
- How do you use it?
- Where is it going?
- Is it a good investment?
- Will it catch on?
By the end of this course, you already have the knowledge to buy, trade, and store Bitcoins securely, its future, and where it is going.
You must be a cryptocurrency like a pro first before you start to experience its full benefits. In this online course, you will learn:
- How to buy and sell Bitcoin with your currency
- How to deposit and withdraw Bitcoin and cryptos from crypto exchanges.
- Top 5 best and safe crypto exchanges
- The right place to store your cryptocurrencies
- How to secure your wallet
Ready to learn Bitcoin? Click here to get started.