The answer to this question is always something that worries those who are not yet sure about venturing out and investing in Bitcoin. Get in here and answer it.
These days you can be part of two sides: one where you’d be extremely happy if you never heard of Bitcoin again; or another where your eyes simply glow with the mention of this famous cryptomonkey.
However, there’s a third group: the curious and undecided, who want to see whether or not to invest in Bitcoin.
If you are in this last group: Congratulations! This post is for you. It’s meant to give you an idea of why you might want to take a risk and give Bitcoin (BTC) a chance.
Firstly, BTC is one of the many crypt-currency options on the market. You can even say that it is the best known, as it has the highest market capitalization.
Bitcoin was created to democratize finance, and indirectly undermine the bank-dominated financial system.
Have a look for the best Bitcoin cold storage wallets and why you’re safe using them.
Bitcoin helps you diversify your investment portfolio
Diversification is a rewarding strategy, and Bitcoin can help you with that. This doesn’t mean that stocks and bonds are going to disappear.
What we want to emphasize is that a cryptocurrency like Bitcoin can help investors create even more diversified portfolios (with higher returns per unit of risk).
Bitcoin has historically acted as an uncorrelated asset, which means it doesn’t necessarily move with the stock or bond markets. As a result, it can provide returns on an investment portfolio that previous generations of investors could only have dreamed of.
- There is no minimum amount to start investing in Bitcoin
- The only best chance you had to buy Bitcoin was yesterday, because the price, even when it goes down gradually, tends to go up in the same way. This is when you can give yourself the opportunity to buy Bitcoins, without any specific amount.
This allows you to put as much money as you want into this market, no matter how small or large. Any amount will eventually be appreciated if market conditions allow it.
If you want more technical information, you should study how the crypto coin market has developed and the price of the BTC in just a decade. For that we recommend you visit Coinbase.
At this point, I want to clarify that the idea is not that you are a “Bitcoin preacher”, because although the rise in popularity of cryptosystems like Bitcoin is a fact for now; this does not imply that it cannot change in the future. What we could say, however, is that there is no trend that would indicate otherwise in a convincing way.
Bitcoin is getting support and recognition
With major financial institutions and corporations such as JP Morgan, USAA, Goldman Sachs and IBM supporting the crypto world, as well as Facebook’s announcement of creating its own currency, it seems that cryptocurrencies are here to stay.
As the industry continues to mature and grow, it may be prudent to research and learn how to invest wisely in the cryptocurrency markets, including Bitcoin.
Investing in your financial education is usually profitable, and a conservative strategy of buying cryptosystems or Bitcoin could pay big dividends in the long run.
It’s a volatile priced asset, but if you want to try your luck with Bitcoin, make sure you’re investing an amount you won’t miss if its price turns down.
That is, you should always make sure you’re putting in an amount that won’t hurt (too much) if it goes away.
Also, we always advise you to educate yourself as best you can. However, we also promote the potential that Bitcoin has for anyone who wants to venture into this type of investment.
The idea is that you don’t get so far behind in the curve where a few years later, you think about it and wish you had taken action. Without a doubt, Bitcoin is one of the few digital assets with high potential for future growth, even though it’s still considered a volatile crypto money currency.