Updated: 6 days ago
Author: David Buscot
Date of Publication: 18/12/2022
Since its inception in January 2009, Bitcoin has seen many drops in value. However, it also had its periods of strong growth. But is it worth investing in Bitcoin today?
What is Bitcoin?
Bitcoin is a virtual currency also called cryptocurrency. It is based on a blockchain. That is to say, a computer protocol of encrypted and decentralized transactions. What’s more, Bitcoin is the oldest cryptocurrency. Therefore, it is the safest.
The advantages of Bitcoin
Bitcoin has many advantages. In particular, one of them may be to diversify your portfolio. Indeed, diversifying your portfolio can help you protect against the fall of an asset. Another advantage is that it exists in a limited number of copies. Indeed, bitcoins exist in 21 million copies and 80% of these circulate in the market. Therefore, it is likely to become increasingly rare over time. As a result, its value is about to go up. Finally, turning to cryptocurrency is potentially looking to the future. Investing in Bitcoin will be a good experience for you in the field of cryptocurrency.
The disadvantages of bitcoin
One of the disadvantages of Bitcoin is that it is very volatile. Indeed, its price varies a lot in a short time. One can regularly observe falls of 20%. Another downside is that banks don't trust cryptocurrencies. In fact, banks cannot be sure of the provenance of this currency. Therefore, they can refuse the transfer. Bitcoin is a currency that is only managed online. You have to be tech-savvy to know how to manage it. In addition, it is necessary to know how to prevent cyberattacks.
How to invest in Bitcoin?
If you want to invest in Bitcoin there are different ways. You can go through online platforms such as Okex, eToro, or even Bitget. You can also go through an online bank like BitPanda or Revolut. Finally, it is also possible in some countries to open a Bitcoin wallet. However, if you choose an exchange site, take the time to check its reputation and reliability first.
In case of investment in Bitcoin
As previously explained, it is difficult to predict the evolution of the price of Bitcoin in the short term. If you invest, it will be in the medium or long term. We also advise you to invest in moderation. We recommend that you don’t exceed 10% of your asset portfolio. For now, the future of Bitcoin remains uncertain. However, the world of cryptocurrency has only just been born and is evolving. Over time, it should probably normalize and reduce its volatility. Last, bear in mind that if you really want to invest in Bitcoin, now it’s a good time. Indeed, the price of Bitcoin is at its lowest right now. So, you can hardly get it cheaper. Just to show you, here are two indicators: