How much to Invest in Bitcoin- Five Factors to keep in mind.
The key to any good investment is to know and understand all the aspects of it. If you dive in blindly, you might sink. So it’s best to go through all the factors of investing. When it comes to newly emerged ideas like cryptocurrency, you definitely need to be extra careful. There are are variousgthings you should consider before deciding how much you should invest in Bitcoin, considering it’s unstable prices. Let’s discuss some of these below:
Needless to say, the investors became attracted to Bitcoin during its peak time. It was an air of change and adoption of digital currency globally. It’s only logical that people will follow the media which always highlights the latest trends. Timing becomes a crucial factor to be considered for investment because every market haba a cycle of rise and fall. If you analyse the data and study it closely, you’ll observe a repiting pattern, although the exact values keep changing, the phases maybe predictable. Thus, you should check the current market status in order to be sure about the possibile profit you are eligible to receive.
Trust me on this, the major reason why so many people are in dilemma about investing is because they cannot stick what they say due to fear or hesitation. The very first step to invest in Bitcoin is to to firmly decide that you actually want to invest in Bitcoin. That being said, you must also have an open mind so that you can be flexible in your approach- Let’s say you want to invest $10,000 over the next 12 months. But the market is currently close to its peak Instead of investing $830 every month, you can adjust the amount to start with $300 per month and invest more to compensate when the prices go down.
The Bitcoin market is very volatile. The value of Bitcoin despite being at it’s peak in 2017, plummeted down to its 80% in less than a year. 2018 was not a great year for Bitcoin but 2019 averaged around $8000 per Bitcoin. 2020 is predicted to be a good year, with experts saying perhaps this is when the Bitcoin zenith with re-write itself. But in the end, it’s unpredictable and you’re still hanging on a cliff of “What it’s” again. Think of an amount that you won’t regret losing entirely. That’s how well proepared you should be while investing in a cryptocurrency like Bitcoin.
The uncertainty of Bitcoin value can be a blessing. It may enable you to get 200% return as a result of which you might become digitally very, very rich. When Bitcoin was soaring up high in 2017, a large number of investors became millionaires, no kidding! And in they had invested a large amount of their savings for this purpose. If they took the risk, and turned it into their profit. So can you. But I won’t encourage you to invest your entire life’s saving here, it’s unadvisable. A reasonable amount is how much you need to invest..
Many people might think that if they invest everything in cryptocurrency, they will become rich some day for sure. That’s not true. It’s unwise to put all your money at one place. That’s why it is better if you invest in stock like gold, stock or even real estate. That way, your money is invested in a diversified manner and you are not susceptible to more loss. Afterall, your portfolio needs to have minimal amount of risk attacked and that is only possible by including more than one asset.
Therefore, keeping these five factors in mind, you should be able to decide what amount of investment will be best for you. And remember, don’t ever invest more than what you are willing to lose.