One of the most common terms which you might have heard at least once in your lifetime is none other than Bitcoins. Some people think it is a technology-based coin, a virtual coin, or a valueless toy. Well no. It is just like a virtual or digital currency that exists in its virtual form. Just because you cannot feel or look at the coin in the world physically, does not mean you would let go of the business. Thus, if you want to be a part of the vital innovative trend now, then you can easily peek into the following article for more information.
Scope of bitcoin investment:
Bitcoin has gained huge popularity and millions of investors are choosing this option. If you think that the investor base is concentrated in one particular area only, then you might be the one standing in a misconception now. Investors from the USA, UK, and other countries are investing their funds in bitcoin, and some of them are also trading bitcoin regularly. There is no third-party involved and you can make transactions with bitcoin without using your banking account and server. Even, the government cannot control this crypto and it is based on a decentralized network.
As an investment option, bitcoin can give better returns than stocks and bonds because the value of bitcoin has raised around 800% in one year. To keep your funds safe, you need to use a reliable trading platform with an automatic trading robot at the Bitcoin trading platform.
You can gain a huge return from your bitcoin investment if you hold your coins for a longer period. It is not a wise decision to trade bitcoin daily because inter-day swings can impact your investment schemes.
Risks associated with bitcoin investment:
The main risk of bitcoin investment is its volatility. In simple words, if you step into the market of cryptocurrency, you would not come across the same price of the digital asset regularly as it keeps on fluctuating. Thus, if you have to be a part of the process, then you can check out the following article to get your hands on better opportunities. For example, the value of BTC is based on its supply and demand, and you can find it at its highest peak when the demand is high and supply is low. Apart from that, negative publicity on social media can also impact its value. So, keep your eyes on the recent trends to prevent such risks associated with Bitcoin investment. There are some common risks too, and here you can find such tips:
- Bitcoin is not a legal tender and the government of your state or country can implement strict regulations on it. Even they can also ban bitcoin trading within your country, like China. So, you can lose your funds and you cannot withdraw your funds invested in bitcoin if the government of the state implements such regulations.
- It is hard to predict the price of bitcoin because the value of this crypto can change anytime. You can face a huge loss if the value of such cryptocurrencies is dropped suddenly.
Trading tips for investors:
You need to verify your KYC to activate your account and you have to fund your account with fiat currency to buy bitcoin. Do not leave your coins in your exchange account, and you must use a wallet to store your coins.
It is better to start with a small amount and you can invest up to 5% of your portfolio in bitcoin.
Apart from that, you must choose the right trading strategy to get success and you can choose day-trading, short-term trading, or HODL strategy for the same.
Factors that affect the price:
- Supply and demand of this coin can reduce or increase its value of this coin.
- Apart from that, competitors of bitcoin can reduce the price of this coin, as there are many cryptos available in the market and people can choose such coins to diversify their portfolio.
Government regulations can restrict the mining and trading of bitcoin in selected countries and it can impact the price of this coin as well.
